Priority must now be given to resolving the crisis and reassuring the industry and the population at large.
Currently, there is a lot of equivocating over the degree of illegality of the Quebecor and Shaw decisions. Some experts maintain that by suspending their monthly payments, Vidéotron and Shaw are still within legal bounds. Although the broadcasting distribution regulations obligate cable operators and satellite distributors to devote 5% of their annual gross revenues to local expression and Canadian programming, a part of which goes to the CTF, they do not set out a schedule or procedures for remitting the annual mandatory contribution.
Many experts agree that Vidéotron and Shaw will be clearly in default of the regulations if by the last day of the current broadcast year, which is August 31, 2007, they have not fully remitted this year's required contribution to the CTF.
Given the situation, we have two proposals for resolving the crisis.
First, we ask that the Minister of Canadian Heritage take steps to have the Canadian government provide the Canadian Television Fund with an interest-free loan in the amount of the contributions unpaid by Vidéotron and Shaw until such time as these companies begin making monthly payments again and settle their arrears. In this way, neither the public nor the broadcasters, producers, musicians, technicians, performers, or directors will be held hostage and the CTF will not be obliged to borrow against the budget of its next fiscal year. This would allow any discussion of possible changes to the fund's rules of governance or guidelines to take place in a climate of calm and with the necessary time for reflection. However, prior to any discussion with Quebecor and Shaw, the government should make it a sine qua non that the current rules be respected.
Second, we ask that the CRTC immediately notify Vidéotron and Shaw that if by the end of the current broadcast year they have not fully remitted the annual contribution due to the CTF under the provisions of the broadcasting distribution regulations, the commission will take the appropriate steps to ensure that its regulations are followed, failing which it will impose the penalties prescribed by the act.
No one is above the law or its regulations. The CRTC cannot tolerate that Vidéotron and Shaw have taken it upon themselves to decide that they are exempt, thus affording themselves financial and competitive advantages over the other distribution companies that respect the act and its regulations.
In conclusion, Quebecor and Shaw's gesture cannot and should not be tolerated. We urge the appropriate authorities to assume their responsibilities and to act as quickly as possible. What is at stake here is the place of our culture on our screens and the ability of the Canadian broadcasting system to defend it.
I thank you for your attention and, of course, we are ready to answer your questions.