The Conservative government introduced new legislation Tuesday that will compel Internet Service Providers (ISPs) to report to law enforcement officials if they find or learn of child pornography on their networks.

Justice Minister Rob Nicholson told a news conference that the proposed legislation would require ISPs to report to a designated agency when they receive tips about websites where child pornography is available. They would also have to notify police if the ISP finds child pornography on their own networks, and keep the evidence.

"The creation and distribution of child pornography are appalling crimes in which children are brutalized over and over again," Nicholson said. "A mandatory reporting regime across Canada will improve law enforcement's ability to detect potential child pornography offences, help reduce the availability of online pornography, facilitate the rescue of victims and help identify and apprehend offenders."

Nicholson acknowledged that the production and possession of child pornography is already a crime in Canada, but he said the new legislation would close a loophole and make ISPs responsible for reporting pornographic material.

Individuals who do not comply with the new legislation could face fines of up to $1,000 for a first offence, $5,000 for a second offence, and $10,000 and/or six months in jail for third and subsequent offences.

A corporation that does not comply with its duties under the legislation would be subject to a graduated fine scheme of $10,000, $50,000 and $100,000.

"The worldwide web provides new and easier means for offenders to make, view and distribute child pornography, resulting in a significant increase, not only in the availability and volume of child pornography, but also in the level of violence perpetrated against children," Nicholson said.

Child rights advocates have long lobbied for such legislation. Canada is the world's second-largest home to online child pornography and the second-largest online seller of child pornography material, such as images, videos or memberships.

According to the Canadian Centre for Child protection, about half of all child pornography images feature children under the age of eight and nearly a third of those images feature serious sexual assaults.

Spokesperson Lianna McDonald praised the legislation, saying it would make it easier for law enforcement agencies to crack down on those who create and distribute child pornography.

"It's a very good day for Canada's children," McDonald said. "Children need adults to take responsibility and help protect them."

Ontario Provincial Police Commissioner Julian Fantino said the legislation will aid investigators in their battle against what he called "the vilest crime that can be committed against a child."

"Today's announcement is a very critical piece of added tools that we need in our kit to deal with the exponential growth, the explosion if you will, of the sexual exploitation of children using the Internet," Fantino said.