Mr. Speaker, prior to Oral Question Period, I was speaking to the bill under consideration, Bill C-55, an act to protect the Canadian periodical industry.
I mentioned that, contrary to what certain members of the Reform Party were saying, our neighbours to the south, the Americans, do not have the right, with impunity as our colleagues were indicating, to impose sanctions or to retaliate, because they too are party to international trade agreements, such as NAFTA and the WTO.
There are rules and procedures, and if the Americans wanted to retaliate, they too would have to comply, despite what the Reform Party members are saying.
I also mentioned that we on the government side are not prepared to hand certain sectors of our industry priority over others. The government does not share the opinion of some members of the official opposition who do not consider Canadian culture worth fighting for. Both agriculture, which is vital to our economy, as I mentioned, and Canada's culture, which is vital to the well-being of our psyche, must be protected.
As I was saying, one feeds the body, the other, the mind. Unfortunately, our Reform colleagues are not quite as concerned as they might be about the food for the mind that Canada's culture represents.
I would also like to take them up on another mistaken notion. Two weeks ago, with colleagues from the Standing Committee on Canadian Heritage, I visited Thunder Bay and the western cities of Winnipeg, Saskatoon, Edmonton, Vancouver and White Horse. My colleague, who is the official opposition critic, toured the eastern part of the country with the other half of the standing committee.
In the western leg of the trip, the Canadian public was very outspoken and supportive in its comments about the need for this bill, once again contrary to what Reform Party members have said.
Canadians generally are very aware of the importance of having strong Canadian cultural industries that are able to compete with other countries.
This brings me to another point that our colleagues are unable or perhaps unwilling to understand. We are not talking about undue protection. We are talking about drawing up ground rules that are fair to everyone.
We are not here suggesting that our magazine industry cannot compete, as members of the Reform Party might be suggesting. It is not that at all. It can and has done so over the last 30 years. Our industry has developed quite well because we have had a level playing field in place and we insist on maintaining such a level playing field.
It is not level when one competitor has an incredible advantage of having overhead costs that 70% less than the overhead costs of the Canadian publishers. That is the essence of a split-run edition. They cover the costs of preparing the edition. They come into a country. They take out the pages that carry ads and which are replaced by other ads. They can undercut the market greatly without necessarily adding anything of any significance or value to the Canadian cultural aspect of what these people are trying to do. In most instances that is what has happened. It is not a fair or level playing field.
Under a fair and equitable competitive system our magazine industry will compete with any other in the world. It is not fair if its competitors have a 70% overhead cost advantage.
The other thing the Reform Party seems to forget is that it is indeed a unique relationship in terms of Canada and the U.S. and the magazine industry.
Eighty to ninety per cent of the magazines exported by our American neighbours are exported in one country only, Canada, because of the proximity and in a number of provinces similarity of language. Therefore there is a great deal of affinity in the market. That does not seem to satisfy them. They want more.
They control over 50% of our market. They have 80% of our shelf space. It is not enough. They want more. When the Americans say “if you do this we will do that so back off”, Reformers say “we do not want to protect, we will back off and the 6,000 people who happen to work in this industry, too bad for them, so sorry, so sad, we are not prepared to do that”.
We will stand by the magazine industry in this country as we have in the past. Members think this bill is exclusively from the Minister of Canadian Heritage. It is not. Do not make that mistake. It is a bill supported by the government and members on this side of the House and we will see soon enough on that.