Mr. Speaker, the Minister of Industry and the Minister of Canadian Heritage have launched a review of policies relating to direct to home satellite distribution undertakings because of the impact these new services will have on Canada's broadcasting and telecommunications system.
The new generation of direct to home satellites combine the use of high powered satellites, digital technology and small dish receivers to provide up to 200 channels of broadcasting and other services.
Some of these systems are operating now in the United States and there are plans to have Canadian direct to home systems in the near future. However, if Canadian systems are not competitive with the U.S. systems, then Canadians may choose to get their TV direct from American suppliers which have no requirement to offer any Canadian programming at all.
On August 30 the CRTC exempted Canadian direct to home undertakings from licensing provided that they meet a number of criteria. Some of these criteria limit the ability of the
Canadian direct to home undertakings to compete with cable systems and with American direct to home undertakings.
On September 12 the Ministers of Industry and Canadian Heritage announced their intention to review policies governing direct to home undertakings. There is in no way an overruling of the CRTC decision. The CRTC has enunciated its views on how it would issue such orders in the future.
A notice was published in the Canada Gazette on November 26 seeking public comment on a range of policy issues raised by the introduction of direct to home satellite undertakings in Canada.
Issues to be examined include competition, Canadian content, programming distribution rights, and the use of Canadian satellite facilities among other concerns. In addition, as the member recognized, the Ministers of Industry and Canadian Heritage have announced Gordon Ritchie, Roger Tassé and Bob Rabinovitch as the panel who will review submissions and make recommendations which will assist the government in formulating policy in this area.
Although some have argued that the matter should have been referred to the CRTC, it is the government's responsibility to establish policy and the CRTC's job to implement it.
The introduction of direct to home systems will have an impact on individual Canadians and on a range of industries. Concerns have been brought to the government's attention from a number of sources on this issue. We intend to balance the interests of all parties and consider the best interests of the Canadian public in formulating policy in this area.