Thank you, Richard.
For the CBC to play an important role in the area of Canadian programming, as we've said, it must be adequately funded, but it's been steadily constricted by a series of reductions to budgets stretching back through a string of different federal governments. Parliamentary appropriations for the CBC have declined by 29%, in real terms, since 1990. Based on data from CBC's annual reports from 2002 through 2005, government funding is $415 million less today than in 1990, and that's measured in 2004 dollars.
The current level of public funding for CBC is simply insufficient given its broad mandate and its obligation to develop and broadcast high-quality dramatic programming on its network. So ACTRA recommends that $60 million of additional program funding be dedicated to scripted production. This funding should be made a distinct and permanent part of CBC's annual allocation.
The declining financial commitment from federal governments over the years has necessitated a growing reliance by the CBC on advertising revenues, placing the public broadcaster in direct competition with private broadcasters. Thus, the pressure on the CBC to secure advertising revenues has clearly affected programming choices. There is little doubt that while sports has held the secure level of programming, arts entertainment has gone in the opposite direction. During the hockey strike a little over two years ago, you'll remember the CBC management replaced hockey broadcasts with Hollywood movies--some pretty bad ones--rather than airing Canadian productions, because they claimed that this alternative was needed to maintain advertising revenues.
ACTRA recommends that with adequate public funding and the possible return to sponsored programming, the long-term objective of the CBC should be to be commercial-free in all of its services.
In a comparison of 18 major western countries in 2004, it was revealed that Canada had the third-lowest level of support for its public broadcaster. This analysis of government support for public broadcasting also measured the potential benefits derived from government support based on four different criteria: the promotion of culture and common values, the relative size of the domestic language market, the proximity to a larger country with the same language, and the audience appeal of indigenous programming.
The analysis ultimately showed that of the 18 countries surveyed, Canada would be the country that would derive the most benefit from a stronger and better-funded public broadcaster. The parliamentary Standing Committee on Finance, in its pre-budget consultation report in 2006, recommended increased funding for the CBC, and we would all like this committee to support that recommendation.
The CBC needs a stable funding commitment from this government that will allow for long-term planning that adjusts for rising costs and will assist the CBC with the necessary technical upgrading required to enable it to expand into new media and digital broadcasting. ACTRA does not believe the CBC mandate should be constrained to accommodate reduced funding. We urge this committee to ensure that the CBC is adequately funded to carry out its current mandate and to make the transition to digital and high-definition programming, above all without compromises to Canadian programming, and particularly drama production.