Mr. Speaker, I am pleased to have the opportunity to rise today to address Bill S-25, an act to amend the Defence Production Act. At the outset I would reiterate a point made earlier by a colleague that we have some concern about this bill originating from the other place rather than coming through the House, with its duly elected representatives, and then moving on to the other place, which is normally the process. That aside, the NDP will be supporting the bill.
I want to give a bit of background information on the bill for the sake of the people watching and listening to this debate. The bill is an attempt to establish a new regime for regulating access to certain controlled military goods or goods with a military application. Persons involved in this kind of work would have to be registered by the minister or be exempt from registration under the regulations in order to have access to such goods.
Bill S-25 seeks to address a situation that emerged when the United States revoked Canada's special exemption from U.S. arms control regulations. The bill reflects a new Canada-U.S. agreement on co-ordinated legislative measures to strengthen control over trade in defence related goods and technologies.
Historically speaking Canada had been exempt from many of the provisions of the U.S. international trade in arms regulations, known as ITAR. Permits for the export of defence goods and services from the U.S. to Canada traditionally have not been required except for a small category of particularly sensitive goods and technologies, including those pertaining to nuclear weapons, strategic delivery systems, nuclear propulsion systems and submarines.
Most defence technology and unclassified technical data from the U.S. could be exchanged freely between the U.S. and Canadian governments and private sectors. As a result, Canadian and U.S. defence industries have operated more or less as a single market since World War II. Many U.S. companies established subsidiaries in Canada. Companies on both sides of the border frequently bid on contracts in the other country.
On April 12, 1999, the U.S. state department made unilateral changes to ITAR that significantly narrowed Canada's exemption from the licensing of U.S. origin defence goods and services. Until that time Canada was the only country granted an exemption under all but 5 of the 19 categories of goods and services covered by ITAR. The changes required Canadian companies to obtain export licences for 11 of 19 categories, effectively ending the special treatment for the Canadian defence industry.
According to the U.S. government the new measures were necessary because of U.S. companies misusing the Canada exemptions and concerns regarding the effectiveness of Canadian export controls. The Canadian government denied that Washington's concerns were justified.
Beyond the procedural impediments, additions to ITAR caused restricted access to technological data based on citizenship. This is a very important one. Let us take note of what was happening here.
Only personnel holding Canadian or U.S. citizenship to the exclusion of other nationalities could have access to the information or technology in question. The U.S. does not recognize dual citizenship. However, many Canadian high technology firms employ foreign born specialists because of the skill shortages in these areas.
Moreover, our Canadian human rights laws, including the Canadian Charter of Rights and Freedoms, would preclude government restrictions on the hiring of such persons purely on the basis of nationality or country of origin. We certainly would have concerns about that restriction being placed on any relationship between the United States and Canada with respect to defence production and the goods and services involved.
On October 8, 1999, a Canada-U.S. agreement in principle was announced. It recognized a shared commitment by both governments to protect against illegal retransfers of controlled goods and technology from North America and to maintain a strong, integrated North American defence industrial base.
The U.S. provided assurance that it was prepared to reinstate many of the Canadian exemptions and enhance others if Canada harmonized its export control list with the U.S. munitions list and if Canada strengthened controls on these items within Canada and introduced appropriate legal sanctions.
In March 2000 cabinet agreed to the establishment of a strengthened transfer and access control system for certain controlled goods and technologies. It directed the Department of Justice to begin drafting the legislative and regulatory framework conditional on a successful conclusion to bilateral negotiations. On June 16, 2000, the two governments resolved any outstanding issues.
Under the new agreement the U.S. agreed to reinstate most of the pre-April 1999 Canadian exemptions on the transfer of most U.S. origin unclassified defence goods to Canadians, including to Canadians of dual nationality and permanent residents with third country nationality.
For its part Canada agreed to establish a new regime that would require persons having access to controlled goods to be registered with Public Works and Government Services or to qualify for an exemption from registration as set out in the regulations. The new access control provisions include significant penalties for breaches.
This is what Bill S-25 is all about. It is a system of regulation and legislation that sets forth conditions to better control the export and re-export of defence goods and technology, particularly those of U.S. origin.
Under this legislation, by virtue of proposed section 36, the new regime would not apply to most Canadian public sector employees when acting in good faith in the course of their employment duties or to any member of a class of persons to be prescribed in the regulations. Proposed section 37 would make it an offence for a non-registered and non-exempt person to knowingly examine or possess controlled goods or to transfer controlled goods to another person.
I understand that representatives from the affected industries in Canada, in particular the Aerospace Industries Association of Canada, have spoken out in favour of quick passage of Bill S-25 and the implementation of a new agreement between the U.S. and Canada to ensure continued Canadian access to the U.S. defence market and related technology.
While I have indicated that we will be supporting the legislation, I want to make it clear that we are supporting the legislation because we recognize that certain aspects of defence production have spinoff effects beyond simple defence applications, such as various satellite communications, rockets, aircraft engines and navigational, gyroscopic, chemical and biological applications. Quite often in the research and development around these items there is a spinoff benefit that goes beyond a military application.
I want to add another dimension to this debate. While we support the legislation, I have grave concerns that when we look at the whole issue of defence production and the production of goods geared toward defence we sometimes are talking about nuclear weapons and other systems of mass destruction.
We know there is a lot of money in the defence industry. Earlier an hon. member on the other side of the House talked about the importance of defence production to business and the economy in Canada and thus the importance of good relations. I sometimes become very concerned that we might allow our concern about business and economy to overshadow the need to work hard toward a peaceful society that does not engage in guns and arms and the production of those types of goods.
It disturbs me to read in the paper or to see on television a boy of 12 years old being shielded by his father's arms to avoid bullets and in the end being shot dead because of the conflict between two nations. There is so much of this happening worldwide. There is so much conflict, destruction and death. A lot of it is tied into and enabled by the arms involved. That boy did not die because someone was handling a toy. It was a deadly weapon. It was probably from some arms trade or part of defence production in some way or another.
So much of this is happening around the world. We have to concentrate on building a society that looks at all the money spent on defence production, that big industry found worldwide, and on asking ourselves what kinds of things that money could do if we applied it to help the homeless who sleep outside, without any shelter overhead. How much good would that money do if we applied it to child poverty, which is a curse in our society but has existed for so long and continues to exist? How much good would that money do if we applied it to training and other programs to help the unemployed? How much good would it do if we applied it to our aboriginal communities, which quite often have a lower social and economic status than the rest of our communities?
There is a lot of money involved in the arms trade and the defence industry. I am in no way taking away from the fact that every country must have an adequately resourced military to protect its borders and engage in domestic activities to assist its citizens. I am saying, however, that sometimes we allow the economic interests associated with some of these industries to overshadow and overpower the need to get to the human and social concerns within our society.
I make that point strongly because I think it quite often gets lost in the midst of debate. We want things to go smoothly so that we can have greater trade, greater economic stability, and more money flowing in. However, what is happening with all the money flowing in? Where is it going?
I read a piece in the paper a couple of days ago, probably the plane when I was coming here, about the fact that the term millionaire no longer means what it meant 30 or 40 years ago. If one was a millionaire then one was a member of an exclusive club. Now more and more people, numbering in the thousands, can claim to be millionaires, a lot of them at a very young age. The article also mentioned that there are 300 billionaires in the world.
We should look at where that concentration of wealth is going. Much wealth and prosperity exists today but remains concentrated in the hands of a few. A lot of that wealth comes from such things as defence production industries and various other industries where the money flows through big corporate interests from one country to the other.
Arms are getting into the hands of children and women. I talked to the Eritrean ambassador last night. She told me something I was unaware of. A large number of the Eritrean soldiers fighting in the war between Eritrea and Ethiopia were women. I asked specifically if there were any child soldiers involved and was told no, they protect their children. However, women are fighting on the frontlines, laying down their lives in a conflict between nations. What are they using? They are using guns and arms off which someone has made money.
I raise it here in the House because we are elected people. We are elected to represent our constituents. We are elected with a responsibility to try to build a better society, to try to do something to elevate ourselves beyond the realm of the killing and fighting we see day by day.
A good part of that will come about if we start to look honestly at some of the things involved which we take for granted as being a natural part of our economy. We can have a thriving economy but we can have an economy that is based on things other than weapons of destruction.
I make that point even though we are supporting the legislation to enable a smoother relationship between Canada and the U.S. It is better to have some controls around this kind of technology rather than no controls at all. I really would implore us to work for the day when the ultimate goal will be that we put less emphasis on the production of arms and weapons of destruction and things that kill people and more emphasis on the kinds of things that breathe life into our society and give our society a sense of purpose, meaning, and a true sense of destiny.