Thank you, Pamela.
Good morning.
As you've surely heard many times during this proceeding, and indeed twice this morning already, the most significant issue facing the CBC is the level of funding it receives. The reason this keeps coming up is because it is indeed the critical issue for the CBC.
Over the past 12 years our public broadcaster has faced tremendous reductions to its budget. In the mid-1990s its government appropriation fell by close to $400 million. Although there have been some small increases, the budget has not recovered.
Currently the CBC receives about $930 million from the federal government. This does sound like a lot of money. However, when we consider the CBC's broad mandate, probably the broadest, the largest of any public broadcaster in the world, the extensive geographic area to be served--the CBC covers five and a half time zones--and the number of broadcasting services provided, ten radio or audio services, eight television networks delivered over various platforms in both English and French, and two full-service websites, when we consider all of that, it becomes clear that the level of funding is not enough.
Moreover, government funding to the CBC is quite small when compared to that of public broadcasters around the world. A recent study showed that Canada was very near the bottom of the list of the 18 countries, with the CBC at $33 per capita. Switzerland and Norway led the pack with $154 and $147, respectively. The BBC, one of the world's leading public broadcasters, receives about $124 per capita or has a budget of about $7 billion.
Note that the cost of producing one hour of high-quality Canadian programming in Canada is not any cheaper here than it is elsewhere--in Britain, for example. In order for the CBC to properly fulfill its mandate and to be a program leader, it is essential that it receive increased and stable funding from the federal government as soon as possible.
In recent years the decline in public funding has caused the CBC to rely more heavily on other sources of revenue, particularly advertising sales. In 2005-06, more than 50% of the revenues of the CBC's English language television network came from commercial sources. Mr. Rabinovitch himself has asked whether that service can call itself a public broadcaster when more than 50% of its revenues come from commercial sources.
The reliance on commercial revenue is having an inevitable impact on programs. CBC executives are seeking more popular content. They're also strongly considering ratings when making their decisions. While ratings are relevant to any broadcaster, they should not be the primary concern of a public broadcaster. The CBC should be focusing on developing a recognizable brand and engaging Canadians in a national dialogue. It should not be chasing ratings.
In order for the CBC to better fulfill its public service mandate and to focus more on innovative Canadian programming, it should move away from its reliance on commercial revenues. Of course, we say that this should only take place in a situation where their government appropriation is increased.
Turning now to the mandate, in the DGC's view, the CBC is meeting its public service mandate on many fronts. The radio services are top-notch in connecting with audiences, Radio-Canada's French language television network has successfully repositioned itself, and the public broadcaster has a strong Internet presence in both English and French. It is also venturing into new areas, such as podcasting and digital radio.
While the CBC is doing a valiant job of meeting its mandate given the resources that are available, there is room for improvement. In particular, the service that is having the most difficulty is the English language television service. The following are our recommendations for that service.
Number one is Canadian drama. The CBC should be supported in its plan to be a leader in broadcasting original Canadian drama. The public broadcaster has a significant obligation to support and acquire audacious, entertaining, and leading-edge Canadian dramatic programming.
Number two is alternative sources of funding. The CBC should continue to forge strategic alliances with other broadcasters to help support the creation and broadcast of Canadian programming, particularly drama.
The CBC should be required to broadcast 100% Canadian content in the prime viewing hours. Currently, that's at about 80%. The evening schedule is Canadian.
As for Canadian feature films, the CBC should be required to broadcast more new Canadian feature films in order to provide Canadians across the country with the opportunity to see the feature-length films that are made here.
Next is commitment to Canadian programs. In order for the CBC to be a content leader, it is essential that it be fully committed to the Canadian programs it airs. This can be achieved through promotion, cross-promotion, advertising, and scheduling.