Mr. Speaker, I listened carefully to the comments of my colleague across the way with regard to Bill C-2. I believe the issue here is one of preventing the erosion of the Canadian broadcasting system.
In 1936 the Conservatives, under former Prime Minister R. B. Bennett, established the Canadian Broadcasting Corporation. Why? Because of the impact of American feed coming into Canada: American radio, American magazines, et cetera. American thinking was obviously different than Canadian but it had a tremendous cultural effect on Canadians.
In order to have a Canadian voice and a Canadian view of our society, R. B. Bennett established the CBC. Obviously the establishment of the CBC has been extremely important as a cultural medium for Canadian actors, entertainers, writers, producers, directors, et cetera.
Bill C-2, an act to amend the Radiocommunication Act, is very timely and important given the situation we have. Section 9(1)(c) of the current act sets out a prohibition on the unauthorized decoding of encrypted subscription programming signals. Section 9(1)(d) prohibits unauthorized reception of unlawfully decoded subscription programming signals using radio equipment.
When we look at Bill C-2 we see that the transmission to the public of unlawfully decoded subscription programming signals has become a very important issue in the last few years. Section 10(1)(b) of the act makes it an offence to contravene section 9(1)(c) through activities such as importing, selling, distributing or possessing equipment in circumstances where it is reasonable to infer that the equipment is or was intended to be used for the purposes of contravention of that section.
The member across the way talked about what he did not like about the bill but I did not really hear his solution other than to work with the United States. I believe we must have a made in Canada solution, one which we have been working with the stakeholders on. Until last year there was really little effort to crack down on these direct to home satellite TVs or, as they are known, DTH piracy. There was no unanimity among the courts in this country whether unauthorized decoding of signals did indeed contravene the Radiocommunication Act.
As a result, there was a lack of court penalties against signal piracy. The RCMP's enforcement activities virtually came to a halt. As a result, black market dealers began to open and advertise their products.
In April 2002 the Supreme Court clarified the legal uncertainty. It determined that the unauthorized decoding of any encrypted subscription programming was illegal, period. Furthermore, it determined that reception of encrypted broadcasting programming must be authorized by a lawful distributor in this country, usually the Canadian DTH broadcaster.
Finally, the Supreme Court of Canada determined that subject to a very narrow exception, there was absolute prohibition on the decoding of encrypted broadcast programming from foreign distributors.
Once the law was clarified, the RCMP and customs significantly stepped up their enforcement activities. The member across the way talked about enforcement and compared it to guns and all sorts of other things. The fact is that the RCMP has developed an outreach strategy to provide provincial detachments with information on this issue. It is training its personnel to deal with enforcement.
In fact, a series of RCMP raids on black market dealers has resulted in several high profile seizures of illegal DTH equipment. However the fines imposed in recent judgments do not really impose much of a deterrent. This is very important. The current fines can be regarded by an illegal DTH dealer simply as the cost of doing business. I do not think anyone in the chamber wants to see that continue.
The House is well aware that the RCMP has many security and law enforcement priorities. We must ask ourselves whether it is a worthwhile use of time and resources to step up activities against illegal satellite pirates when there is little indication that prosecution will deter the piracy.
For that reason we must make sure that the punishment fits the crime, and this means increasing the penalties. That is the thrust of the bill. Although a higher level of fines in the act will not necessarily guarantee that the courts will impose stiffer penalties on dealers, it will send a strong message to the courts that Parliament sees this as an important issue.
The penalties contained in the bill are intended to send those messages. The maximum penalties for specified offences under section 10 have been increased from $5,000 to $25,000 or one year imprisonment or both for individuals; from $25,000 to $200,000 for corporations in the case of subsections 10(1) and 10(2.1).
Under subsection 10(2) the penalty has been increased from $5,000 to $10,000 for persons. Under subsection 10 (2.2) the penalty has increased for individuals from $20,000 to $50,000 or two years imprisonment or both; and for corporations from $200,000 to $500,000. Those are strong messages both to the illegal operators who are selling this equipment, the general public and the courts.
The bill also gives the Canada Border Services Agency an important tool. Although the Radiocommunication Act prohibits the importation of illegal receivers, equipment continues to flow across the border, as the hon. member across the way mentioned. Therefore it is difficult for customs to determine which imported equipment may be used for illegal purposes and which will not.
The bill would provide for better control at the border. I agree with the member that we need to deal with that issue at the border. The bill would do that by requiring an important certificate issued by the Minister of Industry for anyone wishing to bring satellite decoding equipment into Canada.
Finally, the bill would give the broadcast industry the tools it requires to protect its interests through civil action. Over the past five years Bell ExpressVu has launched nine civil actions against key dealers in the country. One of these actions resulted in the Supreme Court of Canada's decision of April 2002, as I mentioned, that clarified the legal uncertainties.
However the broadcast industry finds the pursuit of civil remedies under the current provisions to be costly and ineffective. It is difficult to prove a direct causal link between the illegal conduct of DTH pirate satellite dealers and the actual losses the broadcasters suffer. To reinforce their efforts to pursue civil action, the bill provides an option to seek statutorily prescribed damages rather than being forced to prove actual damages.
The bill includes three important provisions that would deter signal piracy in Canada. It provides tools for each of the three partners to enforce the existing law: the RCMP, whose efforts will be backed by stronger penalties; the customs officials, who will be able to stop illegal equipment at the border; and the broadcast industry, who will be supported by the option of statutory damages should it pursue civil action.
This is a good bill that would result in stronger cultural industries in Canada and use of the radio telecommunications spectrum that promotes safety and security.
I believe the bill reinforces and builds on the existing law in Canada. It is important for Canadians. I would urge members of the House to support the legislation.