Canadian Heritage Committee on March 26th, 2021

[Martin Champoux, Bloc, Drummond, QC]

Thank you very much, Mr. Chair.

I feel like I have six minutes in which to run a marathon. We could talk to each other about so many things.

I confess that I am very concerned about the lack of teeth in Bill C-10 in terms of protecting original French-language content and Canadian content. I am concerned to see that it is in the departmental directives rather than in the act.

Mr. Scott, do you prefer to have a legislative framework that is better defined, a little stricter, and that makes the playing field clearer for you, or do you prefer to have more latitude in interpreting the sections and the spirit, the intent, of the act?

In this case, I am thinking particularly about how language content is apportioned.

[Ian Scott]

Thank you for the question. It is an important one and I am happy to talk about it.

I prefer the second option. The CRTC has been regulating broadcasting since 1968, and it is responsible for the regulatory framework that exists today. It ensures that original content in French has an important place, both in Quebec and elsewhere in Canada. You can be certain that, as the CRTC develops a new framework, original content in French will remain a priority.

Mr. Hutton, do you have any additional comments?

[Scott Hutton]

I would actually like to add one clarification.

Mr. Champoux, I don't feel that asking for our preference as to the legislative framework is the right question. What we want is for parliamentarians to give us major objectives that are clear and to tell us what their intentions are. As for the regulatory measures and the legislative framework, we are asking you to give us the flexibility we need to implement them and to adapt them as the environment evolves.

The environment changes—

[Martin Champoux, Bloc, Drummond, QC]

Forgive me for interrupting you, Mr. Hutton.

If we leave things relatively vague and we give you only a general idea, I am afraid that you are going to be under pressure from the giants who are getting into the market. That is a probability. My impression is that, if the place we want francophone culture to occupy in the act is not very precisely defined, we will be left vulnerable and there will be too much room to manoeuvre.

[Scott Hutton]

Bill C-10 is intended to improve the existing act on a number of fronts.

As our chairperson mentioned earlier, the task of the CRTC is to implement the measures intended in the major political outlines. Accordingly, we have different approaches for French content and English content and very specific measures as to Canadian content and French-language content. We have even added to them in recent years, because the market was concerned about the matter.

I do not feel the CRTC will retreat or give in to pressure in that regard. The current legislation gives French-language content a predominant place in the country.

[Martin Champoux, Bloc, Drummond, QC]

I would like to bring up another matter.

At their recent appearance before the committee, the Minister and the officials from the Department of Canadian Heritage stated that, according to Bill C-10, social media will be regulated. However, other players in the field expressed their concern, because they find that social media are actually excluded from Bill C-10. I am thinking specifically about the organization called the Friends of Canadian Broadcasting.

If the bill is passed in its current form, do you feel that the CRTC will be able to regulate social media and impose conditions on them?

[Ian Scott]

We have imposed regulations in some cases.

That was while they acted as a broadcaster. If we separate those two concepts.... I will use Facebook as an example. If Facebook is sharing information about your neighbourhood, then it's not broadcasting, but if Facebook is putting on a Montreal Canadiens hockey game or is engaged in other broadcasting aspects, then it would be subject to our regulation.

[Martin Champoux, Bloc, Drummond, QC]

If I understand correctly...

[The Chair, Liberal, Scott Simms]

Sorry, but we have a problem with the French interpretation.

[Martin Champoux, Bloc, Drummond, QC]

Yes, we have a problem with the interpretation.

[The Chair, Liberal, Scott Simms]

Wait one second. We're going to have to fix this before we proceed.

[Ian Scott]

I can repeat my answer in French, if you wish, Mr. Champoux.

[Martin Champoux, Bloc, Drummond, QC]

Let's wait for the interpretation.

[Ian Scott]

Thank you for your patience.

[The Chair, Liberal, Scott Simms]

Are we good? Okay. That's great.

You have a minute and 20 seconds, Monsieur Champoux.

[Martin Champoux, Bloc, Drummond, QC]

I want to go back to a word you used earlier. You talked about symmetry and I have to say that I like that a lot.

Do you feel that you currently have the tools you need to achieve a balance between traditional broadcasters and foreign online undertakings? In my opinion, each one of them has a very different vision of what should be done.

[Ian Scott]

At the moment, we do not have the tools we need. However, I feel that Bill C-10 will give them to us.

[Martin Champoux, Bloc, Drummond, QC]

Let me quickly go back to one part of the question that my colleague Mr. Rayes asked earlier. It was about lightening the burden, as traditional broadcasters are asking. Some things could certainly be lightened for our traditional broadcasters in order to make them a little more nimble in the digital universe of which we are now part.

Do you feel that it is possible to do that while preserving the market and, of course, preserving original Canadian content and French-language content?

[Ian Scott]

The short answer is “yes”. I am sure that we have the right tools.

[Martin Champoux, Bloc, Drummond, QC]

Thank you.

You have met your challenge, Mr. Scott.

[The Chair, Liberal, Scott Simms]

Ms. McPherson, you are next, please. You have six minutes.

[Heather McPherson, NDP, Edmonton Strathcona, AB]

Thank you, Mr. Chair.

Thank you to our witnesses for joining us today. It has been very interesting to hear your responses. Of course, we all have a great deal of interest in the work you're doing and in the implications of Bill C-10 on your work.

As everyone knows, Bill C-10, if passed, would require online businesses, both foreign and Canadian, to contribute financially to the Canadian broadcasting system to support creators and producers of Canadian content.

What are some of the ways you think companies will try to get around their future spending or royalty obligations, and what do you think you can do to prevent that from happening?

[Ian Scott]

We're in the business of regulation, so we're probably used to parties and stakeholders interpreting our rules. I wouldn't ever accuse them of trying to circumvent them, but perhaps they interpret them in a way that they believe is consistent with the rules but to their advantage.

Honestly, our task will be to develop a new framework that is reflective of the various lines of businesses, both traditional and emerging. In a win-win situation, that framework should incentivize behaviour, not just prescribe it. It shouldn't be only “thou shalt do this or that”; it should also give them reason to follow our rules. I'm confident we can develop such a framework based on the evidence we'll gather from all parties.

I'm not evading the question, but I think we can develop a framework that will be a win-win for Canadian culture in the broadcasting sector and for the participants in the marketplace.

[Heather McPherson, NDP, Edmonton Strathcona, AB]

Incentivizing is a great idea and I applaud you for that, but I also recognize that you acknowledge that, for a lot of companies, incentivizing might not be enough to keep them on the right side of the line.

[Ian Scott]

That means it will need a “thou shalt do things”, as well. There will need to be prescriptive rules as well as incentives.