Information & Ethics Committee on Oct. 20th, 2011

[Charlie Angus, NDP, Timmins—James Bay, ON]

Is it all part of the same business, or do we have to...?

This issue of a journalistic firewall has been always a fundamental—

[Pierre Karl Péladeau]

If you want me to give you a lecture on how I manage my business, I would need more than two minutes to do this, sir.

[Charlie Angus, NDP, Timmins—James Bay, ON]

I'm just asking. Do you have that firewall, or do you manage a business? You manage an excellent business, but the issue of journalistic integrity is crucial to the freedom of the press. If you're managing a business, and you're managing it with your cable, television, newspapers, and magazine publications, is there a journalistic firewall to protect the journalists to have the freedom of expression you talked about?

[Pierre Karl Péladeau]

Our reporters and journalistic resources have their jobs to do, and no one will tell them what to write.

Is that clear enough?

Thank you.

[The Vice-Chair, Conservative, Patricia Davidson]

Thank you, Mr. Angus.

We'll now go to Mr. Del Mastro for seven minutes.

[Dean Del Mastro, Conservative, Peterborough, ON]

Thank you very much, Madam Chair. That was a very interesting exchange.

Mr. Péladeau, you mentioned that other media outlets in fact haven't had the courage to do what you're doing, perhaps because they have business agreements with the CBC.

It's kind of a courageous thing, because I would argue that CBC carries, by far, the biggest stick in the Canadian media business, especially in the news business. It's not uncommon. For example, Power and Politics has somewhere around twelve producers. Power Play has about three. Question Period has one. I don't know if you have any for shows on Parliament Hill.

The expenditure and the ability CBC has, quite frankly, outweighs any private sector broadcaster. Isn't it fair to say it takes a bit of courage to do that?

[Pierre Karl Péladeau]

We're bound by different rules from the ones that CBC/Radio-Canada have. We have accountability to our shareholders, and we do not have the same kinds of means that the CBC has. I guess it's well known in the industry. When the private broadcaster will need one individual, CBC will come with three or four.

They have this $1.1 billion, so they're spending it somewhere. We know that money is no object with them. It's the way they operate. We are ruled by other kinds of principles. We need to be profitable because if not our business will not survive down the road. Therefore, managing our business according to good and fair business principles is the one that we've been following for the last decade.

In fact, as you probably know, Sun Media was an acquisition of Quebecor about 13 to 14 years ago, and that was also the way that Sun Media was operating previously, as other newspaper companies, like Postmedia, which was previously Southam, and other companies...as also other companies we acquired like the Osprey acquisition. These are the types of principles that we need to follow to make sure that down the road we'll be there and to provide appropriate information to Canadians.

[Dean Del Mastro, Conservative, Peterborough, ON]

Obviously you're aware that it's not just members of the opposition or otherwise who have been suggesting that this is all about dollars for you. You're after the CBC not because you're protecting the taxpayers, as Sun TV News says, on your side. It's not because you're on the side of the taxpayers. That's not why you're doing what you're doing. It's because you're on your own side. You're in this to make money for yourself, and by discrediting the public broadcaster, by taking them down, you stand to benefit disproportionately.

What do you say to the people who say that? Is that a legitimate concern?

[Pierre Karl Péladeau]

If a media company is not in position to investigate on another media company being accused of going against competition, who will be able to investigate CBC/Radio-Canada? You need to be a media company that will be able to bring this information to as big an audience as possible for Canada. We've been doing this with all other crown corporations. We've been doing this with sports, hockey teams.

The fundamental of our business is to provide information, and because we're media, we would be forbidden to investigate Radio-Canada? This is completely stupid. If we were to follow this logic, no one will be able to investigate Radio-Canada other than themselves. I think this is obviously something that will not happen.

[Dean Del Mastro, Conservative, Peterborough, ON]

CBC resents the usage of the term "state broadcaster." In fact, they don't like it at all. They refer to themselves as a public broadcaster. Members opposite have gotten angry if you refer to the CBC as the state broadcaster.

It seems to me a public broadcaster receives its money willingly from the public. State broadcasters receive their money from the state. I understand the chair of the CRTC said the other day that he feels the terms are synonymous. However, he thinks the term “state broadcaster” reflects broadcasters that occupy and operate typically in non-democratic places.

We heard from Mr. Drapeau earlier today that providing information is a function of democracy, essentially, providing access. If the CBC is not providing access, they're not acting democratically. Aren't they acting in a fashion, perhaps, that reflects more of a state broadcaster in a regime whereby they're not providing information?

[Pierre Karl Péladeau]

I'm not someone who would be either a politician or a semantics expert.

[Dean Del Mastro, Conservative, Peterborough, ON]

So why do you use the term "state broadcaster"?

[Pierre Karl Péladeau]

I'm not using the term "state broadcaster". CBC/Radio-Canada had been using it. I would say that you need to call a spade a spade. This is what this animal is all about. Therefore, what's the problem? I don't see any issue, personally. That's certainly my own opinion. I guess no one would really care about it.

[Dean Del Mastro, Conservative, Peterborough, ON]

CBC says you've received $500 million in the last three years from taxpayers. Is that true?

[Pierre Karl Péladeau]

Yes, I read that yesterday. I found that completely defamatory and dangerous. I've been looking at the numbers they've been mentioning, and I've never seen something so false and so malicious. In fact, right now we are reviewing our legal recourse to find out what the follow-up will be to that.

But they were mentioning we received $323 million, so I guess roughly 60% to 70% of this supposed $500 million, from the spectrum subsidy, or something like that. This is completely ludicrous. I've never seen something so ridiculous. In fact, we were the company in Canada that fought for competition in the wireless business, and today Canadians have access to the best technology at the lowest price.

There was no subsidy at all. In fact, we paid $555 million to buy the spectrum, and when we compare our numbers with the rest of the world, what we call the megahertz per population is one of the highest in the world.

[The Vice-Chair, Conservative, Patricia Davidson]

Mr. Péladeau, your time has expired. You may be able to continue answering in a further question that comes up.

We will now go to Mr. Andrews for seven minutes.

[Scott Andrews, Liberal, Avalon, NL]

Thank you, Madam Chair.

Welcome, Mr. Péladeau.

How many freedom of information requests have Quebecor/Sun Media filed to the CBC?

[Pierre Karl Péladeau]

I don't have the specific details. I'm not managing any newsroom. I guess this may be public information--or not. If it's public information, this is available. If not, then it's not.

[Scott Andrews, Liberal, Avalon, NL]

So you don't know how many--

[Pierre Karl Péladeau]

Not specifically.

[Scott Andrews, Liberal, Avalon, NL]

Have those requests all come from your newsroom? Who in your company has submitted these requests?

[Pierre Karl Péladeau]

I'm pretty sure that will come from editorial departments, yes.

[Scott Andrews, Liberal, Avalon, NL]

None came from management or senior officials in your company?

[Pierre Karl Péladeau]

No, I would say they were filed by editorial departments.

[Scott Andrews, Liberal, Avalon, NL]

But you don't know?