The CAB is pleased with Quebecor's recent announcement that it will reinstate funding to the CTF until there is an opportunity for the CRTC to consider the Quebecor proposal for a new fund.
You discussed it with them at some length this morning.
The CAB is also pleased to hear Shaw's testimony this morning, announcing that it was reinstating its payments to the CTF.
As stated earlier, the CAB agrees that ongoing evaluation and consideration should be given to production funding mechanisms to ensure they are keeping pace with the changing realties of the broadcasting and communications sectors.
From a public policy perspective, however, the CAB believes it would be more constructive to broaden the discussion to include the role of all television production funding mechanisms and not just those proposed by individual licensees. To this end, the CAB believes there are two specific measures that should be taken to address the uncertainty caused by recent events and provide a framework for a longer-term solution.
First, in pursuit of the longer-term solution that addresses the concerns that we and others have expressed—and you've heard testimony here again this morning and in previous hearings of this committee—production funding mechanisms need to keep pace with market changes, and this is top of mind. We recommend that the government use its power under section 15 of the Broadcasting Act to direct the CRTC to hold a hearing and/or make a report on matters related to production funding mechanisms. This initiative would ensure a more fulsome discussion of the role and impact of funding mechanisms on all players in the system. In other words, what are we going to fund, by whom, and for what purpose?
In the CAB's view, this would also send a clear message that individual licensees alone should not and cannot dictate the future of the regulatory framework. This review should produce clear policies and recommendations for government to consider regarding the future direction of proposed production funding in both the English and French language markets. In particular, given recent discussions, we need to revisit the eligibility of public broadcasters to available production funds, such as the CTF.
In addition, given the degree of fragmentation, which the charts we were pointing out to you earlier clearly demonstrated, the emphasis must squarely be placed on audience, not on who makes the content.
To this end, the proposed review should also discuss the eligibility of affiliated producers to available funding mechanisms. The CAB suggests that if the section 15 approach is adopted, it should be undertaken before the commencement of the next broadcast year, which, as you know, begins in September 2007.
The second initiative that we suggest this committee consider is that under paragraph 10(1)(k) of the Broadcasting Act, which gives the CRTC the power to make regulation in furtherance of the objectives, the CAB strongly urges the commission to take immediate action to amend the broadcast distribution regulations to codify payment schedules by distributors to independent production funds.
This action would clarify the payment schedule and provide further stability to the Canadian television production sector. The CAB's understanding is that these amendments could be affected expeditiously within a 60-day timeframe, taking into account all relevant procedural considerations.
We understand that the commission's new chairman indicated as much last week, or at least gave an indication of his willingness to consider that.
We hope the committee will support us in our call for these two immediate short-term measures.
The CAB thanks the standing committee for the time and the welcome that you've afforded us this morning, and we would be pleased to try to answer any questions you may have.
Thank you very much, Mr. Chairman.