Madam Speaker, I rise in general support of this legislation. It is important to set this in a historical context. This is legislation that is badly need in this country and that need has been identified for the better part of the past decade.
We saw an initial attempt by the former Liberal administration in the 2004-06 Parliament to bring forward this kind of legislation. We saw it reincarnated under the last two Conservative Parliaments and we are finally getting to it now.
Following up on some of the comments of my colleague from the Bloc who just finished speaking, it is important to view this in the context of the focus of the government on other areas of, as the Conservatives see it, reform in sections of the Criminal Code when in fact the areas covered in this legislation should have been given priority. This legislation should have been in our laws. It has been in a number of other jurisdictions, for example, in the United States, England and Australia, for a number of years, well ahead of where we are at this point. In fact, those countries continue to be ahead because there are one or two significant gaps in this legislation in terms of dealing with what every member of the House knows is a serious problem with regard to identity theft.
We have all heard the horror stories. We have heard the estimate of at least $2.5 billion a year in losses as a result of identity theft, primarily of credit cards and debit cards, small personal loans, that area. That is one of the gaps in this legislation and I will spend some more time on it.
We also heard that there is a corresponding value loss with regard to real estate transactions, both in terms of residential and commercial property. We have a similar loss of $2 billion to $2.5 billion a year. This bill does not address that area at all. I will come back to that because there is definitely more work that needs to be done at the federal level in that regard.
The bill is a significant step forward in combatting this type of crime. It introduces some expanded concepts of what official identity documents are. One of the problems police forces, prosecutors and judges have had in enforcing the existing provisions of the Criminal Code is that the code did not cover new developments in official identity documents.
We have expanded what those are significantly. There is a lengthy list in this bill and hopefully in the law when it comes into effect that will make the prosecution of these offences much more effective and efficient.
A second major thing this bill does is it addresses what we know is a huge problem. It involves a way that small street gangs as well as more expansive organized crime gangs get identity documents. They steal them out of people's post office boxes or their residential mailboxes. We have made that a specific crime. It is very clear what the offences are. They involve not only committing the theft but being in possession of the documents stolen.
There is protection for people who would be entitled to obtain documents from people's mailboxes. For instance, if people are away on vacation and their neighbour picks up their mail, the neighbour would not be in breach of the code. That is a major step forward.
I say this because of personal experience. One of my neighbours was confronted with this problem a few years ago. In talking to the police at that time about their investigation. Criminals were targeting systematically specific residences where they knew people were not home during the day, oftentimes where there was only one adult in the family. It was obviously well organized and the criminals were very efficient in gathering that type of personal information, which they then used to commit crimes of fraud and forgery, et cetera.
The third area that is addressed in the bill has to do with identity information. This is a reflection of the need to modernize the code. People involved in mostly more sophisticated organized crime will gather information, as extensive as including DNA samples, in order to establish a totally false identity but with that degree of certainty in order to prove they are somebody else.
We have set out a very long list of what that identity information is. It includes fingerprints, DNA and all sorts of more technologically advanced sampling that we can do than when these sections of the code were made law as much as 100 to 150 years ago. Those are major steps forward in the bill.
From that perspective my party is quite prepared to support it. In fact, we are going to be supporting the passage of this legislation.
There remains problems and I want to deal specifically with the issue of the gap in not addressing the whole issue of identity theft as it affects real estate transactions. I repeat what I said earlier. The amount we are losing in that regard is as significant as the amount we are losing on the other issues that the bill addresses. It is in the range of $2 billion to $2.5 billion a year.
There is no question that there is responsibility on the part of provincial governments to deal with this. For instance, I know from practising law that the law societies across the country have dramatically increased the responsibility of lawyers and notaries to identify accurately the clients who are sitting in front of them that they in fact are the people they claim to be. We have taken that on as an additional professional responsibility.
Real estate agents similarly have had quite significant additional responsibilities imposed on them in identifying the purchasers and vendors in real estate transactions.
There is a role for the federal government. There are specific sections now in the Criminal Code that deal with the issue of fraud and forgery with regard to real estate transactions. They are clearly out of date.
One of the witnesses whom we heard from at the justice committee was a witness on behalf of the title insurance associations of Ontario. They tend to be one of the major victims because at the end of the day they oftentimes are the ones who end up having to pay when there has been an identity fraud transaction. The witness clearly pointed out the inadequacies of the existing sections in the code and even had a model from experiences in the United States, which the government has opted not to pursue. I forget which state it was but it was one of the more advanced pieces of legislation which effectively makes that type of transaction an illegal transaction and makes it much easier to get a conviction. It has been very effective in that state which is one of the southern states in the United States. It is something that we need to do.
I intend to pursue that because the indication I have had both from the justice minister and the Conservative Party is that they are not going to be moving on that. They are leaving this responsibility entirely in the hands of the provinces. That is not the role the provinces should be playing, so we will be moving ahead to bring that before the House, hopefully within the next month or so.
It will modernize the Criminal Code so that it deals with the modern criminal activity that is going on. The code clearly is inadequate in that regard.
There is another point I want to raise in terms of the legislation and the way it is worded. I am quite concerned that on identity information there is one section that deals with how that information is used. It is proposed section 402.2 of the Criminal Code, clause 10 of the bill. The term “the reckless use of this identity information” is used. Being reckless is almost like a criminal negligence type of concept; being so reckless that it amounts to a crime.
The Supreme Court of Canada has had difficulty with that terminology in the past, and I am worried that this section may not be effective. I proposed an amendment to it, based on recommendations we had heard from the Canadian Bar Association. That did not get majority support at the committee. The wording is still in there. I caution the government in the course of this speech to monitor this. I think it will pose a problem for our police and prosecutors to get convictions, if the court treats that terminology the same way the Supreme Court has in another major case. That is a problem.
The other one caused me a good deal of concern as well. I credit the Canadian Bar Association for bringing this to our attention. There are two sections which in effect allow a very wide scope of officials to procure false documents. It is in section 7 and then again in section 9. Section 9 is less problematic because it limits the scope of that section to police officers, who are already defined elsewhere in the code in section 25.
Section 25 sets up a regime where it is recognized that from time to time our police officials will be required to break the law. This is a relatively new section. It is only about 10 or 12 years old, I believe, but it has a whole regime of how that is regulated, how it is supervised by senior officers and when it is permissible. It requires reporting to this chamber on an annual basis, in effect, the use of criminal activity to combat criminal activity. I believe it has worked quite well, and I say that from having looked at the reports. Actually, the justice committee did a review of section 25 two or three years ago and came away quite satisfied that it was working very well.
Section 9 exempts police officers from the provisions of the bill, but it does not have the regulatory function that section 25 has. It clearly also exempts them from section 25. I got no satisfaction from the responses we got as to why they were doing that. I believe that the police officials should be regulated by section 25. It has worked. We may want to modify it to some slight degree in terms of the reporting function in particular, but it is a tool that has worked very effectively and allows the police to conduct criminal activity in order to catch criminals, but it has safeguards to prevent it being abused.
The other section, though, was even more problematic, and that is section 7 of the bill. Section 7 basically provides a defence to anybody who provides an identity document “as long as it is requested by a police force”. I do not have any particular problem with that. It also stipulates “the Canadian Forces”. Every single soldier in this country could ask for a forged document. Then it goes on, “or a department or agency of the federal government or the provincial government”. Every single employee of the provincial and federal governments could ask someone to prepare a forged document. They could go to MasterCard and Visa and say, “I want a fraudulent card in this name”. They would not have to give any explanation. They would just have to say that they are a public official, a teacher, a social worker or a worker at the LCBO, in the case of Ontario. All of those are entitled to ask for forged documents. The person can give it to them without having to worry about committing an offence.
Corresponding to that, because of the way the rest of the bill works, the person asking for that document is not, I believe, committing an offence. It is wide open to abuse, up to and including rogue police officers. I am not worried about the police force. I quite understand the need for the police force to have that. I still think police forces should stay under section 25.
This does not require approval by a senior official in the department or provincial ministry. Anybody can ask for a forged document. I received no satisfaction. It is problematic. I agree with the government that this section has to be monitored.
As I said earlier, we are going to support the bill because the rest of it is badly needed, but section 7 is wide open to abuse. We need to monitor it very closely.
We have needed what is covered by the bill for the better part of seven years. Police and prosecutors have been telling us how badly they need this provision. It is a shame that we have given priority to other amendments to the Criminal Code and put this on the back burner. We badly need to get this done, get it through, and get it into place, so our police and prosecutors have the tools they need to prosecute these offences.