MP DISPUTES SPY AGENCY'S VIEW OF BILL

Law Would Cover Other Illegal Activity, Director Says

The director of Canada's highly secretive electronic spy agency says
new powers in a proposed anti-terrorism bill that will allow it to
eavesdrop on communications involving Canadians will also be used to
bust criminal activity such as drug trafficking.

In his first public appearance as head of the Communications Security
Establishment, Keith Coulter told the Commons justice committee that
his agency would pass on information it intercepted -- without a
court warrant -- on major criminal activities to the RCMP.

But minutes later, Liberal MP Stephen Owen, the parliamentary
secretary to Justice Minister Anne McLellan, contradicted the
soft-spoken Mr. Coulter, telling him the new law does not permit him
to do so.

Mr. Owen said the law clearly spells out that the intercepted
communications only be used "if they are essential to international
affairs, defence or security."

Defence Minister Art Eggleton, who appeared before the committee with
Mr. Coulter, responded: "Terrorism isn't the only thing that is
covered by the (bill)."

But Mr. Owen, a former University of Victoria law professor, stuck to
his ground.

"As difficult as it may seem to most laypeople, I think this says you
can't pass on or use that information unless it's related to
(international affairs, defence or security)," he said.

The CSE, with an annual budget of almost $106 million and some 1,000
personnel, monitors foreign radio, telephone, fax, satellite and
computer traffic for information of interest to Canada and its allies.

Currently, the CSE is not allowed to spy on Canadians, and Mr.
Coulter said it makes every effort to screen out their messages. The
anti-terrorism bill would allow the electronic spy agency to use
information gleaned from conversations between people in Canada and
suspected terrorists, though permission by certificate is required
from the defence minister.

Mr. Coulter said the new legislation will in part eliminate this
"gap" in the CSE's capabilities compared to other electronic spy
agencies in the world.

Mr. Eggleton and Mr. Coulter said the foreigner involved in the
communication with a Canadian would be the target of the intercept,
putting the matter outside the jurisdiction of a Canadian court to
issue a warrant.

The proposed bill comes in the wake of the Sept. 11 terrorist attacks
on the U.S. Last week, the government announced $37 million in
additional funding for the CSE, a little-known wing of the Defence
Department, to buy state-of-the-art high-tech equipment.

The hastily written legislation has been the subject of much
controversy since it was unveiled 10 days ago.

For instance, Mr. Eggleton said yesterday that the new bill does not
contravene the country's Privacy Act, while on Monday, Claude Bisson,
the watchdog for the CSE and a former judge, said it clearly
represented in some cases an invasion of Canadians' privacy.

Mr. Eggleton circulated a letter yesterday from Mr. Bisson showing
his support for the bill after Mr. Bisson had told a Senate committee
Monday that the terrorism bill gave the government "exorbitant"
powers.

The minister repeated Mr. Bisson's explanation that by "exorbitant"
he did not mean "excessive" but "out of the norm."

Mr. Eggleton rejected suggestions from the committee that the CSE be
given a three-person review committee similar to the one which
oversees the Canadian Security Intelligence Service.

At present, the CSE has only a one-person, part-time commission in
Mr. Bisson, a retired Quebec judge with a staff of five, to review
the agency's top-secret work. Mr. Bisson told a Senate committee on
Monday that he has not received a single complaint in the past two
years.

Mr. Coulter, who was senior vice-president and director of commercial
services with Hill and Knowlton Canada, served as assistant secretary
at Treasury Board. He is also a former member of the Canadian Forces
as a fighter pilot, flying instructor and crew member of the
Snowbirds.