Mr. Speaker, in response to the hon. member for Regina-Lumsden, I have some general comments.
First, this government has no authority to freeze or block commercial transactions, as he suggested. He should also take a look at the provincial government's jurisdiction. He should be talking to his counterparts, the NDP government in Saskatchewan, when dealing with matters that are within the jurisdiction of a provincial government and not the federal government.
Second, freedom of speech is guaranteed under the charter of rights and freedoms.
Third, there are fundamental changes under way in methods of communication. Radio, television and now the Internet provide excellent vehicles for the exchange of information and opinion.
The enforcement of the Competition Act is entrusted to the director of investigation and research who is an independent law enforcement official. The director has a longstanding enforcement history in the newspaper industry.
In 1974 monopoly charges were laid against K.C. Irving Ltd. In 1980 criminal charges were brought against Southam and Thomson for market sharing. In 1990 the director challenged the acquisition by Southam of community newspapers in the Vancouver area where Southam already owned the two daily newspapers. The director concluded that the acquisition of two community newspapers resulted in a substantial lessening of competition in the advertising markets served by these newspapers. This matter is currently before the supreme court.
The focus of the director's examination is on the economic effect a transaction will have on competition in advertising markets. The director is not mandated to look at social issues such as editorial diversity. Newspaper advertising markets are local in nature. A newspaper operating in Vancouver cannot be said to be in competition for advertisers with a newspaper in Calgary. When there is only one newspaper in a community its acquisition does not constitute a lessening of competition but only a change of ownership.
The director has closely followed developments in this industry since 1993 when he reviewed Hollinger's initial 19 per cent investment in Southam. Every subsequent acquisition of newspapers by Hollinger was reviewed to see whether there was any overlap between the newspaper being acquired and either a Hollinger or Southam publication.
With respect to the latest acquisition of Southam shares by Hollinger, Hollinger and Power Corporation approached the competition bureau and made representations. The director reviewed the proposed transaction and concluded that it would not lessen competition in any newspaper advertising market.
Finally, Hollinger's day to day conduct will continue to be governed by all the provisions of the Competition Act. Any further newspaper acquisitions by either Hollinger or Southam will be reviewed by the director.
Indeed, Mr. Black acknowledged publicly that he would likely be-