Evidence of meeting #43 for Canadian Heritage in the 40th Parliament, 3rd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was broadcasters.
A recording is available from Parliament.
Bloc
Carole Lavallée Bloc Saint-Bruno—Saint-Hubert, QC
He's right, but this still means that 900,000 households do not own a flat screen television.
Conservative
The Chair Conservative Michael Chong
A lot of the 900,000 households will have flat screen TVs. Look, I have personal experience with this. I live on a farm. We do not have cable or satellite. The only way I get my television is through an antenna. Half my stations are analog; half my stations are digital from the United States and partly through Canadian stations that have already converted. If you have a flat screen TV or a conventional TV that you've purchased in the last couple of years, the switch will be automatic. I just put that on the table just in case anybody has any misconception about what's going to happen.
I give you back the floor.
Liberal
Bonnie Crombie Liberal Mississauga—Streetsville, ON
Thank you, Mr. Chairman, but I don't think you're the average Canadian. Do you think you represent the average Canadian?
Conservative
The Chair Conservative Michael Chong
For anybody with a TV purchased in the last couple of years who doesn't have access to cable or satellite, this transition will be seamless.
Go ahead.
Liberal
Bonnie Crombie Liberal Mississauga—Streetsville, ON
So about the education awareness plan, where are we with five months to go? With five months to go, where are we with the education plan and awareness plan?
Executive Director, Broadcasting, Canadian Radio-television and Telecommunications Commission
That's what we're about to embark upon. That's the last phase of what we've been working on with industry.
Liberal
Executive Director, Broadcasting, Canadian Radio-television and Telecommunications Commission
The important message here is not to start too early, because after all, the main thing here is that this will not affect 93% of Canadians. That is clear.
Liberal
Bonnie Crombie Liberal Mississauga—Streetsville, ON
That's still almost a million Canadians, though. I'm going to move on from this line of questioning.
The heritage minister says that he expects the industry, not government, to pay for and coordinate the transition to digital. Do you support that as well even though the Government of the United States offered households $75 to help with the conversion?
Executive Director, Broadcasting, Canadian Radio-television and Telecommunications Commission
As I indicated earlier in the questioning, we have been able to work within the confines of the current policy to come up with a mechanism that minimizes the impact of loss of service to Canadians, and we've found a way to ensure that those who will lose service will be provided with free digital satellite equipment, to be able to maintain service to them. Those are two things that we've already done within our purview.
As for the remaining people, again, the 900,000 is a top-end number, because it does include those who have purchased a TV set in the last five years. These sets automatically have a digital receiver within them and are equipped to receive both technologies. It also includes—
Liberal
Bonnie Crombie Liberal Mississauga—Streetsville, ON
Well, Mr. Hutton, if the U.S. government can offer $75 to every household, why shouldn't the Canadian government do the same?
Liberal
Bonnie Crombie Liberal Mississauga—Streetsville, ON
It's only $35 now. Exactly. The number has been reduced from $75.
Executive Director, Broadcasting, Canadian Radio-television and Telecommunications Commission
In the U.S. at the time, the boxes were valued at about $75, and I believe they provided coupons to households for about $40, which brought the cost to them down to about $35.
Here in Canada, being a couple of years behind and having learned from that experience, manufacturing, and technologies, and benefiting from the volume of the United States, they're selling for $30. So we're coming to the point of view that Canadians are already ahead of the Americans on that standpoint without direct intervention by a subsidy mechanism.
Liberal
Bonnie Crombie Liberal Mississauga—Streetsville, ON
Maybe there could be a tax credit of sorts.
Mr. Angus asked a question. I want to restate it because I don't think we got a clear answer. How much of the freed-up spectrum is going to be repurposed for wireless telecommunications?
Executive Director, Policy Development and Research, Canadian Radio-television and Telecommunications Commission
That's an aspect that Industry Canada will be looking into and determining.
Executive Director, Broadcasting, Canadian Radio-television and Telecommunications Commission
Just to make it clear, spectrum in Canada is primarily regulated by the Department of Industry. Those are the people who slice and dice the spectrum, provide for its uses, and auction off what can be auctioned off for mobile uses. We at the CRTC only handle the broadcasting assignments within those original ones.
Liberal
Bonnie Crombie Liberal Mississauga—Streetsville, ON
I've got it. Thank you.
So the last auction raised $4.25 billion in revenue. How much do you think will be generated this time around?
Executive Director, Broadcasting, Canadian Radio-television and Telecommunications Commission
Industry Canada has the folks who are the specialists in that domain. We only deal with repurposing the broadcasting spectrum and reassigning it to the various broadcasters pursuant to their licences.
Liberal
Bonnie Crombie Liberal Mississauga—Streetsville, ON
It's interesting that the government will stand to gain more than $4 billion, but doesn't want to pay out a penny to households and consumers to help in the transition. How do you explain that?
Executive Director, Broadcasting, Canadian Radio-television and Telecommunications Commission
That's not for us at the CRTC to explain. We have learned from the U.S. experience that direct subsidy mechanisms are not necessary.
Conservative
Bloc
Carole Lavallée Bloc Saint-Bruno—Saint-Hubert, QC
I want to continue our earlier conversation. Mr. Hutton, I have not understood. Based on your forecasts, how many people will no longer get any kind of signal as of September 1?
Executive Director, Broadcasting, Canadian Radio-television and Telecommunications Commission
We estimated the number of households that will no longer receive service at 31,500. This estimate was established a while ago. Today, we have the figures on hand, and reports from various broadcasters are coming in constantly. As I said earlier, in rural areas, broadcasters can opt to keep broadcasting in analog mode. Many of them do adopt this strategy. That's why the estimated number of 31,500 households is declining steadily.
Carole Lavallée Bloc Saint-Bruno—Saint-Hubert, QC
Why did you talk about 900,000 households in your submission?
