Mr. Speaker, I rise today to begin third reading of Bill C-27.
At the outset, I would like to put this bill in the broader context of a global digital economy. In a little more than a decade the Internet has become a powerful factor in the competitiveness of the Canadian economy. It is an essential feature in all of our daily lives.
Digital media is poised to transform the economy and our society in ways that we have not yet imagined. It will increase in importance as an engine for economic growth. Worldwide the digital media sector is expected to grow to U.S. $2.2 trillion over the next five years. There is enormous potential and Canada must tap that potential, but Canada has lost ground over the past decade.
When the Internet was new, Canada was at the forefront. We were the first country in the world to connect our schools and libraries to the Internet, for example. We were at the forefront of redesigning our framework laws to acknowledge the new technology. We led in the deployment and uptake of broadband. Our ICT companies were among the world leaders. But we have fallen behind.
As we have gone into this global economic slowdown, several commentators have talked about how Canada will lead the way out of it. The OECD and the IMF have talked about Canada leading the way out of this global recession. The World Economic Forum recently said that Canada will be one of only two industrialized countries to come out in a more competitive position than we went into this global slowdown.
Our falling behind in terms of our ICT laws and legislation puts this progress and increased competitiveness at risk. This pattern is deeply disturbing. To remain at the forefront of a global economy where digital technologies and competencies are increasingly important, we must reverse this slide.
We need to reboot our national strategy for remaining competitive in that economy. Given the complexity of the digital economy, we need to move on many fronts. We are consulting on how best to achieve this to realize its benefits for the economy.
We want to grow the ICT sector to be an even larger share of our economy, because it is a source of high-paying jobs and high R and D intensity. We need to increase the smart use of ICTs in the other 95% of the economy to make them more efficient and profitable, from public services through manufacturing and service industries and natural resources.
We need to close the productivity gap with the United States and increase our global competitiveness through the smart use of these technologies.
These goals rely on certain fundamentals, such as a high-speed network infrastructure and an online marketplace that has the trust and confidence of consumers and firms. We are working closely as a government with businesses to encourage sectors and firms to use information and communications technology more effectively.
Even as we wrestled with the worst economic crisis in a generation, Canada's economic action plan targeted a number of specific actions to energize the ICT sector. All told, nearly $1.5 billion was devoted to this effort. Among those initiatives was $225 million to provide broadband coverage to unserved Canadians. This money will leverage additional investment to expand access for many Canadians to important economic and social benefits, including online health services, business opportunities and distance learning.
Our action plan also provided a 100% capital cost allowance rate for computer hardware and systems software for two years, which is helping companies realize the benefits of adopting new ICT solutions.
These investments are part of a much broader agenda to put Canada once more at the forefront of the digital age, but we will not do this by investment alone. Government has a responsibility to create the economic conditions that will help build the digital economy.
One of the ways we are doing this is by creating the right framework laws to build trust and confidence in online transactions and communications. Rules that counter unsolicited email are critical to that framework.
Spam represents between 80% and 90% of email traffic around the world. It is estimated that a total of 62 trillion spam emails were sent last year. This bill is about removing a major barrier to electronic commerce. Canadians see spam as a major problem. The Canadian business community sees it as an impediment to productivity.
Spam is more than a nuisance. When unsolicited emails, websites and even freeware programs such as screen savers contain viruses or other forms of malicious programs, they inflict considerable damage and undermine the confidence of consumers in the electronic marketplace. They discourage businesses from relying on the Internet to reach their customers in new markets. This is harmful at the best of times, but it is particularly damaging during an economic downturn. More people go online to look for job opportunities or the best deals and better ways to manage their finances. It is in these tough economic times that consumers are most susceptible and more likely to fall for the get-rich-quick schemes offered on various websites.
More than ever, we need to maintain consumer trust and confidence in an online marketplace as a tool to help build the economy and eliminate deceptive marketing practices that can cause grave economic harm to Canadians. Spam and related threats impose heavy costs on network operators and users. They threaten network reliability and security and they undermine personal privacy.
Canada is the only G8 country and one of only four OECD countries without legislation dealing with online threats, such as spam, spyware, computer viruses, fraudulent websites and the harvesting of electronic addresses. These electronic intrusions are unacceptable. Some invade privacy and some are used to infect and gain control over computers. Most Internet service providers use filters to try to screen out spam. These filters tie up bandwidth and slow the system down. Even with these defences, spam still manages to get through.
One of the best ways to combat spam is through effective legislation. Bill C-27 puts in place important provisions that would protect Canadian consumers and businesses from the most damaging and deceptive forms of electronic harm. It provides a regulatory regime to promote compliance and protect the privacy and personal security of Canadians in the online environment. It provides a clear set of rules that will benefit all Canadians. It will encourage confidence in online communications and e-commerce.
This bill combats spam and related online threats in two ways. It provides regulatory powers to administer monetary penalties and it gives individuals and businesses the right to sue spammers. Bill C-27 makes use of the federal trade and commerce power rather than the law enforcement authorities in the Criminal Code. A civil administrative regime such as that in the ECPA is consistent with the approach taken internationally. The law will be enforced by the CRTC, the Competition Bureau and the Office of the Privacy Commissioner of Canada.
A significant responsibility for enforcing the bill falls to the CRTC, which has a mandate to ensure the reliability, safety and effective operation of telecommunications networks in Canada. This includes the Internet. The CRTC will enforce the provisions against sending unsolicited commercial messages and will have responsibility for the provisions that prohibit the altering of transmission data without authorization.
It will further prohibit the surreptitious installation of programs on computer systems and networks by requiring consent for the installation of all computer programs. In this way, we can help stem the flow of malicious computer programs such as spyware and key loggers. The Competition Bureau will also have responsibilities in stamping out spam under this bill. The bureau has a mandate to ensure fair marketplace practices for businesses and consumers.
The bill before us will extend the Competition Bureau's powers to address false and misleading representations online and deceptive marketplace practices such as false headers and website content. The Office of the Privacy Commissioner of Canada has responsibilities to protect personal information in Canada. This legislation will prohibit the collection of personal information without consent through unauthorized access to computer systems and the unauthorized compiling or supplying of lists of electronic addresses. The Office of the Privacy Commissioner of Canada will have the authority to enforce these provisions using its existing powers.
All of these are important elements in restoring confidence and trust in online communications.
The bill provides for administrative monetary penalties for those who violate the law by sending spam, making false and misleading representations in commercial electronic messages, installing spyware and viruses on computers, and for stealing personal information.
These laws have sharp teeth. For violation, the maximum administrative monetary penalty is $1 million for individuals, and up to $10 million for businesses. In this way, we provide government authorities with the power to fight spam and related online threats.
The second way to fight spam is for consumers and businesses to combat spam to pursue a private right of action. This private right of action has been very effective in the United States. We heard much testimony during the course of the hearings. Obviously a lot of the research and a lot of the work that has gone into this has relied on efforts by other countries to address the very same issues that we are dealing with today. We have learned some things about what to do and what to put in the legislation. We also have learned some things about what maybe does not work so well in the legislation. We have had the advantage of looking at what other countries have done well and using that to inform our own legislation.
The private right of action will allow individuals and businesses that suffer financial harm an avenue of recourse to be compensated and awarded both actual and statutory damages. Network operators will be able to prosecute spammers in civil cases. This would allow them to take action against spammers that make use of their facilities without the threat of subsequent legal action from a spammer.
Whether through the regulatory agencies or the private right of action, our message to spammers is clear: We do not want them. We will not tolerate them, and if they try to operate in Canada, we will come after them either as private consumers and businesses or as regulatory authorities that make Canada a safe place to communicate and do business online.
At the same time, I want to assure hon. members that legitimate businesses will not be negatively affected. The regime allows for consumer opt-in and some exceptions for implied consent so that legitimate businesses can continue to market through email.
The Standing Committee on Industry, Science and Technology studied this bill very carefully. It heard from many witnesses, and as a result of some of the testimony, we introduced amendments to this bill. I want to emphasize that the government remains steadfast in its commitment to reduce spam and other computer-related threats that discourage the use of electronic commerce and that undermine privacy. It will protect both consumers and Canadian businesses from unwanted spam.
As we saw during the debate at second reading in this House and as we saw in committee, there is widespread support for the spirit of this piece of legislation and what we are accomplishing. Canadian businesses know that spam costs them money, in the billions of dollars. In this House and in committee, we saw all parties support this legislation as well, and that is important to note. The time is due for this type of legislation.
At this time I would like to thank the members and senators from all parties who have helped make this bill more effective. I would remind this House that this bill has been guided also by the recommendations of the spam task force. We heard from many of the members of the task force as witnesses before the committee as we discussed this important legislation.
This legislation has also been inspired by the now retired senator Goldstein, when he introduced his bill in the other place. I would also like to recognize the hon. member for Pickering—Scarborough East who has been a long-time champion of anti-spam legislation.
Finally, what I would like to do is assure this House that the bill before us is one step toward a much broader agenda for the digital economy. Our goal is to see a Canadian business climate and social climate that are innovative, adaptive and able to participate fully in the global digital economy.
We as a government will continue to seek input and advice from stakeholders. We will reassert our leadership. As a necessary first step, we want to shut down the electronic threats that are such a source of concern to businesses and consumers.
The challenges are clear, but the potential is enormous. By getting this right, we can do more than simply participate in the digital economy; we can lead. But let us begin by joining our trading partners and neighbours in closing down the inappropriate and harmful use of Internet communications. Let us pass this bill as amended.