Canadian Heritage Committee on March 4th, 2014

[Jean-François Bernier]

I think—

[Rick Dykstra, Conservative, St. Catharines, ON]

At the end of this study, we'd like to be able to make some recommendations. As a committee, we'd like to be able to work through this process. I know it's not always easy. I don't mean to put you on the spot from a professional perspective, but I do think your understanding and knowledge of this file is probably one of the top in the country for both of you, and perhaps allow a little bit of latitude just to give an indication as to whether or not you think these should remain steadfast in place or whether we should be looking at changing the levels they are at right now.

[Sophie Couture]

When we look overall in the music industry, the holistic approach has proven to be a success. What I mean by this is the CRTC CCD content is for us, the CMF, something that works because the money is blended and this is blended with the public money. For each dollar that is invested right now, with the money that we have, we can double the investments. We can do more with that money. The money is blended so it's toward the government objectives. The shift to international and digital is something that is good because with this blended money, we can devote all those resources.

[Rick Dykstra, Conservative, St. Catharines, ON]

Can you link for me what you mean by the money being blended and the Canadian content?

[Sophie Couture]

The Canadian content quotas are stemming from different transactions. When the CRTC, by regulation, they send it to....

Sorry, I'm talking about the CCD contribution.

They are allocated to FACTOR and Musicaction, Radio Star and Starmaker. When they are allocated to FACTOR and Musicaction, those two organizations are third party administrators for the Canada music fund. They're receiving the money and they blend it with the government money that they receive under the CMF.

[Rick Dykstra, Conservative, St. Catharines, ON]

I'm struggling here a little bit. Maybe it's just me. I'm not sure how the blended funds, the allocation of funds, relates to Canadian content rules and regulations that the CRTC puts in.

[Jean-François Bernier]

The CRTC has the power to make regulations in the communications industry, broadcasting, telecom.

In the area specific to music, two regulations address the music sector more specifically.

There are quotas for commercial radio broadcasters. Those quotas are at 35% Canadian content over a week. For French-language radio stations, they have to comply with the 35% and they also have a 65% quota for French-language music, and not necessarily Canadian French-language music; it can be French music from France, Belgium, Africa, wherever. That's one level of regulation.

The other level of regulation is that commercial radio stations have to contribute money to the development of Canadian content. This is on page 8 of our presentation. When Sophie was referring to blended funds, broadcasters have created foundations, organizations to administer collectively all their contributions. For example, CHEZ 106, a radio station here in Ottawa, has to contribute to the development of Canadian talent. They take the amount that they have to give towards Canadian content and they hand it over to FACTOR for administration. All individual radio stations do that. Private sector money goes to FACTOR for the English-language sector, and Musicaction, which is the equivalent for French.

What we did 25 years ago, the government said, “Oh, there are two administrators out there that seem to know about music.” They had a board of people who knew music. The board was composed of broadcasters, the music industry, and some artists. The government said, “We're going to give them some public money to administer.” Of course this is all under contribution agreements. They don't buy yellow buses with that money. They're audited.

This is what Sophie was referring to, the blending of money. It's kind of a public-private partnership.

[Rick Dykstra, Conservative, St. Catharines, ON]

Thank you.

[The Chair, Conservative, Gord Brown]

Thank you very much.

We're going to go for about three or four minutes and we're going to go to Ms. Mathyssen.

I think you're going to share your time with Monsieur Nantel.

[Irene Mathyssen, NDP, London—Fanshawe, ON]

Thank you very much, Mr. Chair.

Witnesses, thank you very much for being here.

I have to tell you how impressive the work that you do is. I can remember the old days when we didn't realize the incredible talent we had here until suddenly there was an Anne Murray and a Gordon Lightfoot. The preservation and encouragement of that talent is so important.

You talked about Library and Archives Canada and how they preserve the performance of those incredible artists over time. LAC received $360,000 for the music memories segment of the music fund. How is that money spent?

[Sophie Couture]

This is mainly spent on activities to retrieve the recorded music within Canada. It's to make the labels know they exist and that it's mandatory for them to send the masters to the library. Also, in the last few years they have been transferring from the physical masters to digital support.

[Jean-François Bernier]

One of the panels will include Library and Archives Canada, and they will be in a very good position to tell you, in detail, what they do with that money. It essentially complements an amount that they have in-house, a part of their annual parliamentary budget. It's the only cultural industry that we help with a special fund like this for Canadian music, recognizing all the back recordings that have to be recovered.

Preservation is something I'm really interested in. I don't want to use too much of the committee's time, but when you meet artists who have grey hair, they will say, “Oh my God, my masters are in my basement. What do I do with them?” Well, this is where Library and Archives can give a hand.

[Irene Mathyssen, NDP, London—Fanshawe, ON]

Thank you.

Over to you, Mr. Nantel.

[Pierre Nantel, NDP, Longueuil—Pierre-Boucher, QC]

Thank you very much.

I am going to use the time I have left to ask you this.

Before the elections in May 2011, the Standing Committee on Canadian Heritage conducted a study on Canada in the digital age and submitted a report. I do not remember the exact title of that report. But recommendation 15 of the report read as follows:

The Committee recommends that the Government of Canada strengthen the digital media components of its programs for arts and culture.

Was that recommendation passed on to you? If so, have you been able to act on it?

[Jean-François Bernier]

As I understand it, the report contained a recommendation that asked for a government response. However, because of the elections, the report died on the order paper.

[Pierre Nantel, NDP, Longueuil—Pierre-Boucher, QC]

There is a form of government inertia and paralysis in the face of an evolving market. Our children are ahead of us; they tell us that this is not the way people listen to music and that we are behind the times. Actually, in terms of the report, we are four years behind. I hope that each one of you will take the trouble to go and check it, if only for its recommendations.

We have to get our act together and do something quickly if we want to change things for our homegrown culture.

Thank you, Mr. Chair.

[The Chair, Conservative, Gord Brown]

Thank you, Mr. Nantel

I'd like to thank our witnesses for coming today. This is going to conclude the panel.

I apologize to our other panel, but because of the votes, today's schedule changed. We'd like to ask the CRTC and Library and Archives Canada, if they can come back, that they join us this coming Thursday, in the second hour, commencing at 11:55 a.m.

Mr. Dykstra, we're going to spend 10 minutes or so on committee business.

[Rick Dykstra, Conservative, St. Catharines, ON]

Okay.

[The Chair, Conservative, Gord Brown]

It will be in camera.

[Rick Dykstra, Conservative, St. Catharines, ON]

I'd like to respond to a point made by Mr. Dion, when you say it's all right.

[The Chair, Conservative, Gord Brown]

We'll do that at the next meeting.

[Rick Dykstra, Conservative, St. Catharines, ON]

I would like to do it now.

[The Chair, Conservative, Gord Brown]

You'd like to do it now. Okay.

[Rick Dykstra, Conservative, St. Catharines, ON]

Are you saying we're going in camera?

[The Chair, Conservative, Gord Brown]

We are. When we conclude this, we're going in camera.