Madam Speaker, it is a privilege to speak to Bill C-10. To quote the Minister of Canadian Heritage in the official background documents for the legislation, it states unequivocally:
Canadians have a right to recognize themselves in the music they listen to and the television they watch. We are proposing major changes to the Broadcasting Act in order to ensure online broadcasting services that operate in Canada contribute to the creation, production and distribution of Canadian stories.
I share the minister's support of Canadian music, movies and television, or as I will call it throughout this speech, CanCon. However, the bill may do exactly the opposite of supporting CanCon. It is not about the intent of a bill but about the reality, and I believe we will all see room for some serious concerns on this issue during my talk today.
I would like to point out that notwithstanding any criticisms I make, changes need to be made to rules surrounding production and creation of CanCon. We need to revisit the content qualification rules that specify whether something is Canadian. We heard a great example in the speech just prior to mine about a production in Quebec that did not qualify as CanCon even though it was produced in Canada and told Canadian stories.
There is a real need to look at these thresholds. However, when we dig deeper into what is being proposed by the minister, his commentary about wanting to licence Canadian Internet content producers, the realities of digital content creation and the big tech corporations that dominate the media landscape today, it becomes apparent to me that the bill has serious shortcomings. The bill may lay the foundation in the future for a series of government interventions that have the potential to damage the creative and innovative Canadian media producers in the digital field.
On November 3, the day the legislation was introduced by the Minister of Canadian Heritage, several Canadian media experts spoke out publicly against Bill C-10.
An article published in The Globe and Mail, for example, entitled “Broadcasting bill targets online streaming services”, mentions digital media expert and University of Ottawa law professor Michael Geist. I have enjoyed reading his daily blog posts on this issue. It is very informative. He said that the policy foundation behind Bill C-10 was very weak and that the government's claims that the Canadian film and television production industry was in crisis was not supported by evidence.
Mr. Geist said, “The truth is that the market has been working...well as Canada being an attractive place to invest in these areas.” He further stated that what was actually at risk was that some of the largest investors in film and television production would pull back until they had more certainty on their obligation and that new services would think twice before entering the Canadian market.
Perhaps more concerning for the government is that in that same news article, the well-known advocacy group, the Friends of Canadian Broadcasting, which specifically promote Canadian content, called the bill “a mess that fails to ensure the companies are subject to specific requirements for using Canadian production teams.”
I am personally concerned by the fact that the legislation does, as mentioned by the member prior to me in his speech, give a vastly enhanced range of abilities to the CRTC. For example, it grants it full enforcement powers, while at the same time providing no fulsome detail as to the guidelines for Canadian content production and future contributions to the Canadian media fund.
Despite asking MPs to vote in support of the legislation, it is hard to shake the fact that the lack of details creates a situation where we have to trust the government and see the details later. We should all find that problematic.
To go back to some comments made by Mr. Geist, the law professor in Ottawa, the primary concern to examine, in his view, is that the policy foundation for the bill is weak. He has stated that CanCon is not in crisis and the level playing field claims are misleading. The example of the CanCon production here is relevant. The minister has acknowledged that foreign-based streaming companies are investing directly into Canada, but the minister wishes to compel such investments to be made mandatory.
In the words of Mr. Geist, this indicates a lack of confidence in our ability to compete and in fact flies in the face of all the evidence. Just hear me out here.
The CRTC chair, Ian Scott, has already said that Netflix is probably the biggest single contributor to the Canadian production sector today. The Canadian media industry has received record amounts of investment for film and television production. Over the last decade, investment levels have nearly doubled. Certified Canadian content has grown, with two of the largest years on record for CanCon television production having taken place within the last three calendar years. Last year was the biggest year for French language production over the last decade.
When we dig down into the available provincial data, we will find further evidence of production levels setting new records. Earlier this year, the Ontario government's agency for cultural creations, called Ontario Creates, announced that it had a record-breaking year for Ontario's film and television sector, with more than $2 billion in production spending for well over 300 productions.
Professor Dwayne Winseck at Carleton University is on record. In his annual review, he finds film and television production in Canada has continuously increased for two decades, most recently driven by massive investments from streaming services such as Netflix and Amazon Prime.
These facts and figures show that the basis for which the minister claims Bill C-10 is necessary are actually contrary to reality and once again raises the issue of the unintended consequences of interfering in the wrong way in this sphere.
The second issue noted by Mr. Geist is that as opposed to creating certainty, the bill would create enormous short-term uncertainty. For those companies that do invest, they may not know if their investments will count.
I suspect that Amazon, Netflix and these types of companies will keep investing regardless of whether the bill is passed or not. However, many smaller streaming services, BritBox, Spuul, Crunchyroll, are not household names, but are among dozens of streaming services that have emerged in recent years to serve a global audience. Unless the CRTC provides specific exemptions for these niche services, many are likely to forgo the Canadian market entirely, given all the new regulatory costs. Many multicultural markets will be especially hard hit by what will amount to, by the bill, a regulatory firewall in Canada.
Another very interesting point that has been raised by certain critics is the topic of trade threats and retaliatory tariffs. This concern should be on all of our radar screens. According to Mr. Geist, in this case, Bill C-10 violates the general standards in the USMCA. The government is relying on the cultural exemption to allow for this, yet even with the exemption, the U.S. will still be entitled to levy retaliatory tariffs.
Given the claims by the minister that this will generate billions of dollars in financial benefit for the industry, the retaliatory tariffs could be enormous and given the reworked structure of the USMCA, the tariffs the U.S. launches against Canada need not be limited to cultural tariffs. It could target any sector it likes. This is a potential concern that needs to be examined.
The legislation is likely to result in less competition and higher costs. If we generate large revenues, we will face mandated CanCon payment requirements that make no sense given the content. If we stay small, we will still have to comply with disclosure requirements that have no real incentive to grow past the threshold. That is assuming we see an actual threshold as none was listed in this legislation. This will result in less competition and less choice for the Canadian market.
I believe that the Netflixes and the Amazons will continue to invest, but as I mentioned earlier, some of the start-up companies that have specialized content, maybe multicultural content, will not know whether to invest in Canada or not because of the uncertainty around the bill. This will lead to a scenario where they will just avoid investing in Canada. We need to think about what this mean for the future of Canadian content.
My view is that the bill is not protecting Canadian sovereignty. The legislation basically surrenders it to the Internet giants. Therefore, they will keep investing here, but I do not know if it opens up the ability for some of these other start-ups to do so. They will become the dominant funders and purchasers of Canadian content. Canadian broadcasters may not be able to compete for Canadian content, given the desire of the giants to meet their CRTC obligations. This would force big decisions to Amazon and Netflix and leave Canadian broadcasters and smaller streaming services on the outside looking in.
I would ask all of us here to heed the warnings of different experts who have raised valid concerns, whether they be trade or investment related, and let us take a look at amending the bill in a way that will answer those concerns.
