Rural broadband, CBC funding in 2016 federal budget

In its first budget, the new Liberal government is continuing the previous Conservative government’s practice of setting aside funds for broadband service in underserved areas, cyber security and research frameworks, according to the financial plan released Tuesday, but isn’t shedding much light on its own telecommunications strategy. Budget documents highlighted a five-year investment of $500 million, starting with $6 million in 2016-17, for a new program to “extend and enhance broadband service in rural and remote communities.” A pre-budget report by the House of Commons standing committee on finance recommended a new rural broadband program be included in the budget, funded by changes to industry-related capital cost allowance (CCA) classes. Those tax-structure changes were not among the CCA revisions included in Tuesday’s budget. Details on the new program “will be announced in the coming months,” budget documents said. Broadband connectivity on Aboriginal reserves is also a part of a broad $255 million over two years allocated to the First Nations Infrastructure Fund. “We all benefit when infrastructure is improved,” Finance Minister Bill Morneau said during his budget speech in the House of Commons, according to a copy of his remarks. “These investments will accelerate our transition to a low-carbon, clean growth economy, make traffic flow more smoothly, bring high-speed Internet to more rural communities, and deliver so many other benefits for Canadians.” The last rural broadband program, Connecting Canadians, was initiated in the 2014 budget, with $305 million over five years to connect 280,000 homes. Innovation Canada confirmed last week that one-fifth of that funding was left over. “Few jobs, sectors or aspects of life are untouched by information and communications technology,” budget documents said. “Access to better, more-reliable broadband connections will provide Canadians in rural and remote communities with new opportunities to participate in the digital economy and to take advantage of advances in telehealth, e-learning and remote access to government services.” The 2016 budget “proposes to deliver on the Government’s priority of increasing high-speed broadband coverage,” the budget book said. But there hasn’t been much public acknowledgement of that priority, outside of the mandate letter from Prime Minister Justin Trudeau to Innovation, Science and Economic Development Minister Navdeep Bains, instructing him to “increase high-speed broadband coverage and work to support competition, choice and availability of services, and foster a strong investment environment for telecommunications services to keep Canada at the leading edge of the digital economy.” There was no mention of broadband or telecommunications in the Liberal’s election platform, nor were they mentioned in the Speech from the Throne. Included in the platform was a Liberal promise to “conduct a thorough review” of the existing measures in place to protect “Canadians and our critical infrastructure from cyber-threats.” The new financial plan proposed $77.4 million over five years “to implement new measures to improve the security of government networks and information technology systems.” “These measures will ensure that the government can better defend its networks and systems from cyber threats, malicious software and unauthorized access,” budget documents said. A five-year, $58-million commitment was included in 2015 budget for protection of the government’s “essential cyber systems and critical infrastructure against cyber attacks.” The Liberals kept the $30 million over four years scheduled to begin in 2016-17 allocated by the Conservatives in their final budget for Canada’s continued participation in the European Space Agency’s Advanced Research in Telecommunications Systems program. Tuesday’s budget also contained a focus on the government’s so-called Innovation Agenda, “a bold new plan” that it said would be defined through 2016 and 2017. “To drive growth, to improve the livelihoods of Canadians and to create jobs in areas including manufacturing, digital technology and renewable energy, Canada must be on the leading edge of this change. Innovation is today’s driver of inclusive growth, and Canada must be in it to win,” budget documents said. Up to $800 million over four years, starting in 2017-18, is being made available to develop innovation networks and clusters, which are defined in the budget as “an extensive web of complementary linkages between companies and other actors, such as universities and colleges, research organizations and financing sources.” The budget also includes $4 million over two years for the renewal of the Canadian Technology Accelerator Initiative, which “supports Canadian information and communications technology, life sciences and clean technology firms by providing mentorship, introductions to potential clients/partners, and desk space in business accelerators abroad.” An expected investment of $675 million over five years in CBC/Radio-Canada was also included in Tuesday’s budget. The funding exactly follows what was laid out in the Liberal platform, with $75 million allocated for 2016-17 and $150 million in each additional year. “To remain relevant and successful, the CBC/Radio-Canada needs to invest in new multi-platform content and more innovative programs. Restored funding will also support investment in enhanced services, such as the digitization of archives,” the budget said. CBC said in a press release Tuesday afternoon that the additional funding “provides the stability that allows the Corporation some breathing room, to assess the progress of its digital strategy, and to invest in the future.” The release said CBC would “use these funds to create new content and strengthen our transformation to the digital environment. We will reinvest in key areas important to Canadians, and in new digital jobs.” It added the broadcaster would share more information about the investment “in the weeks ahead.” The funding for the CBC was part of a $1.9 billion investment over five years for cultural and creative industries, with money also earmarked for the Canada Council for the Arts ($550 million), Telefilm Canada ($22 million) and the National Film Board of Canada ($13.5 million). — With reporting by Charelle Evelyn at cevelyn@thewirereport.ca and editing by Anja Karadeglija at akarad@thewirereport.ca

Rural broadband, CBC funding in 2016 federal budget

Broadcast | March 22, 2016

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Rural broadband, CBC funding in 2016 federal budget

Broadcast | March 22, 2016

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