Thank you, Mr. Chairman. I'm pleased to attend today to speak to this bill. My remarks are generally directed to the principle of the bill, with some emphasis on the significance and history of the desire for these kinds of studies.
Back in 2003, the Competition Bureau put forward a paper called “Options For Reform”. It dealt with a motion that I believe had been proposed by Mr. McTeague, namely, to have the Canadian International Trade Tribunal inquire into the state of competition and functioning of markets. At that time, the option paper provided for that particular way of proceeding in relation to market studies and referred the matter to the Public Policy Forum for a public consultation. A public consultation took place in the summer of 2003, and the Public Policy Forum released its paper, a report on the consultation, saying that there were intervenors on both sides of this question. Intervenors supported the market reference proposal and said they agreed with the principle that Canadians should be able to get a picture of the state of competition and the functioning of markets in any sector of the economy. Opponents gave a number of different reasons for their opposition, including some of the arguments that you've heard: this is suspenders and a belt; the commissioner already has these powers; there may be costs incurred in this; and what procedure is going to be followed?
In 2004 the OECD made a study on the state of Canada's competition policy and recommended that we institute a power to implement market studies. Quoting from their study:
No agency in Canada presently has express authority to study an industry simply for purpose of illuminating its competitive dynamics. This is a tool that should be available to advance the objectives of competition policy. Market studies can reveal previously unsuspected forms of private conduct or government regulation that impair competition. And study results can play an important role in promoting public understanding of how competition works and what benefits it produces.
At the time, the OECD recommended that it would be more appropriate to have the Competition Bureau undertake these studies rather than the Canadian International Trade Tribunal.
We proceed to Bill C-19, which was the first attempt to reform the Competition Act. As that bill was being presented, a government amendment was made to Bill C-19 in committee that created the power for market studies. It was referenced as C-19, G-2, and it was offered by Mr. Pickard. It provided that the commissioner may carry out a study on the state of competition in any sector or subsector of the Canadian economy.
The Commissioner of Competition, Sheridan Scott, appeared before the committee on October 5 and October 27 to deal with this matter. She discussed the power and the precautions that should be taken with respect to the exercise of that power. In dealing with the advantages that would be conferred upon the commission with respect to the power, she said:
If a power to conduct market studies were to be introduced, it would have a number of advantages. A better understanding of the state of competition in various industry sectors could lead to a more effective enforcement of the Competition Act. It could also lead to improved advocacy. It could contribute to the development of good policies to achieve economic objectives, which would benefit all Canadians. Finally, it would lead to enhanced transparency in the marketplace for businesses and for consumers. In our view, it would be feasible to introduce a market study power, as has been done in other jurisdictions, as long as careful attention is paid to the concerns I have outlined today.
These concerns include procedural safeguards as well as assurances that the matters to be addressed are legitimate under the act.
Consequently, of course, the bill died in committee with the fall of the government.
We believe this effort is in aid of a principle that is important in the Canadian economy, important for the state of competitive markets, and we would urge that the committee give careful consideration to the same. We believe—