Mr. Speaker, Bill C-17 has had a lot of debate in committee.
Telecommunications are the nerve impulses of the global economy in the emerging information society. Information of all sorts from all areas span the globe in a matter of seconds.
Changes in communications over the last number of years have been very rapid. No nation can survive without it. No nation can hope to compete in the global economy without the most up to date telecommunications systems.
The telecommunications sector is vital to the Canadian economy. It is the key to our international competitiveness and an important source of high quality jobs.
Not only did employment in telecommunications increase 15% between 1994-95 but the sector also generated revenues of some $22 billion. The sector accounts for over 145,000 high quality jobs and 3.4% of the GDP. It will be our key growth sector in the economy of the next century.
Much of that growth is due to the liberalization in domestic telecommunications that began some 13 years ago and has already greatly benefited Canadians and Canadian telecommunications companies.
The liberalization began with the licensing of competitive cellular telephone service in 1984. It moved forward with the privatization of Teleglobe in 1987 and Telesat in 1992. It advanced again with the introduction of long distance competition in 1992 and the passage of the new Telecommunications Act in 1993.
In a little over a decade, Canada has moved from a highly regulated telecommunications environment to one where competition can flourish.
Over the past three and a half years this government has continued to remove barriers to competition within Canada, modernizing the legislative framework that governs information and communication technologies.
This liberalization can serve as a model for countries that have yet to make the transition from monopoly to competition based services. It has equipped Canada with one of the world's most competitive policy frameworks as well as an independent telecommunications regulator.
It has also stimulated the development of new products and services, more consumer choice, increased economic growth and job creation, considering the licensing of new wireless services, personal communications services in 1995 and local multipoint communications services in 1996.
We saw a launch of Canada's first local multipoint communications systems site just last spring. LMCS is a wireless broad band system capable of carrying basic and advanced communications services.
It will enable Canadians to take full advantage of the information highway and offers a wide array of multimedia services. It will soon provide Canadian consumers with a competitive alternative to existing cable and telephone services.
The companies providing LMCS expect to invest over $1 billion and create 8,000 jobs within the next five years. Few would argue that the liberalization of basic telecommunications services has benefited Canadians but Canada is not the only nation moving to liberalize its telecommunications industry.
In fact, we are part of a world-wide trend. The bill now before the House extends the liberalization begun in our domestic telecommunications industry to the international arena. It clears the way for the implementation of an agreement that Canada concluded last February, the GATS agreement on basic telecommunications.
Many of the changes can be implemented administratively. Others require legislation. The bill provides the legal framework needed to implement the changes that require legislation.
I want to acknowledge the contribution to this bill by the House Standing Committee on Industry. This process resulted in amendments which improve a good bill. I must compliment all of the participants for their forthright and direct debate on putting their points forward and assisting in moulding this bill into the bill that is before the House today.
The government consulted extensively with industry and the provinces before negotiating the agreement and numerous witnesses voiced their opinions during the committee's review. The agreement eliminates many restrictions in the international telecommunications industry, liberalizing trade and investment. It covers basic telecommunications services, which include voice and data but not broadcasting.
Under the agreement, Canada committed to eliminating monopolies in the two areas still closed to competition: overseas telephone service and fixed satellite services. The bill therefore amends the Telecommunications Act and the Teleglobe Canada Reorganization and Divestiture Act.
Teleglobe's monopoly will end October 1, 1998. Telesat's monopoly will end March 1, 2000. Canada also agreed to remove foreign ownership restrictions in satellite earth stations and the landing of international submarine cables. This agreement will benefit both Canadian telecommunications companies and consumers.
Telecommunications companies will benefit through greater access to important markets. For example, the agreement gives Canadian companies full access to the U.S. market in basic telecommunications services. The use of reciprocity tests by the U.S. Federal Communications Commission will be severely curtailed.
Canadian companies will be able to invest up to 100% in telecommunications firms in many foreign markets. Canadian companies will also gain new access to the markets of developing nations. Another benefit is access to the WTO dispute settlement process which provides the safeguards needed to ensure that countries live up to their commitments.
The provision of telecommunications services will be governed by clear rules and disputes between WTO members will be resolved in a timely manner through this effective and timely process.
This bill also strengthens our ability to keep pace with a rapidly changing telecommunications environment. The CRTC will ensure that international telecommunications carriers are licensed according to Canadian rules and regulations in a manner that is consistent with WTO rules so as to ensure a level playing field for all market participants.
Just as domestic liberalization of telecommunications has benefited Canadians and Canadian telecommunications companies, we can expect to see similar benefits arising from the GATS agreement. The agreement is expected eventually to result in less expensive international long distance telephone rates as competition increases in the overseas long distance market.
It will also stimulate telecommunications investment around the world, generating new opportunities for Canadian telecommunications service providers and equipment manufacturers. Not only will Canadian telecommunications companies be able to compete for a piece of the international telecommunications pie, but the pie will get bigger.
This will produce more jobs and economic growth for Canada and support a strong, innovative domestic telecommunications sector, one that will deliver more and better services to Canadians at lower costs.
Two areas of concern for Canada were not affected by this agreement. Canada took an explicit reservation to allow us to maintain our current overall foreign investment regulations in telecommunications. This investment regime has seen major foreign firms such as AT&T and Sprint make significant investments in Canadian firms while ensuring that they remain Canadian owned and controlled. In addition, Canada has no ownership restrictions for resellers which compares well with the current situation in Japan, Europe and the United States.
Canadian culture is also protected as the agreement does not cover broadcasting, which continues to be covered by the Broadcasting Act. One of the reasons broadcasting was excluded was to ensure the protection of Canadian culture.
The GATS agreement on basic telecommunications follows closely on the Information Technology Agreement which liberalized trade and information technology equipment. Under that agreement, 40 governments agreed to phase out all tariffs on computers, software, telecom products and semiconductors beginning July 1, 1997 and eliminate them by the year 2000. These 40 economies account for 85% of the world's annual $500 billion U.S. trade in IT products.
Information technology plays a key role in our economy. These products are the building blocks of most industrial and business processes. Canadian users of information technology products are expected to benefit as tariff barriers fall. Together these two agreements provide a springboard for economic growth and development in the next century. They cover international business worth over a trillion dollars U.S. Their combined effect will spur telecommunications investments around the world, increasing opportunities for Canadian telecommunications service providers and equipment manufacturers.
Not only are they good for Canadians and Canadian companies, they contribute to international development by making information products and telecommunications services more affordable. Canada's open and competitive telecommunications market has produced highly competitive Canadian companies which are well prepared to take advantage of the new business opportunities created by these agreements. This is essential for Canada's continued competitiveness and economic health because, as much as we have accomplished, other countries are challenging us.
New communications and information technologies are remaking the world around us. If we do not want Canada to be left behind, we have to prepare ourselves for the new reality. Canada has long been a world leader in providing its citizens with access to broadcasting and basic telecommunication services, such as the telephone. In fact, we have virtually universal access to these core networks and services, with safeguards to ensure that Canadians retain access to these services in a competitive environment.
The combined forces of technology and trade liberalization are opening new frontiers, creating challenges that we can barely imagine. The opportunities are there for Canada to seize, but only if we move decisively and quickly to take advantage of them.
Canada will benefit as a result of the GATS agreement. I urge the House to move on this bill which is needed to implement the agreement with all due speed. I thank my fellow colleagues for their great contribution in debate, in committee and in this House to make sure that this bill gets passed.