Ken Hardie

[Online Streaming Act, May 11th, 2022]

Madam Speaker, yes, I do. I think the CRTC has demonstrated over time that it keeps in touch and stays in sync with community standards. It uses a very light touch, if we really look at some of its pronouncements over time. In fact, if—

[Online Streaming Act, May 11th, 2022]

Madam Speaker, I appreciate the member's question, and I also appreciated his comments on my output here.

I think we have to be concerned about that, absolutely. That said, I think we have seen very clear examples of Twitter, particularly, banning people for some of the things they have put on it. Facebook will send people to “jail” if they put things on there that they believe offend community standards, and of course the CRTC has done that sort of thing at the two stations I mentioned.

That kind of regime has always been in place, but community standards tend to rule. We can get away with things now on conventional radio that we could not dream of doing when I was still on the air, and certainly not when I was a kid. Things change. Community standards change. Chief Justice Beverley McLachlin, in her article, said that we should regulate the platform but let the platform deal with the content. That is probably the best way to go forward.

[Online Streaming Act, May 11th, 2022]

Madam Speaker, I think the hon. member misunderstands what net neutrality is.

The notion came up that the network providers, basically the people who allow the streaming, would constrain access to bandwidth unless more money was paid to get more bandwidth. This would certainly choke off the ability of content providers to stream, let us say, movies, etc., unless they ponied up the money to get the bandwidth to do it.

That is what was meant by net neutrality. The government has been firmly onside that everybody deserves the same treatment by those platforms, so that any content put into the platform would be treated equitably and equally across all potential users.

[Online Streaming Act, May 11th, 2022]

Madam Speaker, it is kind of a pleasure to speak to Bill C-11. I will offer a few things based on a career, at least my first career, of dealing with the CRTC as a broadcaster, as a person who was on the radio and occasionally on television, and especially as a manager of stations that were required to follow the CRTC regulations.

The concerns that have been expressed about Bill C-11 need to be paid attention to. We should not just dust them off and say there is no problem here. The questions are legitimate, but we also need to drill into the details and see exactly what the implications are. When we do that, we are going to end up feeling a lot more secure and confident that Bill C-11 is going to add significant value to Canada.

First of all, this is the Broadcasting Act that we are talking about. The Broadcasting Act relates to broadcasters. I want to quote a couple of things that kind of settle what we are talking about. The first is:

undertakings for the transmission or retransmission of programs over the Internet as a distinct class of broadcasting undertakings...

In other words, basically we are saying that the web platforms that distribute and carry programming to Canadians will be classed as broadcasters. The legislation also says:

the [Broadcasting] Act does not apply in respect of programs uploaded to an online undertaking that provides a social media service by a user of the service

In other words, cat videos, homegrown YouTube and even the productions that someone may have spent some money to develop will not be covered. They will not be influenced by this.

Further, there is one exception that we need to note in the legislation. It says:

A person who uses a social media service to upload programs for transmission over the Internet and reception by other users of the service—and who is not the provider of the service or the provider’s affiliate...does not, by the fact of that use, carry on a broadcasting undertaking...

I want to go back to my radio days. It was 15 years of misspent youth, but an amazing education in a lot of ways. I got into the radio business just after the initial Canadian content regulations came to radio, and here is how that worked. The original rules said that 30% of the music that we played from 6 a.m. until midnight had to be Canadian content. I will describe what that is in a second. Later, the CRTC and the governments of the day came forward with a formula in which the radio stations had to contribute to a fund. Initially, it was called the Canadian talent development fund. There have been other names and other versions of it.

The two things were that, first of all, we had to profile Canadian content, and then later we had to contribute financially to the creation of Canadian content. What we are doing here now is no different from what was done 50 years ago.

How did we know what Canadian content was? In the radio business, every record had what was called the MAPL logo. It was a system that identified music, artist, production and lyrics of the piece. The rule was that anything produced after 1971 or 1972 had to have two of those categories covered as being Canadian to be classified as a piece of Canadian content. It was tough in the beginning, I have to say. I had grown up listening to radio that was free to play anything it wanted at any time, within reason. I will get to that, but the fact is that all of a sudden we had to play Canadian content. In those days it was scarce; at least, the kind of music we wanted to program on our station was scarce. I still today cannot listen to Snowbird by Anne Murray because we played it to death. It was what we had at the time. That no longer exists, and it is because the Canadian content rules led to the development of a Canadian music industry that punches way above its weight around the world.

There was a unique proposition to those early CanCon days that is totally different from what we face today. Radio, by its nature, is very linear. The listeners listened to the piece of music I had on the air, and got it in the order that I gave it to them. If they were going to listen to our station, they would get that 30% of Canadian content, period.

It is different in this case. We are asking online broadcasters to simply make Canadian content available. The people who use Netflix go in and there are little tiles that show them all of the movies available. What this rule would do is tell Netflix that it has to make sure that Canadian content is represented in those tiles. People do not have to choose it, but they have to know that it is there. That way, we are going to at least give Canadian creators access to audiences who can choose to view or listen to their material, or not.

The actions of the regulator have certainly changed throughout my lifetime. Sometimes, when I talk to kids in schools, they ask me what it was like in the old days when I was a kid: when we would ride our dinosaurs to school and all that good stuff. When I was a kid, Canadian radio stations were not allowed to play commercials on Sundays. If they played a recording, they had to announce that it was a transcription so that people would not think that the performance was live. That was then.

Over the years, the broadcast regulator updated, streamlined and allowed things that were not allowed previously. I remember only two times, or maybe three, when the Canadian regulator stepped in and got in the way of a licensed broadcast undertaking.

One was at one of the first stations I ended up working for: CJOR in Vancouver. The family who put the station on the air was forced to sell it because it lost control of the programming. The programming in the mid-1960s was pretty rough, when we look at the community standards of the day.

Another refers to a general category of radio called radio poubelle: garbage radio or trash radio, which has been a unique property, particularly in the Quebec City area. Station CHOI was forced to be sold, again because it could not control some of its announcers who were doing some hideous things on the air. I could quote them, but will not because members really do not need to hear the sorts of things that were going on there. The CRTC had been more than patient, but it was far beyond what anybody could ever accept.

With respect to the obligations of the broadcaster, there was an article co-written by former Supreme Court Chief Justice Beverley McLachlin entitled, “Regulate the System, Not the Speech”. When we look at Bill C-11, what it is really going to do is regulate the broadcaster so that it is responsible for the material that is played by it. I could play any record I wanted, but if I did not follow Canadian content rules the broadcaster, i.e. the station I worked for, would get into trouble, but nobody was standing over my shoulder saying that I had to play this song next or that I could not play a record, except if it did not match the format. It is not the content producers, but the platform that provides the content to the public, that the bill will regulate.

By making Canadian content more available to Canadians, we will do something about that cultural, and I use this word advisedly, juggernaut to the south of us, particularly when it comes to French production. One of the most delightful things in my time as a member of Parliament has been that I have a home in Quebec. I love it here. Quebec is such a wonderful, unique thing and we must do everything we can to protect this unique culture in a unique country such as ours.

I will end it there to let us go to questions, but I have to say that although some of the fears may be quite legitimate, they actually do not get borne out when we look at the details behind Bill C-11.

[Susan Jacks, May 4th, 2022]

Mr. Speaker, on April 25, Canada lost a wonderful artist, talented and beautiful in every way. Susan Jacks passed away in Surrey after a rich career with chart-topping Billboard and Cashbox hits in Canada and the United States, three million-selling records worldwide, and many Juno and Grammy awards nominations as a performer and writer.

Susan and west coast artists, including Tom Northcott, Howie Vickers, Bill Henderson and, of course, Terry Jacks, with whom she formed The Poppy Family, earned major radio airplay way before Canadian content rules because they were just that good.

Susan dealt with tough personal times and loss, including struggles with kidney disease, the triumph of a transplant, and the fight with the disease once again.

It turns out Burton Cummings and I share the same favourite Susan Jacks song, with a title line that best suits her memory: “For the sun shines for those who look / Beyond the clouds.”

May Susan enjoy her eternal sunshine. She has taken the love of her fans and friends with her.

[The Budget, April 25th, 2022]

Madam Speaker, therein lies one of the key shortcomings of the NDP's approach to things: There is no simple solution here. If we bring in a wealth tax, the next sound we will hear is the sound of wealth fleeing Canada to friendlier places. Whatever has to happen may be along the lines of some of the things that French economist Thomas Piketty has been reporting on, and there are others. There is a lot of thought going into this. Our work to create an international base tax rate of 15%, for instance, is a start. It is not the complete story, but a good start.

[The Budget, April 25th, 2022]

Madam Speaker, the budget can be faulted for not including a lot of different things. There are only so many lines and there is only so much room, but that does not mean to say that things are not going to happen.

Our government has laid the foundation for a very strong agricultural sector, with the assistance that it has needed in various areas, including the whole business of sustainability in the environment. We are committed, by the way, to supply management, which I know is a huge force not just in the economics of farming, but also in the strength of communities where farmers live.

While I cannot speak directly to the point that our hon. colleague raises, I would say that it is worth a look and is worth following, and where we can make improvements on what is planned, we will do that.

[The Budget, April 25th, 2022]

Madam Speaker, that is no small question, and indeed it is an important one. We cannot forget that the budget is a snapshot in time. It is like a movie going by at 64 frames a second. There are things that were put in place beforehand and things that will follow as the dollars stacked up in any given ministry are allocated according to the needs. As we know, those needs will shift and change.

The member, another one over here from the fisheries committee and I are all going to get together to talk about the science. I think we share the view that the science either is not what we need or is not being used the right way. One way or another, we are going to get to the bottom of this and cast a way forward that would make the difference the member is looking for.

[The Budget, April 25th, 2022]

Madam Speaker, the occasion to comment on the 2022 federal budget includes an opportunity not only to highlight certain aspects of the government's plan that people in Fleetwood—Port Kells and indeed right across Canada will find of great value, but also an opportunity to illustrate the budget as yet another sign of a choice Canadians have in their relationship with the federal government.

Prior to 2016, we had 50 years of social and economic ideology that counted a great deal on the free market lifting us to prosperity. The results, though, have been economic and social inequities and gaps that have become more deeply rooted.

The legislation our government has shepherded through Parliament, including our budgets, has sought to address the gaps that the free market cannot or will not address. These are economic gaps between those few who have the leverage to grow their wealth much faster and the rest of us, social gaps that threaten the well-being of too many marginalized people, and gaps in the security of achieving and maintaining a quality of life that those who work hard should reasonably expect in a nation as wealthy as ours.

The highlights of budget 2022 I will cover today are the ones chosen by independent third parties. It is all right for us, as government, to say that this or that is important, but it is really interesting to see what people at street level, and the commentators and observers, have to say. My own thoughts will focus on areas where perhaps the budget itself has been silent.

In the time available, I am going to concentrate only on the number one issue at home in Fleetwood—Port Kells: The budget's measures concerning housing.

Budget 2022 takes steps to return some semblance of equity for first-time homebuyers. Here is an area where the underregulated laissez-faire free market has left the dream of home ownership entirely out of reach for too many and has left some Canadians literally out in the cold.

The Edmonton accounting firm Hahn Lukey Houle highlighted the tax-free first home savings account, which would help first-time homebuyers save up to $40,000 to help with their down payment. Money going into the account would be tax-free and money taken out of the account to buy the home would be tax-free.

The market could not offer something like this. Only the government could do it, and this one is. The market has been unwilling or unable to deal with practices that disadvantage homebuyers and distort prices along the way.

The Vancouver legal firm Clark Wilson, the most named firm in rankings by the publication Business in Vancouver, highlighted the concept of a homebuyers' bill of rights in budget 2022. Over the next year, this bill of rights would put an end to blind bidding, where buyers have no idea what has been bid by others for a property. That is a key driver of higher housing prices.

Prospective buyers would have the right to get the property inspected. Too often, it is a corner now being cut by people forced to rush some kind of a home purchase. There would be more transparency on the sale price history of properties and a new disclosure agreement for real estate agents if they happened to be working both sides of a transaction.

The bill of rights could also include a requirement for lenders to offer a six-month deferral of mortgage payments when families experience a job loss or other major life event, such as a pandemic.

Most media outlets have identified the provision in budget 2022 of a two-year prohibition in Canada on the sale of non-recreational residential property to foreign commercial enterprises and people who are not Canadian citizens or permanent residents. Exemptions to this ban are expected to include refugees, individuals in Canada on work permits and international students who could be on the path to permanent residency. That last group has been identified by people I have spoken with as one that needs to be carefully monitored, because many believe the treatment of international students creates loopholes for foreign capital to buy up real estate.

Most commentators expected something on property flipping, and the budget delivered. Any individual selling a property that has been held for less than 12 months would be subject to full taxation on any profits as business income. The measure would apply to residential properties sold on or after January 1, 2023. There would be some exceptions to this for Canadians who sell their homes due to certain life events or hardship circumstances.

Another version of speculative trading in the Canadian housing market has to do with assignment sales. Those occur when someone reaches a deal to buy a housing unit that has not even been built yet and then flips the right to buy the unit for a profit. This can happen multiple times as a townhouse, condo or home is under construction, and each time, the ultimate cost goes up for the family who will eventually actually move in. GST will apply to all assignment sales of newly constructed or substantially renovated housing. That is going to happen very soon. It will be a week from Saturday, in fact, on May 7.

Storeys, a real estate news and industry publication, noted that the housing accelerator fund will apply $4 billion in 2022 to help municipalities speed up their development permit and approval process. I know this is a huge issue in Surrey, one of Canada's fastest-growing municipalities and soon British Columbia's biggest city, but the long lag to get construction approved by city hall is driving up the prices of finished homes because labour and material costs increase over time, especially during the long lag that it takes to get something built. Add the flipping and assignment sales and the development cost charges, and the cumulative impact on prices is significant.

I have heard stories too about another area that we really have to pay attention to. During the two weeks we had away from Parliament, I had a chance to touch base with a lot of people. I heard stories of people who leveraged the lift in their own home's value to qualify for another mortgage to buy a revenue property. Then, using the rise in that property's value, they got another mortgage for another property and so on. Is this actually going on? It would be worth finding out, because it sounds like the whole thing is a gigantic bubble, and if it pops due to mortgage rate increases, the banks could end up owning a lot of property.

Then there are trusts. The Globe and Mail, in an article focused on money laundering, noted the still unresolved issue of large, suspicious transfers between lawyers' trust accounts. These transfers are shielded from reporting requirements that are in place for banks, accountants, real estate companies and securities dealers. Even casinos have to report, but lawyers do not. In 2000, the federal government passed a law that allowed FINTRAC to carry out warrantless searches of law firms and seize materials. The Federation of Law Societies lawyered up, and by 2015 it was ultimately deemed unconstitutional by the Supreme Court, which told us to go back and improve the language. One would hope an improved version of that legislation is somewhere on someone's to-do list.

More broadly, trusts are perceived as offering perfectly legal loopholes to avoid taxes and obscure the real ownership of property. Watchers at street level say there is a fairness problem here. While budget 2022 aims to tackle the long-standing need to identify the beneficial ownership of real estate through a public registry, right now it is only going to apply to federally chartered companies. This is a good start, but for the provinces it is voluntary, a gap that knowledgeable people say needs to be closed.

Our government is attacking affordability issues that have been allowed to grow and mutate for decades. Fixing them is going to take time plus the talent and commitment to adjust and refine measures as we move forward. That said, all of us here should not underestimate the talent and commitment out there in the community to find ways around any step we take. This is more than a high finance or sound legal game of whack-a-mole. To the people faced with no prospect of qualifying for a mortgage, much less actually owning a home, this is not a game. It is in their interest that we get to the heart of a question our citizens ask at every election: What should government's role be when things are tilted against people?

Just over a year ago, former Bank of Canada and Bank of England governor Mark Carney spoke about what the role of government should be if Canadians believe in free enterprise but with a social conscience. Mr. Carney called our free markets “the most powerful instruments we’ve ever created. Their energy and dynamism can be...directed to serve great purposes, but the market is also indifferent to human suffering, and it can be blind to our greatest needs.” That's why politicians who worship the market tend to deliver policies that hurt people, and those who default to laissez-faire, or who leave the free market to its own devices, leave us unprepared for the future. Put simply, as he goes on, “Markets don’t have values, people do. And it’s our responsibility to close the gap between what we value and what the market prices. That’s the work of politics.” Or, in a view well represented in budget 2022, it should be and it will be.

[The Budget, April 8th, 2022]

Mr. Speaker, this budget has been described as modern supply-side economics. The traditional supply-side economics, as brought forward by Margaret Thatcher and Ronald Reagan, went for deregulation and big tax cuts for big business so that it would expand. It worked, except it worked in Asia and not in North America, and we lost a lot of good middle-class jobs.

According to Janet Yellen, the U.S. treasury secretary, modern supply-side economics prioritizes labour supply, human capital, public infrastructure, research and development and investments in a sustainable environment. I would like the hon. member's comments on whether he sees this budget in the same light.