Proceedings of the Standing Senate Committee on
Transport and
Communications
Issue 32 - Minutes of Proceedings
OTTAWA, Tuesday, May 31, 1999
(34)
[English]
The Standing Senate Committee on Transport and Communications met this day at 4:10 p.m., in Room 505, Victoria Building, the Chair, the Honourable Senator Poulin, presiding.
Members of the committee present: The Honourable Senators Adams, Fairbairn, P.C., Fitzpatrick, Forrestall, Grimard, Joyal, P.C., Kinsella, Lynch-Staunton, Milne, Moore, Murray P.C., Poulin, Spivak and Stewart (14).
Other senators present: The Honourable Senators DeWare and Kelleher, P.C. (2).
In attendance: Terrence J. Thomas, Research Officer, Economics Division, Research Branch, Library of Parliament; Timothy R. Wilson and Gary Levy, Committee Clerks and Till Heyde, Legislative Clerk, Committees and Private Legislation Directorate.
Also in attendance: The official reporters of the Senate
APPEARING:
The Honourable Sheila Copps, P.C., M.P., Minister of Canadian Heritage.
WITNESSES:
From Heritage Canada:
Michael Wernick, Assistant Deputy Minister, Cultural Development;
Jeff Richstone, Legal Advisor;
Don Stephanson, Director General, Cultural Industries.
Pursuant to the Order of Reference adopted by the Senate on March 25, 1999, the committee proceeded to consider Bill C-55, An Act respecting Advertising services supplied by foreign periodical publishers. (See Issue No. 22, Tuesday, April 13, 1999 for full text of the Order of Reference.)
The Honourable Sheila Copps, P.C., M.P., Minister of Canadian Heritage, made a statement and answered questions.
The Honourable Sheila Copps, P.C., M.P., tabled a document outlining suggested amendments to Bill C-55 with the Clerk of the Committee.
It was moved by the Honourable Senator Kinsella -- That the committee hear forthwith from the Canadian Magazine Publishers Association, the Association of Canadian Advertisers, and constitutional experts, if they are available.
After debate, the question being put on the motion -- it was defeated.
It was agreed -- That the committee move to clause-by-clause consideration of Bill C-55.
It was agreed -- That the title stand postponed.
It was agreed -- That the minutes indicate that the honourable senators sitting in the opposition on the committee abstained from clause-by-clause consideration of Bill C-55.
It was agreed -- That clause 1 stand postponed.
It was moved by the Honourable Senator Joyal, P.C. -- That Bill C-55, in clause 2, be amended by
(a) replacing line 28 on page 1 with the following:
"ing in value more than half of the total value"
(b) replacing lines 2 and 3 on page 2 with the following:
"(f) a non-profit organization in which more than half of its members are persons"
(c) replacing line 25 on page 2 with the following:
"officer and more than half of whose direc-"
(d) replacing line 33 on page 2 with the following:
"indirectly, in the aggregate more than half"
(e) replacing line 35 on page 2 with the following:
"shares representing more than half of the"
(f) replacing lines 40 and 41 on page 2 with the following:
"ly, interests representing in value more than half of the total value of the assets."
The question being put on the motion, it was adopted.
It was agreed -- That clause 2, as amended, carry.
It was agreed -- That clause 3 carry.
It was agreed -- That clause 4 carry.
It was agreed -- That clause 5 carry.
It was agreed -- That clause 6 carry.
It was agreed -- That clause 7 carry.
It was agreed -- That clause 8 carry.
It was agreed -- That clause 9 carry.
It was agreed -- That clause 10 carry.
It was agreed -- That clause 11 carry.
It was agreed -- That clause 12 carry.
It was agreed -- That clause 13 carry.
It was agreed -- That clause 14 carry.
It was agreed -- That clause 15 carry.
It was agreed -- That clause 16 carry.
It was agreed -- That clause 17 carry.
It was agreed -- That clause 18 carry,
It was agreed -- That clause 19 carry.
It was agreed -- That clause 20 carry.
The Honourable Senator Kinsella raised a point of order on the requirement for the committee to reconsider a clause already carried.
After debate, the committee suspended sitting at 5:52 p.m.
At 6:17 p.m., the committee resumed sitting.
CHAIR'S RULING
A point of order was raised on the requirements of a two-thirds majority to consider a question in a committee. Rule 96(1) stipulates that the resolution of all questions before a committee requires a majority vote.
The Chair found that the point of order raised by the Honourable Senator Kinsella has not been established.
It was agreed -- That clause 21 carry.
It was agreed -- That clause 22 carry.
The Honourable Senator Joyal, P.C. moved -- That Bill C-55 be amended by adding, after line 40 on page 10, the following:
20.1 The Governor in Council may make regulations defining, for the purpose of section 21.1, the expressions "revenue generated by the supply of advertising services directed at the Canadian market" and "revenues generated by the total supply of advertising services".
The Honourable Senator Kinsella raised a point of order.
Debate ensued.
CHAIR'S RULING
The motion made by the Honourable Senator Joyal, P.C., is a new clause. I am ruling that we are going in order. Section 690 of Beauchesne, 6th edition, states:
Unless the committee otherwise orders, the text of a bill is considered in the following order:
(1) Clauses.
(2) New Clauses.
(3) Schedules.
(4) New Schedules.
(5) Preamble (if any).
(6) Title.
The Chair founded that the point of order raised by the Honourable Senator Kinsella has not been established.
It was agreed -- That the motion carry.
The Honourable Senator Joyal, P.C. moved -- That Bill C-55 then be amended by adding new clauses 21.1 and 21.2, by adding, after line 9 on page 11, the following:
Exceptions -- percentage of permitted advertising revenue.
21.1 This Act does not apply to a foreign publisher who supplies advertising services directed at the Canadian market by means of an issue of a periodical, if the revenues generated by the supply of advertising services directed at the Canadian market represent, in comparison to the revenues generated by the total supply of advertising services, by means of any of those issues
(a) during the period of 18 months beginning on the day on which this Act comes into force, not more than 12 per cent;
(b) during the period of 18 months immediately following the period referred to in paragraph (a), not more than 15 per cent;
(c) after the period referred to in paragraph (b), not more than 18 per cent.
Exception -- paragraph 15(a) Investment Canada Act
21.2(1) This Act does not apply to a foreign publisher who, after the coming into force of this Act, makes an investment in periodical publishing that has been prescribed under paragraph 15(a) of the Investment Canada Act as a specific type of business activity related to Canada's cultural heritage or national identify and that has been reviewed under Part IV of that Act by the Minister responsible for it and for which that Minister is satisfied or is deemed to have been satisfied that the investment is likely to be of net benefit to Canada.
When no exception
(2) Subsection (1) does not apply in relation to a foreign publisher referred to in that subsection who is subject to an order made under paragraph 40(2)(e) or (f) of the Investment Canada Act.
Exception tied to investment
(3) This Act applies to a foreign publisher referred to in subsection (1), other than in relation to the foreign publisher's investment referred to in that subsection.
After debate, the question being put on the motion -- It was adopted.
It was agreed -- That clause 1 carry.
It was agreed -- That the Title carry.
After debate, it was agreed -- That Bill C-55 be reported to the Senate as amended.
The Honourable Senator Lynch-Staunton moved -- That the report on the bill include observations on the nature of the amendments and the additional clauses, as well as a minority view.
After debate, the question being put on the motion, it was negatived on the following division:
YEAS: The Honourable Senators Forrestall, Kinsella, Lynch-Staunton and Spivak (4).
NAYS: The Honourable Senators Fairbairn, P.C., Fitzpatrick, Joyal, P.C., Milne, Poulin and Stewart (6).
ABSTENTION: The Honourable Senator Adams (1).
At 6:50 p.m., the committee adjourned to the call of the Chair.
ATTEST:
Michel Patrice
Clerk of the Committee