Canadian Heritage Committee on Oct. 1st, 2025

[Bienvenu-Olivier Ntumba, Liberal, Mont-Saint-Bruno—L’Acadie, QC]

Thank you.

I'll focus on support for Canadian creators.

How will the new framework ensure that Canadian creators won't face a disadvantage when it comes to content posted by major platforms such as Netflix?

[Scott Shortliffe]

Thank you for your question.

I don't want to sidestep your question. However, we asked this question directly during our public hearings, which ended this week. We took this factor into account during our consultations on Canadian audiovisual content.

We also asked the following questions. How can we ensure the independence of Canadian creators?

What steps should we take to promote their stories?

We don't have any results yet, but we consider this a key issue. Our policy framework must ensure the independence of creators and their work.

[Bienvenu-Olivier Ntumba, Liberal, Mont-Saint-Bruno—L’Acadie, QC]

Ms. Eatrides, in your opening remarks, you spoke about Canadian content in music.

Can you provide some feedback on the expected results in this area?

Is the Canadian Radio‑television and Telecommunications Commission, or CRTC, considering requiring platforms to promote content based on language and geographical location for regions outside major cities, such as my own constituency of Mont‑Saint‑Bruno—L'Acadie?

[Vicky Eatrides]

I can start answering your question, and then I'll let Scott Shortliffe take over.

We just held public hearings on these issues. The hearings lasted three weeks and ended on Monday.

I don't know how much information we can add.

[Scott Shortliffe]

I can say that some speakers who addressed this issue suggested that geographical location should be taken into account.

At the same time, major foreign platforms such as Spotify and Apple participated in the hearings. They said that this wouldn't be an issue. This issue was also addressed in this group. The various speakers eloquently conveyed their different points of view.

Unfortunately, since the hearings just ended, I can't share the results. However, it's a significant issue.

Your question about the need for people living in the regions to access local content rather than just international content is important to us. In fact, we asked that very question.

[Bienvenu-Olivier Ntumba, Liberal, Mont-Saint-Bruno—L’Acadie, QC]

How will the CRTC ensure that Bill C‑11 is implemented in compliance with the charter rights, particularly when it comes to freedom of expression?

[Vicky Eatrides]

Again, I'll start answering and then I'll let one of my colleagues take over.

The act is clear and it requires compliance with the charter.

[Scott Hutton]

This is key to the CRTC's work.

The Broadcasting Act, as adopted in 1991 and amended by the Online Streaming Act, includes an initial interpretation provision instructing the CRTC to ensure that its regulations, policies and decisions comply with the freedom of expression. This takes precedence over all the policy considerations listed in the Broadcasting Act.

We must take this broader context into account in all our decisions.

[Bienvenu-Olivier Ntumba, Liberal, Mont-Saint-Bruno—L’Acadie, QC]

Do you plan to impose specific obligations for algorithms that affect companies such as TikTok in order to better regulate consumer rights?

[Scott Hutton]

The act states that we mustn't interfere with the algorithms.

[Rachael Thomas, Conservative, Lethbridge, AB]

That's your time.

Now we'll move over to Mr. Champoux for two and a half minutes, please.

[Martin Champoux, Bloc, Drummond, QC]

Thank you, Madam Chair.

I was talking earlier, ironically, about the attitude that platforms in general have toward their responsibilities, or at least what we think their responsibilities should be to the cultural sector and the broadcasting sector in Canada.

This week, Spotify made probably the best joke, saying that it does a lot for artists, when we know that's completely false. In the meantime, you're holding hearings with broadcasters, who are asking you to lighten their regulatory burden and review French-language music quotas, perhaps even review the formula.

Of course, representatives of the artistic community—people in the music sector, songwriters and so on—are also insisting on being protected. You are facing quite a challenge with all those sectors that you have to protect. Broadcasters are also very important for the promotion of culture and for the artists who create that culture.

How do you see this kind of huge paradigm shift in the broadcasting sector with new players, as well as with artists, especially francophone artists, who are afraid of disappearing in the current context? How are you going to address that?

[Vicky Eatrides]

I'll come back to our role as a quasi-judicial tribunal.

We always hold public hearings where we hear from stakeholders representing platforms, the broadcasting sector and the cultural sector. We hear all the comments and perspectives, and it's always a matter of balance. We make our decisions based on the public record.

[Martin Champoux, Bloc, Drummond, QC]

However, you also have a “duty” to protect the industry, the Canadian sector.

Do you have that in mind when you hear from stakeholders who appear before you? Do you have a bias in favour of our cultural sector, Canadian creators, Canadian broadcasters over foreign companies?

[Scott Hutton]

You know that, as an administrative tribunal, we cannot show favouritism and give preferential advantage to one player or another. That would be an error in administrative law. That's why I'm taking the liberty of answering your question, as Ms. Eatrides represents the part of the commission that makes decisions in this regard.

Certainly, we take inspiration from the act as it is written, the many objectives that specifically ask us to consider Canadian artists—

[Rachael Thomas, Conservative, Lethbridge, AB]

I'm sorry, Mr. Hutton. That's your time. Thank you.

Now we'll move on to a five-minute round, and our first MP up is Mr. Dawson.

[Mike Dawson, Conservative, Miramichi—Grand Lake, NB]

Thank you, Chair.

Thank you all for being here today.

Can the CRTC confirm the purpose of the local news fund?

[Scott Shortliffe]

I just want to make sure that I know which fund you're asking about. We have a series of local news funds. We have an independent news fund for television stations, which has existed for a long time but which we are expanding following a decision this summer. It will probably go out to another 15 stations or so.

We are creating a commercial radio news fund for radio stations outside of major centres. We anticipate that more than 500 radio stations across Canada will be eligible for funding support for news operations from that fund.

Of course, we are also involved in the administration of Bill C-18, the Online News Act, by which $100 million is being provided to broadcasters, news organizations and newspapers across Canada.

So, we actually have several news funds that we're involved with at the moment.

[Mike Dawson, Conservative, Miramichi—Grand Lake, NB]

Can the CRTC confirm which one of the funds Corus was added to and whether it's taking 40% of the whole fund without any additional money being added to the fund?

[Scott Shortliffe]

That is in reference to the independent local news fund, the ILNF. The decision was made to add Corus because it is no longer what is called a vertically integrated broadcaster. This decision was made with the intention of the additional monies coming from the base contribution decision, which would, in fact, increase the fund from $18 million to $42 million, in which case we can add those funds.

Since that decision has been held up by the courts, we haven't distributed that money yet, but it wasn't a decision to add Corus to the fund without adding additional money to the fund.

[Mike Dawson, Conservative, Miramichi—Grand Lake, NB]

Thank you.

How will Corus use the fund, as it's related to local news, and will the CRTC protect the delivery of the local news?

[Scott Shortliffe]

As Mr. Hutton indicated earlier, we don't directly administer these funds. The fund will be administered through the Canadian Association of Broadcasters, which will set up standards where Corus, and anyone who receives the funds, will report on the number of journalists they have, which determines the funding they get. It's related to their status, through the Canada Revenue Agency, as a qualified journalistic organization. Corus will have to make commitments in terms of its journalism. If it reduces its journalism, it receives less through the fund.

Our hope is that the decision to provide Corus with access will actually strengthen local news through Corus across Canada.

[Mike Dawson, Conservative, Miramichi—Grand Lake, NB]

Did the CRTC evaluate the impact and the consequences that the decision will have on the smaller broadcasters that deliver local news and depend on the fund to survive?

[Scott Shortliffe]

It was absolutely a part of our calculations in creating the fund. It's one of the reasons we did put limits on the amount that Corus could actually receive out of that fund, to make sure that other entities were supported by the fund, would continue to be supported by the fund and would not be displaced.

[Mike Dawson, Conservative, Miramichi—Grand Lake, NB]

Does the CRTC have any concerns? Can it advise the committee on what the direct impact of the decision will be for the smaller broadcasters?