Evidence of meeting #62 for Finance in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was work.
A video is available from Parliament.
5:30 p.m.
Liberal
Scott Brison Liberal Kings—Hants, NS
So the expectation is that the government will accept advice from these groups as part of this change, after the decision to disband the National Round Table on the Environment and Economy is implemented?
5:35 p.m.
Director General, Strategic Policy Directorate, Department of the Environment
It's not the expectation that the government will follow the advice of any one organization, just as the government was not obligated to accept or follow the advice of the round table. These are sources of information on which the government can draw, but ultimately the decision on how to move forward can and should rest with the government, as opposed to either the round table or outside organizations.
5:35 p.m.
Liberal
Scott Brison Liberal Kings—Hants, NS
I think that's a fair comment given that all three organizations have recommended keeping the National Round Table on the Environment and the Economy.
5:35 p.m.
Conservative
The Chair Conservative James Rajotte
Okay, thank you colleagues.
Thank you very much for presenting to us today and responding to our questions. We will now move on to division 41, the Telecommunications Act.
Welcome to the committee. Please present the rationale for these amendments.
May 28th, 2012 / 5:35 p.m.
Pamela Miller Director General, Telecommunications Policy Branch, Department of Industry
Thank you very much.
I'm Pamela Miller, director general of the telecommunications policy branch at Industry Canada, and with me is my colleague, Allan MacGillivray. Division 41 would amend the Telecommunications Act to make two separate sets of changes. First, the amendments in clause 595 would implement the changes to telecom foreign investment restrictions that were announced by the Minister of Industry on March 14. They will allow telecom carriers with less than 10% of total annual revenues from the provision of telecom services to operate in Canada without being subject to the Canadian ownership and control requirements. These changes will help telecom companies with a small market share to access the capital they need to grow and compete. Carriers that are so qualified would be able to continue to operate if they grow organically past the 10% threshold, provided that the increase beyond 10% did not result in the acquisition of another carrier or of assets used by another carrier to provide telecom services.
The second set of amendments pertains to the enforcement functions for the “do not call” list. The changes in clauses 596 to 601 would permit the Canadian Radio Television and Telecommunications Commission, the CRTC, to impose fees on telemarketers to support the CRTC's cost of enforcing the “do not call” list and other telemarketing rules made under the telecom act. These amendments would also allow the CRTC to delegate responsibility for collection of these fees to a third party. By these actions, the cost of the enforcement and investigation shifts from the CRF to the telemarketing industry, thereby saving money.
In brief, those are the two sets of changes that are being made through these amendments.
5:35 p.m.
Conservative
The Chair Conservative James Rajotte
Okay, thank you for that presentation.
We will start with Mr. Caron.
5:35 p.m.
NDP
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
Thank you.
Which standing committee is responsible for the Telecommunications Act and the CRTC?
5:35 p.m.
Director General, Telecommunications Policy Branch, Department of Industry
The Standing Committee on Industry, Science and Technology.
5:35 p.m.
NDP
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
Is the Standing Committee on Industry, Science and Technology going to be examining it?
5:35 p.m.
Director General, Telecommunications Policy Branch, Department of Industry
Yes. It has already been examined.
5:35 p.m.
NDP
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
By the Standing Committee on Industry, Science and Technology?
5:35 p.m.
Director General, Telecommunications Policy Branch, Department of Industry
Yes.
5:35 p.m.
Director General, Telecommunications Policy Branch, Department of Industry
Two years ago.
5:35 p.m.
Director General, Telecommunications Policy Branch, Department of Industry
Two years.
5:35 p.m.
NDP
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
Has the amendment itself, the one proposed, been submitted to the Standing Committee on Industry, Science and Technology?
5:35 p.m.
Director General, Telecommunications Policy Branch, Department of Industry
The issue of foreign investment changes was looked at by the industry committee.
5:35 p.m.
NDP
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
I understand that, but has the Standing Committee on Industry, Science and Technology examined the specific amendment referring to the 10% market share, or is the committee also going to examine it?
5:35 p.m.
Director General, Telecommunications Policy Branch, Department of Industry
They looked at a number of different options that were put on the table at that time.
5:35 p.m.
NDP
5:40 p.m.
Director General, Telecommunications Policy Branch, Department of Industry
They looked at the 10% option as well as others.
5:40 p.m.
NDP
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
We are talking about an amendment that will amend the act. It was announced in February. So we might pay specific attention to that option, the one that was selected.
I will ask the question again. After the decision by the minister and the announcement that foreign ownership of companies with less than a 10% market share will be allowed, was that decision studied in greater depth by the Standing Committee on Industry, Science and Technology?
5:40 p.m.
Director General, Telecommunications Policy Branch, Department of Industry
No. After the announcement, there was not a first study.
5:40 p.m.
NDP
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
Thank you. That was my question.
There is also a specific question I would have liked to submit to the industry committee, on which I used to sit, but because we are the ones who are examining it....
As I understand it, three companies in Canada have more than a 10% market share. Hypothetically, although it is in the realm of the possible, we can imagine that one of the new entrants is bought by an American, European or other company, its market share comes to 15% to 20% of the market within 10 or 12 years, and the share of one of the three existing companies that have more than a 10% market share declines to 15% or 20% of the market.
Am I mistaken if I say that the two companies would be subject to different rules: one would have access to foreign capital and the other would not?