Access documents reveal details of January meeting between broadcasters and Heritage minister

Executives from Canada's biggest private broadcasters lobbied Heritage minister James Moore for "immediate relief" from Part II fees and "a negotiated settlement" out of court, prior to a Supreme Court fall hearing on the contentious fees, according to Access to Information Records obtained by Tech Media Reports. The Canadian Association of Broadcasters (CAB) members gave Moore an overview of Part II fees, describing it as an “illegal tax” that was costing broadcasters $1 billion. They also hinted that with the current financial woes facing the broadcast industry, it will be difficult for broadcasters to continue their Part II fee obligations. A Heritage official taking notes for the minister noted that CAB members “asked to find a solution (out of court) that would benefit both the Government and members of the industry,” the records show. CAB members met Moore in Toronto on Jan. 17 in a one-hour meeting described as cordial and informal. They are: Peter Viner, president Canwest Broadcasting; Charlotte Bell, Canwest senior VP, regulatory affairs; David Goldstein, senior VP, regulatory affairs, and Kevin Goldstein, VP, regulatory (CTVglobemedia); Gary Maavara, VP, Corus Entertainment; Paul Temple, VP, Pelmorex; Susan Wheeler, VP, regulatory, Rogers Media, and Pierre-Louis Smith, CAB. Part II fees have long been a contentious issue for broadcasters since they came into effect in 1997 when Broadcasting Licence Fee Regulations were enacted. They are charged in addition to licence fees and CAB has labeled them an “illegal tax” since 2001. The $100-million annual fee has been the subject of several court cases. In June last year, CAB filed leave with the Supreme Court to appeal a Federal Court of Appeal (FCA) ruling on April 28 that said Part II fees are indeed legal. On Dec. 18, 2008, the Supreme Court agreed to hear CAB’s concerns, which the access documents show will occur in the fall. The January meeting with Moore is an attempt to lessen the financial burdens brought about by the global financial crunch which has hit the broadcasting industry hard. In testimony to a parliamentary committee examining the financial difficulties facing broadcasters in March, CRTC chair Konrad von Finckenstein said eliminating Part II fees could generate more cash for the industry than any regulatory concessions. The Commons Standing Committee on Canadian Heritage, in its June report on the financial difficulties facing the broadcast sector, also recommended that the federal government eliminate Part II fees. CAB members also raised the issue of copyright with Moore. Describing it as the industry’s number one overall concern, the CAB members said copyright tariffs no longer have any semblance of fairness between broadcasters and music industries. They suggested that the Copyright Act should be amended to “allow digital music processing to support a lawful broadcast to be excluded from copyright liability,” in addition to calling for the removal of any multiple layers of liability that cannot be justified. As well, the CAB members decried the “collective administration” of copyright, describing it as “inefficient and unbalanced.” They called for its review, including operations and funding mechanisms of the Copyright Board. Digital transition was also on the agenda. CAB members suggested to Moore that a hybrid solution was preferable. They also said they were working on a plan and wanted the government to be part of the solution by offering financial support for transition costs. In addition, the CAB members called for an industry- and government-sponsored consumer awareness program before the switch to digital on Aug. 31, 2011. Other topics discussed include the Canadian Television Fund and the CBC. The CAB members said broadcasters support the CTF but it should be evaluated in a fair, performance-based manner. They also called on Moore to “clearly” define the mandate of the CBC. The access documents include the Heritage department’s briefing notes for minister Moore, advising him how to respond to the broadcasters’ input during the discussions. On copyright, Moore is advised to refer to the Throne Speech, in which the government said it was willing to proceed on legislation to modernize copyright laws. “I am working closely with my colleague, the Minister of Industry, to determine our course of action for implementing the Government’s commitment,” More is advised to say. On copyright, he is told to say that since the Supreme Court will be hearing the case, “it would be inappropriate to comment.” Regarding the transition to digital, the documents show the government is taking a hands-off approach and leaving the industry to deal with it. Moore is advised to say that he’s pleased to “hear that the industry is working together to develop a plan.” “I am interested to hear about industry-led solutions that will encourage innovative approaches.” On the CBC, Moore is asked to reiterate the government’s commitment to the public broadcaster and to stress: “However, CBC/Radio-Canada is expected to make the best use of its existing resources, which currently exceed $1 billion annually.” The access documents also show that Moore asked the CAB members what they would suggest on the contentious (now defunct) Bill C-61. The CAB members suggested sending the copyright bill to a joint committee if no consensus is reached at the administrative level.

Access documents reveal details of January meeting between broadcasters and Heritage minister

Broadcast | June 24, 2009

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