Canadian Heritage Committee on Dec. 6th, 2007

[The Chair, Conservative, Gary Schellenberger]

The only thing is that Mr. Fast has the first shot, because it's the fourth round.

It's Mr. Scarpaleggia and then Mr. Fast.

[Maria Mourani, Bloc, Ahuntsic, QC]

You'll forget us.

[The Chair, Conservative, Gary Schellenberger]

I'm not forgetting you.

[Maria Mourani, Bloc, Ahuntsic, QC]

Yes. I asked a question. You forgot us for three and four turns.

[The Chair, Conservative, Gary Schellenberger]

We're going to do one more round, and you won't be forgotten. We go back to the first round. The way it goes, there's four, three, three.... You have not been forgotten.

Mr. Fast, if you'd like to ask your question, please....

[Ed Fast, Conservative, Abbotsford, BC]

Thank you, Mr. Chair.

Mr. Lacroix, one of the things we heard loud and clear from the witnesses who appeared before us in the public broadcaster review we've almost completed is the fact that Canada may be lagging behind in the transition from analog to digital. Another thing we heard was that CBC faces challenges trying to adapt to all the new technologies that are now being presented and the cost of doing that.

Have you had a chance to familiarize yourself with that challenge? Have you formulated any thoughts on how those challenges might be met?

[Hubert T. Lacroix]

The answer is not yet, sir. The details of those issues I am not aware of. As you have, I have read the presentations that CBC has made here so far. I understand there is an important cost, an important expense, relating to those changes. I know it's an issue. I look forward to sitting down with our team and being briefed on that.

[Ed Fast, Conservative, Abbotsford, BC]

I will ask another question, which again relates to that same study. We heard time and time again from the regions and witnesses representing different regions of our country that their voices were not being heard clearly enough. Is that something you've heard as you've consulted in the process leading up to your appointment?

[Hubert T. Lacroix]

The people I've met so far are very aware that regionalization is an important issue for all at this point in time. I'm sure that's why they came to this committee saying they would like to expand and cover some parts of Ontario and other parts of the country that are not covered, and this is why they have requested extra funds. I know it's really top of mind for these people.

[Ed Fast, Conservative, Abbotsford, BC]

I'm encouraged to hear about your qualifications, especially in the private sector. I think I'm going to echo many of the other comments around this table that you bring a wealth of experience. Based on what we've seen and heard so far, you're highly qualified. Most of that experience has been in the private sector, and that's going to enable you to bring a fresh look, a fresh perspective, to CBC, but it's also going to present some challenges. You're coming into a public broadcaster in which some of the challenges are different from those you had to meet in the private sector. What strategies would you consider to adapt to this new environment that you're going to be in?

[Hubert T. Lacroix]

I understand this is a different environment in terms of culture, and I want to come back to culture, if I can. This was an issue that was raised a few seconds ago.

Yes, I have a sports background, but that doesn't mean I don't enjoy the opera. That doesn't mean I don't enjoy arts, that I don't read, or that I don't do more. Culture, for me, is all of these experiences together. It can't be narrowly defined, and that's what Radio-Canada, if we understand CBC/Radio-Canada, does not do. It's not narrowly defining culture.

We have a political culture, a business culture, an immigrant culture. Culture is more than simply one stratum of society. That's why CBC/Radio-Canada plays a very important role in bringing all of these cultures into the same spot and making sure that we, as Canadians, can look at this and weave this into a single Canadian identity. This is what culture is all about.

In some ways, when I look at the challenges I have, this is why I want to come in and listen and it's what I want to understand. I want to understand the culture in which I'm working, and I want to understand what culture means to CBC/Radio-Canada on a daily basis, so that my skills can actually be well used. I am not going to come in with a revolution in mind. I need to understand the environment I'm in before I can start managing it.

[Ed Fast, Conservative, Abbotsford, BC]

Thank you.

[The Chair, Conservative, Gary Schellenberger]

Thank you for that. We do have some time, but we can't go past ten to one. We have time for one more round just like the first round.

We will start with Mr. Bélanger for five minutes.

[Mauril Bélanger, Liberal, Ottawa—Vanier, ON]

Thank you, Mr. Chair.

Mr. Lacroix, earlier you said that we mustn't focus solely on Montreal, and I entirely agree with you. I'd like to go back to what my colleague Mr. Scott talked about. For some time, the Francophone public seemed to think that nothing interesting happened outside of Montreal. I must admit that the Corporation has been making efforts to change that attitude for some time.

When you take up the duties of President on January 2, do you think you will undertake a kind of cross-Canada tour to go and hear the complaints of the Anglophone and Francophone communities across the country? Have you considered doing that kind of thing?

[Hubert T. Lacroix]

Mr. Bélanger, I can assure you that one of the first things I'm going to do will be to meet with CBC/Radio-Canada people in other cities than Montreal, Ottawa and Toronto, which are the three cities I have had the time to visit in the past three or four weeks. I definitely can't form an idea of the challenges facing CBC/Radio-Canada unless I understand the geographic coverage and points raised by the regions. That's absolutely certain.

[Mauril Bélanger, Liberal, Ottawa—Vanier, ON]

I congratulate you on that and encourage you to do so as soon as possible.

I would also like to talk about the issue of advertising revenue. What is your vision in that regard? If I understood correctly—and I've closely followed your remarks and answers—in your view, the public broadcaster's mandate goes beyond the notion of market share. However, there nevertheless has to be an audience.

[Hubert T. Lacroix]

Yes.

[Mauril Bélanger, Liberal, Ottawa—Vanier, ON]

In that universe where there are two dramatic focal points, market share and advertising on the one hand, and the fact of not paying attention to the number of people who watch us, on the other, there is a happy medium. You have to strike a certain balance.

In your opinion, where does the importance of advertising revenue rank on that scale?

[Hubert T. Lacroix]

Once again, I'm speaking to you from the outside since, as you know, I won't be in my position until January 2. In light of the information I've received to date, CBC/Radio-Canada's funding comes from various sectors. Advertising revenue is one of the major sources of funding. We must continue to secure these sources of revenue, including advertising revenue, to try to increase them by entering into all possible kinds of alliances and by maximizing all efforts necessary for those additional revenues to enable us to engage in strategic planning for more than 12 months. That's our objective.

[Mauril Bélanger, Liberal, Ottawa—Vanier, ON]

Then aren't you afraid that any attempt to increase advertising revenues will mean that CBC/Radio-Canada will have to focus more on ratings? If I clearly understood how the industry operates, advertising revenue is determined in large part, if not entirely, by ratings.

[Hubert T. Lacroix]

You're absolutely right. I'm convinced that balancing advertising revenues, ratings and CBC/Radio-Canada's statutory mandate is a constant challenge. I can tell you, Mr. Bélanger, that it will be very important for me to understand on my first day—

[Mauril Bélanger, Liberal, Ottawa—Vanier, ON]

That's good.

I'd like us to schedule a meeting, during a committee meeting or something else, so that we can talk about this again once you've acquired some internal experience and gained a better understanding of relations with CBC/Radio-Canada. I think this is a concern for many Canadians.

[Hubert T. Lacroix]

I absolutely agree with you. It will be a pleasure.

[Mauril Bélanger, Liberal, Ottawa—Vanier, ON]

This is an environment that you're familiar with; you've worked in telecommunications, if I understood correctly. Telecommunications has undergone a whole process of deregulation.

Do you think such deregulation would be desirable in broadcasting?

[Hubert T. Lacroix]

That's a major public policy question which you, as parliamentarians, will have to consider. I think that only makes a strong and independent public broadcaster, all across Canada, even more relevant. In this kind of environment, given all the market pressures, certain issues go far beyond the role or vision that I can have. This issue is the responsibility of the Government of Canada.