Evidence of meeting #138 for Industry, Science and Technology in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was forward.

A video is available from Parliament.

On the agenda

MPs speaking

Also speaking

John Knubley  Deputy Minister, Department of Industry
Lisa Setlakwe  Senior Assistant Deputy Minister, Strategy and Innovation Policy Sector, Department of Industry
Mitch Davies  Senior Assistant Deputy Minister, Innovation Canada, Department of Industry
Dan Albas  Central Okanagan—Similkameen—Nicola, CPC
Paul Halucha  Senior Assistant Deputy Minister, Industry Sector, Department of Industry
David de Burgh Graham  Laurentides—Labelle, Lib.
Philippe Thompson  Assistant Deputy Minister, Corporate Management Sector, Department of Industry
Éric Dagenais  Assistant Deputy Minister, Industry Sector, Department of Industry
Michael Chong  Wellington—Halton Hills, CPC

3:45 p.m.

Central Okanagan—Similkameen—Nicola, CPC

Dan Albas

Okay.

Going back to the CRTC, in 2016 the CRTC claimed that broadband was a basic service and set speed levels at 50 megabits per second. Now the CRTC says that the actual speed target is half of that, 25 megabits per second.

Seeing as rural residents will now receive only half the speed, will the fund be cut in half so that taxpayers spend only half the cost?

3:45 p.m.

Deputy Minister, Department of Industry

John Knubley

On this issue, we just met with the provinces to talk about developing a broadband strategy.

In terms of the desired outcome, the 50/10 goal certainly remains in place. I think that for certain jurisdictions, in the north for example, reaching the 50/10 is a challenge. This was part of the discussion. You need to take into account the specific challenges and the starting point for the particular area of jurisdiction.

3:45 p.m.

Central Okanagan—Similkameen—Nicola, CPC

Dan Albas

Sure.

Again, though, this committee, this minister—your minister—and the CRTC made that the goal. Now the goal posts have moved, and they haven't moved further ahead. They have actually moved down lower.

How do you explain that to residents?

3:45 p.m.

Deputy Minister, Department of Industry

John Knubley

I am not aware of the target actually changing. On what basis are you saying that?

3:45 p.m.

Central Okanagan—Similkameen—Nicola, CPC

Dan Albas

Well, the CRTC says that the standard on these contracts is going to be half of what it's supposed to be, so how do you—

3:45 p.m.

Deputy Minister, Department of Industry

John Knubley

As I understand it, in the discussions that I've had with the CRTC chair, he continues to want to pursue that long-term goal.

3:45 p.m.

Central Okanagan—Similkameen—Nicola, CPC

Dan Albas

The CRTC's universal service objective states, “subscribers should be able to access speeds of at least 50 megabits per second (Mbps) download and 10 Mbps upload”.

How can you explain that the CRTC is able to so completely ignore its own objectives?

3:45 p.m.

Deputy Minister, Department of Industry

John Knubley

You are referring to their $750-million program and how they're proceeding. Is that what you're referring to?

3:45 p.m.

Central Okanagan—Similkameen—Nicola, CPC

Dan Albas

Yes, sir.

3:45 p.m.

Deputy Minister, Department of Industry

John Knubley

Well—

Sorry, do you want to comment?

3:45 p.m.

Senior Assistant Deputy Minister, Strategy and Innovation Policy Sector, Department of Industry

Lisa Setlakwe

I would say that it's probably a question for them specifically because they are in the process right now of consulting on the program parameters. They announced that they were launching the program, and now they are initiating a discussion on what the parameters will be and how the program will be delivered.

As the deputy has just referenced, I think there are unique circumstances in different parts of the country.

3:45 p.m.

Central Okanagan—Similkameen—Nicola, CPC

Dan Albas

Mr. Longfield made the point earlier that this may not be the forum for doing that.

This is a parliamentary committee that is overlooking the spending in your area and whatnot. I would also say that it is taxpayer money that the CRTC ultimately will be spending.

I'd like to have a better answer than “You should go to talk to the CRTC.” Both of you are experts in your field. You should be able to deliver an answer in this particular area.

3:45 p.m.

Deputy Minister, Department of Industry

John Knubley

Well, I did give an answer, which was that as far as I know, in my discussions with the chair—

3:45 p.m.

Central Okanagan—Similkameen—Nicola, CPC

Dan Albas

You said, “Go talk to the provinces.”

3:45 p.m.

Deputy Minister, Department of Industry

John Knubley

No, I said that we have just been discussing with the provinces, in the context of the commitment to basic service, how we need to work together more effectively to develop a long-term strategy that will meet the 50/10 goal.

In our discussions with the CRTC chair, he is implementing a new program, which is $750 million. The revenues for that come from the industry. You may be aware that they have actually set up a process by which the industry pays for the $750 million.

3:50 p.m.

Liberal

The Chair Liberal Dan Ruimy

Thank you very much.

We're going to move to Mr. Masse.

You have seven minutes.

3:50 p.m.

NDP

Brian Masse NDP Windsor West, ON

Thank you, Mr. Chair.

Thank you for being here.

I want to drill down on the funding for steel and aluminum producers through the strategic innovation fund. How much has the government collected in revenue from steel tariffs through the policy you have right now?

3:50 p.m.

Senior Assistant Deputy Minister, Industry Sector, Department of Industry

Paul Halucha

I believe the number that's been reported was about $350 million.

3:50 p.m.

NDP

Brian Masse NDP Windsor West, ON

So the $125 million is additional to the $350 million you've collected, then. Where is that money going to go, specifically?

3:50 p.m.

Senior Assistant Deputy Minister, Industry Sector, Department of Industry

Paul Halucha

Sorry, the $125 million...?

3:50 p.m.

NDP

Brian Masse NDP Windsor West, ON

Yes, I'm asking about the $125 million.

3:50 p.m.

Senior Assistant Deputy Minister, Industry Sector, Department of Industry

Paul Halucha

Where is the $125 million from?

3:50 p.m.

NDP

Brian Masse NDP Windsor West, ON

You're requesting $125 million here under your estimates.

3:50 p.m.

Senior Assistant Deputy Minister, Industry Sector, Department of Industry

Paul Halucha

Oh, so this is the—

3:50 p.m.

NDP

Brian Masse NDP Windsor West, ON

This is your own—