Bill C-10 (Historical)

An Act to amend the Broadcasting Act and to make related and consequential amendments to other Acts

This enactment amends the Broadcasting Act to, among other things,
(a) add online undertakings — undertakings for the transmission or retransmission of programs over the Internet — as a distinct class of broadcasting undertakings;
(b) update the broadcasting policy for Canada set out in section 3 of that Act by, among other things, providing that the Canadian broadcasting system should serve the needs and interests of all Canadians — including Canadians from racialized communities and Canadians of diverse ethnocultural backgrounds — and should provide opportunities for Indigenous persons, programming that reflects Indigenous cultures and that is in Indigenous languages, and programming that is accessible without barriers to persons with disabilities;
(c) specify that the Canadian Radio-television and Telecommunications Commission (the “Commission”) must regulate and supervise the Canadian broadcasting system in a manner that
(i) takes into account the different characteristics of Indigenous language broadcasting and the different conditions under which broadcasting undertakings that provide Indigenous language programming operate,
(ii) is fair and equitable as between broadcasting undertakings providing similar services,
(iii) facilitates the provision of programs that are accessible without barriers to persons with disabilities, and
(iv) takes into account the variety of broadcasting undertakings to which that Act applies and avoids imposing obligations on a class of broadcasting undertakings if doing so will not contribute in a material manner to the implementation of the broadcasting policy;
(d) amend the procedure relating to the issuance by the Governor in Council of policy directions to the Commission;
(e) replace the Commission’s power to impose conditions on a licence with a power to make orders imposing conditions on the carrying on of broadcasting undertakings;
(f) provide the Commission with the power to require that persons carrying on broadcasting undertakings make expenditures to support the Canadian broadcasting system;
(g) authorize the Commission to provide information to the Minister responsible for that Act, the Chief Statistician of Canada and the Commissioner of Competition, and set out in that Act a process by which a person who submits certain types of information to the Commission may designate the information as confidential;
(h) amend the procedure by which the Governor in Council may, under section 28 of that Act, set aside a decision of the Commission to issue, amend or renew a licence or refer such a decision back to the Commission for reconsideration and hearing;
(i) specify that a person shall not carry on a broadcasting undertaking, other than an online undertaking, unless they do so in accordance with a licence or they are exempt from the requirement to hold a licence;
(j) harmonize the punishments for offences under Part II of that Act and clarify that a due diligence defence applies to the existing offences set out in that Act; and
(k) allow for the imposition of administrative monetary penalties for violations of certain provisions of that Act or of the Accessible Canada Act.
The enactment also makes related and consequential amendments to other Acts.

Broadcasting Act

[Soraya Martinez Ferrada, Liberal, Hochelaga, QC]

Mr. Speaker, I thank my opposition colleague for her question.

I would like to remind her that our government is the first in 30 years to have invested so much in culture in Canada, particularly in Quebec.

We doubled the budget of the Canada Council for the Arts. We reinvested in the CBC to protect our public broadcaster.

I would like to remind my colleague that people from the Association québécoise de l'industrie du disque, du spectacle et de la vidéo, the ADISQ, and the Association québécoise de la production médiatique, the AQPM, are very pleased that we are giving the CRTC the obligation and power to regulate web giants so that we can reinvest in our culture and creators.

[Scott Duvall, NDP, Hamilton Mountain, ON]

Mr. Speaker, my hon. friend said something very important. She said that we have to act. The problem is that, in the midst of this public crisis, our cultural sector workers have been fearing job losses in the face of unfair competition from the web giants. They were expecting concrete action. While the Liberals seem to want to fix this disaster, such as they did with Netflix in 2017, using some band-aid solution, time is running out for the industry and its workers.

With Bill C-10, the minister is punting the problem to the CRTC, which means it could take almost a year before we see any real changes, if anything at all. Does the member not feel this is just a little irresponsible?

[Soraya Martinez Ferrada, Liberal, Hochelaga, QC]

Mr. Speaker, I thank my colleague for his question.

I would like to remind him that we have an agency, the CRTC, that has been enforcing regulations to protect the creative sector and other local sectors since 1928. It is the best tool we have right now to ensure that, in the future, the web giants will contribute to local productions.

[Dan Mazier, Conservative, Dauphin—Swan River—Neepawa, MB]

Mr. Speaker, how will the bill ensure that online producers of content produce content in both official languages?

[Soraya Martinez Ferrada, Liberal, Hochelaga, QC]

Mr. Speaker, I thank my colleague for his question.

Once again, I think that it is important to give the CRTC the powers it needs to regulate what the web giants are doing so that we can reinvest in our creators and productions.

The most important thing for the future is to increase investment revenue in local production. That is the only way we can be internationally competitive.

[The Deputy Speaker, Conservative, Bruce Stanton]

The hon. member for Beauport—Limoilou has time to ask a brief question.

[Julie Vignola, Bloc, Beauport—Limoilou, QC]

Mr. Speaker, our broadcasting rules are pretty clear. Content must be 55% Canadian, and 50% of that must be in French, if memory serves, although that was over 25 years ago.

In addition to collecting tax dollars, would it not also be a good idea to think about increasing those quotas, specifically to protect and promote our artists?

[Soraya Martinez Ferrada, Liberal, Hochelaga, QC]

Mr. Speaker, I thank my colleague for her very important question. I would like to share with her some comments made by the ADISQ and the AQPM:

...it would be hard to include percentages in the legislation and...it would be better to debate the best conditions to impose on broadcasters and online businesses before the CRTC.

We have an institution, the CRTC, so let's trust it. This institution has been defending quotas and the French language for many years now. I think we can trust the CRTC.

[Julie Dzerowicz, Liberal, Davenport, ON]

Mr. Speaker, it is an absolute privilege for me to stand in the House today on behalf of the residents of my riding of Davenport to speak in support of Bill C-10, an act to amend the Broadcasting Act and to make related and consequential amendments to other acts. I am truly grateful for the leadership of the Minister of Canadian Heritage and the work that he, his parliamentary secretary, his department and his team have done with respect to the bill.

As I have mentioned a number of times in the chamber, my riding of Davenport in Toronto's west end is home to more artists, creators and those in the culture industry than probably most ridings across this country. They include film producers, writers, directors and musicians, and also art galleries and museums. Anything that impacts the arts and culture sector is of great interest to my riding.

The Canadian broadcasting, film, television and interactive media sectors are also a huge part of the Canadian economy. They contribute about $19.7 billion to Canada's GDP and account for nearly 160,000 jobs. A lot of people do not know this, but the arts, culture and heritage sector is a $47.8 billion contribution to the Canadian economy. It employs over 650,000 Canadians in this country. It is a huge and very important sector, so this type of legislation is particularly important.

We have been promising to update the Broadcasting Act to level the playing field for a number of years now, so I am really happy that Bill C-10 is now before the House.

We mentioned in our 2019 platform that within our first year we wanted to move forward with legislation that would take appropriate measures to ensure that all content providers, including Internet giants, offer meaningful levels of Canadian content in their catalogues, contribute to the creation of Canadian content in both official languages, promote this content and make it easily accessible on their platforms.

We also know that in January 2020, the broadcasting and telecommunications panel released its report entitled “Canada's Communications Future: Time to Act”. It included a number of recommendations and proposals on how to improve our broadcasting system here in Canada, which we now see encompassed in Bill C-10.

What is being proposed in Bill C-10?

The first is to modernize the Broadcasting Act, which has not been updated since before the digital age. My understanding, as my colleague just said, is that the last major reform to the Broadcasting Act was almost 30 years ago, in 1991.

Canada has a long history of supporting the creation of and access to Canadian film, music, television and digital media programming, while at the same time facilitating the access of Canadians to foreign content. Historically, we have had what we call a closed broadcasting system, which has been oriented around Canadian ownership and control of businesses showing Canadian content. However, today, with the increase in programming being consumed over the Internet, the legislative and regulatory framework for broadcasting needs to be modernized. That is the first thing that Bill C-10 does. It clarifies that online broadcasting is within the scope of the act. It is crazy that it took us so long to do this.

As we know, Canadians have more and more access to music and television through online services like Netflix, Spotify, Crave and CBC Gem. We know these online video services have grown their revenues by approximately 90% per year over the last two years, while traditional broadcasters have seen a steady decline of almost 2% per year over the last five years. The shifting market dominance illustrated by Netflix, which is now present in most Canadian households, including my own, generated over a billion dollars in revenue in Canada in 2019.

We also know that online broadcasting services are not subject to the same rules as traditional broadcasting services like over-the-air television, cable and radio. Under Canadian broadcasting laws, online broadcasters are not required to support Canadian music and storytelling, and other important broadcasting objectives. What is the result? We see the revenues of online broadcasters growing, yet they are not required to contribute to Canadian music and storytelling. At the same time, the revenues of traditional broadcasters are stagnating and declining, which means we have an overall negative impact on funding Canadian content and Canadian creators moving forward. Therefore, support for Canadian content is at risk and this bill is hoping to address that issue.

Furthermore, it would also address a regulatory imbalance that puts traditional Canadian broadcasters at a competitive disadvantage compared with online broadcasters. Bill C-10 would update broadcasting and regulatory policy to ensure a fair and equitable treatment of online and traditional broadcasters, so we do not have one set of rules for Canadian broadcasters and another one for foreign broadcasters.

The amendments proposed by Bill C-10 would empower the CRTC to implement a modernized broadcasting regulatory framework that would ensure both traditional and online broadcasting undertakings contribute in an appropriate manner to the Canadian broadcasting system.

It is important to note that while we know this is an important first step, we also know we are going to have to engage in further reforms in order to more fully modernize the broadcasting system and ensure Canada will continue to support the creation and production of audiovisual content in the digital age.

What else would Bill C-10 do? It would also update broadcasting regulatory policy so the CRTC would be enabled to showcase more diverse creative voices in the broadcasting sector, most notably with respect to indigenous peoples, racialized communities and persons with disabilities.

This is a huge ask from those artists and creators in my riding of Davenport, where 40% of them were born outside of the country. For them, it is really important to hear the creative voices from our diverse ethnocultural backgrounds, socio-economic statuses, abilities and disabilities, sexual orientations, gender identities and expressions and ages. It is a huge ask from my community, so I want to thank them for their continued advocacy. I am delighted this would be enabled by Bill C-10.

The bill would also amend the act to take greater account of indigenous cultures and languages. To me, this is extraordinarily important because it is part of our ongoing effort to build a new nation-to-nation relationship with Canada's aboriginal people. A way for us to better understand and learn about each other is through our stories.

I am also pleased to say that an updated Broadcasting Act, one that treats online and traditional broadcasters equally, would increase the funding available to Canadian artists and creators. Indeed, it is estimated these changes would result in an increase in contributions to Canadian music and stories of as much as $830 million per year once the new system is put into place.

We should note that how artists and creators receive income has changed. A world that has become increasingly digital has exacerbated the overall issue of how Canadian artists earn their income. Providing some changes to the Broadcasting Act to start addressing this issue is really important for us to do.

I also want to note that we are going through an unprecedented pandemic right now, and arts and culture are disproportionately impacted by the pandemic. These types of legislation would help make some of the structural changes and help us create a more healthy and economically viable sector moving forward.

I should mention that what is not included in Bill C-10 is user-generated content, so video games and news media would not be affected by our proposed changes. It is important to note that.

I know my time is coming to an end, so I am going to conclude by saying I am absolutely delighted by the efforts of our hon. Minister of Canadian Heritage to modernize the Broadcasting Act and level the playing field so all our creators have more funding for Canadian stories. I very much favour this bill. It provides us with an opportunity to have a more inclusive broadcasting sector for all Canadians, whether francophone, anglophone or from racialized communities: Canadians of all diversities and statuses.

The bill would ensure the circumstances and aspirations of all Canadians are reflected in the Broadcasting Act. It would result in a more equitable broadcasting system, requiring online broadcasters to contribute their fair share. These amendments would absolutely modernize the Broadcasting Act for the digital age for many years to come.

I would like to end by saying I want to echo the Minister of Canadian Heritage's words yesterday, urging all of my hon. colleagues to support this bill. The sooner we get this bill passed, the sooner we will be able to put a fairer system in place.

[Arnold Viersen, Conservative, Peace River—Westlock, AB]

Mr. Speaker, one of the things I find interesting about the Liberals is that whenever they are doing something it usually involves new taxation, and this bill is no exception to that. It looks like we are headed for new taxation here.

What I am a little frustrated with is that there is no clarity in this bill around whether our online content creators and the online social media platforms would be deemed as publishers or as just platforms. That is an ongoing debate happening around the world. I thought the government was headed in the direction of clarifying that, so I am disappointed.

I am just wondering if the hon. member opposite thinks we should be classifying the social media platforms as content curators or platforms.

[Julie Dzerowicz, Liberal, Davenport, ON]

Mr. Speaker, this bill would do nothing to increase anyone's taxes.

The objective of the bill is truly just to modernize the Broadcasting Act in order to ensure that online broadcasting is within the scope of the act. It also provides some updates around the broadcasting and regulatory policy so that it better reflects the enormous, wonderful diversity we have in this country. It also has a renewed approach to regulations so that we have fair and equitable treatment between Canadian broadcasters, who are sort of traditional broadcasters, and those who are online broadcasters. It would modernize the enforcement powers of the CRTC and provide some additional oversight and information-sharing provisions. However, there is absolutely nothing in here that says we would increase taxes in any way.

[Denis Trudel, Bloc, Longueuil—Saint-Hubert, QC]

Mr. Speaker, I thank my colleague for her speech.

I am quite worried every time I hear that we need to trust the CRTC. There is no requirement in the bill to broadcast or fund French-language content. That is left up to the CRTC.

In another life, I was a spokesperson for Mouvement Montréal français, and we made a complaint to the CRTC because some privately owned radio stations in Quebec were getting around their French-language music quotas, which I believe were set at 65% at the time. During peak listening hours, they would skip the end of French songs and segue into up to 10 consecutive English songs.

This meant that the 15 minutes of English music counted for one song under the quotas. It also meant that those stations were respecting the quotas, but there were 15 minutes of English music during peak listening hours instead of having French music. That is a problem. We also know that they would get around CRTC regulations by playing French music at night, when no one was listening.

Therefore, we cannot trust the CRTC. If we are not able to give it clear broadcasting guidelines, the CRTC will not do it out of its own accord. Private radio stations will do everything they can to get around the rules.

It seems, then, that the government should impose certain limits on the CRTC in its bill. Why has it not done so?

[Julie Dzerowicz, Liberal, Davenport, ON]

Mr. Speaker, for those who do not know, the CRTC is the regulatory agency that is responsible for the broadcasting sector. It governs the regulatory framework that supports creators and producers of Canadian content in Canada.

I very much appreciate the hon. member's question. I know that there are those in my community of Davenport who tried to bring issues before the CRTC, and they found it very difficult to actually bring their issues forward. They found that there were some regulations that need more clarity, as the hon. member mentioned, and I agree with him. I think that we also have to do a much better job of encouraging the CRTC to make sure that where there is not clarity around regulations that they be made clear, and when there are some legitimate concerns, it is made much easier for Canadians to bring them forward to the CRTC.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Mr. Speaker, we know that the Broadcasting Act of 1991 was brought in to safeguard the cultural, political, social and economic fabric of Canada, but we saw, from 2008 to 2018, 189 community newspapers go under and 36 daily newspapers close down. Now, with the pandemic, many of them are struggling.

We learned from the Yale report that Google and Facebook receive nearly 75% of the advertising revenue in Canada. In comparison, the websites of conventional television stations and local newspapers account for only 8.5%. We know that the government has been meeting a lot of secret lobbyists, and we know that it wants to fix its disastrous Netflix deal of 2017 with band-aids with the bill, but time is running out for this industry and for its workers.

Is it not irresponsible that, in Bill C-10, the minister is moving this problem by punting it down the road to the CRTC? It could take almost a year before we see any change.

I am hoping the member can acknowledge the seriousness of this issue, given the pandemic and the plight of local newspapers, especially in my riding, which are struggling right now. They are reaching out and calling on Parliament to take action on the unfair, plain advantage of Netflix and these huge web giants.

[Julie Dzerowicz, Liberal, Davenport, ON]

Mr. Speaker, I will tell the House that those in my riding have almost exactly the same concerns as those that the hon. member has mentioned. I am just going to clarify.

We hope the changes we are proposing to the Broadcasting Act will help to unleash as much as $830 million that could help Canadian content creators, both online and from traditional sources, in Canada. I will acknowledge with my colleague that we absolutely have to provide a level playing field and ensure there is a fair contribution made by platforms like Netflix and Yahoo, that all the money that comes from them goes directly into local media and into any way to support independent information sharing across the country, and also that it goes directly back to supporting our Canadian creators and artists across the country. I would say it is absolutely vital for us to do so.

I will also say that I am extraordinarily concerned by the loss of our local media. Mine might be the only riding in the whole country that actually has a local newspaper, the West End Phoenix, that has been created in the last five years. It has been a very successful local publication, but it is one of too few. We need to find solutions, urgently and immediately, to support local journalism across the country.