Foreign control of media “won’t happen” while Chrétien is PM, insider says

Bureaucrats at Canadian Heritage are finalizing a review of the rules affecting foreign ownership of media, but efforts to water down the rules may be blocked at the highest levels of the government, Canadian Communications Reports has learned. Heritage Minister Sheila Copps revealed the existence of a report on foreign ownership rules, which is being drafted as part of Canada's strategy on trade negotiation. Earlier this year, Industry Minister John Manley said the government is prepared to use foreign ownership as a bargaining chip at the World Trade Organization talks. News of the report's existence surfaced after Conrad Black put most of the country's small daily and weekly newspapers up for sale in April. Analysts say there may not be Canadian buyers interested in the properties. Sources at senior levels of the government say the Chrétien administration does not want to be tagged as the government that allowed Canada's media to fall into foreign control. "It won't happen while Jean Chrétien is Prime Minister. That's something that he feels strongly about," a senior aide told CCR. Copps says there's a difference between foreign ownership and foreign control. The Liberals may be prepared to increase the amount of foreign equity allowed in cablecos, TV, radio, and newspapers. But they won't allow foreign companies to control sectors of the media, she said. "I would never allow foreign control of newspapers," she said May 1 in the House of Commons. Officials at Canadian Heritage are just finishing their review of ownership restrictions, comparing rules for television and radio to rules for newspapers. "The rules around radio and television are more liberal in terms of investment but more stringent in terms of competition. And obviously we looked at how the broadcasting rules might be reviewed along with those of newspapers in the light of the new media," Copps told reporters. "What we're looking at is reviewing all of the elements of the policy to make sure that we secure competition and a diversity of voices," she said. "The review is a broad review, looking at the fact we have two different playing fields." Direct foreign ownership in broadcasting is limited to 20 per cent, but non-Canadian companies can hold a 33-per-cent indirect interest in a Canadian broadcasting firm. Through tax rules, the foreign ownership of newspapers is effectively restricted to 25 per cent.

Foreign control of media “won’t happen” while Chrétien is PM, insider says

Broadcast | May 11, 2000

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