December 16, 2024 Standing Senate Committee on Transport and Communications The Senate of Canada Ottawa, Ontario Canada, K1A 0A4 Sent via electronic mail to: RE: Submission to the Standing Senate Committee on Transportation and Communications Study on Copper Theft Dear Senator Housakos and Members of the Committee, On behalf of the Calgary Chamber of Commerce, I am pleased to submit our recommendations for consideration as part of the committee’s study on copper theft and its impact on the telecommunications sector and beyond.

The Calgary Chamber represents a diverse group of businesses, with over 85 per cent of our members being small and medium-sized enterprises (SMEs). These businesses are the backbone of Canada’s economy, accounting for almost 64 per cent of employment in Canada. From to 2020, SMEs contributed over 50 percent of Canada’s GDP for the goods producing sector and 47 per cent in the service-producing sector. Notwithstanding their critical role in our economy, SMEs continue to face economic pressures including inflation and rising input costs.

Any disruption in their operations – including outages or delays due to copper theft – has a negative impact on their revenue and thus can have significant consequences for their bottom line. When copper theft disrupts telecommunication infrastructure, businesses’ economic stability is threatened through the interruptions of critical activities such as credit card transactions and online orders. These outages can last anywhere from eight to twelve hours or sometimes days which results in significant financial losses.

For example, a small business with revenues of approximately $500,000 loses approximately $240 per hour during downtime. An eight-hour outage could cost $1,920 in revenue, not to mention additional loss of production due to the employee’s reduced ability to complete tasks and process transactions. The Calgary Chamber of Commerce recognizes the serious challenges copper theft poses to businesses, communities and critical infrastructure across Canada. This criminal activity not only undermines economic stability but also jeopardizes public safety and the efficient delivery of essential services.

We recommend the following actions to address this pressing issue:  Strengthen the Criminal Code of Canada. The Criminal Code should be amended to implement stricter penalties for vandalism of critical infrastructure, including copper, or willful damage to any essential operating equipment for critical infrastructure. Federal policy should prioritize public safety, ensuring essential infrastructure, such as network infrastructure, ports, railways, highways and power generation facilities are protected.

Damage caused by copper theft disrupts vital components of everyday life and can result in far-reaching harm that exceeds standard property theft and should be treated with the seriousness it warrants  Enhance deterrents for theft of critical materials. Penalties for crimes such as copper theft must be substantial enough to deter the offence. Theft involving critical materials should carry heavier consequences than general thefts.

Specifically, penalties should be based on the broader health, safety and economic impacts caused by theft; we recommend penalties be imposed based on the impact rather than value of the theft, such that penalties would apply when the cost to repair exceeds $5,000, rather than when the value of the stolen materials exceeds $5,000.  Amend the Canadian Telecommunications Act. Address copper theft in the Telecommunications Act to recognize the risks associated with the offence.

Measures such as requiring authorization for distribution, leasing, sale or importing of telecommunications materials and prohibiting the dealings of illegally obtained copper should be introduced. Strengthening federal legislation would complement provincial scrap metal dealer and recycler regulations.  Coordinate intergovernmental action. Copper theft transcends provincial boundaries making it a national issue and therefore requiring a collaborative approach. Addressing cross-border and interprovincial sales of stolen copper will require integrated action to mitigate this difficult challenge more effectively.

We appreciate your leadership and the Committee’s dedication to studying the issue of copper theft, and the opportunity to contribute to this important discussion. The Calgary Chamber of Commerce is committed to advocating for these changes and looks forward to continued collaboration to safeguard businesses and the communities they serve. Sincerely, Deborah Yedlin President & CEO Calgary Chamber of Commerce ABOUT THE CALGARY CHAMBER OF COMMERCE The Calgary Chamber exists to help businesses thrive.

As the convenor and catalyst for a vibrant, inclusive, and prosperous business community, the Chamber works to build strength and resilience among its members and position Calgary as a magnet for talent, diversification, and opportunity. As an independent, non-profit, non-partisan organization, we build on our 131-year history to serve and advocate for businesses of all sizes, in all sectors, and across the city.