Parliamentary Committee Notes: Second Reading Debate

Bill C-26, An Act Respecting Cyber Security

Executive Summary

On June 14, 2022, the Government introduced Bill C-26, An Act Respecting Cyber Security (ARCS), in the House of Commons. Second reading debate began on December 1, 2022, with debating resuming again on March 6 and March 23, 2023. The bill was referred to the Standing Committee on Public Safety and National Security (SECU) on March 27, 2023.

Throughout the debate, opposition parties expressed high-level support for the bill's intent to bolster cyber security and provide authorities that could be used to restrict the use of products from high-risk suppliers; however, they also had pointed criticisms of the bill's perceived lack of oversight vis-à-vis the new powers it grants to the Government and confidentiality provisions around orders and directions. All parties expressed a desire to see the bill referred to SECU so they could hear from expert witnesses on how best to address these issues through amendments.

Issues Raised by Party

There was participation from a range of Members of Parliament throughout the three sessions of second reading debate with the Conservative Party of Canada (CPC), the Bloc Québécois, the Liberal Party of Canada, the New Democratic Party and the Green Party all making interventions. The vast majority of speeches were made by Conservative Members.

Two main themes were repeatedly raised by Parliamentarians as areas for improvement: 1) Ensuring that any new Government powers have appropriate checks and balances in place to prevent their misuse and improve accountability; and 2) Protecting the privacy of Canadians. These critiques have drawn from submissions from industry associations, civil society groups and academia. A third category of comment that was less prominent but still relatively common addressed concerns over the possible financial impacts on small and medium-sized enterprises (SMEs).

The summary below is grouped by political party, with some overlap on issues.

Conservative Party of Canada

The CPC was broadly supportive, and spoke at length about the necessity for legislation such as C-26, and for legislation “banning Huawei” being overdue. MPs repeatedly focused on the threats from state adversaries, notably China and Russia. The speakers were clear in repeated statements that the CPC would be voting to support C-26 at second reading, and refer the bill to committee for review.

While supportive of the intent of the bill, Conservative members were quite vocal in raising concerns and several speakers were similarly clear that they expect amendments to address some of the expressed concerns, notably around: 1) Perceived lack of oversight and authority scope; 2) Better protecting the privacy of Canadians; and 3) Costs of compliance for SMEs.

Bloc Québécois

The Bloc Québécois questioned why the government remains reactive on cyber security. Bloc members criticized how long it took the Government to act on Huawei, being the last of the FVEY allies to announce a position on 5G security. They asked if the precautionary principle should not be applied more systematically, along with the recommendations made by the Standing Committee on Government Operations and Estimates in its June 2021 report, titled Ensuring Robust Security in Federal Purchasing (recommendations in the report aim to consider national security more strongly in procurement).

On the subject of provincial jurisdiction, they raised concerns about the impact this bill could have on Quebec companies and organizations like Hydro-Québec, since it designates interprovincial power line systems as vital services and vital systems. They referenced the Conservatives and their “famous great energy corridor” and asked whether the federal government could use the bill to appropriate provincial responsibilities and critical infrastructure in the name of national security.

Bloc members expressed concern about the impact on small players, stating cyber-attacks on businesses can be sudden and unexpected, and not every business has the money to invest in cybersecurity or protection mechanisms.

The Bloc echoed CPC comments on accountability. They asked about accountability – since decisions will be made by order, does that mean that under this bill the government will be using orders to govern in this area instead of going through parliamentarians. They also asked what mechanisms exist in Bill C‑26 that would help ensure public trust, both in the Internet and more generally. Bloc speakers saw a clear linkage to Bill C-11 on digital culture, and expressed concerns about the possible misuse of private information by Tik Tok and Facebook, which is not covered by Bill C‑26.

New Democratic Party

NDP members' chief concerns with the bill were around its broad powers and lack of reporting mechanism, the potential impact on everyday Canadians, and the lack of oversight and transparency. They also asked how the rights of persons with disabilities—who rely on technologies for everyday barrier reduction—to access technologies will be protected.

The NDP asked if the Government would be willing to work with them on amendments to add protections for everyday Canadians. In particular, they are seeking assurances that Canadians will not be unjustly examined or that this is not going to be applied to ordinary Canadians. Along with the other parties, they want assurances for everyday Canadians that the new powers, which they characterize as broad and sweeping, are not going to be applied for surveillance of everyday Canadians.

On the issue of transparency, the NDP emphasized the need for reporting on the extent to which the new powers are used, stating that, as drafted, “there will be no factual basis upon which to evaluate whether the powers have been appropriate or adequate, or whether they need to change in the future.”

Green Party

The Green Party expressed a concern over the authorities of the Communications Security Establishment (CSE). They referenced an open letter from civil liberties groups calling for improvements to the bill, in particular, in relation to concerns that “secrecy undermines accountability and due process.” They expressed interest in improvements that would ensure better public reporting and better balance the need to improve cybersecurity while holding on to accountability and transparency.

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