moved that Bill C-57, an act to amend the Bell Canada Act, be read the second time and referred to a committee.
Mr. Speaker, the legislation before the House to repeal section 7 of the Bell Canada Act is an important step in the federal government's efforts to help Canadian industry compete, innovate and grow in the information economy.
It follows through on commitments we have made to promote and facilitate the development of the Canadian information highway as a foundation for long term economic growth and job creation.
We are now three-quarters through the government's mandate and the foundations for the jobs and growth agenda are firmly in place. Deficit reduction targets have been met and exceeded. Inflation is at its lowest level in 30 years. Statistics Canada reports that the number of persons employed was up 82,000 in August, bringing year to date gains to 153,000 in full time employment.
Building on these accomplishments, the government has highlighted three elements that form the core of the current phase of the jobs and growth agenda: youth, technology and trade. At the heart of the jobs and growth agenda is the information highway which advances all three of these priorities.
In 1994 the government announced its vision for the Canadian information highway as an integral part of that agenda. The government's strategy envisages a low cost, high quality information infrastructure that gives all Canadians access to employment, educational, health care, entertainment, investment and wealth creating opportunities of the information age. We have a coherent government-wide program for the information highway and we have been steadily putting these elements in place.
In 1994 we set up the information highway advisory council to examine key public policy issues related to Canada's transition to an information society and knowledge economy. Also in 1994 the federal government released an order in council outlining its policy on convergence, the merging of formally distinct technologies, industries and activities such as cable and telecommunications technologies. This policy focused on three broad areas: network facilities, Canadian content and competition in facilities, and products and services.
The government asked the CRTC to hold public hearings on how best to implement these policies. The commission received more than 1,000 written submissions and heard 78 oral presentations. The CRTC's report "Competition and Culture on Canada's Information Highway: Managing the Realities of Transition" was referred to the information highway council for its review.
The information highway council's final report, released in September 1995, made more than 300 recommendations. On the issues of convergence both the CRTC and the council supported the move toward greater competition. Both also supported policies and regulations that will allow cable companies to compete in the local switch telephone market and telephone companies to compete in the broadcasting distribution market.
Along with the CRTC report, the council's report provided valuable guidance to the government in formulating its comprehensive plan which was published last May as "Building the Information Society: Moving Canada into the 21st Century". In this report the Minister of Industry and other key federal ministers set out a series of initiatives and milestones for developing Canada's infor-
mation highway. Included among these initiatives was the government's policy on convergence.
Canadians now get a range of broadcasting and telecommunications services from their local telephone and cable television distribution networks. Recent breakthroughs in technology mean that each will soon be able to compete with the other in offering a full range of services.
Soon, a range of industries, including telecommunications, cable television, publishing and entertainment, will be able to offer packages of services either in co-operation or in competition with each other. Convergence will change these industries dramatically and will bring businesses and consumers an array of new products and services. It will change the way we work, communicate and entertain ourselves.
On August 6 of this year, the government issued the final text of its convergence policy opening the way for fair and sustainable competition between cable and telephone companies. The policy statement and implementation principles cover three major areas: facilities, content, and competition. They clear the way for cable and telephone companies to compete in each other's core businesses and further advance a series of initiatives aimed at introducing competition to the communications industry.
The policy will allow for fair and sustainable competition between cable and telephone companies. Telephone companies may offer broadcasting services once the regulatory framework and tariffs for competition in local telephone services are in place. Competition could begin as early as the end of 1997.
The policy statement is an important step toward fulfilling the government's commitment to ensure that Canadians can participate fully in the information society. It brings to a close a long process of public consultation and studies. The goal has been to create the conditions needed for fair and sustainable competition, expanded consumer choice and continued support for Canadian culture.
The policy is intended to guide the CRTC as it establishes rules and regulations for broadcasting and telecommunications in the convergence era. It will also provide greater clarity and confidence for broadcasting and telecommunications firms as they enter each other's traditional markets.
The policy statement included a commitment to amend the Bell Canada Act so as to remove the prohibition on Bell Canada and its subsidiaries from holding broadcasting licences. The bill we are discussing today will implement that policy by repealing section 7 of the Bell Canada Act.
Section 7 was put in place in 1968 to prohibit Bell from holding a broadcasting licence. At the time there was a real concern that keeping Bell out of broadcasting and especially cable TV was necessary to prevent Bell from dominating the delivery of broadcasting services and give the fledgling cable industry a chance to develop. However, during the years since, these concerns have been overtaken by a number of technological and market developments which are leading to the convergence of the telephone and cable industries.
I would like to point out here that the convergence policy framework will create more choices for consumers and ensure that Canadian content remains prominent on their screens. While new technologies allow telecommunications and broadcasting companies to offer similar services, the distinction between telecommunications and broadcasting will remain and will continue to be guided by distinct regulatory systems.
For example, when a telecommunications company provides broadcasting services, those services will fall under the Broadcasting Act. Conversely, when a cable company provides telecommunications services, those services will be subject to the Telecommunications Act.
Finally, the telecommunications and broadcasting industries are supportive of the government's goal to foster competition in all matters on the information highway. The Stentor companies, including Bell Canada, have made a commitment to make significant contributions to the Canadian broadcasting system.
Bell Canada is anxious to move ahead with its plans to invest in the Canadian information highway. By amending the Bell Canada Act now, the company can plan for the future with a greater degree of certainty. We cannot afford to delay.
The Clinton administration in the U.S. has launched its national information infrastructure initiative. The European Union has a budget of $3.8 billion U.S. to support the development of a new information infrastructure. In Japan, NTT has plans to wire every school, home and office with fibre optic cables by the year 2015.
If we do not match the efforts of our competitors, they will seize the opportunities for network, product and service development. Failure to build our own information highway will lead to reduced competitiveness and a loss of high growth knowledge industries and high quality jobs.
We will also miss the benefits of the so-called enabling effect cited in the 1992 report of the Information Technology Association of Canada. The report found that the effective implementation of technology not only enabled cost reductions and quality enhancement but also over time led to new products and services to better strategic management and eventually to new ways of doing business and meeting customer needs.
Telecommunications is a pivotal enabling technology and increasingly an integral part of all types of businesses and public sector agencies. Given our many accomplishments in information and communications technologies, the convergence of cable and telephone services offer Canadians many opportunities.
Technologies at which Canadians excel are already creating whole new industries. Knowledge based industries are growing faster than any other sector of the Canadian economy. As one of the most wired countries in the world, Canada has the communications and network infrastructure necessary to take full advantage of information technologies such as electronic commerce.
Technology has already eliminated many of the barriers to convergence. We can help to eliminate the legislative barriers by passing the bill before us. As the Minister of Industry has said, the role of government is not simply to reduce the deficit and then get out of the way. It would be foolish to think that people, businesses or entire industries will be able to take up the challenge of the information revolution without government involvement.
Passing the current bill is a necessary step. But once we have established the policy framework and removed legislative and other barriers to competition, it will be up to industry to make the necessary investment and seize the opportunities to provide the services that consumers want.