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

[Francesco Sorbara, Liberal, Parliamentary Secretary to the Minister of National Revenue]

Mr. Speaker, it is great to be here in the chamber this afternoon. I will be splitting my time with my friend and colleague, the hon. member for Surrey—Newton.

It is an honour to rise to debate Bill C-10. I want to take this opportunity to discuss an important issue that was raised by several members, namely, the best way to support our creators, including francophone creators.

I want to first remind the House why the legislation is so important. Historically, under the Canadian broadcasting system, traditional broadcasting services, such as radio, TV and cable, were required to fund Canadian content, our stories and our songs. However, the emergence of online broadcasting services, such as Netflix, Crave, Spotify and QUB Musique, which are not subject to the same types of regulatory requirements as traditional services, has resulted in a regulatory imbalance that jeopardizes the future of Canadian content funding.

The bill seeks to ensure that traditional and online broadcasting services are appropriate for Canada's creative sector. Of course these contributions must benefit a wide range of Canadian creators and consumers, including francophones across the country, as I heard from my colleagues in the opposition.

I now want to speak about the issue of support for francophone creators and French-language content produced by francophone minority communities.

First, it is important to recognize that this is a key issue and that the concerns expressed by stakeholders are entirely legitimate. We must not forget about the minority status of francophones in North America, which is dominated by the English world.

Online broadcasting giants like Netflix and Spotify will not necessarily consider the needs of francophones in Canada, whether they live in Quebec or in a minority community in Canada. However, we know that television and radio are vitally important to language, culture and the identity of the francophone minority in North America.

It goes without saying that measures are needed to support and promote francophone history and music. We agree on that, especially now that online broadcasters have turned Canada's broadcasting sector upside down, and the French-language market is no exception.

Online broadcasters present unique challenges regarding the availability and promotion of online content in French, and especially content produced by our francophone minority communities. I want to point out that 47% of francophones watch primarily English content on Netflix. That is a departure from traditional television, where 92% of the francophone market tunes in to French-language programming.

Similarly, the appetite for English-language films and audiovisual productions has been increasing for years, as has funding from foreign investors, but the average budget of French-language productions has decreased, and these productions receive little funding from foreign investors.

On the music and digital platforms front, in 2017 there were just six French Canadians in the top 1,000 most popular streaming artists in Canada.

Obviously we must act, but how? Some have proposed to include quotas or mandatory investment thresholds for French-language content in the Broadcasting Act.

At first glance, this may seem like the best way to remedy the problem, but what is it really? The fact of including a mandatory investment threshold in the act fixes it permanently and, as the Minister of Canadian Heritage rightly pointed out, the minimum is likely to become the maximum.

There is no reason to cut funding for French-language content in this way. A better way to do this is to give instructions to the CRTC, telling it to ensure that an appropriate portion of the funding is devoted to the creation of French-language programming and to take into account the difficulties inherent in the creation and broadcasting of French-language programming, particularly in minority communities.

This is how our government suggests we proceed. Regulation is a flexible tool that allows action to be taken that is in tune with technological advances, the development of industry and the values of Canadian society. It should be noted that the CRTC has long overseen the application of a rigorous regulatory framework of traditional services to support and promote French-language content. The CRTC's record is unambiguous. It has demonstrated a firm commitment to the imposition of regulations that ensure support for francophone creators.

Thanks to the CRTC's efforts, for the past 10 years the volume of French-language television production has been stable and represents 25% of the total volume of Canadian television production. The efforts of the CRTC have also served to promote French-language music. French-language radio stations must devote at least 65% of their weekly programming to this purpose, from popular music to French-language music. The CRTC can be expected to put in place an equally stringent regulatory framework for online broadcasters. It will ensure that it provides fair and equitable support for Canadian content in both official languages and that it takes into account the specific needs of francophone creators across Canada.

We all agree that action must be taken to support francophone creators and French-language content across Canada, its primordial, and also all creators and content creators in Canada. Our bill and the instructions it gives will give the CRTC all the tools it needs to ensure that funding and regulations support Canadian content in both official languages, but also indigenous, multicultural, real Canadian content and just a window into Hollywood.

This is the best approach to ensure that Canada's creators can continue to create audio and audiovisual works that reflect who we are as a country. The creation of content in both official languages is an essential cultural objective. Regardless of technological or other advances in the broadcasting sector, this modern and equitable legislative and regulatory framework will provide unequivocal support to broadcasters, producers and creators across Canada.

I encourage all members of this honourable House to hastily send the bill to committee to be improved and to deliver real changes to the broadcasting sector, which it has been requesting for so long.

[Gérard Deltell, Conservative, Louis-Saint-Laurent, QC]

Mr. Speaker, first, I want to pay all my respects to my colleague. I have a lot of fun with him and a lot of respect when we work together in the parliamentary committee. I also want to pay all my respect for the quality of his French. The member is working very hard on the quality of his French, like some of my colleagues from B.C. I deeply appreciate it when each and every member of Parliament tries the best to speak his or her second language. French is the second language for an anglophone and English is my second language because I am a francophone.

My question has to do with the two official languages and the bill being debated today. The member talked about a number of aspects of this bill, but there was one that he left out. The Liberals often boast about how there will be a lot of new online productions, but the bill does not contain any requirements relating to Canada's two official languages.

Why?

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Mr. Speaker, I thank the member for Louis-Saint-Laurent for those very kind comments. I encourage all members of the House to have a vigorous debate at this stage of the legislative process. Let us get the bill to committee, where the committee members can put forward their amendments and ideas and the full committee can rigorously debate those. Let us always try to improve all legislation that comes forth from this honourable House.

[Louise Charbonneau, Bloc, Trois-Rivières, QC]

Mr. Speaker, Quebec culture is at the heart of the Bloc Québécois's mission.

Broadcasting is no doubt the most effective tool to disseminate culture and help define the national identity. Obviously, the Bloc Québécois supports the modernization of the Broadcasting Act, given the astounding evolution of information and communication technologies.

However, the Canadian Association of Broadcasters is concerned. According to the CAB, 50 radio stations could shut down in the next four to six months and 150 others could follow suit in the next 18 months.

What does the government plan to do about those losses?

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Mr. Speaker, a vibrant Canadian cultural sector in both official languages is very important to me. I am excited and proud to say that my children are enrolled in French immersion and are learning French.

With respect to the hon. member's questions and comments, we of course want a vigorous debate on how we can strengthen and maintain all our services in both official languages and truly be the bilingual country we are and strive to be on a daily basis.

[Rachel Blaney, NDP, North Island—Powell River, BC]

Mr. Speaker, as a person who represents a very rural and remote riding, one thing that concerns me greatly is how important our local Canadian content is. We know the Yale report outlined clearly that Google and Facebook were receiving nearly 75% of online advertising revenue in Canada, which really leaves local television and newspapers receiving only 8.5% of that Internet advertising.

When I think about the local papers in my riding and how important they are, I want to ensure they get the support they need. Could the member talk about why the government continues to push this further down the line when what we really need is for these web giants to pay their fair share so our local content can be saved?

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Mr. Speaker, we all need to support our local newspapers.

When I was a young individual, I delivered the Prince Rupert Daily News door to door. That was great content for households in the hometown in which I grew up.

Today we need to modernize many aspects of our legislative framework in telecommunications and broadcasting. Bill C-10 is one part of that.

Let us get the bill to committee stage where there can be a vigorous debate. We know that with the world evolving as it is and with technological change, it is very important our legislative frameworks and structures correspond to that and that we continue to update them.

Canadian content is very important for me, for our government and for all Canadians from coast to coast to coast.

[Mark Gerretsen, Liberal, Kingston and the Islands, ON]

Mr. Speaker, could the parliamentary secretary comment on why this is so important now? According to some statistics I have, 32% of streamers are between the ages of 25 and 35, and 22% are between the ages of 35 and 45. It seems that the older we get the less likely we are to listen to online content, but the younger generations in particular do.

Why is it so important to implement this now, given that it is the younger generations that are using online content for those experiences?

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Mr. Speaker, we see the trends for content consumption and the platforms that are utilized. Currently, online undertakings that deliver audio and audiovisual content are exempt from licensing. We want to ensure the regulatory requirements that the traditional broadcasters and platforms have are extended to those online undertakings. We need to ensure a vigorous framework for broadcasters, which is what we are doing with Bill C-10.

I again encourage all my hon. colleagues to get the bill to committee stage so the learned committee members can have a vigorous debate and put forth even more ideas that could potentially improve the bill, and have the process to continue.

[Sukh Dhaliwal, Liberal, Surrey—Newton, BC]

Mr. Speaker, I would like to thank the hon. member for Vaughan—Woodbridge for sharing his time and for his willingness to work with other members of Parliament across the nation.

I am pleased to speak today in support of Bill C-10, an act to amend the Broadcasting Act. It is sad that in the digital age in which we are living, the law is rarely able to keep up with technological advancements. This digital revolution, referred to as the fourth industrial revolution, is characterized by a pace of breakthroughs that we have never seen before. Every industry in every country around the world is being disrupted. As a result, it is impacting production, management and governance.

A 2016 paper from the World Economic Forum on the fourth industrial revolution makes one point very clear. The only way for governance and regulation to work in such a complicated environment is to operate with a clear foundation of values rather than playing regulatory catch-up. This is the essence of the bill.

With audio and audiovisual content being offered for mass consumption online over the past two decades, Canada has been exposed when it comes to fostering Canadian content, as has been done for decades through the CRTC. Supporting the telling of Canadian stories, giving a platform to Canadian voices and sharing Canadian perspectives for our population from coast to coast to coast has always been a challenging issue with Canada being located next to the largest producer of content in the world; that being the United States.

The CRTC is unique in that it is not only a regulatory agency but, rather, a key component of our Canadian cultural landscape. It serves as the primary actor in facilitating Canadian content production to the broadcasting sector. It is our path toward preserving local culture as well as our national identity.

Since the Broadcasting Act was last updated in 1991, Canadians' consumption of content has changed dramatically. Millions of Canadians have cut the cable, so to speak, and are receiving their news and entertainment through online platforms. As an example, as of 2019, Netflix is present in 62% of Canadian households, with other streaming services continuing to grow year after year.

To give some context on how large digital content consumption has become in Canada, it is estimated that revenues for Canada's digital media market will hit over $4.7 billion in 2020. This number is skyrocketing when compared to other forms of media consumption, such as television and radio. In other words, updating our Broadcasting Act is long overdue.

The streaming that we now consume in the comfort of our homes carries stories from across the globe as consumers have never had more choices and access to such a diversity of content. However, that also means that Canada's history of promoting and supporting Canadian content must be extended into the realm that so many of us rely upon daily.

We are lawmakers, and we have an obligation to not unduly disadvantage Canadian content creators in the digital era. We have an obligation to do everything in our power to ensure the diverse voices that make up our country, including indigenous peoples, racialized communities and persons with disabilities, have the same ability to share their stories as the international content producers that are so readily available to us now.

This is where the intent of the Broadcasting Act becomes so apparent. As mentioned, our lives are filled with receiving and consuming online content. We might wake up in the morning and check the news headlines on our phones or other digital devices, which of course was a role filled in the past by news publications: independent media.

We might now stream music on our commute to work, as opposed to traditional radio that might have filled our vehicles or headphones. In the evening when we get home from work, we might then search through our favourite streaming service to find a show or movie we can relax to. This is just a very general snapshot of the types of activities and choices of content in 2020.

Of course, this is particularly heightened during the COVID-19 pandemic, where social interaction is now regularly replaced by consumption of this content.

Ultimately, Bill C-10 is defined by the principles of equality, inclusivity and, most importantly, by Canadian content creators and sustainability. While this legislation would modernize the CRTC's enforcement powers and update the oversight and information-sharing provisions it has available, ultimately it is about creating opportunity through collaboration. It is about mandating the streaming services that want access to the Canadian marketplace to meet certain broadcasting obligations that provide financial support to allow for more Canadian content to be produced and consumed.

While members across the House might attempt to characterize this bill as an example of over-regulation or limiting free speech, the reality is far different. Simply put, this is an update to our Broadcasting Act that would allow Canadian stories to be produced. It would allow Canadian consumers to have ample access to such stories and, most importantly, it would allow our unique cultural identities to have ongoing security and opportunity in the rapidly evolving digital world.

In conclusion, I hope this bill is widely supported by all parties in the House as it is an update that goes beyond politics or ideology. For the most part, technology moves far faster than we do as legislators. This legislation is a tool that would ensure we are always ahead of the curve in preserving our diverse voices in the age of digitization. This is about ensuring Canadian content can thrive for generations to come, and ultimately, there should be no party or member in the House who can argue with this fundamental principle.

I am thankful for the opportunity to speak on this important piece of legislation today.

[Dan Albas, Conservative, Central Okanagan—Similkameen—Nicola, BC]

Mr. Speaker, I appreciate the member opposite. He is from British Columbia, and I certainly understand many of his positions, but I do not agree with them, and I will say why.

First of all, many members today have said that they specifically support this because they want to see diversity, they want to hear indigenous voices, and they want to hear young people and have their voices magnified. However, Irene Berkowitz and her colleagues put out the “Watchtime Canada” report last year, which said that there are 160,000 Canadian YouTube creators who produce content, and 40,000 of them are monetizing: that is, they are actually drawing funds from YouTube's model, and they employ 28,000 Canadians.

The problem we have here is that the member and many in his caucus believe that Google, the owner of YouTube, is a broadcaster in the traditional sense. If this government forces this legislation onto the CRTC, then those YouTube creators, who actually create the content, may be forced to adhere to these rules. They may then elect to actually have their Canadian-drawn content pushed out to other parts of the world, and would not advertise, would not show up here in Canada, because they would not qualify under the rules.

Does the member understand that, by changing this, it is a misperception that YouTube would somehow respond by forcing all of these small ma-and-pa content creators to change their business model? I think the member is mistaken.

[Sukh Dhaliwal, Liberal, Surrey—Newton, BC]

Mr. Speaker, I want to thank the member for having his own opinions, and he is welcome to have them.

Certainly, when it comes to this regulation, the broadcasting bill that we brought forward is long overdue to make sure that we are able to protect our Canadian identity, that we are able to protect our Canadian culture, that we are able to protect indigenous voices and racialized voices, and this will—

[The Deputy Speaker, Conservative, Bruce Stanton]

Questions and comments, the hon. member for Saint-Hyacinthe—Bagot.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot, QC]

Mr. Speaker, I want to emphasize the importance of local radio.

Local broadcasting is essential because local information cannot be covered in national news reports. Local radio stations are needed to cover municipal and school news. They also mean local journalists, local artists who can send in their productions, and local jobs.

These radio stations could be decimated over the next few months if we do not take action. In my riding, there are two radio stations that I love to listen to. They are Radio Acton and Boom FM. What will I tell those stations about targeted support and the more flexible regulations that they need in this time of crisis?

Why is there nothing about that in Bill C-10?

[Sukh Dhaliwal, Liberal, Surrey—Newton, BC]

Mr. Speaker, i n fact, on the issue the member raised, I met with a local media outlet just last week that produces the local paper, and it had a similar concern that the hon. member raised. Earlier, an NDP member from British Columbia raised the same issue.

I fully support the member's thought process, and this bill is a positive step moving forward. When it comes to local papers and local radio, I am fully supportive of that. Certainly, in the coming months we will have legislation, if we all work together, to help those local papers and radio stations in our communities.