An Act respecting cyber security, amending the Telecommunications Act and making consequential amendments to other Acts

Sponsor

Marco Mendicino  Liberal

Status

At consideration in the House of Commons of amendments made by the Senate, as of Dec. 5, 2024

Subscribe to a feed (what's a feed?) of speeches and votes in the House related to Bill C-26.

Summary

This is from the published bill. The Library of Parliament has also written a full legislative summary of the bill.

Part 1 amends the Telecommunications Act to add the promotion of the security of the Canadian telecommunications system as an objective of the Canadian telecommunications policy and to authorize the Governor in Council and the Minister of Industry to direct telecommunications service providers to do anything, or refrain from doing anything, that is necessary to secure the Canadian telecommunications system. It also establishes an administrative monetary penalty scheme to promote compliance with orders and regulations made by the Governor in Council and the Minister of Industry to secure the Canadian telecommunications system as well as rules for judicial review of those orders and regulations.
This Part also makes a consequential amendment to the Canada Evidence Act .
Part 2 enacts the Critical Cyber Systems Protection Act to provide a framework for the protection of the critical cyber systems of services and systems that are vital to national security or public safety and that are delivered or operated as part of a work, undertaking or business that is within the legislative authority of Parliament. It also, among other things,
(a) authorizes the Governor in Council to designate any service or system as a vital service or vital system;
(b) authorizes the Governor in Council to establish classes of operators in respect of a vital service or vital system;
(c) requires designated operators to, among other things, establish and implement cyber security programs, mitigate supply-chain and third-party risks, report cyber security incidents and comply with cyber security directions;
(d) provides for the exchange of information between relevant parties; and
(e) authorizes the enforcement of the obligations under the Act and imposes consequences for non-compliance.
This Part also makes consequential amendments to certain Acts.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

March 27, 2023 Passed 2nd reading of Bill C-26, An Act respecting cyber security, amending the Telecommunications Act and making consequential amendments to other Acts

Industry and TechnologyCommittees of the HouseRoutine Proceedings

December 10th, 2024 / 1:45 p.m.


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Winnipeg North Manitoba

Liberal

Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons

Mr. Speaker, the member raises a very important issue about the Internet, and threats on the Internet, in a number of ways. He spent a great deal of his time focused on Bill C-27, and understandably so since that is what the motion is about. The government has taken a very holistic approach in dealing with all aspects of the Internet in the form of legislation and regulations.

Quite often in legislation, we see a framework that is absolutely essential to support healthy and strong regulations that, ultimately, protect the interests of Canadians. It has been somewhat frustrating, as the member was frustrated when talking about what is taking place in committees; on the floor of the House of Commons, it has also been frustrating. The member referred to Bill C-27 being held up in committee, but he tried to put the blame on the government.

One of the biggest differences between the government today and the government while Stephen Harper was prime minister is that we are very open to ideas, constructive criticism, and looking at ways we can improve legislation. That means we have been open to amendments and changes. There have been a number of recommendations, but there was also an extensive filibuster on Bill C-27. It was not just government members but opposition members, much like we see filibusters taking place now on other aspects of the safety of Canadians.

For seven or eight weeks now, there has been a Conservative filibuster on the floor of the House of Commons, and there are other pieces of legislation dealing with the Internet that the Conservatives continue to filibuster. I am referring to Bill C-63, which deals with things such as intimate images being spread on the Internet without consent and child exploitation. We are talking about serious issues facing Canadians, including Bill C-63, that we cannot even get to committee because the Conservative Party has made the decision to filibuster on the floor of the House of Commons.

When the member opposite talks about Bill C-27, I can assure the member that the government is very keen on the legislation. We do not see how Canadians would benefit by splitting the legislation because both aspects are really important to Canadians. We should look at where it can be improved and we are open to that. We have clearly demonstrated that, but we need a higher sense of co-operation, whether dealing with Bill C-63 in the chamber or Bill C-27 at committee. Bill C-26 deals with cybersecurity. As I said, the government is very aware of what is happening on the Internet and our responsibility as legislators to advance legislation that helps establish a framework that will protect the interests of Canadians.

Earlier, I referred to a trip I took to the Philippines in the last five days. One of the companies we visited was a Canadian company, Open Text, that employs 1,500-plus people. We sat in a room that had this huge monitor of the world, and Open Text talked about how threats to infrastructure and to individuals occur every second. We are talking about a trillion type of number when it comes to computer threats occurring on a monthly basis. Open Text can tell where they are coming from and where they are going. It was a very interesting presentation.

No government has invested more in issues around AI than this government has, recognizing the potential good but also the extreme harm out there. We can think about different types of data banks. There are government data banks, such as Canada Revenue at the national level and health care records at the provincial level. There are the Tim Hortons, the private companies, and the data they acquire in their applications. The amount of information about Canadian individuals on the Internet is incredible. Technology has changed the lives of each and every one of us, whether we know it or not.

We can take a look at the number of cameras on our public streets, in malls and so on. We can think of the number of interactions we have on a daily or weekly basis, whether that is banking, which contains very sensitive information, or medical reports—

Message from the SenateOrders of the Day

December 5th, 2024 / 6:10 p.m.


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The Assistant Deputy Speaker Carol Hughes

I have the honour to inform the House that a message has been received from the Senate informing this House that the Senate has passed the following bill with an amendment to which the concurrence of the House is desired: C-26, an act respecting cyber security, amending the Telecommunications Act and making consequential amendments to other Acts.

Copies of the amendment are available on the table.

October 10th, 2024 / 10 a.m.


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Deputy Chief, Strategic Policy, Planning and Partnerships, Communications Security Establishment

Wendy Hadwen

Thank you for your question.

With regard to CAFCYBERCOM and everything to do with cyber operations, in its annual report, the Communications Security Establishment mentions that we have already made progress in implementing several operations, but without giving further details. Rest assured that, since Bill C‑26 was passed and provided us with the requisite powers, we have been exercising them.

You suggested that the newly announced CAFCYBERCOM was just a gathering of people taken from elsewhere, but I assure you that it's a very important gathering, because it puts us on a more equal footing with our allies.

I'll let my colleague tell you more about it. I can assure you that, from a Communications Security Establishment perspective, we are a very well-recognized ally of our Five Eyes partners for our capabilities in this area.

October 10th, 2024 / 9:50 a.m.


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Deputy Chief, Strategic Policy, Planning and Partnerships, Communications Security Establishment

Wendy Hadwen

Bill C-26, an act respecting cybersecurity, addresses exactly the 5G opportunity.

In other avenues of advanced technology, such as artificial intelligence or the advent of quantum computing, there is a significant amount of research under way within research agencies. CSE recently published, with the National Research Council, a call for proposals concerning artificial intelligence security.

October 10th, 2024 / 9:50 a.m.


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Deputy Chief, Strategic Policy, Planning and Partnerships, Communications Security Establishment

Wendy Hadwen

Mr. Chair, Bill C-26, an act respecting cybersecurity, is currently in the Senate awaiting second-reading. This will create mandatory reporting obligations for critical infrastructure, but only for those that are federally regulated—that's four sectors.

Access to Information, Privacy and EthicsCommittees of the HouseRoutine Proceedings

October 9th, 2024 / 4:25 p.m.


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Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Madam Speaker, I appreciate the question and especially that it is coming from a Conservative member.

He is asking us what thoughts we have in regard to legislation. I made reference in my comments to Bill C-63, the online harms act. I made reference to Bill C-26, which deals with cybersecurity. I made reference to Bill C-27, which deals with updating a framework so that we have regulations that address many aspects of the report.

The biggest barrier is not a lack of ideas or legislation. The biggest barrier is, in fact, the Conservative Party of Canada, which continues to prevent legislation from ultimately becoming law. On the one hand, the Conservatives talk about the importance of privacy for Canadians and the importance of cyber-related issues, but when it comes time to advance legislation, they are found wanting. If my colleague believes that we should have legislation, I would encourage him to allow legislation to get through.

Access to Information, Privacy and EthicsCommittees of the HouseRoutine Proceedings

October 9th, 2024 / 4:05 p.m.


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Winnipeg North Manitoba

Liberal

Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons

Madam Speaker, it is a pleasure to rise and speak on an issue that I know is very important to all Canadians. I wanted to make note of a couple of things before I really get under way. When we think of the Internet, I think that we need to put it into the perspective of how things have changed over time in a very significant way. I would suggest that applies more to the industry of technological changes related to the Internet and computers: it is virtually second to none, and it is something we all need to be much aware of. It is an issue our constituents are very concerned with. I think, at the end of the day, we need to recognize just how much things have changed and the importance of governments to show that not only do they understand the issue, but they also have taken tangible actions in order to address the many different concerns out there.

I will start off by saying there are a number of pieces of legislation that are all related to that technological change. If we canvass Canadians, we will find that there is a wide spectrum of ways they use the internet. There are many benefits to it, and there are many drawbacks.

The legislative agenda that we have put forward and advanced over the last number of years deals with both sides: How important it is to have a framework that enables us to protect, for example, the marketplace; and how important it is that we have laws that protect the victims of the abuse that takes place over the Internet.

I would like to cite three pieces of legislation and where they are at today. It is not necessarily because of the government's will to constantly push opposition members in trying to get through the legislation, but I believe that these are the types of legislation that a vast majority of Canadians would ultimately support. I can make reference to the issue of protection, for example. I think there have been four concurrence reports from the Conservative Party, this is either the second or third from the Bloc and I know the New Democrats have done a concurrence report. This is all during government business. Then we have had the issue of the matters of privilege. No Conservative is standing up saying, “Why are we doing these concurrence reports when we should be dealing with the privilege?” This is because the privilege is actually being used as a tool to prevent the discussion of legislation.

Why is that important to highlight right now? It is because one of the pieces of legislation we have been trying to push out of second reading is Bill C-63, the online harms act. That is a piece of legislation that ultimately protects individuals and our communities from inappropriate behaviour taking place on the Internet and creating victims. These are the types of things to which I question, what role does government have? This particular report raises a number of concerns on the impacts of AI and facial recognition. Imagine all the images on the Internet today that Canadians do not want on the Internet.

I am thinking of a breakup where one spouse is, without the consent of the ex, putting inappropriate pictures on the Internet. Bill C-63 is legislation that addresses an issue of that nature, yet it continues to be frustrated in terms of getting through the House of Commons on second reading. However, I know that a majority of members of Parliament who are sitting in the House of Commons actually support Bill C-63.

We have Bill C-26, which deals with the important issue of cybersecurity. When we think of cybersecurity, we can imagine the data banks out there collecting information and how critical that information is. We are defending and supporting Canadians, where we can, through issues related to privacy and the potential leak of data bank information.

There was a time when a data bank was paper-driven, and the shredders might have had good business at the time. I remember going into an embassy where I saw containers full of correspondence. Containers are disappearing as more and more things are becoming digital, and that applies in many different forms. In literally seconds, millions of data points can actually be lost and ultimately acquired by someone who might have malicious intent. However, we are still waiting for Bill C-26 to ultimately get that royal assent, not to mention Bill C-27.

Bill C-27 has a great deal to do with what we are talking about today. I think members need to fully understand, when we look at how important this issue is, that the last time we actually had a modernization of the acts that are in question, and I am referring to Bill C-27, was back in 2000, over 20 years ago, when iPhones did not exist. Can members imagine a time where iPhones did not exist? I can, and it really was not all that long ago.

When I was first elected, when I turned on the computer, the first thing I heard was a dial tone, a ding-dong, and then I was logged onto the Internet type of thing, and it took quite a while to get that connection. People used five-and-a-half-inch floppy disks. However, from 1995 to 2001, we really started to see an explosion of Internet advancement and technology, and it continues today.

Let us think about where the government has put its investments. It is not only toward protecting Canadians, but toward ensuring that communities have access to the Internet because of how critical it is to all of us.

We can look at one of the largest expenditures in my own province of Manitoba, which expanded broadband Internet into rural communities. It is being financed through the Canada Infrastructure Bank. Ironically, it is the same Canada Infrastructure Bank that the Conservatives say is doing nothing and has no projects. The leader of the Conservative Party has said he is going to get rid of the Infrastructure Bank. However, in Manitoba, we have seen the Internet expand through the Canada Infrastructure Bank.

The Internet is an absolutely essential service today. Back in the late eighties and going into the nineties, some might have said it was an option. Today, it is not an option. The year 2000 was the last time the act was updated. For almost a decade, Stephen Harper chose to do absolutely nothing to protect individuals' identifications from being consumed through the Internet.

This government, for a number of years, has been looking at how we can modernize the protection of Canadians through the Internet and how we can maximize the benefits of the Internet, while minimizing harms to society. Those are the types of initiatives the Government of Canada has been taking to show, in a very real and tangible way, whether with legislative or budgetary measures, that it understands the technology. We are going to continue not only to be there but also to invest in it. It is one of the reasons that Canada virtually leads the rest of the world in many areas, especially on AI and facial recognition. It is because we understand, looking forward, the role that they are going to play.

That is why it is so important to bring forward legislation and, ultimately, look across the way. In a minority situation, we need a sense of co-operation coming from all opposition parties. It does not take a majority of members to prevent things from happening in the House. All it takes is one political party. Any political entity in the House that has 13 or 14 members can cause a great deal of frustration, even though a majority inside the House might want to see actions taken. In the last federal election, a minority government was elected, but that does not take responsibility away from all political parties to take the actions necessary to support what is in the best interests of Canadians.

That is why I am standing up to speak to the report, which had a lot of work. I was not at the committee, but I can assure everyone that a great deal of effort would have been put into coming up with the report.

Having read some of the comments provided by the minister's office in response to the report, obviously the government has taken the report very seriously. If members want to get an appreciation for the content of the report, I would encourage them to take a look at it. They should also look at the response the government has provided to the report. I suspect that if they were to take a look at the response, they would find that once again, much as in the many comments I have put on the record thus far, we have a government that understands the issue and the report and has taken action, not only today but previously, to deal with the concerns being raised.

All we need to do is take a look at Bill C-27. In his response, even the minister made reference to Bill C-27. If members are genuinely concerned about the report, they should be sympathetic to at least allowing Bill C-27 to get out of committee. Why would that not happen? I can assure members, contrary to what the member across the way said, that as a government, we are constantly listening to Canadians. That is why we will find within our measures, whether they are legislative or budget measures, the thoughts and ideas of the people of Canada being reflected.

The Speaker's constituents, my constituents and all of our constituents are genuinely concerned about what is happening on the Internet today. To amplify that fact and the need for change, I quickly made reference to the year 2000, when we last had legislation. We had a big gap when absolutely nothing was done. I call that the Stephen Harper era. Then we had a government replace that era and it immediately started to work with Canadians to get a better understanding of the types of legislation and regulations that are necessary.

The best example that I can come up with, because of the explosion of iPhones out there today, is the issue of Facebook and how many people participate in Facebook. How many people own an iPad or iPhone or are on Facebook, Instagram or the many other social media, which did not exist in 2000? None of them existed. If that is the case, as I stated, I think a good question to pose is why there is resistance to supporting what Canadians want to see. Why would anyone oppose the framework legislation that we are bringing forward that would protect the interests of Canadians?

As I said, it is not like the Internet is an option nowadays. Today, it is an essential service. People will go to the Internet for a wide spectrum of reasons, whether it is streaming a favourite show from the past or something more recent, or looking at issues related to health conditions. I am always amazed at how the general knowledge of the population continues to grow on health-related issues.

That area has great potential, and it will incorporate AI and facial recognition. Non-profit and private organizations and even governments will use the Internet as a tool to deliver health care services and provide health care advice. Many people are taking that up and looking into it. That is one of the reasons that people will be living longer lives in the future. It is endless. That is—

(Bill C-26: On the Order: Government Orders)

April 19, 2024—Consideration at report stage of Bill C-26, An Act respecting cyber security, amending the Telecommunications Act and making consequential amendments to other Acts, as reported by the Standing Committee on Public Safety and National Security with amendments—Minister of Public Safety, Democratic Institutions and Intergovernmental Affairs.

(Bill concurred in at report stage, read the third time and passed)

(Bill C-40: On the Order: Government Orders)

June 17, 2024—Third reading of Bill C-40, An Act to amend the Criminal Code, to make consequential amendments to other Acts and to repeal a regulation (miscarriage of justice reviews)—Minister of Justice.

(Bill read the third time and passed)

(Bill S-6: On the Order: Government Orders)

May 3, 2023—Resuming consideration of the motion of Ms. Fortier (President of the Treasury Board), seconded by Ms. Khera (Minister of Seniors),—That Bill S-6, An Act respecting regulatory modernization, be now read a second time and referred to the Standing Committee on Industry and Technology.

(Bill read the second time and referred to a committee)

(Bill S‑9: On the Order: Government Orders:)

December 15, 2023 — Resuming consideration of the motion of Ms. Joly (Minister of Foreign Affairs), seconded by Mr. Beech (Minister of Citizens' Services), — That Bill S‑9, An Act to amend the Chemical Weapons Convention Implementation Act be now read a second time and referred to the Standing Committee on Foreign Affairs and International Development.

(Bill read the second time, considered in committee of the whole, reported, concurred in, read the third time and passed)

(Bill S-16. On the Order: Government Orders)

June 6 2024—Second reading and reference to the Standing Committee on Indigenous and Northern Affairs of Bill S-16, An Act respecting the recognition of the Haida Nation and the Council of the Haida Nation—Minister of Crown-Indigenous Relations.

(Bill read the second time and referred to a committee)

Business of the HouseGovernment Orders

June 13th, 2024 / 3:30 p.m.


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Gatineau Québec

Liberal

Steven MacKinnon LiberalLeader of the Government in the House of Commons

Mr. Speaker, for a moment there, I thought, for once, we were going to get away without a preamble, but we had a lot of amble there, a lot of post-amble.

I can assure my hon. friend that the law that is coming this fall would protect every single Canadian who draws their income from a paycheque, and 0.13% of Canadians would pay a modest amount of additional tax on capital gains over a quarter of a million dollars garnered in a single year.

Tax fairness not only will be written into the law, but also will continue to be the thing we talk about in the House.

Tomorrow, we will complete the report stage study of Bill C-40, Miscarriage of Justice Review Commission Act, which is also known as David and Joyce Milgaard's law.

I would like to request that the ordinary hour of daily adjournment of the next sitting be 12 midnight, pursuant to order made Wednesday, February 28.

Our priorities next week will be to complete report stage and third reading of Bill C-69, the budget implementation act, and second reading of Bill C-65, the electoral participation act. We will also give priority to other important bills, namely third reading of the aforementioned Bill C-40 and report stage and third reading of Bill C-26, the critical cyber systems protection act.

Finally, there have been discussions amongst the parties and, if you seek it, I think you will find unanimous consent for the following motion:

That the motion standing on the Order Paper in the name of the Leader of the Government in the House of Commons related to the appointment of Christine Ivory as Parliamentary Librarian, pursuant to Standing Order 111.1(2), be deemed adopted.

June 6th, 2024 / 11:55 a.m.


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Chief, Communications Security Establishment

Caroline Xavier

We actually do continue to follow up with the entities. We continue to call them or work with them, and I don't want to leave anybody with the impression that there aren't relationships that exist. On the contrary, we have very great relationships with critical infrastructure, especially the energy sector, the telcos and the banks, where we meet with them regularly to talk about threats and to learn from each other about the threats they're facing. There are great relationships and governance bodies that exist to be able to work through understanding.

Having said that, though, we will continue to support and offer our support, but we can't force them. This is where, as I said in my opening remarks, Bill C-26 is really important in the four critical infrastructure sectors that have been identified as part of that bill, because they're really important to Canadians in the critical infrastructure space.

June 6th, 2024 / 11:10 a.m.


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Chief, Communications Security Establishment

Caroline Xavier

Okay. I apologize for the interruption.

When requested, we provide cyber-defence services and maintain an open line of communication to mitigate potential threats.

To detect malicious cyber-activity on government networks, systems and cloud infrastructure, the cyber centre uses autonomous sensors, including network-based sensors, cloud-based sensors and host-based sensors. These defences protect systems of importance from an average of 6.6 billion attempted malicious actions per day.

CSC continues to monitor Government of Canada networks and systems of importance for cyber-threats. We are working in close coordination with government partners, including relevant security agencies.

We deliver foreign intelligence-informed cyber-defence.

Finally, I would like to call members’ attention to the solutions available to them. Indeed, the Canadian Centre for Cyber Security offers parliamentarians a support service, in addition to holding regular information sessions for political parties on cyber-threats, as well as providing a dedicated point of contact at the centre for accessing cybersecurity support.

Since 2017, the CSE has established four unclassified reports on cyber-threats to Canada's democratic processes, and our “National Cyber Threat Assessment 2023-2024” highlights how online foreign influence activities have become a new normal, with adversaries seeking to influence elections and impact international discourse related to current events.

Since 2014, interdepartmentally, the CSE's cyber centre has worked closely with Elections Canada to ensure that our election systems and infrastructure remain secure. The CSE also continues to work as part of the security and intelligence threats to elections task force, SITE. Cyber-incidents such as ransomware, DDoS and supply chain compromises are becoming more frequent across all industry sectors, and these incidents are negatively impacting our prosperity, privacy and security. That's why Bill C-26 is so important. It would give the government new tools and authorities to better bolster defences, improve security across critical federally regulated industry sectors, and protect Canadians and Canada's critical infrastructure from cyber-threats.

Four sectors are subject to the mandatory cyber-incident reporting in Bill C-26: finance, energy, telecommunications and transportation. These were all prioritized due to their importance to both Canadians and other sectors. They are critical enablers. Bill C-26 will improve our ability to protect ourselves from both the threats we observe today and the threats we will face tomorrow.

The federal government intends to launch its updated national cybersecurity strategy, which will communicate Canada's long-term approach to addressing evolving threats in cyberspace. Central to the new strategy will be a shift in focus towards a whole-of-society approach to Canada's national cyber resilience, where public and private entities and all levels of government work in close partnership to defend against cyber-threats, including threats to our institutions. The government also recently announced the defence policy update, “Our North, Strong and Free”, which proposes a significant new investment in the CSE through budget 2024.

Finally, an important aspect of Canada's whole-of-society approach to our collective security includes practising good cyber hygiene, including safe social media practices, especially in those public roles. The cyber centre has released guidance on ways to protect yourself online. It also has cybersecurity resources for elections authorities, political campaigns and Canadian voters. I really encourage you to take a look at our website, getcybersafe.gc.ca. I would also encourage organizations that have been impacted by cyber-threats to contact the cyber centre, so that it can help share threat-related information with partners to help keep Canada and Canadians safe online.

Further, to make cyber-incident reporting easier for Canadians, the CSE is also working with its federal partners to establish a single-window solution for reporting cyber-incidents, with the ultimate goal being to ensure that Canadians can always find the help they need. This was a key recommendation this week from the Auditor General.

To conclude, the CSE and the cyber centre remain active in their collaboration with all partners, including the House of Commons, to improve Canada's cyber-resilience and protect our democratic institutions. We will continue to monitor any developing cyber-threats and share threat information with our partners and stakeholders, as always.

Once again, thank you for your invitation to appear before you today. We are pleased to be able to contribute to this important discussion and give you an overview of the way the Communications Security Establishment and the Canadian Centre for Cyber Security both work every day to protect Canadians and their democratic institutions.

Thank you for your attention.

Heath MacDonald Liberal Malpeque, PE

This committee just did a review of Bill C-26. During that testimony, we heard that there were about 5.2 million cyber-attacks in four months in 2023, from September to December. I think that's correct. Of those, 62% targeted critical infrastructure.

In our testimony during our last meeting, Michel Juneau stated that “86% of our national infrastructure is either owned or operated by the private sector”. It's going to become a very serious issue, or it already is a very serious issue. We may not even be aware of what's transpiring underneath. What's the best way to go about delivering that message and ensuring that there are safeguards in place within this bill?

You talked a bit about 40 items that you guys did a report on. Can you talk a bit about them, and give us a couple of examples and their relevance?

June 5th, 2024 / 6:40 p.m.


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Vice-President, Policy, and Legal Counsel, Business Council of Canada

Trevor Neiman

Thank you for the question.

The Business Council represents approximately 170 of Canada's largest, most successful businesses, so I can't speak to the specifics of the challenges facing small and medium-sized businesses, but what I can say is that small and medium-sized businesses are very much a part of the supply chains of large businesses. Large businesses are quite concerned about the security posture of small businesses, because they can often be an indirect route to attack large businesses.

There needs to be much more done in this space in terms of government support, and Bill C-26 is one way to help in that regard. The private sector itself is also willing to step up and do more. For instance, our members are very much committed to working with their supply chains to build up their baseline resiliency, including through education, capacity building and relationship brokering, including working jointly with Canada's security and intelligence community, with agencies like CSIS, the CSE and the RCMP.

Aaron Shull Managing Director and General Counsel, Centre for International Governance Innovation

Thank you very much, Mr. Chair and distinguished committee members, for the opportunity to speak today on this important bill. It's a pleasure to be here.

Indeed, maybe I'll start by saying something that you probably don't all hear very often: Thank you very much. It was a real pleasure to see this bill proceed with the pace and with all of the work you're doing.

We're independent and non-partisan, so when I say this, I genuinely mean it. I know how hard you're working. We're sitting here in the evening, and everyone's working away to get this done, so thank you very much.

It's in that spirit that I plan to make three arguments.

Number one is that activities covered by the proposed foreign influence transparency and accountability act should extend to municipalities, and we need definitional clarity around who is a public office holder.

Number two, the registry and the commissioner should be in place before the next federal election.

Number three, the act should nest within a broader national security strategy.

Now, let me tell you what I mean by those things.

First, we need to extend this to municipalities, and we need definitional clarity. Now, in Canada, the preamble of a bill is an important tool for looking at its statutory interpretation. I don't want to put everyone to sleep by talking about the tools of that interpretation, but let me just say that the preamble provides an introductory statement that sets out the guiding principles, the values and the objectives of the legislation.

The preamble for the Foreign Influence and Transparency Accountability Act says:

Whereas efforts by foreign states or powers and their proxies to influence, in a non-transparent manner, political and governmental processes at all levels of government in Canada have systemic effects throughout the country and endanger democracy, sovereignty and core Canadian values;

I pause there to dwell on “all levels of government”, and just the impact of that.

Now we have to look at how it applies. The application of the act applies to:

(a) federal political or governmental processes;

(b) provincial or territorial political or governmental processes;

And, essentially, it applies to the governmental processes of indigenous groups and governments.

Now you have to look at the definitions. You go through them, and there's a definition of “public office holder”, but it's different in the Security of Information Act.

We're not covering municipalities here, and we have two different definitions in the same bill about what a public office holder is, so we're probably going to want to take a hard look at that.

If you contrast that with the Security of Information Act, what the bill says is that:

Every person commits an indictable offence who, at the direction of...or in association with, a foreign entity...engages in surreptitious or deceptive conduct...with the intent [to influence a political or governmental process, educational governance etc., etc., with a democratic right in Canada.]

It goes on to define a public office holder differently, and so now you have two pieces of legislation wrapped up in the same bill, effectively trying to do the same thing with different definitions of what a public office holder is.

I wonder why you wouldn't have concomitant obligations for registration. It's two sides of the same coin.

In my view, the SOIA provides the legal teeth to prosecute and punish covert foreign operations, while the FITAA—I don't know if that's what we're calling it, but I'll call it the FITAA—complements this by creating a preventive transparency regime aimed at exposing and deterring such activities through mandatory disclosure and public oversight.

It's a dual approach—deterrence and, hopefully, long-term preventative transparency.

Secondly, we must have the registry in place before the next federal election. You have to again go back to the purposes of the act, like we did at the beginning—“in Canada have systemic effects throughout the country and endanger democracy, sovereignty and core Canadian values”. It's not “might” have systemic effects; the bill says “have systemic effects”. It is a statement of fact.

If you were to meet that purpose, how can you not have it in place before the next federal election? It would be a little bit like bringing a birthday cake for a Saturday afternoon party on the following Tuesday. You will have missed it.

I watched the officials testifying. If it's too hard to do it all at once, just go with the federal government, the federal election. Roll it to provinces and municipalities separately and after. However, you have to get the birthday cake to the party.

Thirdly, it should nest within a broader national security architecture. The defence policy update said we're going to do a national security strategy every four years. The defence policy is going to be updated every four years. We have Bill C-26 that went through this committee, which I was happy to testify about. We have the CSE Act that's due for an update, a review, in 2022. The CSIS Act is now on a five-year review cycle. Bill C-34, on the Investment Canada Act....

This is all coming together. I think the point here is to look at all of the pieces of legislation and all of the various strategies—critical minerals, intellectual property, innovation, research, economic security. Look at them systematically, because adversarial states are looking at them systematically, believe me, and it requires a strategic approach.

As I said at the beginning of this, I've had the privilege of speaking with some of you before. I know how hard this committee works, and I know that you can do it, but I would just encourage you to think strategically and not just do the whack-a-mole thing on one piece of law.

Thank you very much, Mr. Chair.

The Chair Liberal Heath MacDonald

Thank you, Ms. Michaud.

I have a chair's ruling that I'm going to read.

The purpose of Bill C-26 is to help protect critical cyber systems in order to support the continuity and security of vital services and vital systems. The amendment would allow any law of the province relating to cybersecurity that provides for more stringent rules than those prescribed by regulations to prevail in that province. As House of Commons Procedure and Practice, third edition, states on page 770, “An amendment to a bill that was referred to committee after second reading is out of order if it is beyond the scope and principle of the bill.”

In the opinion of the chair and for the above-mentioned reason, giving precedence to a provincial law constitutes a new concept which goes beyond the scope of the bill as adopted by the House at second reading. Therefore, I declare the amendment inadmissible.

Thank you, Ms. Michaud.

We're at CPC-50.1, reference 12922438.