Ottawa is going to have to go back to the drawing board to draft new legislation to keep telecommunications providers from partnering with foreign state actors like Huawei.
On Monday, senators prepared to conduct a clause-by-clause review of the proposed legislation but paused when Independent Sen. John McNair, the bill’s sponsor in the upper chamber, reported discovering “drafting errors” with “potential significant impact.”
The Senate’s national security committee then moved in-camera to discuss the issue.
Sources familiar with the file revealed that unless the draft is corrected, one of the bill’s primary objectives—introducing new cybersecurity measures—will be nullified.
Bill C-26, first introduced in 2022, contains two key provisions. The first amends the Telecommunications Act to grant the federal government “clear and explicit legal authority” to block Canadian telecoms from using products and services from “high-risk suppliers.” At the time, the government announced it would use this power to ban Huawei and ZTE, two Chinese state-backed telecommunications firms, from providing products and services for Canada’s next-generation mobile networks, citing national security concerns.
The second part of Bill C-26 introduces the Critical Cyber Systems Protection Act. This legislation requires companies in critical federally regulated sectors—such as finance, telecommunications, energy, and transportation—to strengthen their cyber systems against attacks or face steep penalties.
Despite its significance, the bill has progressed slowly through Parliament and recently encountered another roadblock.
When the government drafted its foreign interference law, Bill C-70, it made sweeping changes to the Canada Evidence Act. The law was also intended to repeal and replace a small section of Bill C-26 that addressed the Canada Evidence Act.
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Senate committee plans to meet next week to address cybersecurity bill
Sources—speaking anonymously because they were not authorized to comment publicly—said that the clauses in Bill C-26 were renumbered, and no one appeared to notice until now.
The mismatched section numbers have created an unintended consequence: the foreign interference law, which Parliament fast-tracked this spring and is now law, repeals the entire second half of Bill C-26—the cybersecurity portion.
The Senate committee plans to meet early next week to address the cybersecurity bill. If senators decide to amend it, the bill will return to the House of Commons, further delaying legislation already held up while the lower chamber remains gridlocked.
Matt Malone, a Balsillie scholar at the Balsillie School of International Affairs, had some serious issues with the bill.
“Especially in the way some of its broad and vague language leaves far too much room for government overreach,” said Matt Malone, Balsillie scholar at the Balsillie School of International Affairs.
“A key flaw of Bill C-26 is the need for stronger oversight with the new order-making and information-collecting powers it grants the government.”
Canada’s ongoing issues with Huawei are part of the complex interplay between national security and technological advancement.
The federal government banned Huawei from participating in the country’s next-generation mobile networks, citing risks posed by the Chinese state-backed company’s potential access to sensitive data.
This decision aligns with similar bans by allies in the Five Eyes intelligence alliance but has strained Canada-China relations. Despite the ban, challenges persist as policymakers navigate the broader implications of securing Canada’s critical digital infrastructure while balancing economic and diplomatic considerations.
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Ottawa demanded Canadian companies remove Huawei equipment
Sources say concerns extend beyond the need to secure vital systems against attacks, focusing on how delays in passing Bill C-26 might impact Canada’s ability to restrict technology from Huawei and other federally red-flagged companies.
The government announced plans to ban Huawei and ZTE products and services over two years ago, but Bill C-26 provides the legal authority to enforce this ban. According to the federal government, Ottawa can only “apply these new order-making powers” once the act receives royal assent and becomes law.
Ottawa previously instructed Canadian companies to remove or deactivate Huawei and ZTE 5G equipment by June 2024. The government also set a December 2027 deadline for removing existing 4G equipment supplied by the two Chinese firms.
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joseph@mugglehead.com
