Sarmite Bulte

[Criminal Code, February 24th, 2004]

Mr. Speaker, I would like to have my vote recorded in favour.

[Estonia, February 24th, 2004]

Mr. Speaker, today is the 86th anniversary of the Declaration of Independence of Estonia. The Republic of Estonia was founded on February 24, 1918, when the Salvation Committee declared the republic's independence.

This date was celebrated as the date of independence until the Soviet occupation of Estonia in 1940. During the Soviet occupation, Independence Day continued to be celebrated by Estonian communities around the world.

As the hope of restoring the nation's independence grew stronger in the late 1980s, the people already began to celebrate the day of independence publicly before the end of the Soviet occupation.

On February 24, 1989, the red flag of Soviet Estonia was replaced by the blue, black and white Estonia national flag on Toompea, and since that time independence has been celebrated once again as a public holiday.

I would like to offer my congratulations to President Rüütel, the Estonian parliament, the people of Estonia and Canadians of Estonian descent on this momentous occasion. Elagu eesti .

[Supply, February 24th, 2004]

Mr. Speaker, I appreciate the member's comments. I am glad she mentioned the landmines convention because that was truly one of the proudest achievements that this country has undertaken.

With respect to smoking, I could not agree with the member more. It is important that we ensure that our children stop smoking. I smoked for 30 years and quitting was one of the hardest things I ever did. I quit two years ago and it is important that we teach our children never to start.

What is important for Canadians to know, and I did say this in my address to the House, is that the Canada Pension Plan Investment Board operates at arm's length from the government. It is independent from the government. It was specifically set up to ensure that it was not subject to changes in political will. It is subject to investing in only legitimate companies and that is very important to understand. It was what Canadians wanted at that time.

[Supply, February 24th, 2004]

Mr. Speaker, as the hon. member knows, the Speech from the Throne is quite clear that the government and members on this side of the House are ready and willing to invest in our cities and have a new deal for our communities. As of February 1, we announced that the GST would not be payable by communities, and that was a beginning.

If we also look at the Speech from the Throne, we also said that we would look at other options. One of those options is the gas tax, which we have talked about. I should actually add that the mayor of my city, David Miller who happens to also be a constituent of mine, actually welcomed the Speech from the Throne and praised the government.

With respect to investments, let us make it absolutely clear that the Canada Pension Plan Investment Board has the same federal investment rules that apply to all pension plans. It is also important that there is no explicit requirement in federal law that prohibits any pension fund, including the Canada Pension Plan Investment Board, from investing in specific sectors or companies, provided they operate legally of course.

I also would like to draw the member's attention to the fact that the Canada pension plan has developed a social investing policy, and I would urge the hon. member to check the website where the policy is outlined.

[Supply, February 24th, 2004]

Mr. Speaker, in his motion the hon. member for Winnipeg Centre argues that the Canada Pension Plan Investment Review Board should not be “contrary to Canadian values”. We on this side of the House also agree. If the hon. member even took a furtive glance at the Canada pension plan of today and the investment board which manages an increasing portion of its portfolio, he would quickly discover a program that fully meets the values of an aging Canadian population.

The first value is security. On this priority we have come a very long way from the uncertainty of over a decade ago. In the early 1990s the chief actuary of Canada warned that the CPP's assets, the equivalent of two years of benefits, would be depleted by the year 2015 and that contribution rates would have to increase to more than 14% by 2030 if the plan remained exactly as it was.

Those concerns needed to be addressed. Future generations of Canadians, including our children and grandchildren, needed assurance that the plan would be there for them at a cost that would not overwhelm them as well.

Indeed, the government responded. In February 1996 the federal and provincial governments announced that joint cross-country public consultations would be held on the Canada pension plan to find out what Canadians, the Canadians the hon. member refers to in his motion, wanted to see done.

What did Canadians want? They wanted their governments to preserve the Canada pension plan by strengthening its financing, improving its investment practices and addressing the growing cost of its benefits. As a result, in 1997 the federal and provincial governments adopted a balanced approach to CPP reform so that the plan could meet the demand of the coming years and when the baby boomers would be retiring.

Changes to the plan included limited changes to benefits and their administration, a moderate increase in CPP contribution rates and the building up of a larger asset pool while baby boomers were still in the workplace. The asset pool would be invested in financial markets and managed at arm's length from the government for the best possible rate of return.

All together these measures ensured that a contribution rate of 9.9% would be sufficient to maintain sustainability of the plan indefinitely. These reforms, which were endorsed by federal and provincial finance ministers seven years ago, will help ensure that Canadians have a pension plan on which that they can rely.

I am pleased to say they certainly can. The Chief Actuary has repeatedly confirmed the long term viability and financial sustainability of the CPP. Last year in fact he estimated the CPP, in its current form, was sound for at least 75 years.

I should stress that this long term sustainability comes at a time when other nations now face the harsh reality of significant pension plan reform. The World Bank in fact has offered high praise on Canada's current CPP system as a model for other countries to adopt. I trust the hon. member for Winnipeg Centre can take great comfort in this international recognition.

However, there is another Canadian value that the government has addressed in its commitment to creating a durable pension plan. That value is independence. Canadians must be assured that their retirement savings will be managed prudently and responsibly and not subject to the changing political winds of the day. The government has ensured that this will not happen.

A new market investment policy to be implemented by an independent organization, the Canada Pension Plan Investment Board, was a vital element of the CPP reform. The Canada Pension Plan Investment Board was set up in 1998 and began operations the following year.

Before the CPP Investment Board was established, the CPP's investment policy dictated that all funds not immediately required to pay benefits and administrative costs had to be reinvested in provincial government bonds at the federal government's interest rate. This represented an undiversified portfolio of securities and an interest rate subsidy to the provinces. In other words, the retirement nest egg of Canadians was not working for them so the government once again responded with the CPP Investment Board mandate to invest in the best interests of CPP contributors and beneficiaries and to maximize investment returns with undue risk of loss.

The CPP Investment Board reflects a fundamental policy change in investing CPP funds. Today CPP funds that are not needed to pay benefits and expenses are transferred to the CPP Investment Board and prudently invested in a diversified portfolio of market securities in the best interest of Canadian contributors and beneficiaries and not governments.

For example, it operates under similar investment rules requiring the prudent management of pension plan assets in the interests of plan contributors and beneficiaries. It is free to hire its own independent professional managers. It is subject to foreign property rules just like other pension funds.

This brings up another value. Canadians have made it clear that this value is accountability. For a moment I would like the hon. member to consider the diverse ways the CPP Investment Board informs Canadians of its operations, investments and its policies.

First and foremost, it makes all of its investment policies and financial results public. Second, it releases quarterly financial statements. Third, it publishes an annual report which is tabled in Parliament. Fourth, it holds regular public meetings in each participating province at least every two years to allow for public discussion and input. Fifth, it communicates all of this on a very informative website. It is a very useful site and I would encourage the hon. member to visit it and to visit it often.

Full accountability is also assured through a robust process with strong checks and balances that is in place for identifying and appointing CPP Investment Board directors. Individuals who sit as directors have extensive business, financial and investment expertise. I am pleased to say that the independence and quality of the CPP Investment Board of directors has received strong support from both public and pension management experts.

Federal and provincial governments are currently completing the final steps of the CPP reform launched in 1997, transferring all the remaining CPP assets managed by the federal government to the CPP Investment Board over a three year period. This consolidation will put the CPP on the same footing as other major public pension plans, providing fund managers with the flexibility to determine the best asset mix and investment strategies to manage risk and optimize returns.

Analysis undertaken by the Chief Actuary of Canada indicates the CPP assets fully invested in the market will be expected to earn a greater return and grow more rapidly for the benefit of present and future CPP contributors.

Now this brings up another value that I believe all Canadians hold dear. It is one I certainly demand, and that is results.

Let us look at how CPP assets in fact are performing. As a future recipient of CPP benefits, I think the hon. member for Winnipeg Centre will be pleased with its performance.

During the nine months ending December 31, 2003, assets available to the Canada pension plan earned $8 billion, producing a rate of return of 13.9%. That is all CPP assets, including the $35 billion in fixed income securities currently administered by the government. During the same period, the portfolio managed by the CPP Investment Board earned a return of 26%.

In light of these results, I would like the hon. member to consider two things. First and foremost is the solid performance produced in this year and in previous years by the CPP Investment Board during one of the most turbulent markets in recent history. The other is what Canadians would have sacrificed had their retirement savings been held completely and exclusively in low return government bonds at a time of historically low interest rates.

In a recent speech to the Calgary Chamber of Commerce, CPP Investment Board president and CEO, John McNaughton, referred to a Canadian proverb that says simply, “The path to success is paved with good intentions that were carried out”.

For the 16 million Canadians who contribute to and benefit from the Canada pension plan, their retirement program today is exactly that. For those who cherish the Canadian values of security, independence, accountability and performance, the reforms made to the CPP leave them with much of which they can be proud.

I believe that hon. members on all sides of the House and Canadians who work a lifetime to ensure a brighter future for themselves and their families can take great satisfaction in that.

[Learning Enrichment, February 18th, 2004]

Mr. Speaker, on Thursday, December 18, 2003, the Honourable Gerard Kennedy, Ontario's Minister of Education, and city councillor Sylvia Watson joined me to officially launch the newest site for the Learning Enrichment Foundation Online Community Access Program Network. Located at the Masaryk-Cowan Community Centre in my riding of Parkdale--High Park, this project is funded by Industry Canada.

By becoming a member of the Learning Foundation Community Access Network, our community will gain access to jobs and local programs. In fact, this federal program has become a catalyst for community development activities across the country.

Parkdale--High Park is a vibrant and progressive community. Industry Canada's Community Access Program ensures that we have equitable access to the tools and resources that will strengthen our community. This is also a great example of two organizations, the Learning Enrichment Foundation and the Masaryk-Cowan Community Centre, working together to meet local needs.

I wish to take this opportunity to thank all three levels of government that are working with local people to solve local issues.

[Lithuania, February 17th, 2004]

Mr. Speaker, on Monday, February 16, the people of Lithuania and Lithuanian Canadians gathered to celebrate the independence of the land of their heritage.

This year they celebrated the 86th anniversary of the independence of Lithuania. February 16 is and always will be a significant and meaningful date for Lithuanians. It is on this day in 1918 that Lithuania declared its independence from czarist Russia and re-declared its sovereignty yet again in 1990.

A small nation achieved freedom in the aftermath of World War I. Proclaiming the Lithuanian Republic, its founders stepped forward on February 16, 1918, to assert their country's independence and commitment to a government based on justice, democracy and the rights of individuals.

For decades, Lithuanians have been commemorating this event, during Lithuanians' oppression and subsequent independence.

I would like to offer my congratulations to President Paksas, the Lithuanian Parliament and to the people of Lithuania on this momentous occasion.

[Radiocommunication Act, February 9th, 2004]

Not according to the Supreme Court.

[Radiocommunication Act, February 9th, 2004]

Mr. Speaker, I am very pleased to rise today in the House to support Bill C-2, an act to amend the Radiocommunication Act.

Bill C-2 would amend the Radiocommunication Act to add import control measures in respect of radio apparatus or devices used for decoding encrypted subscription programming signals. It would make importation of them without an import certificate an offence and would provide for the issuance of the certificates, as well as for ministerial exemptions from the requirement.

Finally, it would provide measures to facilitate compliance with and enforcement of the act, including adding certain inspection powers, increasing penalties, and providing the option for a person who pursues a civil remedy to elect statutory damages.

Let me begin by commending the Minister of Industry for immediately proceeding with this legislation. In June 2003, the Standing Committee on Canadian Heritage tabled its report after a two year study of the Canadian broadcasting system. I had the opportunity to participate in that study, first as a parliamentary secretary to the Minister of Canadian Heritage and then as a member of the committee.

The issue of the black and grey satellite markets was extensively reviewed and the issues in fact discussed in chapter 16 of that report, which is entitled “Our Cultural Sovereignty: The Second Century of Canadian Broadcasting”. I am pleased to say that in fact this study is now being used throughout Canada at Canadian universities as the textbook, the must read text, for the study of broadcasting in Canada.

As noted in the heritage committee's report, satellite distributors in Canada account for 1.7 million of the total 2.8 million--or over 60%--of all digital television subscribers. The CRTC currently licenses two suppliers to provide direct to home, or DTH, satellite television services to Canadians. One is Bell ExpressVu and the other is Star Choice, which is owned by Shaw Communications. What is important for all members of the House to know, and for Canadians to know, is that no other North American company is licensed to provide satellite signals to Canadians.

It is also important to understand how this technology works. Satellite and broadcasting technology allows a television broadcaster to send a signal to a satellite which is located in orbit above the earth. That satellite will send back the same signal, covering a portion of the earth's surface, which is known as a signal's footprint. The technology thus allows a signal to be sent directly to any place that has a device for receiving the signal, hence the term direct to home, or DTH, television.

In order to protect the commercial value of satellite television services, the signals are encrypted or scrambled by the broadcaster. To be received in intelligible form, the signal must be decoded or descrambled. If viewers wish to receive these signals, they must subscribe to the channel or channels providing the signals. Upon purchasing the necessary hardware and paying a fee, the broadcaster will supply viewers with some form of authorization unique to the subscriber's decoder, allowing them to receive the signals.

However, as we have heard today and as we all know, our satellite programming services and signals are being stolen--and I cannot help but emphasize the word stolen--by various means designed to circumvent the proper operation of the authorization system.

Again, let me remind the House of what is actually taking place here. Satellite programming signals are encrypted. Authorized subscribers are provided with a control access module or a smart card and decoder by the DTH distributor, but it is possible for hackers to develop technology to decode the encryption. Periodically, therefore, the distributors change the encryption of their signals as a means of eliminating users who have gained unauthorized access to their programming and thus are stealing it. The hackers respond again by building technology to break this new code.

So what we have here is a cat and mouse game, where the companies are always trying to stay one step ahead of the signal pirates and the pirates are equally resourceful in finding ways of breaking the signal.

Signal theft is illegal and the RCMP has stepped up its enforcement of the law. The bill before us supports its efforts by providing penalties that will act as a deterrent once a violator has been prosecuted. This is the remedy for criminal action.

There is another way to deter signal piracy and that is through civil action on the part of the DTH distributors. The bill before us will help encourage legitimate satellite companies to pursue civil action thereby helping reduce the cost of police enforcement of the law.

Let me first explain that under the current civil law regime, victims of satellite piracy, that is, the legitimate satellite companies, are required to show what their losses are. However, pirating is an underground activity. It is very difficult to provide accurate evidence of the real damage.

Under this bill the victims of piracy will be able to opt for statutory damages that will help compensate them for the theft of their intellectual property. Again I have to remind everyone we are talking about theft. We are talking about stealing.

Where pirates are engaged in signal theft for commercial gain, the courts will be able to impose a statutory fine of a maximum of $100,000. Yes, this is a substantial fine but it is designed to be more than simply a cost of doing business for the signal pirates.

For individuals convicted of signal theft, the amount of damages remains the same, capped at $1,000. This is still a significant amount for an individual. It should remain as a deterrent when the satellite companies pursue civil action against individuals.

I do want to emphasize that the focus of the bill before us is not on the individuals who violate the act so much as those who in fact establish businesses that violate the act for commercial gain. We want to deter their trafficking in illegal satellite equipment.

Nor is the focus of Bill C-2 on the hackers who develop the pirate technology. Hackers are individuals who normally are not business people. They are usually motivated by the challenge of hacking encrypted systems, not by profits. They are not likely to be deterred by the threat of financial loss. Once again we can make sure that the businesses that buy their products and use their products for commercial gain are penalized. That is in fact what the bill does, both through the criminal fines and through the statutory fines in the event of a successful civil action.

Businesses that provide television programs need to recover the investment they make in their businesses. When they suffer losses due to piracy, their business viability is threatened. The result is lost jobs and investment in the broadcasting industry and most important, investment in Canadian programming. The satellite and cable companies want fair competition. They cannot compete with free TV and neither should they.

Bill C-2 will not only act as a deterrent to those who would compete unfairly through illegal means, it also gives the victims of piracy a chance to recover some of the revenues they have lost through illegal activities. It will help create an open and fair marketplace for television broadcasting in Canada. That is good for the industry and in the long run for Canadian viewers.

In conclusion, I hope hon. members will join me in supporting this bill.

[Arts and Culture, February 5th, 2004]

Mr. Speaker, on Tuesday, January 20, 2004, the Canadian Stage Company launched the international tour of the The Overcoat to thunderous applause in the United Kingdom at London's prestigious Barbican Theatre.

The CanStage production of The Overcoat was created by Morris Panych and Wendy Gorling and is one of the largest touring productions in Canadian theatre history.

In March 2004 the production will travel to Australia and New Zealand. This touring presentation has been made possible through the generous support of inter alia : the Canada Council for the Arts, the Department of Canadian Heritage through the trade routes program, and the Department of Foreign Affairs and International Trade through the performing arts program.

Based in Toronto, CanStage is one of the largest not-for-profit theatre companies in Canada and developing an international presence as an exporter of theatrical productions is a keystone of CanStage's strategy.

I wish to congratulate CanStage on this ambitious project and for promoting Canadian works, Canadian creators and Canadian performers internationally.