December 2000 Fraser Forum:
Smart2000 Brings Old Ideas to New Medium
Smart2000 was the conference during which new policies for Canada’s new millennium were supposed to be discussed. Unfortunately, both the conference and the accompanying displays in the exhibition hall were tired and out of date. Despite the expensive packaging, the government programs on display managed to reveal just how out of step government is with the new economy and the information age.
SkillNet.ca, Industry Canada’s online recruitment site, revealed a government in full competition with the private sector. According to Janet Caroleo, a manager of operations and communications for SkillNet.ca, the site exists to hook up potential employees with employers willing to hire them. Not a bad intention by any measure, but aren’t there private firms, such as hotjobs.ca, providing this service already?
"Oh yes, there are," Ms. Caroleo replied, a testament to the fact that the private sector does sometimes manage to pull itself out from under its heavy regulatory and taxation burden to provide useful things to Canadians.
An ardent supporter of Industry Canada initiatives, Ms. Caroleo explained that even though private sector services exist, SkillNet is unique because of strict privacy policies and the way the site is tailored for different vocations, such as nursing. Had it come from a legitimate competitor, this would be an excellent sales pitch. In this case, however, the competition is using Canadians’ tax dollars to gain market share.
When the federal government privatized Petro-Canada, some Canadians were under the impression that government had once and for all decided to back away from duplicating services provided by the private sector. Wrong!
A brochure from Industry Canada discusses Canada’s "e-commerce first step, an e-commerce action plan for small business." As part of the government’s plan to promote e-commerce, Industry Canada offers "one-on-one consultation" so that small business owners can get "a customized solution specifically tailored to [their] business." Sounds useful enough, but read what comes next: "For a nominal fee, a certified eTeam advisor will visit your business in person…"
That’s right, for a bit of cash, you can pay the government to give you business advice. Given Canada’s history of public finance management, this program might not take off, but still, if I ran PriceWaterhouseCoopers, I’d be more than a little upset about my tax dollars funding the competition.
The former nationalization of Air Canada and Petro-Canada reminds us that governments trying to integrate themselves into the marketplace is not new. But if Canadians truly want to distinguish themselves in the new economy, they are going to have to trust their own innovation and entrepreneurship and reign in well-intentioned but suffocating government programs.
In everyone’s Smart2000 conference package came a CD Rom showcasing Canadian companies and extolling the benefits of doing business in Canada. It’s true that there are some good companies doing innovative things in Canada, but there could be so many more.
The internet offers a new means of empowerment that should appeal to all Canadians. Anyone from Squamish, Yellowknife, Toronto or Halifax can start an online business and sell goods around the world from his or her home. This process is a new, innovative, and a truly smart way for individuals to make their mark. Governments should be ashamed for trying to stand in the way.
The Canadian government has no more place in actual e-commerce than it does in the manufacture of automobiles or stereos. Even with the life-support system of tax dollars, these efforts will amount to an electronic Lada, and those who opt for them deserve whatever they get.
If governments are worried about their relevance, they can start by efficiently performing actual government tasks, and using the internet to make it easier for citizens to deal with the state. It’s time for Canadians to become smart, and put government in its proper place.
Sonia Arrison is director of the Center for Freedom and Technology at the California-based Pacific Research Institute.
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