Crucial Fact

  • His favourite word was tax.

Last in Parliament October 2000, as Progressive Conservative MP for Markham (Ontario)

Lost his last election, in 2000, with 19% of the vote.

Statements in the House

Competition Act March 16th, 1998

Mr. Speaker, it is my pleasure today to speak on a bill that is important to the success of business competition in Canada. It is a bill that introduces amendments that will modernize regulations for the Canadian business environment. The amendments in Bill C-20 strive to guide business in a fair and more equitable fashion.

The Canadian Competition Act was last substantially amended in 1986. These amendments gave Canada a powerful law that served the business community well. However with the huge changes in the technology of doing business and the rapidly evolving marketplace, the law is long overdue for revision and review.

We understand that in 1995 the director of investigation and research released a discussion paper which had been sent out to 1,000 interested parties. About 80 responses were received regarding the proposed changes to the Competition Act. We also understand that the director set up a consultative panel whose mandate was to discuss the comments made within the discussion paper and to hold indepth reviews with concerned parties.

Over a year later in April 1996 the report of the panel was released and provided the basis for Bill C-67 which died on the Order Paper in the last Parliament. Almost another year later we finally get to debate Bill C-20 which is essentially the same as Bill C-67.

However through my own consultation with concerned parties, there are segments of this new bill that are radically different than those existing in C-67. The addition of amendments that have not passed through the same rigorous debate with the consultative panel has me concerned. Is this government trying to slip these through discreetly?

There were four main amendments that existed in Bill C-67 which have not changed. These will require adjustment.

I would like to focus on these aspects of the bill: misleading advertising, ordinary price claims, pre-merger notifications and deceptive telemarketing practices.

Misleading advertising practices can and do have serious economic consequences especially when directed toward large groups or done over extended periods of time. Misleading advertising is detrimental to both competitors who follow the rules and engage in honest promotion and to consumers themselves.

Covered under the act are such promotional tricks as double ticketing, where the higher of the two ticketed prices is charged, pyramid selling, and bait and switch selling when a product is advertised at a bargain price but a reasonable supply is not available.

Proposed amendments to the Competition Act relating to misleading advertising are intended to change the focus on the misleading advertising and deceptive marketing practices provisions from punishment to quick and effective compliance.

In discussions with key members of the Canadian marketplace, I believe this amendment is acceptable. We are supportive of this amendment in philosophy. The creation of a dual criminal-civil system is expected to result in the majority of cases involving misleading advertising being dealt with through civil means, including such remedies as cease and desist orders, corrective notices, consent orders and where needed, administrative monetary penalties.

The competition bureau will then have to create a set of guidelines which clearly explains to retailers and businesses what types of misleading advertising will result in civil penalties and which will result in criminal enforcement. We strongly urge the competition bureau to have full public consultations regarding these guidelines as this issue is very important.

Ordinary price claims is a powerful marketing tool used by retailers and businesses. It is the representation of significant savings by the reduction of a regular price.

Consumers often wait for items to go on sale before purchasing. Many companies will say that their product is on sale when in fact a number of these businesses usually sell that item for that price.

Section 52.1(d) currently prohibits materially misleading representation to consumers regarding the price at which items and similar products are or will ordinarily be sold. There are certain criteria which must be met for a business to claim that an item is at a discounted price as opposed to its regular price.

The current provisions in the act do not clarify sufficiently the circumstances which determine whether a retailer is making an ordinary price claim properly. The competition bureau listened to concerned members of the retail industry who asserted that a significant number of businesses could not comply with a test based on sales volume and that a time based test would be better suited to their situation.

Through discussions with the consultative panel, the competition bureau and the members of the retail industry, it was agreed that the amendments represented in Bill C-20 for regular price claims are fairer and more equitable. The test for ordinary selling price will now consist of two parts: a substantial volume of the product that has been sold at or above the claimed regular price within a reasonable period of time before or after the making of the representation, or the product has been offered at or above the claimed regular price in good faith for a substantial period of time or immediately after the making of the representation.

Although some of the terms in the testing prescriptions are ambiguous, members of the retail and commerce community which I have spoken with feel that the setting of rigid tests would not be in the interests of Canadian businesses or consumers. Stringent tests would not allow retailers to act and respond according to competitive initiatives and other market dynamics.

We are comfortable that the guidelines as they exist in the amendments will effectively eliminate some of the confusion around the regular price claims and that setting guidelines in this area will also help businesses understand the parameters for effective pricing policies, yet there is flexibility for the exercising of judgment.

The one area that should be excluded from the regular price claims arena would be the critical issue of clearance sales. We urge the government to look into this aspect of pricing and ensure that the scope of the ordinary price claims provisions explicitly excludes clearance pricing.

Pre-merger notifications is another area I would like to address. Companies are obligated to notify the Competition Bureau of a proposed merger when two thresholds set out in the Competition Act are met. However, the consultative panel and many of the business community recognize that a vast majority of transactions that are subject to pre-merger notification do not raise serious competitive issues. This concern can be mended by raising the thresholds in sections 109 and 110 of the Competition Act and by creating additional exemptions.

Raising the pre-merger notification thresholds and creating additional exemptions is now more essential than ever. As of November 1997 there was a substantial fee of $25,000 plus $1,750 in taxes imposed with pre-merger notification filings. Because so many transactions are caught due to the low thresholds, we believe that raising these thresholds would not only alleviate the number of cases the bureau would have to review, but it would also allow the thorough research of the cases that are truly detrimental to competitiveness in Canada.

The increases that have been suggested to me from key members of the business community include raising the size of parties and their affiliates' threshold in section 109 from $400 million to $500 million. I believe when this came out it was $400 million, but through inflation that is equivalent to $530 million, so $500 million is reasonable. Raise the size of transaction thresholds in section 110 from $35 million to $50 million, and in the case of amalgamations from $70 million to $100 million.

The recommended increases in the above noted thresholds are particularly warranted in view of the fact that these thresholds have caught substantially more transactions than initially contemplated.

There is little risk of substantially lessening or preventing competition by increasing the size of parties and their affiliates' thresholds because, one, the director has the ability to challenge a merger up to three years after its completion. Two, this fact clearly leaves merging parties, where there is any material overlap between their operations, to submit a significant amount of information to the bureau in support for a request for some type of comfort that their transactions will not be challenged subsequent to closing by the director. Finally, in any event, only a handful of mergers each year raises serious competition issues.

In addition to raising the thresholds, we are looking also at the possibility of reducing the burden of information that the bureau requests for pre-merger notification. The amount of time and effort it takes for a member of the private sector to prepare the pre-merger notification is not justified.

We believe that the bureau receives information not pertinent to mergers and that the filing of this information is time consuming for the companies giving notice. We suggest that this burden could be reduced by streamlining the amount of information required to be filed. This streamlining is likely to be accomplished through the joint operation of the proposed amendments of the act, which would transfer the information required currently in sections 121 and 122 of the act to the notifiable transactions regulation and the proposed revisions to the regulations. However, those revisions will substantially increase the amount of information required for long form filing imposing a substantial burden on merging parties.

Clause 31 of Bill C-20 still allows parties to have a choice between filing either a short or long term form. The commissioner, formerly the Director of Investigations and Research, would have the discretion to require a long form filing if the short form filing is considered to be insufficient. The information that is required for these filings would be set out in the regulations rather than the act, as is currently the case.

Due to the information requirements being moved from legislation, which would receive full public review before amendment and being transferred to regulations, there are many parties concerned that the final wording will be decided by the commissioner alone. We have some serious concerns that we will present in the committee stage as amendments to Bill C-20 as we see fit and what has been suggested to us by those outside the Department of Industry.

Everybody is concerned about deceptive telemarketing practices. We recognize that telemarketing is now a $500 billion business in Canada and in the U.S.

In recent years, total telemarketing sales in Canada and the U.S. have exceeded $500 billion per year. While most telemarketing activities are legitimate, unfortunately some are not.

The report of the Canada-U.S. working group on telemarketing fraud highlights that telemarketing has become one of the most pervasive and problematic forms of white collar crime in Canada and the U.S. It is estimated that this form of crime accounts for as much as 10% of the total volume of telemarketing. In Canada that would mean $4 billion annually.

There is no doubt that telemarketing has seen an increase in deceptive marketing practices. However, it must also be recognized that telemarketing has its place in today's competitive marketplace.

There are some specific concerns that members of the marketplace have expressed regarding the wording proposed to define what telemarketing is. Subsection 52.1(1) defines telemarketing as a practice of using interactive telephone communications for the purpose of promoting a product or any business interest. This definition requires either a greater clarification or the addition of exceptions to ensure that the provision is not amenable to an overly broad application to entities whose services are not meant to be targeted by the legislation.

We suggest that it be made clear in the legislation that the provisions be confined to live voice communications. We would like to see the words “live voice” placed before the words “interactive telephone communications” in the wording of section 52.1.

Other changes to the current act will require the disclosure of certain matters either at the outset of the telephone communications or in a fair, reasonable and timely manner.

The item which many want to see expressed outright in the telephone interaction include the identity of the person on behalf of whom the communication is made, the nature of the product or businesses being promoted, the purpose of the communication, and in the case of price of the product being promoted and any material restrictions or conditions applicable to its delivery.

We request that there be a particular exception made with regard to instances where the price of the product cannot be determined at the time of the telephone call. For example, in the case of mutual funds and other securities whose prices may not be known until the end of the day, we ask that the required disclosure be made within a reasonable period of time subsequent to the determination of the item's price.

We recognize that telemarketing fraud is a serious crime and needs to be identified as such. We will not stand by and allow there to be $4 billion in losses a year in Canada because of this type of behaviour.

However, the competition bureau tells us that it intends to seek permission to use wiretapping in cases of egregious behaviour. There is some uncertainty as to how this wiretapping will be used. This is an extremely sensitive area for the business community and yet it has been given no discussion.

The proposal in Bill C-20 which deals specifically with permitting judicially authorized interception or wiretapping concerns many individuals, corporations and members of the retail and commerce groups across the country. This segment of Bill C-20 was never brought before the consultative panel, was never reviewed in discussion papers or made its way into any panel report. The government has decided to slip in this amendment.

Why does it exist in Bill C-20? The proposal in Bill C-20 will amend section 183 of the Criminal Code to allow wiretapping without consent of private communications in connection with investigations under the conspiracy, bid rigging and deceptive telemarketing offences of the act.

The conspiracy provisions in section 45 of the Competition Act set out two points that must be proven to convict of conspiracy. First, there must be an agreement and, second, the agreement must be anti-competitive. Wiretapping only proves the first point of the two necessary to convict under the Competition Act. However, in most cases this point is not the one that makes or breaks a case.

What must be proven for a conviction in most cases is the second point and this is not provable with a wiretap.

Most cases are lost solely on the point of trying to prove that the agreement was anti-competitive. Given the broad definition of telemarketing that currently exists, we are concerned that wiretapping powers could be used in a wide range of situations that most Canadians would not consider to be justifiable.

We need to clarify what situations will warrant wiretapping. There must be stringent administrative filters and strict legal procedures that will limit usage to what is only absolutely and undeniably necessary.

We do not feel a need to push this provision through at this time and would like to have a further round of consultation on this matter.

The amendments to the Competition Act are long overdue. I look forward to reviewing Bill C-20 in committee and working with other members of this House to come up with a bill that is practical, understandable, equitable and fair to all, a bill that does not give unnecessary and overly evasive powers to the government where private ventures are concerned.

Competitiveness is essential to a successful Canadian marketplace and the Competition Act has served all Canadians well for decades. Now we must work to keep it moderate and functional.

Year 2000 March 16th, 1998

Mr. Speaker, Ray Thornton, Royal Bank vice-president for risk management, says he cannot imagine any corporation surviving if it is not year 2000 ready. Executive members of Canada's other leading banks agree that if companies do not get with the program before it is too late, they do not have a chance of surviving. It is a fact that companies that are not year 2000 compliant may not be here in the year 2000.

My question is for the Minister of Industry. Is there one person in this government who will be accountable and responsible to make sure that our country will be ready for the 21st century?

Toy Labelling March 16th, 1998

Madam Speaker, today I rise to speak to the motion by the member for Acadia—Bathurst. It reads as follows:

That, in the opinion of this House, the government should enact legislation mandating toy manufacturers to label toys containing phthalates in order to allow parents to make an informed decision when buying products for their children.

This motion was introduced following Greenpeace's allegation about additives in vinyl toys. They alleged that phthalate esters, a common family of chemical products, represented danger to children. However, they have been used safely for over 40 years in toys as well as health sensitive applications. These include blood bags, catheters, IV tubing and surgical gloves.

As they are used in a wide range of products, no other plasticizer has been subject to the same level of scrutiny and testing.

Last fall Health Canada released a report conducted by the product safety bureau, Environmental Health Directorate, that concluded that the lead and cadmium present in these vinyl consumer products does not pose any significant risk to children.

Health Canada has undertaken a risk assessment of phthalates and will be releasing the results later this spring. It is in the best interests of parents and children to wait for Health Canada's risk assessment. The decision to label toys should be based upon sound science.

At present there is no scientifically validated evidence that show DINP is presently posing a health risk. The significance of labelling could be seriously undermined as a responsible way to inform parents about toy content.

Our party respects and expects the health safety of our children to be foremost when buying products. We must be sure that there is a clear and very present risk to warrant labelling. However, our party will be the first to approve appropriate labelling should the scientific and regulatory agency state that this chemical family presence presents any sort of risk.

The recent Danish studies cited by Greenpeace have been discredited; one, for producing unrepeatable results and the other for false methodology. Standards must, however, be put in place by Health Canada's product safety bureau. There needs to be a regulatory standard for intake just as the European Union has already taken the authority to put in place a maximum daily intake of DINP.

We cannot support this motion until the necessary scientific protocols have been established and Health Canada has in place regulatory powers under Health Canada's product safety bureau.

Access To Information Act March 13th, 1998

Mr. Speaker, it is with pleasure that I rise today in support of Bill C-216, the act that will bring several new crown corporations under the umbrella of the Access to Information Act.

When the bill was debated in the House back in December my colleague from Tobique—Mactaquac spoke to it. He addressed some concerns our party had with sections of the bill. There are concerns by some crown corporations that their competitors would be able to secure competitively sensitive information which could then be manipulated in such a way that would put the concerned corporations in a vulnerable position.

We have researched into the concerns of the corporations and have learned that under section 18 of the Access to Information Act these institutions can effectively exempt information of a sensitive nature in the competitive arena.

The PC Party through our party's address to the House on December 1, 1997 asked that the issues about which crown corporations were concerned be dealt with to cover all possible aspects that could jeopardize the competitiveness of these institutions.

Under sections 18 and 20 of the Access to Information Act these concerns have been addressed. Sections 18 and 20 are lengthy and I will not read them word for word, but I would like to say a few things in general about what these sections will cover.

Overall one section allows the withholding of information that is reasonably deemed to be of competitive sensitivity. In section 20 the act deals not only with government institutions but specifies that information provided by a third party to the government fall under many of the same stipulations as section 18 does for government owned information. This lends protection to corporations that may have concerns about their competitively sensitive information being available under the Access to Information Act.

We in the PC Party believe in more openness in government, but we also believe that competitiveness in Canada is essential to a successful marketplace. We do not want to jeopardize that balance of openness and competitiveness privilege by opening up information so much that it is easily used to take down one's competitors. We believe that this balance has been struck in the bill and we support it.

Year 2000 March 13th, 1998

Mr. Speaker, thousands of dollars are being spent to try to fix the problem of the year 2000. The year 2000 task force agrees that many small businesses and enterprises may risk putting themselves into massive debt to address this problem. Many companies cannot afford to start working on the millennium problem but at that same time they cannot afford not to.

Will the Minister of Finance state now that he will introduce and implement a tax neutral initiative to encourage small and medium size enterprises to act immediately?

Year 2000 March 13th, 1998

Mr. Speaker, according to Y2K expert Peter de Jager there should be no debate over whether or not the year 2000 problem exists.

With no direction or overall plan of attack by this government, thousands of businesses of all sizes will lose money, time and risk bankruptcy down the road in trying to tackle this inevitable deadline.

Is there any one person in this government who is responsible and accountable to ensure that businesses can make a smooth transition into the 21st century? If so, will that person please stand and be recognized for the record?

Year 2000 March 13th, 1998

Mr. Speaker, the message is clear. The Liberal government has only scratched the surface of the Y2K problem. There is a lot of work to be done with only 460 working days left. Next to World War II the Y2K problem could be the second largest disaster in the history of the world.

The potential risks of the Y2K problem to Canada include the loss of 200,000 jobs, a technology solution estimated at $12 billion to $50 billion, legal costs that could be five times the technical costs, and one in ten Canadian businesses could fail.

The government originally stated that it would cost $500 million to fix this problem. Now the estimates are rising daily. In some instances the final numbers on costs are coming in at five times the original estimates.

We must have someone in the government who is accountable and responsible to get this problem fixed and lead us into the next millennium.

To quote from an expert “there has never been a manmade technical problem that will impact so many businesses, so many government groups and cause so many problems at a personal level”. The clock is ticking.

Immigration March 12th, 1998

Mr. Speaker, my question is for the Minister of Citizenship and Immigration.

Recommendation 35 would impose a tuition fee on all those over six years of age who have not in a standardized test reached a level considered to be of a basic knowledge of one of our official languages.

Currently the federal government imposes an entry fee of almost $950 under the LINC program, which is supposed to cover language training and other adjustment routines for new immigrants.

Will the minister today commit to saying no to this recommendation based on the last two weeks of consultations on this report?

Trade February 23rd, 1998

Mr. Speaker, the current agreement on interprovincial trade does not work. A recent Canadian Chamber of Commerce statement indicated that all levels of government have been given a failing grade. Overall the report card review graded Canada a dismal D .

The federal government has failed to show leadership in improving trade between the provinces of this country. It persistently encourages trade relations with other countries but fails to improve trade between Canadian provinces.

This is costing Canadian jobs. Why can this government not recognize that one of the strongest incentives to reducing interprovincial trade barriers is the enormous untapped potential that would boost economic growth?

Knocking down the remaining barriers would create another 200,000 jobs. When is this government going to take real leadership and ensure that parties comply? Governments need to renew their commitment and get the process moving again on all fronts.

I remind this government that economic union and national unity are inseparable. The stronger the economic ties this government can nurture, the stronger Canada's national fabric.

Supply February 18th, 1998

Madam Speaker, I heard the member from Calgary bring this up the other day in the House. If he had called me instead of making the comment in the House he would have found out exactly what I said.

I agree with what Mike Harris has done. In this country, in the last nine months of 1997, 270,000 jobs were created. Of those 270,000 jobs 216,000 were created in Ontario. That proves that high taxes cost jobs.

What I said is that on issues such as the megacity people are saying that maybe the Harris government could communicate a little better. Government could be a little more consultative when bringing people into the process so they understand and accept what the problem is and what the government is trying to do.

I did not say I was against Mike Harris and I did not say I was against his tax cuts.