Good afternoon, my name is Geneviève Duchesne and I'm from the Union des consommateurs.
With the respect to the policy direction, the Union des consommateurs is of the view that the Governor in Council does not have the authority under section 8 of the Telecommunications Act to make directions of the kind provided for in the order. The direction as proposed exceeds the limits set under section 8 on the authority conferred on the Governor in Council because they are not all of general application, do not solely concern Canadian telecommunications policy and affect other provisions of the act.
The direction as proposed seems to disregard the fact that the CRTC is required to administer the Telecommunications Act currently in effect, that the Commission has powers conferred on it under that act and that it is required to exercise only those powers. The proposed direction is irreconcilable with Part III of the act, which requires that the CRTC regulate a given telecommunications service, unless certain conditions set out in section 34 are not met.
For example, in section 34, Parliament has cited only one case in which the CRTC is required to rely on market forces, and that is where competition is adequate to protect the interests of consumers. The requirements stated in section 34 of the act may not be amended by means of the authority conferred on the Governor in Council in section 8 of the Telecommunications Act. It is up to Parliament to amend those requirements of the act establishing the conditions that the CRTC must observe before it can rely on market forces.
Would the government attempt to circumvent the legislative process and associated time periods by proceeding by means of directions? That is what is readily apparent from the summary of the regulatory impact study accompanying the draft direction. That study reveals that directions are a transitional measure designed not to delay changes to the regulatory framework that concern questions—we've been able to see that today—that are complex, will require in-depth analysis and consultations. Regardless of the alleged advantages and benefits associated with an approach requiring the CRTC to rely, as far as possible, on market forces, about which, based on our experience, we may have serious reservations. Those advantages and benefits cannot in any case warrant the executive branch's circumventing the democratic process that characterizes the legislative branch.
As I said, the Union des consommateurs has numerous reservations about the alleged advantages and benefits of a new regulatory framework based more on the market and on the relevance of implementing such a framework. It would recall that the CRTC and the regulatory frameworks it is currently required to administer have made Canada a telecommunications leader. We also wish to recall that the Telecommunications Act provides that the CRTC may refrain from regulating a telecommunications service. It even has an obligation to do so where competition is sufficient to protect the interests of users. We also wish to recall that the CRTC has previously refrained from applying economic regulation to nearly 70% of the present telecommunications market mainly affecting clients with a small number of services offered by the old monopolies subject to economic regulation. That is the case of local telephone services in which the old monopolies still hold a highly dominant position.
As the review panel's report reveals, the local telephone sector, which is a regulated sector, performs better internationally—particularly as regards prices—than the broadband services and wireless services sectors, which are largely deregulated. The wireless sector, which, I repeat, is a largely deregulated sector, generates new extensive consumer complaints and frustration. I also wish to point out that, according to the review panel's report, the fact that Canada lags behind in wireless service innovation, as well as the low penetration rate and high rates—60% higher than in the United States and 19% higher than in Europe—are attributable to insufficient competition in the Canadian wireless market, which, I recall, is almost entirely deregulated.
In conclusion, I wish to emphasize that the policy direction almost completely contradicts the opinion of Canadian citizens. According to a recent survey, 70% of Canadians reject the idea that telephone companies should set their own prices without CRTC approval.
Thank you for your attention.