Madam Speaker, it is a pleasure for me to rise before the House to once again speak in favour of Bill C-55, the foreign publishers advertising services act.
Bill C-55 is a very important piece of legislation. Besides providing much needed support to our Canadian magazine publishers, it also sends a clear message to all Canadians that we are intent on protecting and maintaining our cultural sovereignty in the midst of ever increasing pressure from foreign influences.
A desire to protect our cultural integrity has always been a major Canadian priority in all business discussions.
The former Progressive Conservative government was always very concerned with the protection of our Canadian cultural industries which is why during the free trade negotiations we ensured that all cultural industries were exempt from the final free trade agreement. This exemption was also included in the North American free trade agreement.
Over the past three decades, successive Canadian governments have brought in legislation aimed at ensuring that Canadian publishers have sufficient advertising to maintain their competitive edge in the Canadian market.
The Canadian publishing industry has prospered during this period specifically because of these initiatives. According to Statistics Canada, in 1996-97 there were 1,166 publishers producing some 1,552 periodicals with a total circulation of 539 million copies. The result is that we have revenues reaching the billion dollar mark plus 7,000 full time and part time employees.
Canadian publishers rely on advertising revenue for anywhere from 65% to 100% of their income. Therefore, it is easy to see why it is imperative that we intervene to protect them against the potential of any unfair competition by our U.S. competitors.
The government introduced Bill C-55 to help protect our Canadian magazine industry following last October's World Trade Organization ruling against Canadian imposed excise tax and customs tariffs on split-run magazines entering from the U.S. It is very important to note that in its decision, the WTO was not questioning Canada's right to protect its cultural industries; it objected to a policy that directly targeted U.S. magazines. Rather than target U.S. magazines directly, Bill C-55 will focus its attention on advertising services.
Essentially, Bill C-55 will restrict the sale of advertising directed at the Canadian market to Canadian publications. It should be noted that U.S. magazines can still sell Canadian advertising in their magazines so long as these advertisements appear throughout their North American publications. They cannot be solely targeted toward the Canadian market.
Some people might be wondering why we should impose measures to protect our Canadian magazine industry. There are a number of very important reasons, notwithstanding the fact that each year the Canadian magazine industry pumps millions of dollars into our economy creating employment opportunities for thousands of Canadians.
For one thing, many of Canada's most distinguished writers have graced our magazines with thoughtful and entertaining stories about people, places and things that have helped make our Canadian culture unique. More specifically however, Canada's magazine industry plays an important cultural role in helping us to define who we are as a people and what we stand for as a nation.
A culture defines one's beliefs and values. We are not automatically born with a culture. We might be born in a culture but culture is something we learn. We need Canada's magazine industry to prosper so that future generations of young Canadians have the opportunity to learn and appreciate the value of our own distinct culture, one that is envied throughout the world.
From the very beginning, the Reform Party has opposed any kind of legislation that would call for the protection of Canada's unique culture. Obviously it does not believe we have a culture worth protecting. Well I believe and the Progressive Conservative Party believes that Canadian culture is worth protecting.
When Canada was rallying together to show the people of Quebec that we very much wanted them to remain part of this great country, where was the Reform Party? Its leader was busy in private discussions with the former American ambassador.
More recently, the Reform Party went to the U.S. to hire a kind of guru to help cultivate MPs' minds.
The Reform Party's heritage critic has introduced 21 motions on Bill C-55, none of which contains any constructive improvements. All the Reform Party wants is the total cancellation of the bill. Is the Reform Party blindly following our American friends while overlooking our own cultural needs?
For months Canadians have been hearing stories about possible U.S. retaliation directed toward such Canadian industries as lumber and steel if Bill C-55 is allowed to become law. Naturally we take these threats very seriously. Canadians are naturally concerned, as I am, of any possible sanctions that might be imposed against any Canadian company.
That is why as the Progressive Conservative heritage critic I made a point of asking on a number of occasions questions in committee, precisely to get assurances from the representatives of the Department of Canadian Heritage and the Department of Justice that Canada's industries would be protected if indeed the U.S. brought challenges before the WTO or NAFTA. I received these assurances from departmental staff, as well as from the minister herself during yesterday's question period. As the minister stated, Bill C-55 respects every one of our national and international obligations.
Canada has one of the most open markets in the world for imported magazines. Imports account for 50% of magazine sales in Canada and over 80% of newsstand space according to the Magazine Publishers Association.
This bill is not going to close the door on imported magazines. It is going to allow our Canadian publications an opportunity to continue to compete with other foreign magazines in a very competitive industry.
In April 1993 the first Canadian edition of Sports Illustrated successfully circumvented import prohibitions by electronically transmitting its magazine to a printer in Canada. Essentially this opened the door for unfair competition from U.S. publishers who began producing split-run advertising editions of their magazines, thus reaping the benefits of repackaging the editorial content of their U.S. editions with Canadian advertising which they could sell for considerably less than their Canadian competitors. This essentially is dumping of U.S. magazines in the Canadian market.
Advertising has changed more in the last 10 years than it had in the previous 60. This is mostly because of new technology and changing markets. That is why any threat derived through unfair predatory practices must be challenged. Canadian publishers need our support to maintain their competitive edge in this new global economy.
Bill C-55 may not be perfect, but it is my belief that we must be strong as a nation and protect our Canadian culture. That is why I will be supporting this bill.