Mr. Speaker, it is my pleasure to rise today and address Motion M-423, a motion which proposes:
That, in the opinion of this House, the government should consider the advisability of establishing a commission of inquiry to examine the concentration of print media in Canada.
The timing of this motion could not possibly have been scheduled at a more appropriate moment. Who would have thought that on the eve of the debate of this motion we would see a blockbuster takeover attempt such as that of the Toronto Star versus Sun Media.
It is a little hard to believe that it was merely five months ago that Torstar was calling for just the type of probe that this motion is seeking. Of course when this motion was introduced, I very much doubt that the hon. member for Waterloo—Wellington was targeting his party's friends at the Toronto Star .
No, this motion is being made so that the Liberal Party, which has never shied away from big brother style interference in the marketplace, could effectively interfere in the operation of Hollinger Company. Make no mistake. Today we are not debating the inherent problems of dominant position within the print media. This could not possibly be the discussion for we already have an effective Competition Act to handle just such an issue. In essence, what we are really discussing is just how far government should go in its interference with private industry.
Allow me to say that if we were capable of setting aside our principles, it would be moderately seductive to entertain this motion. I would like to assure the hon. member that as a Conservative, I do not relish the potential future of the print media situation in the greater Toronto area.
Already I can envision a scenario on the eve of the next federal election. The Liberal mouthpiece Toronto Star headline will read “GST, free trade and helicopters aside, this time we really believe them”, and across town the Toronto Sun headline will read “Ditto”. It is enough to send shivers up your spine but it is not enough to warrant interference.
Let us examine the Torstar proposal on its merits. On October 28 Torstar offered $16 per share for all of the common shares of Sun Media Corporation on a fully diluted basis. The question becomes, is this is a good and fair offer? Indeed that is the question, however it is not for the Government of Canada to answer. It is instead up to the shareholders of Sun Media to decide.
Perhaps a 62% premium over the closing price last Wednesday is a very good deal. Perhaps it is not. Once again it is not for us to decide. Large and small investors will make this decision alike, including the Ontario Teachers Pension Plan, Trimark Mutual Funds, Talvest Mutual Funds and others.
This is not to say that every merger that gets dreamed up in the minds of deal makers should remain outside the scope of inspection, not at all. But this is where I come back to the Competition Bureau and the Competition Act which my party implemented in 1986. The Competition Bureau has been given the necessary tools to complete this task so let it do it.
Print media is not a new media form, unlike the Internet explosion. This House would certainly have taken print media into consideration when it crafted this act just over a decade ago.
It seems we may very well be debating nostalgia today. The world we are living in has changed dramatically in the ways in which information is delivered. No longer are newspapers merely competing against a few radio stations and a couple of television networks. Instead news is now available on different networks 24 hours a day. The Internet is available 24 hours a day. This has forced the print media industry to re-evaluate its own efficiencies and competitive advantages.
Far from being an industry that is fading away, we have witnessed a rebirth in this nation. Canadians now boast two national newspapers that must be included in the competitive mix of every market in the country. Canadians in general have become news junkies as they read more, tune in more and surf more. Our media outlets, already among the most scrutinized in the world, thanks to the work of the CRTC have grabbed hold of the information age and in many ways lead the revolution.
My background is not in competition law but we should take a moment and review what we are looking at in terms of level of competition. I am certain my hon. colleagues in this House have all seen the breakdown of print media numbers as a percentage of circulation. According to those numbers, if this deal goes through, the Toronto Star parent company will control approximately 26% of the print media circulation. However, it is unfair to base any review simply on circulation. Should it not be reviewed as a percentage of holdings versus all other media outlets including broadcast and the Internet?
One phenomenon that has long existed in Canada is the acceptability of monopoly markets as it pertains to the newspaper industry. Historically we have learned that it is not reasonable to expect there to be more than one newspaper in our smaller market cities. In fact the 1970s saw the consolidation of outlets across the country. It was reasoned that the result was an acceptable level of competition due to the existence of non-print competitors as well as the reality of market forces.
Now I understand that my colleagues in the Liberal Party are loath to accept market forces at any time when they think they can get in and start interfering. However, there is nothing that can be done by legislators to increase demand. I trust this will not discourage those would be manipulators into believing that our media marketplace is not vibrant. In fact quite the opposite situation exists.
If we look back to 1971 and the demise of the old Toronto Telegram , it became apparent that a void existed. A group of 60 displaced workers and $650,000 led to the formation of the Toronto Sun . This is not something that could have been addressed by parliament. Instead what was needed was a passion for the industry, proper financing and a void in the marketplace. Basic market forces and a group of entrepreneurs filled that void.
In the 27 years since then, the marketplace has changed dramatically. The Southam chain is now under new ownership, the once mighty Thomson chain is substantially smaller, and the Ottawa market's second largest newspaper will turn 10 years old this Saturday. I use these examples to illustrate my point that the print media industry is a dynamic one, yet some remain unconvinced.
There is a constituency out there that was addressed by the publisher of the Toronto Star , John Honderich, when he called for a royal commission five months ago. The member for Waterloo—Wellington responded to this challenge. I am not convinced that the gentleman who started this ball rolling would still be enthusiastically supportive of it today.
I understand the fears that are inherent in this motion. They stem from the basic reality that newspapers are not widgets. Newspapers go to the heart and soul of communities. Newspapers often fuel fundamental debate in this country. It is because of these factors that the marketplace will not tolerate uniformity. It will not accept uniformity of thought, nor will it accept uniformity of product.
If the Sun newspapers were to become carbon copy apologists for the Liberal Party of Canada, another newspaper would emerge supported by those who do not necessarily believe that the sun rises and sets on Prime Minister Mark McGuire.
In conclusion, it is not our feeling in the Progressive Conservative Party that a commission as set out in this motion is needed. We feel very comfortable with the present make-up of regulations and on how the Competition Bureau and the CRTC administer them. A commission of this type would result in unnecessary government duplication.
We are truly disappointed that this is a non-votable motion. In lieu of the events of the past week, it would be very interesting to ascertain the sentiments of my colleagues on the other side of the House.