Madam Speaker, I have found the debate so far to be very constructive. I am pleased that all parties appear to be in support of Bill C-37, the do not call list legislation, for the obvious reasons. Canadians are absolutely fed up with the intrusions on their personal lives.
I will comment briefly about the bill and then address the issue about registries and the relationship some members have drawn between the firearms registry and the do not call registry. As well, I will comment on the point raised by the member in his speech with regard to the impact of Bill C-37 on charities, which is not exactly a fair reflection of what we are talking about. These organizations are not for profit and are not registered charities. They do not issue receipts but fundraise for charitable purposes. That is the difference.
Based on polls cited by Industry Canada, 97% of Canadians have a negative reaction to these kinds of calls. Anyone with a valid telephone number will get a call and it will come at the worst possible time. All hon. members have received those kinds of calls.
Under the existing regulatory framework, the Canadian Radio-television and Telecommunications Commission is responsible for this area. The CRTC definition of telemarketing is the use of telecommunication facilities to make unsolicited calls for the purpose of solicitation where solicitation is defined as selling or promoting a product or service or soliciting money or moneys worth whether directly or indirectly and whether on behalf of another party. This includes solicitation for donations by or on behalf of charitable organizations. That is the way the law exists today.
As many members have noted, the industry committee has made a number of changes. These substantial changes have been highlighted on the reprint that came back from committee.
Current CRTC regulations state that telemarketers must remove a customer's name and telephone number from their calling lists upon request. Most members are well aware that it is pretty difficult for someone to get a word in edgewise with a telemarketer. If an individual has not given some indication that there is some interest in listening to the rest of the message, that call is terminated fairly quickly. Clearly something had to be done.
Under the current regulations, telemarketers who fail to comply with that regulation or other regulations can have their service suspended or disconnected by the telecommunications service provider. Penalties range anywhere from $10,000 to $250,000.
Telemarketing is a very lucrative business. About 18% of telemarketing calls result in some business being done. That is the reason why many telemarketing businesses are opposed to the legislation. It will impact their business.
The commission observed specifically that there would be better enforcement if the commission itself imposed appropriate fines on telemarketers that breached the rules. This is included in the bill. There also is the ability for the commission to delegate various administrative duties. It means that another independent organization could be established to administer the operations and administration of the do not call list. This is yet to be determined. I know a number of questions have been raised about the operations, the administration and certainly the cost.
As indicated at committee stage, a number of changes were made. When one thinks about it, the bill would establish a do not call list and would provide the legislative framework for the creation of the list and the administration of a national do not call list. This is important because now we would provide a one-instrument vehicle in which Canadians could say that they wanted to be on the list because they did not want to receive unsolicited calls from people trying to sell them goods or services for profit.
The major changes that have been made to the bill by the committee have to do with exemptions. The member who spoke previously talked about the exemptions, most significantly the exemption for a registered charity within the meaning of section 248 of the Income Tax Act.
We all understand the importance of charitable giving. I also have received a number of interventions from charitable groups and organizations that have registered charities, have a licence number and are able to issue receipts to Canadians who patronize their organizations, whether it be the local hospital, the Red Cross, the Terry Fox campaign or whatever it might be. These kinds of things the committee believe, and I think Canadians would acknowledge, are very significant instruments which have been used by the charitable sector to seek support for their charities.
The member who just spoke stated that there would be some impairment on the charitable sector. That is not exactly the case for a registered charity. We are talking about not for profit organizations that may very well do what would be characterized as charitable work or community service work. He mentioned, for example, the local Lions Club or Mothers Against Drunk Driving, et cetera. These organizations are not registered charities. They would not be exempt and would have to apply.
They are eligible, however, to apply to register as a charity and to have the full exemption that other charities enjoy. To the extent that traditional telemarketing techniques are a principal source of their revenue, it may very well be in their interest to register as a charity pursuant to section 248(1) of the Income Tax Act.
Three other exemptions that have not been talked about very much are also important. Political parties would be exempt. This probably will not excite a lot of the public because that means political parties will be able to continue to utilize their broadcast calling techniques for support purposes. A nomination contestant, a leadership contestant or a candidate of a political party also would be exempt, as well as an association of members of a political party. Therefore, the local riding associations would be exempt.
Under the Canada Elections Act, we have laws which try to enhance and promote our democratic electoral system. It is extremely important. I know members have come across the situation from time to time where they meet resistance. It might be a superintendent of a particular apartment building who says that he does not want anyone disturbing the residents. Under the elections law, candidates have the legal right to access the electors. It is here to complement existing law and it received the support of all parties.
Although it may seem like an exception that maybe Canadians were not thinking about, I very much expect that they would understand that it is important that those who seek to represent them at any political level of government have the ability to communicate with people using the telephone and why it would not be prohibited under this act.
The bill contains substantial definitions consequential to the exemptions that I mentioned. There are some administrative, monetary penalties that I am not going to go through. Members have already handled this very well.
The issue of funding has come up as well. The registry is expected to be funded on a cost recovery basis from the telemarketers themselves. As I have indicated, about 18% of the calls they make do generate revenue for them. It is a very substantial business and obviously there has been a reaction to this, but there appears to be considerable support for the do not call list. In a survey that Environics did on behalf of the Government of Canada, 79% of the respondents queried on telemarketing supported a national do not call list and 66% of the respondents said that they would likely sign up for this service.
There are a number of important priorities to balance. Obviously, it is important for telemarketers to be able to do their business, but there does come a point in time in which there is an intrusion which is beyond reasonable. Anybody who is in political life knows that prime time is during the dinner hour. This is when most people will get their calls. I am not sure what others' experiences are, but I consider phone calls to my home to be important. I ensure that I answer the phone within a reasonable period of time and it is quite a disappointment to be called away from dinner or from my family to answer a call from somebody who cannot pronounce my name.
I would mention that there is a proviso under the bill which says:
Any person making a telecommunication referred to in subsection (1)--
That means people who are entitled to do this.
--must, at the beginning of the telecommunication, identify the purpose of the telecommunication and the person or organization on whose behalf the telecommunication is made.
Therefore, even with regard to those who have an exemption under this, people are going to get, for the first time, information about who they are being called on behalf of and what this is all about. I think that is extremely important because often it starts off with “Hi, how are you” and a few other things to find out whether or not this is possibly a reasonable time to get our attention.
It is part of the marketing technique, but it is very clear that if people know right off the bat who they are being contacted on behalf of and the organization is identified, even from those who are authorized to make these calls, it will give Canadians an opportunity to indicate whether or not they are interested at all and to get off the phone and back to their families or their meal.
I suggested that some telemarketers did not support this legislation. There were some comments made by them. One suggested that the current rules for telemarketing are sufficient to regulate marketers, through voluntary means or company specific do not call lists that had been an industry standard for years among legitimate firms. That is an interesting statement for someone to have made, but the fact remains that 97% of Canadians have said they are annoyed by receiving these calls, so the current regulations are not working. This is not a valid position to be taken by the telemarketing industry.
It was further argued that being on a do not call list removes a customer's chance to learn about new products and services that could improve their lives in some way. It removes a business opportunity to reach a consumer direction.
I am sure that it does remove an opportunity, but all of a sudden now there is this balance between a consumer's right not to be effectively harassed. It seems that most people who have a need for a product or a service have ample opportunity, through the flyers in the various newspapers or that are deposited in their mailboxes or through the yellow pages or through the advertising that happens on television or radio or whatever, to apprise themselves of who is in the business and where they can get it. I really do not believe that is a compelling reason for this do not call list to proceed.
Some of the commentators have pointed out that there is an alternative to adding more regulation or more bureaucracy. When called by a telemarketer, an individual may request to be put on the company's do not call list and then hang up. In fact, that is the current regulation. Someone can make a specific request and under the current CRTC regulations telemarketers must do that, so I am a little concerned that even the telemarketing industry for some odd reason does not understand that these arrangements are already in place.
There are a number of organizations, particularly the Canadian Marketing Association, which support this legislation. It also represents the telemarketing group as well. Looking at what is necessary here, there is probably ample evidence that even the industry itself realizes that there is a balance to be maintained and that it should be self-funded by the telemarketing industry, and that there should be penalties for those who do not follow the legislation.
Let me conclude with regard to the costs. A number of members have suggested that while we know how bad registries can be, look at this terrible national gun registry and how much it costs. It was only supposed to cost $2 million and it actually cost $2 billion. However, when someone hears that, it seems to be incredible. How could that possibly happen? What they do not say, and watch the temperature of the water go up in here, is that there was a very significant backlash to establishing a national firearms registry. Handguns had been registered since 1966, I believe.
The additional registry was to register long arms. Let me suggest that long arms were in fact the addition to it. I was here at the time when Alan Rock was the justice minister. It really surprised me that criminal activity using long arms was actually greater than for handguns. I know that today criminal activity due to the use of long arms actually is half of what it was prior to the gun registry coming into effect.
I know that over 90% of the applications to register firearms under the new registry were deliberately submitted with errors on them to the extent that we could not have them processed electronically. This meant that human resources had to be hired in extensive numbers to process them manually and to contact all of the registrants.
I would suggest that when the lobby against having a national gun registry counsels gun owners to falsify information or to make mistakes on their registry applications so that it messes up the system, it is going to cost more money. It is like the demonstrators in the Los Angeles riots. The local people were trashing their own neighbourhood and said, “there, take that”. Well, yes, it did take more money to do it.
What are the consequences? We do know that long arm crime has gone down. We do know that front line policing officers consult and go to the national firearms registry on an average of 5,000 times each and every day. That is over 1.8 million consultations with the national gun registry. Furthermore, one would ask, why is it that front line police officers would want to go and look at the national firearms register?
I can think of some examples. For instance, if I am a police officer and I am called to a particular address for an incident of some sort, I want to consult the registry to find out whether or not there is a firearm in that home and whether or not I should take specific precautions. I also want to know that if I find guns, whether or not I can find out whether a firearm has been properly registered and, if not, whether additional charges are to be laid.
When we objectively look at this, we can say that Canadians support it. I know that in my riding, when we did a survey, we had over 75% of the constituents, and in fact in Ontario, supporting a national firearms registry for safe communities, for safe streets and to protect Canadians.
The national firearms registry has nothing to do with some grandiose plans to somehow run away with everyone's guns. All I know is that we have a national firearms registry that is consulted at least 5,000 times each and every day by front line policing officers.
I know that gun owners can continue to collect firearms today. I know that target shooters and sports shooters can continue their hobby. I also know that collectors can continue to collect and to hunt. Nothing has changed. The cost of registration for individuals was not an enormous amount of mone; it was a reasonable amount.
Probably the most important feature of this national registry is in terms of its operating costs. Costs are now being limited to a maximum of $20 million a year. It has been demonstrated to Canadians that there are rules to the game and responsibilities of owning a firearm. People have now properly registered their guns and been properly trained. Gun owners properly store their guns and their ammunition, and use it appropriately in terms of transportation and use.
Having said that, it is very clear that Canadians now are familiar that gun owners who are registered owners are really the responsible ones and Canadians as a whole feel more comfortable knowing that firearms are being used more responsibly. That is the benefit of the national firearms registry system. That is why this government supported it back then and that is why we support it still today.