Canadian Heritage Committee on Oct. 4th, 2012

[Jean-Pierre Blais]

There's already a large presence of community in the system right now. We have community radio stations that operate in the market, and because they're not driven as much by commercial considerations, they often bring kinds of music that you don't necessarily find on a more commercial radio, so they really add to the diversity.

There's also community television, which you see through cable undertakings. It also allows local groups to have a more local presence. It enriches the system as well, because when we have more and more large national broadcasters, sometimes we lose what we call in French la proximité of local. That's part of the system, and we look at it.

It's not an area without financial challenge, because they don't draw in as much advertising, but it is a part of the system that the act mandates and that we ensure is part of the mix.

[Paul Calandra, Conservative, Oak Ridges—Markham, ON]

My hometown of Stouffville benefits from a community radio station called WhiStle Radio. For a number of reasons it's very important. It's the only radio station specific to the town of Stouffville for emergency broadcasts.

It also seems that community radio stations have an ability... you referenced this in your remarks. When people are advocating for community radio stations, they seem to lose their fear of the CRTC or the nervousness that they have to appear before the CRTC. I know it's really early on in your mandate, but how do we, outside of websites, make it easier or a little less unnerving for people to appear before the commission? You hear that quite often people will decide not to appear because they're nervous; sometimes really good ideas are lost for that reason.

[Jean-Pierre Blais]

Indeed, it can be intimidating. I can tell you that even before my time, there was a group created within the commission to reach out to smaller players. Even smaller commercial players sometimes find it a bit intimidating.

It's a matter of public record that at the Bell-Astral hearing I was lamenting the fact that we didn't have more individuals coming up. We try to be as welcoming as we can. That's why we're thinking that in the CBC/Radio-Canada renewals that are coming up, we'll do evening sessions. We'll bring us down from a big desk and set it up more like this, more conversationally, so that people are not as afraid.

I know, for somebody who doesn't necessarily appear, that the CRTC proceedings are daunting, but as far as administrative tribunals go, there is no sworn evidence and there are no lawyers. It looks more like a conversation, frankly, similar to the one we're having at this juncture.

[The Chair, Conservative, Rob Moore]

Thank you, Mr. Calandra.

Ms. Sitsabaiesan is next.

[Rathika Sitsabaiesan, NDP, Scarborough—Rouge River, ON]

Thank you, Mr. Chair, and thank you, Mr. Blais, for being here.

You mentioned earlier that you have increased deregulation within the CRTC to allow for more market conditions to prevail. Also, if I may jog your memory, in 2011 the CRTC adopted its regulation on vertical integration. How do you make sure that these new vertically integrated companies that are managing their supply chains upward and downward respect the rules that have now been imposed on them?

[Jean-Pierre Blais]

I have to be careful here, because it was an issue that was front and centre at the Bell-Astral hearing.

Yes, we did adopt rules. Some of them have been embedded in more regulatory language over time. These are still early days.

We have possibilities to do mediation between parties that find they're not having success in getting access to vertically integrated companies. As well, we've gone to expedited hearings and final offer arbitrations to make sure that we deal quickly with an imbalance in the relationship, but because this issue is so close to the Bell-Astral hearing, I think I'm going to stay away from saying anything else.

[Rathika Sitsabaiesan, NDP, Scarborough—Rouge River, ON]

It seems as though final binding-offer arbitration is the final ending here.

I'm going to move a little off that. The report on plans and priorities mentions that the CRTC will make public the reports on how those companies complied with the rules. When will those reports be available? Where will they be available? How can we access them?

[Jean-Pierre Blais]

In terms of the exact timing, I just don't have that information. Maybe through the committee clerk I could tell you that exactly.

[Rathika Sitsabaiesan, NDP, Scarborough—Rouge River, ON]

Sure, you may.

[Jean-Pierre Blais]

We will make the information public, and it will be on our website. It'll be transparent, as is everything we do. I'm sorry I can't help you with the exact dates.

[Rathika Sitsabaiesan, NDP, Scarborough—Rouge River, ON]

Fabulous. Thank you. If you could please pass that to the committee members through the chair, it would be appreciated.

Another branch is that the rules on vertical integration don't mention anything about Canadian content. Do you believe vertical integration has an impact on new Canadian content?

[Jean-Pierre Blais]

Inevitably, it does have an impact on Canadian content.

A company that has, let's say, a specialty TV licence has certain obligations in terms of spending or in hours of Canadian content. To be able to deliver on that, it needs to have a certain amount of penetration in the marketplace, because this affects how much money it gets from wholesale or from advertising. The whole vertical integration is essentially about market forces, but it's ultimately about Canadian content, because if somebody can't have access to the system to get the funding that funds Canadian content, that's our concern.

[Rathika Sitsabaiesan, NDP, Scarborough—Rouge River, ON]

Right, but we're hoping the market forces will ensure that Canadian content is part of these new vertical companies, rather than using regulation or the requirements for these new companies to ensure they have increased Canadian content.

[Jean-Pierre Blais]

That's right: the licensees are obliged to make the content available.

[Rathika Sitsabaiesan, NDP, Scarborough—Rouge River, ON]

How are we doing for time?

[The Chair, Conservative, Rob Moore]

You have a minute and 20 seconds.

[Rathika Sitsabaiesan, NDP, Scarborough—Rouge River, ON]

It's so hard to get all these ideas off my mind in this five-minute thing.

I'm going to change gears one more time and go to the topic of telephones. Over the course of the last year—I'm a new member of Parliament—I've received many complaints from my constituents in Scarborough—Rouge River about international and overseas telephone calling cards.

These constituents, who are trying to connect with their family members abroad, usually overseas, are complaining. They would buy a telephone card that, for example, would advertise that they could call Pakistan for 100 minutes, but they would receive only about 50 minutes of actual talking time.

We've done a little research on our own. I understand that many of the providers deduct undisclosed hidden fees from the balance on the card and don't provide all of the actual posted minutes. These undisclosed fees allow phone-card providers to manipulate the rates. They decrease the actual minutes available to the consumer without changing their posted advertised rates.

I personally believe this breaks federal advertising laws. I imagine the advertising is there to increase competition and to—

[The Chair, Conservative, Rob Moore]

You are at five minutes and 10 seconds.

[Rathika Sitsabaiesan, NDP, Scarborough—Rouge River, ON]

I'm at five minutes and 10 seconds...? I wanted to know why there are no regulations on the calling cards, and why is it misleading?

[Jean-Pierre Blais]

Well, you sent us a letter on that precise subject on September 17, so you will be getting an answer pretty soon.

[Voices]

Oh, oh!

[Jean-Pierre Blais]

The high-level answer will be that it really depends on the circumstances. We have deregulated long distance for a while; however, depending on the facts, there may be some things that should be brought to the attention of the Competition Bureau or the commissioner for complaints for telecommunications services. It really depends on the facts, but you'll see that in the answer, which you should get soon.

[Rathika Sitsabaiesan, NDP, Scarborough—Rouge River, ON]

Thank you.

[The Chair, Conservative, Rob Moore]

Thank you, Mr. Blais, and thank you for appearing before us today.

It's five o'clock, so we're going to move in camera.

Thanks, Mr. Blais, and congratulations on your appointment.

[Proceedings continue in camera]