Industry Committee on May 26th, 2014

[James Moore, Conservative, Port Moody—Westwood—Port Coquitlam, BC]

I just want to say I appreciate the concerns that have been raised. As the official opposition you're doing your job and being a megaphone for the concerns that have been raised, but frankly we don't agree. These are IP treaties that make perfect sense, and I can understand why some, particularly the Canadian Bar Association, aren't terribly big fans of this.

By the way, there's a reason why these protocols are also consolidated in our Digital Canada 150 plan, because if you're a Canadian innovator and you want to get a patent and you have to hire a patent lawyer and it costs between $3,500 and $5,000 to secure a patent for your idea, you want to make sure a patent troll doesn't sit on your idea and steal it, because information is instantly global.

If you file a patent in Canada, we want it to be protected around the world. Patent lawyers who can charge you $3,500 to register a patent in every country in the world are going to be upset, but guess who benefits? Small businesses that have to register patents and protect their IP are going to benefit greatly from these reforms. The idea here, of course, is very simple, which is why all other countries that are signatories have ratified these agreements. They're ahead of the game. We're behind the game. We need to ratify these agreements, so Canadians whose livelihoods are dependent upon the protection of their intellectual property have the capacity to protect it internationally, and not make it impossible for them to protect themselves.

Colleagues, as Bill C-31 moves forward—and I guess it's considered over at the finance committee and not this committee—if the NDP has suggestions on how we might amend this, bring them forward. First, I think it's a pretty straightforward idea to protect Canadians' IP on an international level and not just domestic. Second, I think it's pretty easy to understand why those who are opposed to it are opposing it: their self-interest.

[Mark Warawa, Conservative, Langley, BC]

Thank you, Minister.

I'm quite impressed that the NDP have asked questions on this. Chair, when we had the witnesses, we heard the opposite, that the vast majority support Canada coming in line internationally with the trademark standards. It provides effective efficiencies and is good for business in Canada, and the NDP didn't have any more questions on that issue.

Minister, you're here, and the TV cameras are on. We have had some questions and some good answers, and we heard from the marketplace that this is what Canada needs to do to be competitive. I was looking at the three mandated strategic outcomes that are necessary from Industry Canada. First is that the Canadian marketplace is efficient and competitive. Minister, that's exactly what the action we're taking is accomplishing. Second, advancements in science, technology, knowledge, and innovation strengthen the Canadian economy, and third, Canadian businesses and communities are competitive. Again, this is what you're doing. You started your comments saying you want to create jobs and economic growth, and you're doing that.

Could you elaborate on the importance of international trade and also, fairness at the pump? That's another great success of the government, making sure that Canadians are paying less and we have more efficiencies and businesses are being more competitive.

[James Moore, Conservative, Port Moody—Westwood—Port Coquitlam, BC]

The Fairness at the Pumps Act we adopted in Parliament, and It's been well received. We provided new powers for its independent application. We put in the regulations to make it a reality and to enforce it. Inspections have happened and some violations have been found and I think these regulations have been enforced effectively.

On the trade side—as British Columbians, we often say it, but I don't think we can say it enough—when Stephen Harper became Prime Minister of Canada, Canada had five free trade agreements with five jurisdictions around the world: the United States, Mexico, Chile, Israel, and Costa Rica. Today, we have free trade agreements with 43 countries around the world. As British Columbians we should be particularly enthused about the Canada-South Korea Free Trade Agreement. Over 50% of Canada's trade with South Korea comes from the province of British Columbia.

South Korea is the size of New Brunswick with almost double the population of Canada. It's a focused market in a strategic area of the world and for us to have signed that FTA, which of course will have to be ratified by the Parliament of Canada, is a tremendous step forward for the Asia-Pacific. Premier Clark and others who talk about the Asia-Pacific gateway.... We built the infrastructure at home and we're making sure we have access to markets around the world and it'll be a big step forward for us in seeing success with the Trans-Pacific Partnership or possibly with a Canada-Japan FTA in that region of the world.

[The Chair, Conservative, David Sweet]

Thank you, Minister, and thank you, Mr. Warawa.

Now on to Mr. Masse, for five minutes.

[Brian Masse, NDP, Windsor West, ON]

Thank you, Mr. Chair, and thank you, Minister, for coming here today.

It's a very interesting project with the veterans you are going to undertake there. I think you're going to get a lot of footage of veterans saying they didn't want their veterans office closed like the one in my riding.

I would like to know, though, how much did it cost for the commercials? You come and paint quite an interesting picture about wireless service in Canada, but you spent how many millions on commercials to Canadians?

[James Moore, Conservative, Port Moody—Westwood—Port Coquitlam, BC]

The exact number I don't know, and I don't want to mislead you. Treasury Board can get that for you. But I do know what we were counteracting, by the way, a $5.5 million ad campaign by incumbents who didn't like the idea of us having a policy that might have created more competition. It was a $5.5 million ad campaign that was patently dishonest, misrepresented government policy on a number of levels, and we had an obligation I think to push back to make sure Canadians who were being misled by this ad campaign about the substance of our wireless policies....

This is not, by the way, a side thing. This is a section of the Canadian economy where it has a 25% growth in jobs in the wireless sector over the past five years or thereabouts, according to Stats Canada, so it's a growing fact to the Canadian economy. Everything you do, and I do, that we all do, is migrating onto digital phones. Phones cost more than computers now. Everything is migrating onto mobile devices. When you have three large incumbent companies pouring millions of dollars into an ad campaign to deliberately mislead the public about a government policy, it requires push back, so we pushed back.

[Brian Masse, NDP, Windsor West, ON]

Now I want to move on to the border file. The Windsor-Detroit corridor, the border there is the busiest international crossing. Work's being done. Billions of dollars have been spent to provide a new roadway to the crossing, but for the crossing itself in Detroit there has been no secured funding for the American plaza.

What do you think about this situation, and what is the government actively doing on it?

[James Moore, Conservative, Port Moody—Westwood—Port Coquitlam, BC]

I can tell you it's a concern. I've certainly spoken to Minister Baird about it. We do all the stuff. I remember when you and I were on the transport committee back many years ago, and I remember the Ontario Trucking Association had their famous presentation where they said you can go from Windsor to downtown Miami, and en route you'll go through exactly 17 stop lights, and 16 of the stop lights are in Windsor.

We don't go through the process of cleaning all that out and building these effective routes of transportation in twinning the Detroit-Windsor crossing, especially with all the funding that's been offered, without making sure it's seamless and effective.

I can tell you this has been raised directly with Ambassador Heyman. Because it's an international borders issue not an industry issue, Minister Baird, I can tell you, is front and centre to ensure this goes forward effectively.

[Brian Masse, NDP, Windsor West, ON]

Yes, because the reality is that your government has signed an agreement with the Americans that requires us to pay for it if we don't get that from the federal government. It has to come from the new consortium and the tolls so we would actually be fronting 100% of the cost of the new border crossing, which is rather unusual.

I want to move over to trademarks. There are some serious concerns about trademarks. I know there is some self-interest. Everybody has self-interest in this game. But there was testimony at the Senate finance committee that related that the challenges to trademarks would go up to at least 7% or 8%. Some argue it would be even higher, but that was some of the testimony.

Are you aware of that? Right now it takes nine months to actually get a hearing for the challenge. It's nine months now. If it doubles and triples what are you going to do to be prepared to expedite these things?

[James Moore, Conservative, Port Moody—Westwood—Port Coquitlam, BC]

I'll let my deputy answer the specifics on this one.

[Paul Halucha, Director General, Marketplace Framework Policy Branch, Department of Industry]

There's not an expectation that there is actually going to be an increase in challenges. That has happened in a couple of countries around the world, in particular in the European Union, and in the European Union there isn't an examination process by which a lot of the weeding out of the poor quality trademarks happens. That process is going to remain as Canada accedes to these treaties.

[Brian Masse, NDP, Windsor West, ON]

So you're saying Darlene Carreau's testimony is incorrect?

[Paul Halucha]

I'm saying there's no.... We've talked to intellectual property offices around the world as we looked at how countries were implementing it, and there has not been a dramatic increase in the type of trolling behaviour focused on trademarks that some of the people who testified are claiming will happen in Canada.

[Brian Masse, NDP, Windsor West, ON]

Okay. We'll quickly move to the Auditor General with regard to his comments with regard to the concerns raised for wireless in the remote communities. What's your government and your department going to do to address the concerns the Auditor General has raised?

[James Moore, Conservative, Port Moody—Westwood—Port Coquitlam, BC]

In terms of wireless to remote communities, we have aggressive...for example a 700-megahertz spectrum, which constitutes the entirety of the footprint of Canada because of the success of the auction. One, there are very aggressive rollout times, more aggressive than any other country in the world, by the way, more aggressive than even the AWS auction we had in 2008 in terms of rollout for rural communities. Two, the new rules we announced for the 2,500-megahertz spectrum auction, which takes place in the first quarter of 2015, also is tailor-made to ensure rural communities are served very well as well.

It is a concern. We know it. I know it. You know it. Any time you travel.... Even in British Columbia when I go up and down Highway 97, as soon as you turn off and go 10 minutes down the road on either side you lose your signal. That's not adequate, and we need to do better than that.

I'm not sure if Lawrence—

[The Chair, Conservative, David Sweet]

That's all the time we have on that question.

Now we'll move to Madam Gallant for five minutes.

[Cheryl Gallant, Conservative, Renfrew—Nipissing—Pembroke, ON]

Thank you, Mr. Chairman.

Through you to our minister, I'm going to ask a question about the impact of high-speed Internet in rural Canada. Back in 2007 it was recognized how important it was to get rural Canada connected, especially those parts with very challenging topography. We had a pilot project then; all churches in the community used their steeples to make sure there was line of sight, and all our schools finally became connected.

Now you are building on this with the rollout, filling more broadband gaps. The concern is being raised that particularly in rural Canada, as we become more connected we do online banking, the need for tellers...the few jobs we have in small-town Canada become obsolete.

On the weekend we had a symposium of community colleges at Algonquin College in Pembroke, and the keynote speaker, Ken Coates from the University of Saskatchewan, was telling us that there is a toilet on the way—it's already in Japan—that will do a urinalysis and send an email to your doctor if anything is amiss. The doctor will send an email to your pharmacist, and the pharmacist will send an email to you to let you know that you have to pick up a prescription.

[The Chair, Conservative, David Sweet]

Madam Gallant, I'm sorry to interrupt you but it's been the policy of the committee that immediately when the bells go we adjourn to go to the House. I was hoping you'd finish quickly.

Thank you very much, Minister.

[James Moore, Conservative, Port Moody—Westwood—Port Coquitlam, BC]

I'll just wrap up by saying you're quite right. These services to rural Canadians, which are often taken for granted in urban centres, need to be extended through wired and wireless Internet and all that. These communities have been left behind for too long. That's why we have this program.

I will be announcing this in greater detail very soon. I'd be more than glad to come back to the committee and talk about it when we have that opportunity.

Thanks to all parties for this opportunity.

[The Chair, Conservative, David Sweet]

Mr. Lake, do you have an intervention? No?

Okay, colleagues, we'll adjourn and then we need to come back and deal with the votes. We'll be suspending for the vote and be returning.

[Proceedings continue in camera]