CRTC budget increase proposal gets mixed reaction

Increased operating pressure on the CRTC has forced it to ask its fee-paying stakeholders to ante up more money, but the proposal to increase its budget by about $18 million over the next two years with a permanent increase of $9 million thereafter was met with mixed reaction this summer. The commission will formally ask the Treasury Board of Canada this fall for the budget increases. This information is contained in a report released earlier this week and was compiled by the Public Policy Forum following three roundtables with key CRTC stakeholders on June 28, June 29 and July 18. The three sessions gave companies and organizations an opportunity to discuss the fee increase proposal and solutions to addressing the commission's increased workload. Telecommunications companies generally supported a fee increase, but some believed that the increase should only be temporary. This group argued that their fees should be reduced after deregulation in local markets decreased the commission's regulatory burden. Major broadcast distribution companies didn't support a permanent increase and they couldn't reach a consensus on a temporary increase over a 24 to 30 month period. Some cable companies supported a short-term increase, but noted that since they are neither the cause nor the beneficiaries of the CRTC's current operational requirements they shouldn't have to bear the burden of the commission's workload. Despite the division among stakeholders regarding the commission's proposed budget increase, they were willing to work with the CRTC and its staff to develop a solution to address its resource requirements. However, the report details a couple of key sticking points for CRTC stakeholders. They highlighted the lack of transparency from the commission in determining that the only way it could deal with an increased workload was through rate increases. Stakeholders wanted to see that the CRTC studied every possible angle to address its resources issue before putting its handout for more money: do more with less, they said. Several of the roundtables participants asked if the commission had conducted a prioritization of activities prior to deciding to ask for increased funding. In response, the CRTC said that it had already reallocated personnel and resources to deal with major issues, and in fact, it had been "doing more with less" on the telecommunications side for the past five years. In addition to its regular responsibility, it singled out its work on the Telecommunications Policy Review Panel, reconsideration of the VoIP decision, setting an essential facilities review as well as improve response times. The National Do-Not-Call registry was also one of the controversial topics of discussion during the three roundtables. Carriers stated that they didn't feel it was fair to provide funding for the establishment of the registry because they believe it should be up to the telemarketing companies. However, those that conduct telemarketing activities were willing to pay their share of the cost to operate the list. The carriers noted that they would help the CRTC try to convince the minister to change fee regulations so that it could charge telemarketing companies. The commission said that it was open to discussing new ways of funding the National DNCL in the long term, "but until such a time the only way for them to pay for this new legislated responsibility is through the existing cost recovery mechanism."

CRTC budget increase proposal gets mixed reaction

News | September 11, 2007

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