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Former Canadian broadcast regulator warns against Conservative-backed internet bill

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Peter Menzies served as CRTC vice-chair after an extensive career in the newspaper industry

From LifeSiteNews

By Anthony Murdoch

‘By all means, ensure the Criminal Code is enforced, but do not, under any circumstances, put some puffed-up public servant in charge of patrolling the online world. The state has no business in the WiFi of the nation,’ former CRTC vice-chair Peter Menzies wrote.

One of the past vice-chairs of Canada’s official broadcast regulator, Canada’s Radio-Television Commission (CRTC), has sounded the alarm over recent Conservative-backed federal legislation working its way through the system which looks to severely regulate the internet under the appearance of “protecting children.” 

Peter Menzies, who served as the CRTC’s vice-chair for a time after an extensive career in the newspaper industry, and who is not known for being very conservative, wrote in a recent blog post in The Hub that the “[s]tate has no business in the WiFi of the nation,” criticizing in particular Senate Bill S-210.  

He specifically used his ink space to criticize the Conservative Party of Canada (CPC) and its leader Pierre Poilievre for supporting Bill S-210. 

“The Conservatives, as we speak, are backers of Independent Senator Julie Miville-Dechene’s private member’s Bill S-210. Its intent, like so many pieces of legislation, is virtuous, as it is trying to protect children from access to online pornography. But the road to regulatory hell is paved with good intentions, and the legislation is so clumsily constructed as to pose significant threats to privacy and free expression,” wrote Menzies. 

Currently before Canada’s House of Commons for review is Senate Bill S-210, “An Act to restrict young persons’ online access to sexually explicit material.” The bill passed its second reading in the House of Commons last December, with CPC MPs lambasting most Liberal Party MPs for voting against a bill designed to protect children from accessing online pornography. 

The creator of the the non-governmental law, Miville-Dechêne, was appointed to the Senate by Prime Minister Justin Trudeau in 2018. It was passed by the Senate in April 2023. 

S-210 would create a framework to make it an offense for any organization that makes available “sexually explicit material” to anyone under the age 18 for commercial purposes. Anyone breaking the new rules would be fined $250,000 for the first offense and up to $500,000 for any subsequent offenses. 

However, professor Dr. Michael Geist, who has been an open critic of already passed Trudeau government online censorship bills  C-18 and C-11, as well as the newly introduced “Online Harms” Bill C-63, has warned that S-210 is an “avalanche” of bad news despite its good intentions. 

Menzies observed that if the Conservatives genuinely “Want to give us back control of our lives and make us the freest people on earth, they could start by stepping back from their recent alliance with Big Government solutions and instead find ways to help individuals take control of their lives by managing what comes into their homes.” 

He called S-210 “So clumsily constructed as to pose significant threats to privacy and free expression.” 

Menzies warned that Bill S-210, despite its seemingly good intentions, could result in Canadians being forced to use government-issued IDs to access many different internet services. 

Menzies wrote that in his view, it makes no sense that the CPC under Poilievre oppose Trudeau’s new Online Harms Act, or Bill C-63, yet support Bill S-210. 

As for Bill C-63, it was introduced in the House of Commons on February 26 and was immediately blasted by constitutional experts as very troublesome. 

The new law will further regulate the internet and will allow a new digital safety commission to conduct “secret commission hearings” against those found to have violated the new law, raising “serious concerns for the freedom of expression” of Canadians online, one constitutional lawyer warned LifeSiteNews. 

The Liberals under Trudeau claim Bill C-63 will target certain cases of internet content removal, notably those involving child sexual abuse and pornography.  

The reality is, that the federal government under Trudeau has gone all in on radical transgender ideology, including the so-called “transitioning” of minors, while at the same time introducing laws that on the surface, appear to be about helping children.  

Under Trudeau, the federal government has given millions of taxpayer money to fund LGBT groups of various kinds and aggressively pushes a pro-LGBT agenda. 

Trudeau gov’t needs to ‘leave legal internet’ content alone

Menzies observed that what needs to happen instead is for governments to “[l]eave legal content on the internet alone,” and instead empower “parents” to have more control over what can be viewed online.  

“By all means, ensure the Criminal Code is enforced, but do not, under any circumstances, put some puffed-up public servant in charge of patrolling the online world. The state has no business in the WiFi of the nation,” he wrote.  

“Second, empower parents and families with the equipment they need to control their household’s internet access as they see fit and work with the people who really understand technology to do so.” 

The CPC under its leader Poilievre has clarified that Conservatives “do not support any measures that would allow the imposition of a digital ID or infringe on the privacy of adults and their freedom to access legal content online,” when it comes to Bill S-210 or another other future law.  

Campaign Life Coalition recently warned that Bill C-63, or the Online Harms Act, will stifle free speech and crush pro-life activism. 

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To increase competition in Canadian banking, mandate and mindset of bank regulators must change

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From the Fraser Institute

By Lawrence L. Schembri and Andrew Spence

Canada’s weak productivity performance is directly related to the lack of competition across many concentrated industries. The high cost of financial services is a key contributor to our lagging living standards because services, such as payments, are essential input to the rest of our economy.

It’s well known that Canada’s banks are expensive and the services that they provide are outdated, especially compared to the banking systems of the United Kingdom and Australia that have better balanced the objectives of stability, competition and efficiency.

Canada’s banks are increasingly being called out by senior federal officials for not embracing new technology that would lower costs and improve productivity and living standards. Peter Rutledge, the Superintendent of Financial Institutions and senior officials at the Bank of Canada, notably Senior Deputy Governor Carolyn Rogers and Deputy Governor Nicolas Vincent, have called for measures to increase competition in the banking system to promote innovation, efficiency and lower prices for financial services.

The recent federal budget proposed several new measures to increase competition in the Canadian banking sector, which are long overdue. As a marker of how uncompetitive the market for financial services has become, the budget proposed direct interventions to reduce and even eliminate some bank service fees. In addition, the budget outlined a requirement to improve price and fee transparency for many transactions so consumers can make informed choices.

In an effort to reduce barriers to new entrants and to growth by smaller banks, the budget also proposed to ease the requirement that small banks include more public ownership in their capital structure.

At long last, the federal government signalled a commitment to (finally) introduce open banking by enacting the long-delayed Consumer Driven Banking Act. Open banking gives consumers full control over who they want to provide them with their financial services needs efficiently and safely. Consumers can then move beyond banks, utilizing technology to access cheaper and more efficient alternative financial service providers.

Open banking has been up and running in many countries around the world to great success. Canada lags far behind the U.K., Australia and Brazil where the presence of open banking has introduced lower prices, better service quality and faster transactions. It has also brought financing to small and medium-sized business who are often shut out of bank lending.

Realizing open banking and its gains requires a new payment mechanism called real time rail. This payment system delivers low-cost and immediate access to nonbank as well as bank financial service providers. Real time rail has been in the works in Canada for over a decade, but progress has been glacial and lags far behind the world’s leaders.

Despite the budget’s welcome backing for open banking, Canada should address the legislative mandates of its most important regulators, requiring them to weigh equally the twin objectives of financial system stability as well as competition and efficiency.

To better balance these objectives, Canada needs to reform its institutional framework to enhance the resilience of the overall banking system so it can absorb an individual bank failure at acceptable cost. This would encourage bank regulators to move away from a rigid “fear of failure” cultural mindset that suppresses competition and efficiency and has held back innovation and progress.

Canada should also reduce the compliance burden imposed on banks by the many and varied regulators to reduce barriers to entry and expansion by domestic and foreign banks. These agencies, including the Office of the Superintendent of Financial Institutions, Financial Consumer Agency of Canada, Financial Transactions and Reports Analysis Centre of Canada, the Canada Deposit Insurance Corporation plus several others, act in largely uncoordinated manner and their duplicative effort greatly increases compliance and reporting costs. While Canada’s large banks are able, because of their market power, to pass those costs through to their customers via higher prices and fees, they also benefit because the heavy compliance burden represents a significant barrier to entry that shelters them from competition.

More fundamental reforms are needed, beyond the measures included in the federal budget, to strengthen the institutional framework and change the regulatory mindset. Such reforms would meaningfully increase competition, efficiency and innovation in the Canadian banking system, simultaneously improving the quality and lowering the cost of financial services, and thus raising productivity and the living standards of Canadians.

Lawrence L. Schembri

Senior Fellow, Fraser Institute

Andrew Spence

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