Question Period Note: Modernization of the Broadcasting Act and the Yale Report

The Minister of Canadian Heritage’s Mandate Letter, published on December 13, 2019, contained a commitment for the Minister to work with the Minister of Innovation, Science and Industry to introduce legislation by the end of 2020, ensuring that all content providers support Canadian content. The external panel charged with reviewing the Broadcasting Act and Telecommunications Act released its final report including its 97 recommendations on January 29, 2020.

• The Government thanks the panel for the ambitious work it has undertaken and for delivering its final report. We will consider all their recommendations.
• The Government is committed to supporting a strong, competitive broadcasting and media sector. We intend to move swiftly to ensure all players, including web giants, support Canadian culture.
• A healthy news sector is central to any democracy. The review panel has made a number of recommendations to further support the Canadian news sector moving forward. We are taking the time to review the recommendations.
• Preserving a free and independent news sector is critical. This principle will continue to guide our actions moving forward.

• Digital technology has changed the way that Canadians discover, access, and consume content. Our legislative framework needs to be modernized so that Canadian creators, consumers and broadcasters can adapt and thrive in a changing environment.
• The Minister of Canadian Heritage’s Mandate Letter contained a commitment for the Minister to work with the Minister of Innovation, Science and Industry to modernize the Broadcasting Act and the Telecommunications Act, examining how best to support Canadian content in English and French and ensure quality affordable internet, mobile and media access. It also included a commitment to “introduce legislation by the end of 2020 that will take appropriate measures to ensure that all content providers, including internet giants, offer meaningful levels of Canadian content in their catalogues, contribute to the creation of Canadian content in both Official Languages, promote this content and make it easily accessible on their platforms.”
• As committed to in Budget 2017, the Minister of Innovation, Science and Industry and the Minister of Canadian Heritage, announced on June 5, 2018, the launch of a review of the Broadcasting Act, the Telecommunications Act and the Radiocommunication Act.
• The review panel consisted of Janet Yale (Chair), Peter S. Grant, Hank Intven (until June 28, 2019), Marina Pavlovic, Monique Simard, Monica Song and Pierre Trudel.
• On September 25, 2018, the panel launched a written consultation process with a deadline of January 11, 2019. On June 26, 2019, the review panel released its What We Heard Report which summarizes the input received during the consultation period. The panel released its final report on January 29, 2020. The report contains four chapters and 97 recommendations. The four chapters are: 1) Renewing the Institutional Framework; 2) Affordable Access to Advanced Telecommunications Networks; 3) Creation, Production and Discoverability of Canadian Content; and 4) Improving the Rights of Canadians and Enhancing Trust in the Digital Environment. There are recommendations relevant to your mandate and responsibilities in chapters 1), 3) and 4), whereas chapter 2) falls primarily under the responsibility of your colleague the Minister of Innovation, Science and Industry.
• The key recommendations are:
1. Bringing all media communications entities – including audio, audiovisual as well as news content delivered by means of telecommunications - into the Broadcasting Act. All communication entities would contribute to supporting Canadian content.
2. A new role for CBC/Radio-Canada. This includes: 1. Expanding its mandate to news reporting at national, regional and local levels; Canadian perspectives on international news; reflection of local audiences; reflection and promotion of Indigenous culture and languages; presenting Canadian content to international audiences); 2. Removal of specific reference to radio and television in its mandate; 3. Focus on a public purpose; 4. More stable funding through 5-year funding agreements with the Government and gradually eliminate advertising, starting with news content.
3. A focus on users, including a universal service objective enshrined in the Telecommunications Act; an explicit policy objective of affirming a user right to an open Internet; strategies to further the goal of affordability; application of sales tax to media communications services provided by foreign online providers; and a new financing model and initiatives to support the creation, production and discoverability of Canadian content and a strong production sector.
4. Reimagining the role of the regulator (currently the CRTC), renaming it the Canadian Communications Commission; more research capacity; funding for public interest participation; and new powers, including data and information gathering.
• The panel also calls for immediate action in these areas: 1. Roll out the announced funding for expansion of broadband; 2. Require media content curators now exempt to contribute to Canadian content; and 3. End the competitive disadvantage facing Canadian companies (sales tax).
• At the Minister of Canadian Heritage’s January 30, 2020 appearance at Prime Time, he indicated his intention to table a bill between now and the month of June 2020.
• Stakeholder reaction has been mixed. Many cultural and creator groups have largely reacted positively. That said, certain groups expressed disappointment with certain elements of the report (e.g. AQPM and ADISQ would have liked to have seen a recommendation for Internet Service Providers to contribute to Canadian content). Some stakeholders, notably Michael Geist and the Canadian Chamber of Commerce, have been vocally negative. Reaction from many, including the vertically-integrated broadcasting/telecom companies, is still unknown.
• A recommendation whereby any media content undertaking with significant Canadian revenues and delivering media content by means of the Internet would be required to register has gained attention. In response, the Prime Minister indicated that the Government will not impose licencing on press agencies or not regulate their content.

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