Good morning.
The desire to make our telecommunications and broadcasting industries stronger, to make them global players, to be able to attract the best ideas, push innovation, and increase our country's wealth--I get all that. But I don't agree that opening the doors to foreign investment is the only way, or the best way, to do that.
I also do not think that the drive to the top should be pursued at any cost. We've seen what happens to other industries when they are bought out by foreign companies. They come up here for a while, take advantage of some tax breaks, then shut the plant down and ship the equipment overseas, tossing Canadians aside to the unemployment line, their skills and knowledge with them.
In 2008, communication industry revenues accounted for nearly 4.5% of Canada's gross domestic product. Broadcasting revenues accounted for approximately one-quarter of that amount, and telecommunications revenues accounted for approximately three-quarters. These industries are simply too economically vital to be left to the whim of foreign conglomerates.
Canadians agree. We did a poll with CEP and Friends of Canadian Broadcasting that showed that 66% of Canadians believe broadcasting and communications are too important to our national security and cultural sovereignty to allow foreign control of Canadian companies in this sector.
These industries are the future of our knowledge-based economy. If we have no control or no voice, we will lose control not only of our culture but of a huge piece of our economy.
Canada is not alone in keeping the lid on foreign ownership. Almost half of OECD countries have restrictions on the ownership of telecommunications and broadcasting, including the United States. Sure, American companies trot around the globe snapping up other people's industries, but they look after their own.
Spain, Australia, New Zealand, Norway, Korea, and Japan also have restrictions. Yes, some have more liberal restrictions than Canada, but none of them are sitting within broadcasting distance of the biggest exporter of English-language cultural material in the world. We are uniquely vulnerable. It follows that we must be vigilant.
Some argue that foreign ownership is the golden ticket to giving Canadian consumers a break on their mobile and cable bills. There's no question that Canadians are being gouged by cable and telecoms. The problem here isn't lack of foreign ownership; it's lack of regulation. There is no evidence that allowing foreign ownership brings down cable or wireless bills and makes prices fairer, but there is proof that regulation does.
Besides, the government didn't need to bring Wind in through the back door to create more competition. We have a number of Canadian companies entering the market. Public Mobile has opened its doors, and Craig Wireless; Mobilicity and Vidéotron are not far behind. Why wouldn't we support our own and keep the money and innovation in our country?
We believe Canada's identity and culture will ultimately be undermined by the federal government's decision to grant a licence to Globalive, an Egyptian-owned and -controlled company, to operate a wireless service in Canada. The Globalive decision doesn't square with the requirements of the Telecommunications Act, including the requirement that all communications carriers be effectively owned and controlled by Canadians.
Both the telecommunications and broadcasting acts are quite clear, and I quote: “A Canadian carrier is eligible to operate as a telecommunications common carrier if it is a Canadian-owned and controlled corporation incorporated or continued under the laws of Canada or a province”. Further: “The Canadian broadcasting system shall be effectively owned and controlled by Canadians”.
The bottom line is that Canadians need to control our telecommunications and broadcasting. Current limits to foreign ownership must be maintained to ensure that our broadcasting and telecommunications industries are controlled by Canadians for Canadians.
Thank you. We'd be happy to respond to any of your questions.