As I've said, Tony, Mr Martin, I appreciate that as well. I know just how committed you've been in an emotional and a material sense. Some of the material you brought I'll be carrying around for years. You and your support staff were just bringing boxes everywhere and sharing with us the research that had been done. It takes that diligence to bring this to the forefront.
The Legislative Assembly of Ontario
May 17, 2000
Member of Provincial Parliament Statement
Toronto, Ontario, Canada
Mr. John O’Toole, MPP
Hansard Reporting and Interpretation Services
1st session, 37th Parliament
Orders of the Day
Second Reading Debate
FRANCHISE DISCLOSURE ACT, 1999
Consideration of Bill 33, An Act to require fair dealing between parties to franchise agreements, to ensure that franchisees have the right to associate and to impose disclosure obligations on franchisors
Mr. JOHN O’TOOLE, MPP
Mr O'Toole: I'd like to thank the member from Scarborough East for relating his actual experience in the debate today, as he has all through the discussions on Bill 33.
I have a few formal remarks to make, remarks that are prepared, of course, but first I want to thank the member for Sault Ste Marie, who has obviously had a very important role in this. It's most appropriate that you're now sitting in the chair to actually moderate the reasonableness of this debate.
The member for Ottawa-Vanier has been very facilitating as well, attending all of the public hearings throughout the province, and her comments here today reflected that tone as well.
The member from Kingston and the Islands was next to speak today, and with his legal training certainly had something to add to the debate.
The member from Eglinton-Lawrence, as the critic, is aware, as he has been in the House for some time, just how long it's been for government to try and bring forward something that's balanced and reasonable.
The member for Glengarry-Prescott-Russell certainly is a businessperson. Even as we speak, he's a businessperson, owning a hockey team or something. It's sort of an NHL franchise sort of thing-not quite that status. But he's very familiar with the issues.
The member for St Catharines, of course-we're all glad to hear that he's having a school reunion.
With all respect, the Honourable Bob Runciman, who's the Minister of Consumer and Commercial Relations and the member from Leeds-Grenville, sends his regrets because he is conducting ministerial business as we speak. When I spoke with him and the House leader in the House yesterday, he wanted to share his thanks with the House, and I'm doing that formally. Minister Runciman has been very inclusive in this whole process. I can assure you, as his parliamentary assistant, it's a pleasure to be empowered by someone who's able to allow everyone to participate in the process. I know he took great pains to meet with the member from Sault Ste Marie, and between the two of them basically brought this thing to a unanimous agreement. We found the balance at this point in history that works for the greatest number. That's democracy and I commend everyone for doing that.
Out of respect for the minister, I'll read his remarks. He said that this is in his own handwriting and it's very difficult for me to actually read it, but I will try.
He commends all members of the committee for the excellent work that's been done. It's an example of how the process can work for members on both sides of the House when they put partisan interests aside. That's very important for all of us to learn here. I recognize that the opposition has a different role than government-our role is different and your role is different. You're actually here to criticize us, basically, with the hope that we'll make amendments.
Some people suggest that opposition MPPs can't make a difference. Well, this legislation puts that to rest. I especially want to point out the impact that Tony Martin has had on this bill. Mr Martin is very conscientious and committed to good franchise law in Ontario and has worked hard with the government to get this on the table. Hopefully the example set by Mr Martin and others of the opposition parties will be heeded by the members and leaders and will bear witness that we can work together and provide good legislative framework in areas that could quite easily be contentious. It is dealing with a balance of power, really, between the franchisor and the franchisee and I believe we've struck that balance, as delicate as that is. It's never perfect. We're dealing with human beings here.
I go right back to the minister, who allowed this transformation from sort of a very arcane relationship where the franchisee could basically get cleaned out in three years if they weren't practising due diligence. We've now got a disclosure piece that I think is a huge improvement, without being overly dominating in a market situation. You know that what's a success today because of marketing may not be a success in the future. It's up to both sides to keep the relationship open and fair.
Franchising is an important part of the Ontario economy-that's been said a few times-and it is estimated that franchising in Ontario accounts for $45 billion to $50 billion in business and sales annually, which is remarkable. So we say that small business creates jobs and tax cuts create jobs, but this all fits into that whole thing of providing a framework where people can create an enterprise and the entrepreneur's spirit that makes Ontario a great place to live and work and invest.
Franchising is a powerful engine for economic growth. As I said, it creates jobs. Moreover, many men and women in this province see a franchise as a way to reach their dreams of a better tomorrow. It is important that individual companies doing business here continue to see Ontario as a great place to do business. We need to see Ontario as a place that promotes, encourages and rewards effort. Therefore, I urge the members to support the Franchise Disclosure Act. The bill as amended by the standing committee is now called the Arthur Wishart Act. The member for Scarborough East and others went on to some extent, but that name honours the memory of Art Wishart, the MPP for Sault Ste Marie from 1963 to 1971, a member of the Order of Canada, the Attorney General of Ontario, and the Minister of Financial and Consumer Affairs.
Mr Wishart recognized the need for some reform for protection for people entering into the franchise marketplace some 30 years ago. As a result, there was the Grange Report on franchising, which Mr Wishart as Minister of Financial and Consumer Affairs in 1971 was really the genesis of. You as the succeeding member from Sault Ste Marie should take some pride and pleasure, and I might commend you for bringing his name to the bill despite the fact that he was a member of the Progressive Conservatives of the day.
I'm pleased to be involved in the enactment of a bill that bears the name of Arthur Wishart and can be traced back to his work in this area, as I've just said. Mr Wishart is the predecessor of another Sault Ste Marie MPP who has devoted much of his time and effort. As I've said, Tony, Mr Martin, I appreciate that as well. I know just how committed you've been in an emotional and a material sense. Some of the material you brought I'll be carrying around for years. You and your support staff were just bringing boxes everywhere and sharing with us the research that had been done. It takes that diligence to bring this to the forefront.
At the same time, there was a franchise working group that really did a lot of effort and preparation in getting this on the radar screen. I don't take any credit, but I think the government, some might say, has a pro-business agenda. I call it a pro-jobs agenda. It's that relationship of creating the opportunity for investments. I don't even mean this in an ideological way or a partisan way. The evidence is over 700,000 jobs. We all have to do more about that. It crosses the ideological boundaries for sure. This is an issue that's near and dear to all of our hearts.
I can say quite sincerely that this is a better piece of legislation thanks to the co-operative manner in which it was approached and the process of working with the ministry and members on the committee on all sides. The bill fulfils the commitment made in the throne speech to introduce and bring to law the franchise legislation.
This is the first Ontario government to introduce franchise legislation and to take responsibility for this rapidly changing business activity. The bill reflects the government's desire to find the right balance between the distinct needs of both parties. On the one hand, there is the need for marketplace fairness. Potential investors and franchisees need more information and transparency to make fair business decisions. On the other hand, there is an equally compelling need to avoid the necessity of cumbersome regulations.
To find this balance, the Ministry of Consumer and Commercial Relations and, I might say, the staff, Bonnie and Mr Joe Hoffman and other individuals, worked together. These include the Franchise Sector Working Team, as I said, a small group of franchisees, franchisors and legal experts. A consulting document was developed and sent to some 300 organizations who were asked to comment. More than 95% responded.
The standing committee on regulations and private bills completed four days of public hearings in March in Toronto, Sault Ste Marie, Ottawa and London. We heard from franchisees, franchisors and other key stakeholders from across the province. As members would appreciate, franchisors and franchisees have very different needs. Achieving a consensus on proposed legislation was not an easy task. However, the Franchise Sector Working Team has achieved a consensus.
I would like to take just a few moments to acknowledge the work of the members of the Franchise Sector Working Team. This group of individuals representing both franchisees and franchisors has been diligently working behind the scenes for some five years to put together a piece of legislation that strikes a balance in terms of the interests of all the stakeholders. It is a tribute to the efforts of this group that they have been able to reach consensus and we've got the legislation, as amended, before us.
This is quite an achievement. On behalf of the minister, I would like to formally thank the members of the working team. They include Richard Cunningham, who is in the members' gallery today-I'd like to thank you for the work you've done, Richard-president of the Canadian Franchise Association; Sam Hamam of One Hour Moto Photo; Nick Javor of Tim Hortons; John Lessif, a franchisee with McDonald's Restaurants of Canada; Ned Levitt with the law firm of Levitt Beber; Tony McCartney, a franchisee and representative of the Colour Your World Dealers Association; Kevin Ryan of National Grocers; and John Sotos with the law firm Sotos Karvanis. Finally, as I said before, Mr Joe Hoffman, director of policy for the Ministry of Consumer and Commercial Relations, as well as Bonni, his assistant or policy person. I might say Joe is the chair of the Franchise Sector Working Team.
We know that what is proposed in this bill may not go far enough to please everyone, but I am satisfied that the bill has gone as far as the balance permits at this point. This legislation would encourage a fair and open competitive marketplace. That's primarily what's here without over-regulating either party. It does deal with disclosure. It does deal with fair dealing. It does deal with the right to associate and encourage more opportunities for investment in this province and for individuals to live, work and invest in this province.
As I'm trying to leave time here to complete this bill, I'm going to skip most of it that's been prepared here. Usually there's a part here that says, "In conclusion," so I'll just draw that right now. In conclusion, I publicly want to thank all the members of the committee who participated: the Franchise Sector Working Team members; you, Mr Speaker, in your role as MPP for Sault Ste Marie; and others who contributed greatly to this bill. That will end my remarks, in the hope that this will be passed unanimously.
The Acting Speaker (Mr. Tony Martin): Further debate?
Mr O'Toole has moved second reading of Bill 33. Is it the pleasure of the House that the motion carry? Carried.
Hon Dianne Cunningham (Minister of Training, Colleges and Universities): Mr Speaker, I'm now asking for unanimous consent to move third reading of Bill 33.
The Acting Speaker (Mr. Tony Martin): Is it agreed? Agreed.
This document is a verbatim copy of this MPP’s speech. To review the original transcript:
http://www.ontla.on.ca/web/house-proceedings/house_detail.do?Date=2000-05-17&Parl=37&Sess=1&locale=en
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Office of the Legislative Assembly of Ontario
Toronto, Ontario, Canada
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Risks: Arthur Wishart Act (Franchise Disclosure), 2000, Canada, Canadian Franchise Association, CFA, Franchise Sector Working Team, Good faith, fair dealings, Grange Report, Ministry of Government and Consumer Services, Ontario, Ontario Public Hearings, Canada, 2000, Political champions, Tony Martin, Canada, 20000517 John otoole
