Madam Speaker, I am once again honoured to have the opportunity in this place to speak to the matters contained within Bill C-11, the online streaming act, the new name. I say “again” because, as many will remember, in the previous Parliament we tackled these issues under a different bill, and it was called Bill C-10, an act to amend the Broadcasting Act.
This is a new bill and a new title, but we still have the same issues that exist with this bill. It was interesting because, moments ago in committee, the heritage minister admitted that Bill C-10 was flawed. He said that proposed section 2.1 should never have been in there, and 4.1. He mentioned those two that we fought on this side, in Bill C-10, for weeks. Unfortunately, even with the flawed bill, it passed the House but then the Liberals called the unnecessary election and the bill died.
However, this is the first time the Minister of Canadian Heritage has actually admitted Bill C-10 was a flawed bill. Here we go now with Bill C-11, an update. We all know the update is necessary. It has been 30-plus years since we updated the Broadcasting Act. I was even a young broadcaster 30-plus years ago when this came out. At that time, believe it or not, there was no Internet. It was just radio and TV back then, a little bit of newspaper. Of course, the Internet came and the World Wide Web, as we know it today, has changed a lot.
There were no Internet companies and no online streaming services to compete with the healthy Canadian broadcasters. However, when the predecessor of this bill was drafted in Parliament last session, we addressed four major areas of concern where the government legislation lacked significant consideration. I mentioned a couple of those in proposed sections 2.1 and 4.1, but we will go on.
First was for social media companies we all know, such as Facebook, Google and their various properties like YouTube, to pay their fair share. We agree. Second was creating that level playing field for digital platforms, like Netflix and Spotify, to compete with the conventional Canadian broadcasters. Third was to define Canadian content. This is the important one. We need to define Canadian content production and media fund contributions by digital broadcasters. What is the formula?
Last was the power given to the CRTC, better known as the Canadian Radio-television Telecommunications Commission, to attempt to regulate in such a broad manner. This is an organization that struggles to enforce its own regulations now. We can even look, today, at Russia Today. They really never did take it down. It was the big conglomerates that moved in and took Russia Today down, like Bell, Rogers and Shaw. It is interesting. I think we could all agree the CRTC should have moved long before Russia Today was pulled down from Canadian programming.
Forty years ago, Internet companies and streaming were not even a consideration. Digital information has become absolutely accessible to everyone in this country. The demand for mainstream media, television and radio has nosedived. Streaming services have become the primary source of entertainment for many Canadians. Television stations have had to downsize their operations, along with radio stations. Many have gone dark in this country. The same is true for radio.
Right now, radio stations have another issue. Their revenues have dropped as much as 40%. Part of the problem is the public broadcaster, CBC. The government gave it another $150 million more during COVID to compete against private broadcasters. As I just said, private broadcasters' revenues have gone down 40%. CBC has gone up $150 million more in the budget, meaning we can see what is happening in the market. CBC, the public broadcaster, is going up, while the private broadcasters' radio listeners are going down, and thus advertising is not as good.
The result, as in my province of Saskatchewan, is that we have seen a major decline in local content. Easy access to digital content has been beneficial to the consumer, but with the outdated Broadcasting Act, the broadcasting sector has had some steep hurdles to overcome, and I mentioned those just seconds ago.
It is therefore fair to ask this: What does a modernized act need to accomplish? Does the government's latest attempt, Bill C-11, actually achieve this goal?
The first concern we should all address is the notion that the Internet needs to be regulated. We need clarity and clearly defined parameters on which aspects of the Internet would be regulated and to what extent. Would Bill C-11 create an environment where virtually all of the content would be regulated, including independent content creators earning just a modest living from social media platforms such as YouTube?
As I mentioned, Bill C-11 is almost a copy of the previous Liberal offering, Bill C-10, which was flawed and failed to address many of the concerns addressed by the experts during its hearings. When we speak of creating a level playing field, is it in the context of giving Canadian content creators the protection they need to produce and compete without impeding their ability to succeed at home and globally? Regulation, done properly, would support the success of Canadian content producers and would meet the objectives of the Canadian heritage mandates to support artists and the cultural sector. However, the bill before us leaves very little hope that this is what would be achieved.
I remain very concerned about the CRTC being tasked with administering the act. I have been in the business of television and radio for over four decades, and I have seen that the CRTC is already stretched to its limits with the broadcasting and telecom situation in this country. If the CRTC lacks the capacity to carry out the current mandate effectively, how can it be expected to take on the Internet?
The CRTC struggles to cope with the 4,000 or 5,000 entities in the broadcasting sector. We are seeing it in the industry committee now. Rogers wants to take over Shaw, and although this started last year, we still have no definitive action from the CRTC. Will it make a ruling soon on the takeover worth $26 billion? Can it even predict the number of entities that it will be required to look after once online streaming is added to its mandate? How much money and how much talent would the CRTC need on board to keep up with the bill? In fact, does it even understand the scope of the undertaking yet? How many years will it take to understand the criteria and scope and accumulate the resources needed to carry this out?
During our last debate on Bill C-10, I asked this of the CRTC chairman, Ian Scott, who, by the way, is stepping down in September after five years: How is the CRTC ever going to pay for this? He gleefully told the committee that it would be going directly to the Treasury Board. Well, we know what that means: The taxpayers will be paying more for their services.
What is perhaps most disappointing is that the CRTC will be handed the power to develop the rules of regulating, and it can make those rules up as it goes along. This act would endow the CRTC with the ability to determine its own jurisdiction without constraints.