Thank you very much.
I would like to thank the Standing Committee on Canadian Heritage for the opportunity to be here today.
I will first speak about some of the key findings from the consultations we had on the digital economy.
I want to clarify at the outset that I'm not in a position to comment on next steps with regard to the strategy, as this is the purview of ministers. However, I can tell you, as Jean-Pierre mentioned, that we're working closely with our colleagues at Canadian Heritage, HRSDC, and other departments as well.
On May 10, Minister Clement launched consultations on behalf of the Government of Canada.
Through an interactive consultation website, Canadians were given an opportunity to discuss ideas and provide recommendations. We received more than 270 submissions and numerous ideas, all of which have been available to the public on our website: digitaleconomy.gc.ca.
If you haven't accessed it, all submissions received are accessible to the public.
Meetings were also held with key stakeholders on various topics.
Overall, participants generally agreed with the key challenges outlined in the consultation paper, and the notion that everyone has a role to play on the digital economy.
I will now speak to some of the areas that fall under the purview of Industry Canada with regard to the results of the consultations.
On capacity to innovate using ICTs, participants noted that Canada suffers from underinvestment in ICTs and slow adoption rates. Additionally, stakeholders considered SMEs disadvantaged, because they often lack the time and resources to select and implement the right ICT solutions.
The private sector acknowledged that they have a role to play in better using ICTs, but also recommended some government leadership to incent change, such as awareness initiatives.
Several stakeholders called for speedy passage of bills related to spam, privacy, and copyright in order to strengthen Canada's regulatory and legislative frameworks that protect and foster the online marketplace, and also to increase the take-up and use of digital technologies.
Next-generation network infrastructure was seen as a critical part of modern infrastructure for all sectors of the economy. Stakeholders wished for new, innovative services and higher-speed broadband at the lowest possible price. Generally they felt that the competitive market is working reasonably well in urban areas; however, in smaller rural and remote communities, stakeholders indicated that market forces on their own would not lead to deployment of higher-speed broadband and felt that government intervention would be necessary.
On promoting growth of Canada's ICT sector, stakeholders pointed to the relatively small size of our firms, lack of commercialization, and insufficient exports as factors constraining the growth of the sector. They noted the effectiveness and usefulness of programs such as NRC's IRAP to support the ICT sector and the digital media sectors as well.
While the scientific research and experimental development tax credit, known as SR and ED, is seen as very essential, many called for changes.
Some stakeholders argued that governments should review their procurement practices in order to foster innovation. They also emphasized the importance of highly qualified people for the ICT sector, as well as the need for greater collaboration between public and private sectors.
This leads me to talk to you about government support for digital skills. For its part, the industry portfolio supports digital skills talent through various programs, such as the Canada Research Chairs, the Canada Graduate Scholarships, the Vanier Scholarships and the Canada Excellence Research Chairs.
Allow me now to discuss the separation of telecommunications and broadcasting. As you know, broadcasting is a sub-set of telecommunications and it is treated differently from other forms of telecommunications because of the role it plays in developing, protecting and promoting Canadian culture. The Broadcasting Act therefore is primarily cultural in nature.
The Telecommunications Act, by contrast, is primarily economic in nature, with emphasis on ensuring that Canadians have access to high-quality, affordable services.
Let me turn to government support for R and D in the digital media sector.
Since 2006, the government has committed an additional $8.5 billion in innovation. These investments have been administered by a wide range of federal programs and agencies, as well as granting councils. ICT was identified as one of four priorities as part of the S and T strategy that was launched in 2007, with programs and initiatives that support digital media R and D and innovation, amongst others.
While we cannot provide you with an exhaustive breakdown of federal funding for digital media, some examples include the networks of centres of excellence program, which finds the Graphics, Animation and New Media Canada Network, known as GRAND, in British Columbia, and the centres of excellence for commercialization and research program, which funds the Canadian Digital Media Network in Waterloo, known as CDMN for some.
With that, I'll be pleased to answer your questions.
My colleague, Ms. Miller, will also be able to answer questions on telecommunications and infrastructure.