Mr. Speaker, I am pleased to have the opportunity to stand in the House today to share my thoughts on Bill C-273, An Act to amend the Competition Act and the Canadian Environmental Protection Act, 1999 (right to repair).
I commend the member for Windsor West for bringing the bill before us today.
In short, the auto industry is being asked to make available to third party repair shops intellectual property information and diagnostic equipment, among other things, perceived by some to be exclusively available to auto dealerships.
This is a matter of utmost importance involving issues of vehicle safety and the protection of intellectual property rights of auto manufacturers on the one hand, and small business needs for information on the other.
Though a challenge in striking a balance between competing interests, it is one that can be met without the need for invasive legislation, the effect of which will lead to the complete erosion of intellectual property rights of auto manufacturers and manufacturers of other equipment whose IP rights will be threatened by this precedent setting legislation.
I would like to spend a moment to offer my specific concerns with regard to Bill C-273. We know that Canada's non-franchised, non-dealership repair facilities conduct the majority of parts and service business in Canada. Clearly the absence of this legislation will not be a threat to an already thriving industry.
Another important fact is that a significant amount of repair and diagnostic information is often already available to the independent mechanics in garages through third party information providers on line for a monthly fee.
Further, with the advent of new technology like powerful hybrid batteries requiring expensive tools, gloves and diagnostics, only the best equipped mechanics can manage the safety issues arising with specialized equipment.
Other than two or three very large national auto repair shops able to afford the training and equipment required to conduct such services, who are we really helping? Would we be passing legislation to accommodate only two or three national repair shops when they all otherwise have access to necessary information?
Manufacturers go to considerable expense to develop the technology that we see in automobiles today. They also go to considerable expense to develop the training, tools and diagnostic equipment dealers use to repair these cars.
We are all well aware of the significant challenges facing our auto industry today. I believe it would be counterintuitive to place additional demands and regulations on the struggling auto sector at this particular time.
General Motors alone is expected to close 300 dealerships across Canada as part of its restructuring. I am assured that the location of dealerships closed will be strategic so that access to dealer servicing will remain available.
This is not the time for Canada's sagging auto industry to be confronted with new challenges. At this time the industry is being hit by a tsunami of events: lack of credit, plant shutdowns and recession.
We are asking, demanding, that the auto sector restructure into a leaner, more agile industry. It is not the time to regulate the industry out of existence entirely by requiring it to give up intellectual property rights completely for the benefit of its competitors.
Frankly, this might be considered by some to be an affront to normal business ethics.
I was pleased to learn last week that the Association of International Automobile Manufacturers of Canada, the Canadian Vehicle Manufacturers' Association and the National Automotive Trade Association have committed to the creation of a voluntary framework on this very issue.
This co-operative effort will put in place a framework that would establish a voluntary system for the systematic dissemination of repair and diagnostic information; a positive first step toward the further dissemination of information.
Surely, successful voluntary efforts are preferable to yet more legislation. Imagine all the additional costs of passing the legislation, monitoring compliance, amending it and enforcing it; cost to the industry and government and in each case cost to the taxpayer.
Of particular interest to me is the national automotive service task force that exists in the United States. This voluntary task force is considered by the assembly industry, dealers, many in the auto service industry and consumers alike, to be common ground where the needs of consumers on the one hand and the safety concerns and intellectual property rights of manufacturers on the other are addressed satisfactorily.
The national automotive service task force is a voluntary, co-operative effort among the automotive service industry, the equipment and tool industry, and automotive manufacturers. The task force ensures that automotive service professionals have the information, training, and tools needed to properly diagnose and repair today's high-tech vehicles, assures the flow of relevant information, and includes a system to deal with complaints.
A Canadian version of this task force is what is ultimately proposed by the industry.
We will be told by some that the American voluntary system is legislated. In fact, only a very small part is, a part dealing with emissions. The vast majority remains, indeed, voluntary.
I have learned that the industry has already begun working groups, including manufacturers and after-market servicers, to develop the technical and non-technical provisions of a voluntary model, from tooling to training, with an estimated time of arrival no later than September 1, 2009.
Once fully implemented, the national permanent and voluntary Canadian agreement would create a framework to provide all Canadian after-market service and repair providers with the desired and agreed upon information from all Canadian manufacturers and distributors, in a similar fashion as in the U.S.
Canada's auto industry has a long and successful history of developing, implementing and enforcing voluntary memorandums of understanding. In fact, 14 voluntary memorandums of understanding have been signed to date and the industry has met or exceeded the terms of each one of them.
Legislating the forfeiture of the auto industry's IP rights is akin to demanding the forfeiture of a food retailer's secret recipe so smaller retailers can compete against the very creator of that secret recipe. This is not fair.
Indeed, in my discussions with multiple non-dealer repair shops, I have learned that in addition to already having access to necessary information online, often a simple call to the local dealer's parts and repair shop usually leads to a complete explanation of the necessary work to be done. The fact is that this legislation is described by many in the industry as a solution looking for a problem that does not now exist.
There is no doubt that should a voluntary framework fall short in Canada, we can then take the necessary steps to implement the requirements set out in the legislation before us today. However, we have the benefit of a successful voluntary framework project at work in our neighbour to the south. We can look to this model to guide us in developing a voluntary initiative in Canada.
I am not saying third-party repair shops should be denied access to required information. I ask this House, however, to look to the leadership and competence of the industry, and support a voluntary system for the dissemination of repair and diagnostic information rather than the proposal put forward by Bill C-273.
