Evidence of meeting #16 for Bill C-32 (40th Parliament, 3rd Session) in the 40th Parliament, 3rd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was radio.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Sylvie Courtemanche  Chair, Canadian Association of Broadcasters
Brad Phillips  President, Vice-President of British Columbia Operations, Astral Radio, British Columbia Association of Broadcasters
Mike Keller  Vice-President, Industry Affairs, Newcap Radio Inc.
Gabriel Van Loon  Lawyer, Canadian Association of Broadcasters
Guy Banville  Radio Consultant, As an Individual
Ross Davies  Vice-President, Programming and Operations, Haliburton Broadcasting Group Inc.
Paul Larche  President, Larche Communications Inc.

11:45 a.m.

Liberal

Pablo Rodriguez Liberal Honoré-Mercier, QC

Thank you, Mr. Chairman.

You talk about the importance of radio, particularly local radio. But we all agree with you. That's not the question. That isn't the topic, the theme. We don't agree with you because you're seeking an exemption regarding existing rights. You essentially want to increase your profits to the detriment of our creators.

I don't agree either when you say the industry as a whole doesn't have the necessary resources. We're talking about $64 million out of $1.5 billion in revenue. I believe approximately 5% or 6%. You mentioned an unsustainable burden, and I find it hard to believe that it can be considered that way.

As a preliminary question, I'd like to know whether the copy we're talking about has a value.

11:45 a.m.

Chair, Canadian Association of Broadcasters

Sylvie Courtemanche

In what sense? Do you mean market value?

11:45 a.m.

Liberal

Pablo Rodriguez Liberal Honoré-Mercier, QC

Does it have a value? Is it worth something?

11:45 a.m.

Chair, Canadian Association of Broadcasters

Sylvie Courtemanche

Are you talking about market value?

11:50 a.m.

Liberal

Pablo Rodriguez Liberal Honoré-Mercier, QC

First, does it have a value for you? Is it useful to you?

11:50 a.m.

Chair, Canadian Association of Broadcasters

Sylvie Courtemanche

You have to recall that content is not always delivered in a format that we can use. Sometimes there has to be a change in format. Tell me, does that have a value? If someone sends me music in one format and I transfer it to an MP3 format, do you believe that has a market value?

11:50 a.m.

Liberal

Pablo Rodriguez Liberal Honoré-Mercier, QC

To the extent that's necessary for you to subsequently to broadcast it, it seems to me it has a value.

11:50 a.m.

Chair, Canadian Association of Broadcasters

Sylvie Courtemanche

Yes, but you asked me a question about the market value, and I'm telling you that we receive content in formats that I can't use. So I have to make a transfer. You think that has a market value?

11:50 a.m.

Liberal

Pablo Rodriguez Liberal Honoré-Mercier, QC

But if you couldn't do that through new technologies, you'd go back to what, to CDs? You'd have libraries of CDs, a DJ and researchers?

11:50 a.m.

Chair, Canadian Association of Broadcasters

Sylvie Courtemanche

We'd have to go back to music libraries and tell people from the record companies—

11:50 a.m.

Liberal

Pablo Rodriguez Liberal Honoré-Mercier, QC

You don't want to do that?

11:50 a.m.

Chair, Canadian Association of Broadcasters

Sylvie Courtemanche

The people from the record companies wouldn't be happy if we told them to keep their content because we're not interested.

11:50 a.m.

Liberal

Pablo Rodriguez Liberal Honoré-Mercier, QC

That's why I think that has a value. If you no longer have to maintain a library because you no longer have researchers—

11:50 a.m.

Chair, Canadian Association of Broadcasters

Sylvie Courtemanche

And the value associated with the fact that the music industry is no longer required to make a physical product isn't recognized?

11:50 a.m.

Liberal

Pablo Rodriguez Liberal Honoré-Mercier, QC

Well yes, it's recognized.

11:50 a.m.

Chair, Canadian Association of Broadcasters

Sylvie Courtemanche

It's not reflected in the tariff, and the tariff doesn't reflect the value of the advertising.

11:50 a.m.

Liberal

Pablo Rodriguez Liberal Honoré-Mercier, QC

The technology has evolved. It's resulted in benefits for creators, but also constraints, such as the fact that their music is being downloaded.

11:50 a.m.

Chair, Canadian Association of Broadcasters

Sylvie Courtemanche

We're talking about justice, Mr. Rodriguez. However, the tariff acknowledges no value for the advertising we do for Canadian artists. No value is attributed to that. In what way is that fair? You believe that we're bad guys and that only the creators are good people.

11:50 a.m.

Liberal

Pablo Rodriguez Liberal Honoré-Mercier, QC

Not at all.

11:50 a.m.

Chair, Canadian Association of Broadcasters

Sylvie Courtemanche

We're also good people in the radio industry. We aren't all bad people.

11:50 a.m.

Liberal

Pablo Rodriguez Liberal Honoré-Mercier, QC

Yes, yes, we love you; we love you.

11:50 a.m.

Chair, Canadian Association of Broadcasters

Sylvie Courtemanche

I frankly consider that a curious view.

11:50 a.m.

Liberal

Pablo Rodriguez Liberal Honoré-Mercier, QC

You say you're paying twice for the same right.

11:50 a.m.

Chair, Canadian Association of Broadcasters

Sylvie Courtemanche

We pay for what amounts to handling. We're—

11:50 a.m.

Liberal

Pablo Rodriguez Liberal Honoré-Mercier, QC

When you were speaking with Mr. Del Mastro, you said you paid twice for the same right. However, there are two rights.