Canadian Heritage Committee on April 29th, 2009

[Maxime Rémillard]

Yes.

[Roger Pomerleau, Bloc, Drummond, QC]

You are assuming that access to fee-for-carriage would provide acceptable revenue and help you do this. That being said, an additional tax credit would allow you to do more than what you currently do. Is that correct?

[Maxime Rémillard]

That is what I am saying.

[The Chair, Conservative, Gary Schellenberger]

Thank you very much.

For our last question, Mr. Petit, please.

[Daniel Petit, Conservative, Charlesbourg—Haute-Saint-Charles, QC]

Thank you, Mr. Chairman.

Good day Mr. Rémillard. Good day Mr. Porrello.

Earlier you asked a question several people are asking. You work in an extremely competitive environment. You made an acquisition and you took a risk. In fact, you are still taking risks. You have significant competitors: government competitors like Radio-Canada/CBC and private competitors like TVA. Naturally, you do not have $1.1 million in the bank. As far as I'm concerned, it's clear. You are facing competition from this major player.

On the other hand, TVA is in the same niche and is trying to win the market. You seem to be saying that there are problems when it comes to advertising. This is also a problem for CBC/Radio-Canada. However the government supports CBC/Radio-Canada but doesn't support you. On average, the government grants $34 per citizen to the corporation per year. But you receive nothing.

You're asking us to use the Local Programming Improvement Fund. When you speak of "local programming" do you mean, for instance, the Quebec City region? Do you consider that as being local? Do you consider the Upper North Shore as being local? Is that what you are referring to?

[Maxime Rémillard]

I'm referring to everything outside of the Montreal urban centre, pursuant to industry criteria.

[Daniel Petit, Conservative, Charlesbourg—Haute-Saint-Charles, QC]

If you knew the rules or had them with you, would you be in a position to provide a figure as to what you need? What could be done for you to be satisfied with the use of the Local Programming Improvement Fund? What do you need?

Earlier on, you were asked a question, but you were interrupted. Do you have any figures? Do you have something to tell us?

[Maxime Rémillard]

Are you referring to TQS's needs?

[Daniel Petit, Conservative, Charlesbourg—Haute-Saint-Charles, QC]

Yes. It seems to me that you are speaking on behalf of TQS.

[Maxime Rémillard]

Mr. Petit, TQS is a private company. I would prefer not to answer your question at this time. Obviously, the CRTC has all of our figures, as well as financial statements for each station. The CRTC is in a good position to assess our financial needs.

[Daniel Petit, Conservative, Charlesbourg—Haute-Saint-Charles, QC]

I now have a trick question for you. Would you be able to prepare a response and provide it in writing to committee members?

At this point, you are leaving us in a grey area, and I do not like that. I would prefer it if you took your time and sent us a response in both official languages, so we may study it. I think it is important.

For some time now, we have been discussing access to this fund. You would like it to be distributed, which I understand completely. I would like to know whether you can provide this to the committee within a reasonable timeframe.

[Maxime Rémillard]

Absolutely, we can provide this to the committee.

[Daniel Petit, Conservative, Charlesbourg—Haute-Saint-Charles, QC]

Could you do so in both official languages?

[Maxime Rémillard]

Yes, we could do that in both official languages.

[Daniel Petit, Conservative, Charlesbourg—Haute-Saint-Charles, QC]

For the figures, it's the same thing in English and in French. The explanations—

[Maxime Rémillard]

Yes.

[Daniel Petit, Conservative, Charlesbourg—Haute-Saint-Charles, QC]

Do I still have some time left, Mr. Chairman?

[The Chair, Conservative, Gary Schellenberger]

No, we have to move on.

I thank the witnesses very much for your presentation today and your answers to the questions around the table.

The minister is coming up next, and because of the votes we're a little late. I apologize for that, but I didn't call the votes.

Thank you very much.

[Maxime Rémillard]

Thank you, Mr. Chairman.

[The Chair, Conservative, Gary Schellenberger]

I would ask people to change positions as quickly as they can, please. Thank you.

I call the meeting back to order for the second part.

I hope the minister will stay for five extra minutes after 5:30. It would be nice. I know we took a little longer because of the presentation, and that was impromptu. I did not know about that.

Today we have, pursuant to Standing Order 108(2), the announcement of Radio-Canada's budget plan, and a study on the evolution of the television industry in Canada and its impact on local communities.

We have appearing before us the Honourable James Moore, Minister of Canadian Heritage and Official Languages, and department staff.

Would you introduce the people with you, please, Mr. Minister?

[James Moore, Conservative, Minister of Canadian Heritage and Official Languages]

Yes, certainly. With me today are Jean-Pierre Blais and Judith LaRocque from my department. They accompanied me when I appeared before you a few months ago.

Mr. Chairman, I do have to leave at 5:30. I was here at 4:30. I know you started late because of the bells and all that and because of a moment of popular display here, a popular uprising, but I'm pleased to come back to the committee at some time in the future as well.

Shall I go ahead?

[The Chair, Conservative, Gary Schellenberger]

Go ahead, sir.

[James Moore, Conservative, Port Moody—Westwood—Port Coquitlam, BC]

I first want to thank the committee for inviting me here today as part of the study on the future of television and broadcasting in Canada. Given the structural shift the broadcasting industry has been undergoing and the global economic situation, this study is very timely, and I welcome your efforts to examine this issue. The impact of the current situation on our television and broadcasting industry in general is high on my list of concerns, as it is on the list of concerns of Canadians.

The terms of reference for the study at hand speak to the tremendous complexity of the issue facing Canadian broadcasting. As everyone in this room knows, the Canadian broadcasting system is unique. The challenges of geography, language, and proximity to the largest cultural exporter in the world have shaped our system. We broadcast in Canada's two official languages, many minority languages, and we also provide programming that meets the needs of our diverse cultural population.

The English and French markets have distinct challenges and opportunities. Whereas Canadian English-language programming faces tough competition in the domestic market, it is more readily exportable. On the other hand, home-grown French-language programming is highly successful and has far fewer foreign competitors, but it also has fewer export opportunities.

Canada has a well-established broadcasting system that makes an important contribution both to our society and to this country's economy.

Nevertheless, this system is undergoing a period of significant transformation. And in recent years, the pace of change has intensified. Technology has forever changed the way we create, access, and use content. Digital technologies are offering Canadians an unprecedented abundance of choice in terms of how and when they obtain information and entertainment.

And as we have seen over the last few years while many of these new technologies bring the promise of new services and content, they sometimes also supplant existing products and services and cause disruption and instability in the traditional industries.

Consumers have adapted to the new environment. We've embraced our PVRs, on-demand programming, and the Internet. Canadians expect more from entertainment and are moving toward a more interactive experience. Experiences with content, creation, and access are becoming richer, more meaningful and relevant. New Canadians are using these new platforms to share their stories, engage fellow citizens, and facilitate cross-cultural understanding.

In essence, new technology is providing Canadians with new opportunities to participate in our society. Canadian companies are adapting to these changes. Traditional competitors are partnering, merging, and exploring new business lines and strategies. We've seen the development of converged media companies involved in a wide spectrum of telephone, cable, satellite, broadcasting, and Internet services. There are lower barriers to entry, and that means opportunity for competition from new entrants and better services for Canadians.

The current economic situation is clearly having an impact on the broadcasting industry. As your current study clearly indicates, conventional television broadcasters are facing challenges. However, other stakeholders, for example, pay and specialty services, continue to experience strong growth in revenues and profitability. In today's environment, consumers want what they want, when they want it, and how they want it.

And businesses are in the process of adapting to the changing consumer and business environments. And against this setting of unprecedented transformation within the broadcasting industry, our government has played and will continue to play a strong role in this changing industry. And as always, we will place Canadians at the centre, as citizens, as consumers, and as creators.

At this point, I would like to speak about our government's support for public broadcasting. As the Minister of Canadian Heritage, I have taken every opportunity to express my support for a strong national broadcaster that serves the interests of all Canadians.

And as the Minister of Official Languages, I am sensitive to the important role Radio-Canada plays for francophones in Canada. In fact, it operates the only French-language national radio and television networks that are offered to all francophone communities across the country.

I am proud to say that CBC/Radio-Canada is one of our government's biggest investments. By giving CBC/Radio-Canada more than $1 billion a year, I believe the Government of Canada provides adequate funding for our public broadcaster.

As well, since 2001, CBC has received an additional $60 million for Canadian programming, funding that has been renewed several times, including this fiscal year. Groups across the country, public and private, small businesses and individual families, have had difficult decisions to make during these tough economic times. The CBC is not immune to the realities of these economic times. It has been required to make some difficult decisions.

Last month the corporation's CEO and president, Hubert Lacroix, announced actions that would be taken to deal with the current situation. We will work closely with the CBC to ensure it remains a strong national broadcaster and reflects Canadian diversity, protects our official languages, and is a platform for Canadian content.

Our government supports broadcasters because we understand that they provide a public service to Canadians in the form of news and other content that informs, enlightens, and entertains. While the current situation poses challenges, it also brings opportunities for our broadcasting industry. That is particularly true for stakeholders who take an innovative approach to meet the needs of consumers and the conditions of the current economic environment. There is tremendous opportunity for Canadian broadcasters to harness these new trends in digital technology, to become more innovative and consequently more profitable.

The efficiency of digital technologies and the dropping prices should leave room for effective solutions.

In the meantime, our government has provided, and continues to provide, strong support for the industry. For example, last month I announced the creation of the Canada Media Fund. Our support of $134.7 million per year, along with the additional financial contribution that cable and satellite companies make to the fund, will bring the combined investment to more than $310 million by 2010. The new fund will support the industry, Canadian content, and official-language minority communities. It will help provide the content Canadians want to watch on their preferred platform, whether it's television, the Internet, or mobile devices.

This government also recognizes the benefits of a strong, vibrant, and successful film industry. That's why we invested more than $300 million in the audio-visual production industry through the Canada film or video production tax credit and the film or video production services tax credit.

As well, in 2007-08, we provided approximately $90 million through the Canada Feature Film Fund, which supports the development, production, distribution and marketing of Canadian feature films. Last year alone, more than 40 feature films were created thanks to this fund. And it triggered an additional $153 million in feature film financing from other public and private sector sources.

In conclusion, the Canadian broadcasting industry has played a critical role in telling Canadian stories and shaping our national identity, and it will continue to do so. The Government of Canada provides significant support to both our private and public broadcasters and will continue to be a strong supporter of the Canadian broadcasting system.

We believe there are opportunities for the Canadian broadcasting industry. And if we look at companies like RIM and Lionsgate productions, it is clear that Canadians have the capacity to lead the way with new technologies. Canadians deserve quality, choice, and access to services at fair prices. They need to continue to find deep value in a broadcasting system that has served them well throughout the years.

As for industry stakeholders, I have no doubt that meeting the needs of the public will drive them as they work at innovative ways to re-engage the market to deal with the longer-term transformation that is happening. Advancements in technologies have always been followed by an evolution in the way business works. These times are no different. Moving forward, the government will do what it has always done. We will put Canadians first as citizens, consumers, and as creators.

In closing, I want to again thank the committee for the work that you're doing. I think the wide-ranging scope of witnesses you heard from will only serve to help this committee as it examines this, because they certainly represent the complexity and the diversity of this industry. So I look forward to reading your report, hearing what you have to say, and now taking your questions.

[The Chair, Conservative, Gary Schellenberger]

Thank you, Minister.

The first question, Mr. Rodriguez, please.

[Pablo Rodriguez, Liberal, Honoré-Mercier, QC]

Thank you, Mr. Chairman. Welcome, Minister, Ms. LaRocque, Mr. Blais.

Because you have just been handed a petition signed over the last few days by over 100,000 Canadians about CBC Radio-Canada, I will continue on this theme. When Mr. Hubert Lacroix appeared before the committee two days ago, 48 hours ago, your colleagues' questions all dealt with salaries and expense accounts for CBC/Radio-Canada staff.

Do you also believe that CBC/Radio-Canada employees spend too much, earn too much, that there are too many of them and that that is why the government has refused to support the public broadcaster?