Frulla reponse to Lincoln report calls for no changes to foreign ownership

Canadian Heritage minister Liza Frulla’s response to the Lincoln report on broadcasting recommends that existing foreign ownership limits for broadcasting and telecommunications be maintained at current levels. Her response, contained in the document Reinforcing Our Cultural Sovereignty – Setting Priorities for the Canadian Broadcasting System that was tabled in the House of Commons on April 4, states:"For greater clarity, the government wishes to indicate that it is not prepared to modify foreign ownership limits on broadcasting or content more generally. That being said, the government has recently announced its intention to appoint a panel of eminent Canadians to review Canada’s telecommunications policy and regulatory framework. This panel will be asked to make recommendations on how to move Canada to a modern telecommunications framework in a manner that benefits Canadian industry and consumers. In the context of this work, the panel may be helpful in shedding new light on this very important issue." Heritage and Industry Canada have long been at odds over the issue of foreign ownership restrictions, but those days seem to be over. Not so long ago, Industry minister David Emerson was a strong supporter of looser ownerships in the telecommunications sector, but he has since changed his tune. He recently came out and said it was no longer necessary to review telecom ownership rules in the context of today’s telecommunications sector. It is the reference to the three-member panel – the members of which were announced April 11 – that worries many in the broadcast industry. Alliance of Canadian Cinema, Television and Radio Artists (ACTRA) national executive director Stephen Waddell tells Report on Wireless, "Obviously, the Standing Committee on Canadian Heritage and the Department of Canadian Heritage have both been consistent in opposing the modification of the foreign ownership limits. But what concerns us, of course, is Industry (Canada) and the Standing Committee on Industry’s position…We’re quite concerned again that (Frulla’s response) mentions the government-appointed panel reviewing telecommunications…because we know and, in fact, the minister has said in her statement that broadcasting content and telecommunications are so intertwined these days that you can’t accommodate changes to the telecom sector that would not affect the broadcasting sector." While Writers Guild of Canada executive director Maureen Parker tears apart the government’s reponse to the Lincoln report because she feels it promises little action, she is relieved to see the reference to foreign ownership. "One positive confirmation is that they won’t touch foreign ownership at this time. That’s certainly some comfort to us," she says. The issue of foreign ownership has divided players in both the telecommunications and broadcasting industries. Broadcasters, such as Astral Media and CHUM Ltd., and the unions representing the creators vehemently oppose changes to current foreign ownership rules. However, CanWest Global Communications and all of the large cablecos want the limits removed or lowered. On the telco side, TELUS Communications Inc. and most of the CLECs have been actively lobbying for changes in the rules. On the other hand, some ILECs have expressed reservations about changes to the rules. Former SaskTel president Don Ching, for example, has called the current foreign ownership rules "fair and reasonable" while BCE Inc. president and CEO Michael Sabia has proposed a gradual easing of the rules.

Frulla reponse to Lincoln report calls for no changes to foreign ownership

News | April 19, 2005

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