Canadian Heritage Committee on April 14th, 2016

[Kevin Waugh, Conservative, Saskatoon—Grasswood, SK]

Thank you, Minister, and thank you for the other morning, and thanks to your staff, Mr. Flack and Mr. Francis, for the briefing.

I'm going to pick up with Mr. O'Regan on the CBC. As we all know, they have a budget of over $1 billion and we have been sitting here for weeks talking about the demise of local media in this country. We've been searching for solutions to the current state of media in this country, and will continue to search for solutions, but to me the $675 million that you've handed over to the CBC is really a $61% increase in their budget over five years, according to my numbers.

I understand from you just said that with the shift in resources you're asking them to go to digital media. I know that you state that in growing the middle class, you will work with the CBC to develop a five-year accountability plan. So they are going to receive $675 million. Normally in business, you do have a plan and then you give the money. It seems to me that you've given them the money, but I don't see the plan.

Have you started the plan with the CBC, because the money obviously is going to be rolled out here?

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

As I expressed a bit earlier in this conversation, we have expressed wishes to the CBC that this $675 million would go to the three priorities I previously mentioned. And we will be working with the CBC. While respecting its independence, we all know it is very important to our democracy to make sure that there is an accountability plan.

[Kevin Waugh, Conservative, Saskatoon—Grasswood, SK]

Where is the accountability, if you don't mind my asking?

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

Of course, we need to partner with them in developing that accountability plan. But clearly, that money is to help the CBC to shift and become a 21st century public broadcaster—and, I would add, a public content creator in the digital age.

[Kevin Waugh, Conservative, Saskatoon—Grasswood, SK]

In this country right now, not everybody gets digital. We're having those discussions across the river here in Gatineau. We can't even agree on that right now.

I think this has caused an unlevel playing field. We've seen witnesses over the weeks here talking about this problem. Now we know what the problem is: this is going to turn out to be an uneven playing field. You have the public broadcaster getting gobs of money, if you don't mind my saying so, and you have the private people in the exact opposite position: they're short of money. We can see their problems. Yet the CBC continues to make cuts in Kamloops and to other small stations in this country. So I do have some problems. We're going to end up with one broadcaster in this country, and that doesn't serve anyone well.

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

If I may, the $150 million is a 15% increase, rather than a 65%, so that's one point. But I would add to that—

[Kevin Waugh, Conservative, Saskatoon—Grasswood, SK]

It's an increase, though.

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

I would add also that it was clear in our campaign commitments that we would reinvest that money, and that was because the population was supportive of the importance of a strong public broadcaster.

On that question, if I may, we agree to disagree.

In general—

[Kevin Waugh, Conservative, Saskatoon—Grasswood, SK]

My issue here is that we're going to sit here for three or four months talking about the industry, and now I have seen this result for the public broadcaster, and another for the private—

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

Again, I agree—

[Kevin Waugh, Conservative, Saskatoon—Grasswood, SK]

You've just said it, that it's a 15% increase.

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

I think we agree to disagree in the sense that I profoundly believe that the $1.9 billion will also help the entire ecosystem.

[Kevin Waugh, Conservative, Saskatoon—Grasswood, SK]

I am not talking about the $1.9 billion. I am talking about the CBC here.

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

It will help the private broadcasters have access to content that will be—

[Kevin Waugh, Conservative, Saskatoon—Grasswood, SK]

You still have to pay for content.

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

—eventually aired on their different broadcasting—

[Kevin Waugh, Conservative, Saskatoon—Grasswood, SK]

Devices.

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

—devices. I hear you—

[Kevin Waugh, Conservative, Saskatoon—Grasswood, SK]

You have to pay for content.

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

I hear you, that in general there is a big question about the future of news and entertainment in this country. That is why this is such an important question.

This is such a difficult question that we will need to launch public consultations on this, because if we don't do so, we will leave it up to the market to take care of it—

[Kevin Waugh, Conservative, Saskatoon—Grasswood, SK]

The market will be only the public broadcaster.

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

—and to struggle with it. That is not what we want to do.

We want to act as a responsible government that understands that our vision, policies, and legislation need to be up-to-date with what's happening in our society and all the technological changes that are happening. That is why we need to be up-to-date, and that is why we think this will be very transformative because our entire model was developed in a radio and television era.

That's why—

[Kevin Waugh, Conservative, Saskatoon—Grasswood, SK]

You see where I'm coming from, Minister—

[The Chair, Liberal, Hedy Fry]

I'm sorry, the five minutes are up. Thank you, Mr. Waugh, and Ms. Joly.

Now we go to Mr. Breton from the Liberals for five minutes, please.

[Pierre Breton, Liberal, Shefford, QC]

Thank you, Madam Chair.

I also thank the minister and the minister's representatives for being here with us today.

I am pleased to see that an additional $2 billion are being invested in arts and culture, especially since scientific studies in recent years have shown that a dollar invested in this area brings seven times its value. So we can certainly expect that $2 billion could easily generate additional economic benefits to the tune of $14 billion. Across the country, people from the private sector will certainly be in favour of this investment; they will welcome it and make their own contribution.

Madam Minister, as you know, we are currently conducting a study on the media and local communities. To date, we have heard from a number of local organizations. One of their challenges is to adapt quickly to the evolving digital platforms.

Could you share your priorities with us in that regard? How do you plan to meet the challenges of local communities?