OTTAWA – All it took was 21 minutes for the House of Commons Standing Committee on Industry, Science and Technology to halt any further hearings into the federal government’s 700 MHz spectrum auction rules.
Speaking from his Sudbury riding office, Glenn Thibeault, the consumer affairs critic for the NDP and who sits on the committee, says this represents a blow to Canadian consumers. “Ultimately at the end of the day by not having these hearings, it’s Canadian consumers that are going to lose out on this,” he tells Cartt.ca, lamenting the fact that there are still some big questions about whether the rules for the 700 MHz auction will benefit consumers and businesses.
“We needed to bring everyone to one table to sit around and make sure we get this right. This is the 700 MHz. This is, as everyone is calling it, the beachfront property of spectrum, and if we don’t get this right we’re hurting our economy, we’re hurting consumers because consumers will continue to have to pay higher prices and have subpar service compared to what we could be getting,” he argues.
The NDP wanted to examine the policies to determine if the rules of the auction would be good for Canadians. Smaller cities have complained they haven’t been part of the conversation around the auction, and the hearings would also helped ensure that not only the big major Canadian centres get new wireless speeds and services, but those living in the smaller regions, notes Thibeault.
“This was an opportunity for them to be able to say here’s what we’ve been saying and here’s why we believe it,” argues Thibeault.
The Conservatives insist that the rules established for the auction and their desire to see four national wireless providers will deliver for all Canadians. “We support more choice, lower prices, and better service in the wireless market for all regions of the country. We have set conditions so that wireless services are delivered to rural Canadians in a timely and effective manner. Canadians are already benefitting as a result of our actions. We will continue to stand by our policy that puts Canadian consumers first,” Mike Lake, Conservative MP for Edmonton-Mill Woods-Beaumont and Parliamentary Secretary to the Minister of Industry, said in a written statement to Cartt.ca.
The NDP doesn’t disagree with the idea that a fourth player could bring in more competition and be better for Canadians, but that fourth wireless company has to offer service is all parts of the country. “A fourth player needs to roll out not only in the major centres, but in the smaller cities and in rural areas and in the northern parts of this country,” says Thibeault. The party recognizes that the U.S. held its 700 MHz auction in 2008 and Canada’s won’t take place until 2014. It wasn’t going to suggest a delay in the auction, just a delay in the September 17 deposit submission date so as to effectively study the matter.
A delay would have allowed the committee “to have the study, to get the witnesses, to compile a report, and to make sure that the Conservative plan they say they have is actually going to be for the benefit for Canadians because right now I don’t see the net benefit for Canadian consumers and I don’t see the net benefit for Canadian companies,” argues Thibeault. The NDP is still considering its options in the wake of the failure to convince a majority of the Industry Committee to go forward with hearings. However, the party is limited, too, because Prime Minister Stephen Harper will soon prorogue Parliament, effectively putting the padlocks on the House of Commons doors and shuttering all committees.
“It’s disappointing in that sense but as we’re moving forward, we’re still trying to find ways to ensure that we’re bringing forward strong points for Canadian consumers,” says Thibeault. “We think healthy competition is good, [but] we want to ensure there is the right type of competition and the decisions being made right now are the right ones for the country both of the consumer side, the business side, and the jobs side.”
It’s not certain how each member of the committee voted during the August 27 emergency, closed door session because the meeting was held in camera and therefore the results are secret. It’s pretty safe to assume, however, that the Conservative majority on the committee shot down any chance of further hearings. If the lone Liberal on the committee voted with the four NDP members, the motion would have been defeated by a margin of 6 to 5.
The meeting was convened on August 27 after four NDP members wrote a letter to the committee chair seeking a meeting to discuss holding hearings on the 700 MHz auction rules, as previously reported by Cartt.ca.
In a statement, Telus CEO Darren Entwistle made his disappointment clear: “It is unfortunate that the government has chosen to not convene a Parliamentary Committee on an issue that is of critical importance to all Canadians,” he said. “We respect the NDP’s efforts to have an open and transparent discussion on this issue and we encourage Ottawa to reflect, open up the conversation and listen to what so many voices in Canada are saying to them.”
