OTTAWA—Major Canadian telecom providers should not expect cash from the Carney government to cover the costs of complying with its proposed police search powers law, Public Safety Minister Gary Anandasangaree suggested Monday, even amid warnings consumers could bear the brunt of those costs.
In an interview with the Star, Anandasangaree said Ottawa is more likely to compensate small regional players in “one-off exceptional circumstances” and he’s not as “sympathetic” to arguments from major national providers, even if the proposed Bill C-22 leaves that door open.
“I do recognize that there are exceptional circumstances, and there are maybe very small companies that may require that support, and certainly they may need to pass on some cost, but absolutely it’s not across the board, and I would reject the premise that telcos would have to pass their costs on to consumers,” Anandasangaree said.
“The large companies that are listed, that are public companies, I don’t anticipate that we would either have to or should be compensating them.”
His comments come as the Carney government makes its second legislative push for controversial reforms that would make it easier for Canadian police and national security agencies to obtain digital data and intercept private communications, which they say is desperately needed to catch up with other Western countries and modernize Canada’s outdated laws.
The so-called lawful access legislation would force select Canadian electronic service providers, including telecommunications companies, to upgrade their systems so they have the ability to hand over private communications to police when served with a warrant, while also storing customers’ metadata like time stamps of online conversations and IP addresses for up to a year, among other things
Already facing loud criticism over privacy and potential hacking concerns, Canadian telecom companies and a key adviser who helped craft the legislation have also warned about the costs of forcing providers to build, upgrade and maintain systems capable of storing and providing data on demand.
Eric Smith, senior vice-president of the Canadian Telecommunications Association, told the Star recently the industry is seeking public money to offset those costs.
“We don’t want to have to pass these costs on to consumers,” said Smith, whose group represents major telcos like Bell and Rogers as well as smaller ones.
Anandasangaree, who was warned about that possibility in a report by lawyer and former MP Murray Rankin, noted the legislation gives the option to compensate providers, but said there is no budget in place and he doesn’t “anticipate us compensating every telco.”
“I understand, you know, everybody wants to maximize your bottom dollar,” he said. “I would say it’s the cost of doing business, and one that, as good corporate citizens, we expect telcos to take part in.”
In a written statement, Smith argued Monday for a “clear and predictable framework” and reimbursement for providers of all sizes.
“Service providers are not looking to make money from these requirements; they are simply seeking reimbursement for the reasonable costs of providing capabilities that serve a public safety purpose rather than a commercial one,” he wrote.
