Thank you very much, Mr. Chairman and honourable members of the committee.
I also bring regrets. My colleague Dr. Druick is quite ill today and unable to be here.
I'm speaking to you as an associate professor of communication from Simon Fraser University, and I have the remarkable distinction of having served as a member of the mandate review committee with Mr. Juneau, which released a report, Making Our Voices Heard, in February of 1996.
I'm also a member of the Graham Spry Foundation, affiliated with SFU, which together with the University of Montreal offers an annual lecture on the future of public broadcasting. I would commend that website to you for further research.
I teach in the area of broadcasting policy, and I'd like to acknowledge today the students of Communications 333, “Broadcasting Policy in the Global Context”, who have been with you this afternoon and watching in a fascinated manner. I'd also like to indicate that I research in the area of cultural diversity, civil society groups, and changing forms of media governance.
I'm going to take the liberty of leaving behind with your secretariat an article I've written on the CBC, which is entitled “Wellsprings of Knowledge: Beyond the CBC Policy Trap”. I wrote it in 2002, partly debriefing my experience of 1996, and many of the recommendations in it are as salient today as they were then.
In the interests of the presentation this afternoon, I thought what might be interesting would be to direct my observations to what has changed since 1996 in the dilemma facing the mandate review of the CBC at that time, and what has remained the same.
1996 marked a time that was widely perceived as a crisis point in public broadcasting around the world, and the specific crisis of budget cuts at that time, brought about by Mr. Martin, which led to the appointment of the Juneau committee, caused major concerns then about the scope of the CBC's mandate and its very sustainability.
There were many faces to that crisis. The first face was the political aspect of the crisis. Then, it was probably defined in terms of Quebec nationalism. Our report was written at the time of the Quebec referendum, and much of its text can be read in that light.
Now, the crisis is determined and defined in terms of our international obligations in Afghanistan, through the multi-lateral NATO. I note that after 9/11 we have seen a remarkable politicization of government communications policies around the world in the name of the war on terror. We have seen a close-down on security access to information in public journalism, and even disputes and resignations forced upon chairs of public broadcasters such as the BBC, or of the president of the BBC, because of problems of disclosure around allegations that there was faulty intelligence concerning weapons of mass destruction.
I note that the head of the Corporation for Public Broadcasting in the United States is under attack for partisan appointments. Our own past chair of the CBC resigned because of inappropriate remarks construed as offensive to some.
Certainly what has changed since my time on the watch in 1996 is the scope and news culture in which crises embroil our public broadcaster. But I think there is good news here. Public opinion and quality ratings indicate a high degree of public trust in CBC news, and there has not been the same meltdown of partisan meddling as has been seen at the BBC, for example. The CBC has built its foreign news bureau and in a very important move has repositioned CBC International away from hard news to more general life information, I think in part to fly under the radar of other better financed and more propagandistic international radio sources. But I think the CBC has grown beyond its current role in self-regulation of news quality and news standards.
I served as the chair on a national ombudsman process during the federal election in 2004, and while I can say I attest to the general validity of the process, it is no substitute for two elements that are necessary to protect the editorial independence and excellence of CBC news standards; that is, taking the office of the CBC ombudsperson outside the CBC; and secondly, restructuring all press councils and broadcast standards councils into a single news body more publicly accountable to citizens, journalists, and editors and more accessible in the adjudication of news disputes and promulgating better news standards.
In a world where CanWest Global's news coverage comes under fire from Reuters for inappropriate stereotyping of terrorists in an imbroglio in 2004, preserving a space for public debate over ethics of the media is never more important, and the CBC has a lead and large role to play.
The news environment in which the public broadcaster functions has never been more supercharged. In terms of meeting its international and national news functions, the CBC continues to outspend on a head-to-head basis on news gathering, do more high-value investigative reporting, which is measured by peer awards or in databases that have to do with access to information requests, and so forth, and has never been more open in submitting its news standards to high levels of public scrutiny and sustaining more foreign news bureaus.
Its value has been defended by the Senate committee on the future of the news media. The CBC's role is never more important in a news environment fraught with dangers in reporting in a world increasingly divided by ethnic, national, and religious fundamentalism, promoting, as Graham Murdock, a past Graham Spry chair, has indicated, inaccessible or uncrossable lines between us and them.
I want to rewind once again and say that then the crisis was technological. Few foresaw in 1996 the competition over 100 Canadian digital channels or over 100 international imported channels in Canada, or few saw the growth of the Internet and the challenges that podcasts and online media content through social sites like YouTube would pose. At the time, our committee was of the view that these were interesting developments, but I think it is fair to say that we did not predict they would grow as quickly as they have. At the time, we made a recommendation to amend the Broadcasting Act of 1991 to ensure that the CBC could make its services available on the Internet and make the most innovative new uses of new media as possible.
In light of a subsequent decision by the CRTC not to regulate new media or the Internet, nothing in the 1991 act precluded the CBC subsequently from developing its own Internet portal. Today, cbc.ca, as many have mentioned earlier, is among the top three in Canada, attracting more than two million hits a week. Studies of its performance during the recent election, especially in providing more accessible election coverage to younger voters, two in three of whom choose not to vote during our federal elections, have been largely positive.
The drive to develop new media was pioneered by Radio 3, which was based here in Vancouver, and we're very proud of the team that developed it. A study of Radio 3 that was done by one of our graduate students, who I believe is here today, Anu Sahota, argues that it is precisely this kind of innovation in new media that a public broadcaster must do.
I am tremendously impressed by the contribution that the new and indie music sites available on cbc.ca are making to the Canadian soundscape, and I applaud the corporation for creating this musical digital commons with shareware. The fact that Radio 3 moved to the commercial digital stereo satellite radio network is unfortunate, in my view, and it diluted the record of innovation at the corporation.
On the whole, the new media opportunities are not as well developed as they are or could be at the CBC. I would argue that the CBC needs to embrace the idea of a TV 3 or TV 4 or TV 5, as you've heard this afternoon, on the web, providing a portal for indie documentary and other emerging TV producers to share their work and rival YouTube for the post-first privilege.
Certainly few foresaw that the CBC could embrace new media, but it needs to do far more to be the pivot of the digital commons. I believe, too, that our committee, and especially the Lincoln report, saw the CBC as absolutely basic to the idea of preserving a public space on the digital commons. I believe the Lincoln report went further than we did, that the CBC must work together on the public Internet with the not-for-profit and community broadcast sectors of the new environment, something that the CBC has not yet done at all.
One of the most important calls the standing committee can make is upon the Minister of Canadian Heritage to coordinate a strategy to protect community, independent, and alternative media, with the CBC as its hub, on Canada's emerging digital commons. In my vision, CBC TV 3 would link campus TV, community TV, and a number of other not-for-profit program providers, as the hub across Canada.
To flash back again, then the crisis was fiscal. We were faced with over $300 million in cuts. By the year 2000, I note, Minister Copps did reinstate an annual $60 million a year for special-purpose broadcasts, and then the Canadian Television Fund emerged and earmarked some proportion of its holdings derived from public tax money and cable subscriber funds. These moneys were directed at independent productions licensed to the CBC slate.
I would say that today we do not face quite the same level of public debt or fiscal crisis of the state. In fact, given the unprecedented surpluses facing government today, there is a possibility existing for reinvestment in public broadcasting. The CBC has been faced with year-to-year uncertainty. Its appropriation of about $1 billion is diminishing under inflation, and in constant dollars, as many have commented, we have a corporation that is about one-third smaller than it was about ten years ago.
More to the point, today we have far better data comparatively about the rate of public investment around the world. It seems to me that a number of different sources have now confirmed that Canada is among the lowest of all OECD countries in its investment on a per capita basis, at a time when we are experiencing among the highest rates of population growth. This does not compute.
Even adding in provincial spending on educational broadcasting does not change the overall picture. What I would argue is that in a federal state like Canada, where there is a bifurcation of jurisdictions between culture and education, the data around the world, from the Mackenzie Group, from the Nordicity Group, indicate that culture does not do well.
The CBC is Canada's largest institution. It is a cultural institution, and it is not given enough to do its job. I have seen the need for stable long-term funding, and I support the continuous and repeated refrain over many public inquiries such as your own, for a long-term charter and stable long-term funding. I further support an annual increment to the base of parliamentary appropriation, because we have seen what the lack of certainty on public moneys can do.
Over the past ten years, the CBC has increased its reliance on advertising. You've already heard today how sports viewing as a proportion of CBC's share went from just over 30% at my time in 1996, to almost 50% today. In recent years, however, we've seen a cataclysmic drop of $90 million—almost 40%—in CBC ad revenues. Since the merger of CTVglobemedia, the CBC has been outbid for major sports properties like the Olympics by a three-to-one margin.
Our committee argued for a reduced reliance on sports properties like the Olympics, and economic necessity and the loss of market power vis-à-vis these new concentrated private sector sources is really doing for the CBC by default what public policy should. What has happened is that media mergers and consolidations are undercutting the CBC's right to negotiate major properties. It will get out of sport by default and may now reframe sports to the cultural pursuit, or focus on amateur and less popular sports in North America, possibly like soccer.
Its hemorrhaging of ad money will deeply continue to wound it. I stand behind the mandate review committee and the Lincoln committee's recommendations that the CBC step further back from ads if the requisite public money is in place to replace ad money.
In terms of critical mass, ad revenues today provide almost 50% of the operating costs of CBC TV. That is far too high. A quantum of around 20% to 30% in the period of transition to buying back our public broadcaster is probably more sustainable.
The drive to replace revenues has led to what I call a “creeping privatization of policy” mindset at the CBC. In recent hearings about the future of private broadcasting, the CBC has intervened before the CRTC to support the private broadcasters' opportunistic case to get cable subscriber revenues from basic cable—that is, a fee for carriage of local CTV and Global signals, for example—because of the lack of ad certainty.
The CBC, if this fee for carriage of local signals is introduced, stands to make anywhere from $12 million to $30 million, which is nowhere near what it needs. But it is driven by desperation, I think. The fact that local retransmission rights raise issues of copyright reform and issues of universality and raise problems of access for those 12% of Canadians who do not get digital cable is completely lost on the CBC policy perspective. In this case, self-interest, in light of a declining revenue base, won out over public policy interests in the framing of their position.
I support stable, long-term funding for the CBC. I simply point out that the last crisis facing us in 1996 is the same crisis facing you today. It was a crisis with respect to public transparency and public governance. The picture was bleaker in 1996, to be sure. A lot has been done to modernize systems at the CBC and bring in more transparency. I note that there have been two recent external audits of the CBC by the Auditor General of Canada, and the CBC has undertaken major reforms of the type that were identified in our report in 1996. Collective bargaining arrangements have been rationalized, internal efficiencies have been realized, and significant gains have been made from the rationalization of real estate. And certainly the renovations here, for example, to the CBC in Vancouver will make it a hub of a cultural district and will realize large community spinoffs.
My sense is that the efficiency gains to be realized by modernizing the corporation and streamlining it have now almost come to a close. There is not much more fat to be wrung from the animal. But the Auditor General, in her largely positive review, notes in the report of 2005 a continued need to establish corporate-wide performance and management targets and indicators and to communicate better with external stakeholders. And that the CBC must do. I only note that a similar charge was made to the Minister of Canadian Heritage and Status of Women in a later study of cultural industry programs that are also administered.
While the financial house at the CBC may be in better public order, warranting, I would argue, a serious re-conceptualization of public reinvestment in our public broadcaster, one main impediment remains. As we stated in our Making Our Voices Heard : Canadian Broadcasting and Film for the 21st Century, and as the Friends of Canadian Broadcasting has so ably argued over the past ten years, it is imperative to ensure that the process for appointment to the board of the CBC is less partisan so we do not get into the same trap President Bush got into with PBS. And I would suggest that your own committee has a role to play in this.
We must see the board become more broadly representative of all scientific, cultural, creative, technical, and business leadership in this country. The board must have the right to appoint the president and to insulate her or him from the partisan spin and pressure cookers of the day. Despite major changes in the federal political scene in this country, I am reminded that Parliament has, and continues to have, a consistent multi-party voice in support of the CBC, which is also supported by public opinion polls across this country.
What has changed since 1996 is the emergence of a neo-conservative press that is driving elite discourse on policy issues in this country, one in which CBC-bashing has become quite common. What has also changed is the breathtaking convergence of private ownership in the mediascapes in this country, which is something the CRTC will be examining in a new hearing. In such a converged landscape, the need for the CBC to provide local services, as they become victim to decisions made by central offices outside this province, has never been higher. What is odd is that public interest advocates—those who want a more democratic communication sphere protecting the rights of our citizens—have been relatively silent.
What the parliamentary committee can do is instruct the minister to ask the CRTC to review, for example, the public-benefit policies in place during this merger and acquisition binge and provide an account of exactly where these moneys go and how effective they have been. In the forthcoming news about the sale of Alliance Atlantis to a U.S. investment consortium in partnership with CanWest, for example, who is challenging the disposition of the specialty channel? Why would one channel, patently the heart of a renewed public broadcaster as a central hub of Canada's digital commons, not be given back to the Canadian taxpayers who subsidized its launch? Perhaps it is time for a discussion on the public benefit of reinvesting the History Television back to the CBC, where it belongs. The CBC, after all, is Canada's largest audio-visual archive of record in this country, and it only makes sense.
What has not changed, quite simply, is that Canada needs to build public institutions that foster a sense of citizenship, a citizenship that is cosmopolitan, that values diversity, that is committed to address problems through deliberation rather than force. The CBC is one such institution, and the challenges facing it have never been more enormous but its opportunities never more unrivalled.
Thank you very much.