Evidence of meeting #94 for Public Safety and National Security in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was c-26.
A recording is available from Parliament.
Bloc
Kristina Michaud Bloc Avignon—La Mitis—Matane—Matapédia, QC
Thank you, Mr. Chair.
I have a fairly simple question. It's the same question that I've asked various stakeholders at other meetings.
Bill C‑26 sets out quite heavy financial penalties for organizations that fail to comply with decisions or demands imposed by the government. We don't know what these demands might be, because the power granted is quite broad.
I asked the stakeholders whether these penalties were excessive. Some said that, instead of imposing penalties, incentives should be introduced to encourage organizations to comply with the government's demands. Others said that the penalties should be maintained, but that incentives for organizations should still be implemented.
Mr. Smith or Mr. Ghiz, what do you think of the penalties targeting companies such as the ones represented by your association?
Senior Vice-President, Canadian Telecommunications Association
Thanks for the question.
Incentives are always good. There are some smaller organizations that have a greater burden to introduce new measures. I think we have a lot of incentive already. Our members' reputations are built on protecting privacy, security, etc.
Our concern with the penalties is this: They are very large and they are cumulative. Also, as I mentioned before, for some reason we're the only industry not afforded a due diligence defence. To be clear, this means that an organization could have done everything reasonably possible to comply, but there could be something in the order that, for whatever reason, is outside of their control and that they were not able to do—yet they're subject to huge monetary penalties and even criminal sanctions against individuals.
Bloc
Kristina Michaud Bloc Avignon—La Mitis—Matane—Matapédia, QC
Thank you, Mr. Smith.
If there's time, I would like the other speakers to answer the question if they want to.
February 12th, 2024 / 5:55 p.m.
General Counsel and Senior Vice-President, Legal and Risk, Canadian Bankers Association
Sure. I'm happy to jump in.
We are a highly motivated, highly compliant industry, so incentives aren't really necessary in that regard. I agree that incentives could come into play for small and medium-sized businesses to help them achieve compliance, but not for the large, designated operators and players contemplated by this legislation.
Liberal
The Chair Liberal Heath MacDonald
Thank you, Ms. Michaud.
We're right on schedule.
I appreciate the witnesses today.
Before asking for adjournment, I want to make people aware that our last meeting for Bill C-26 is Thursday. We're contemplating having the amendments in and ready for clause-by-clause when we come back, so that will be by Wednesday noon next week. I know there is some discretion, so we'll likely have further discussions on that on Thursday. That is the outline.
We're adjourned.