Mr. Speaker, I am pleased to say that the PC caucus will be supporting the legislation. We see it as a way to prove to the rest of the world that we can be competitive, can create jobs and can do it through a free trade agreement.
I am amazed that the NDP caucus still fights against the free trade agreement. I guess it is not as changeable as the Liberal Party and the Government of Canada are today. All parties fought against the free trade agreement when we brought it in back in 1988. Basically it was a big issue. It was to be terrible for Canada. At least the Liberals had sense enough to realize that it was good for Canada. They have been building on it ever since. The NDP is consistent in its opposition even when it is a good idea.
I will be sharing my brief time with the member for Compton—Stanstead.
Bill C-17 amends the Telecommunications Act and the Teleglobe Canada Reorganization and Divestiture Act in keeping with our obligations to liberalize basic international telecommunications services under the GATS, an agreement which Canada signed this past February.
Under the terms of the GATS, Canada agreed to end monopolies held in the area of overseas telephone services and fixed satellite services. Canada also agreed to eliminate restrictions on foreign ownership in satellite earth stations and the laying of international submarine cables. Bill C-17 ensures that Canada fulfils these obligations.
Bill C-17 amends the Telecommunications Act by establishing a licensing regime for international service providers to be administered by the CRTC. This is a similar system to that of many other countries.
Bill C-17 empowers the CRTC to contract out the need for a telecommunications numbering service and overseeing the collection and distribution of local subsidies.
Bill C-17 also clarifies the Telecommunications Act with respect to the role of Industry Canada in the certification and inspection of telecommunications equipment for use in Canada.
In order to protect the integrity of our telecommunications system under the bill non-certified equipment cannot be used in Canada. The bill also gives Industry Canada powers to set technical standards, inspect equipment and enforce penalties for those selling non-standard equipment within Canada.
The Teleglobe Canada Reorganization and Divestiture Act is amended by repealing the provisions that create a monopoly environment in Teleglobe Canada. It opens up the telecommunications market between Canada and the rest of the world, allowing other providers the opportunity to provide services within Canada. This is expected to result in cheaper long distance rates due to increased competition.
The opening up of the telecommunications industry is a policy of the Progressive Conservative Party which began in 1987 when we privatized Teleglobe Canada. After a few years of functioning as a private sector business Teleglobe's management decided to expand its operations. In 1995 it recognized that its future was in servicing foreign markets and it proceeded to do so. Now two years later it has increased its share of telecommunications carrier services between several non-Canadian destinations by over threefold.
When the PC Party began privatizing many crown corporations federal Liberal Party members in particular fought against the plans. They believed we would lose our identity in the process but are now expanding on the achievements of our party by further opening up markets and allowing non-Canadian carriers access to our telecommunications sector. Is it not odd how they have changed?
When we privatized Telesat Canada the official opposition of the day also fought against our plans, stating that it needed all the government support it could muster to challenge the world in the face of global competition. Reformers have gone now from advocating interference to opting for a freer marketplace. With the FTA and the North American Free Trade Agreement the PC Party further liberalized trade in telecommunications for Canadian businesses. The official opposition of the day also fought against these.
They now stand as avid free traders, signing the GATS and extending the North American Free Trade Agreement. Our obligations under the GATS mean that Teleglobe Canada will relinquish its exclusive access to the Canadian market as of October 1, 1998. Telesat's monopoly will end on March 1, 2000. Therefore current ownership restrictions have to be removed from the Telecommunications Act.
Our caucus supports the GATS because it is a free trade agreement. We continue to support the principle of free trade. The relinquishing of Teleglobe Canada's exclusive rights to the Canadian market has led the U.S. to open up access to its market, which is what we thought would happen in the beginning.
Canada also benefits from greater access to European and other developing nations. Furthermore, as I stated earlier, the consumer will be rewarded with the possibility of cheaper long distance rates due to increased competition in the marketplace.
When the Telesat divestiture act was being debated it was argued that the 10-year monopoly was not enough; it had to be longer. The government now realizes the 10 years was more than enough. After 8 years we are debating the opening of the marketplace. Industry wants less control in exchange for open access to the rest of the world. That is really the principle of the free trade agreement. It will not grow without these changes and the government has finally recognized it.
The PC Party is supporting the legislation because it continues the process we started of enhancing the competitiveness of Canadian firms. It is because of our initiatives that Canadians enjoy the great degree of prosperity we have today.
Our evolutionary approach has produced well positioned Canadian companies that are today strong enough to compete globally. We support them in their continued efforts.