Broadcasters, cable operators praise Copps’ support of lower CRTC licence fees

Broadcasters and cable operators are applauding Canadian Heritage minister Sheila Copps’ support of a quest for relief from paying the government more than it costs to regulate them. Speaking Oct. 29 at the Canadian Association of Broadcasters (CAB) convention in Ottawa, Copps said she would lobby her government to lower the broadcast industry’s CRTC licence fees. "Why do we have one system for the telephone (companies) and another for broadcasters?" Copps asked. "I think the current economic climate argues in favour of your case and I will be writing to my colleague, the Treasury Board minister, to have the fee structure reduced."Broadcasters and distributors paid $81 million more in licence fees than it cost the CRTC to regulate the broadcast industry last year. Cable contributed $47 million of that total, broadcasters about $30 million, and other broadcast distributors including satellite TV the remainder. CAB president and CEO Michael McCabe praised the minister’s response and said relief would boost the broadcasting industry in the short-term as Canada braces for a recession. More importantly, he said, lower fees would help ensure the long-term survival of the industry. He pointed out that three-quarters of the money currently made in overpayments would be invested by broadcasters in Canadian programming if the government changes the licence fee structure. Canadian programming will become critical to the survival of Canadian broadcasters in an increasingly borderless world, according to McCabe (CCR, Oct. 26/01). "We think the overpayment is unfair," he told reporters at the convention. "We’re delighted that she said she would fight to get rid of that." Janet Yale, president and CEO of the Canadian Cable Television Association (CCTA), said: "Who wouldn’t be in favour of eliminating a tax?" She noted that there is a return on fees collected from cable customers and contributed to the Canadian Television Fund – the production of Canadian programming. "But I don’t see any benefit (to the broadcast or distribution industries) by this overpayment," she told CCR. She noted that if cable operators had access to the $47 million they overpaid last year, they could invest it in infrastructure to rollout high-speed broadband. CRTC acting chair David Colville pointed out that the commission has no say on the matter. "We don’t really have a position on it," he told CCR. "I mean we’re just implementing a policy that the government put in place on levying those fees that go into general revenues. So it’s really a policy decision for the government to make – whether they want to eliminate that or not." Part II licence fees, which are passed through the CRTC into general government coffers, are calculated as a percentage of the revenues of broadcasters and distributors. On the telecommunications side, companies contribute only what it costs to regulate the industry.

Broadcasters, cable operators praise Copps’ support of lower CRTC licence fees

Broadcast | November 9, 2001

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