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January 6, 2000

Remarks by Robert Rabinovitch Following the Announcement on CBC Licence Renewals

Remarks by Robert Rabinovitch, President and CEO of CBC, at the Press conference following the announcement of the CRTC decisions on CBC Licence Renewals on Thursday, January 6, 2000

I've been on the job for less than two months, which has been an intensive learning period. I've spent that time talking to people both inside and outside the CBC, and learning the Corporation's strengths and weaknesses

It's clear fundamental changes are required both on the operational and programming sides in order to create high-quality and distinctive networks

Canadians also want many changes to the CBC: some want fewer commercials, others want more cultural programs, more news, etc. The question is how to make these changes in a fiscally responsible manner?

In December, I launched a re-engineering Task Force, which will review all our operations. Its purpose is to ensure the CBC becomes the most efficient broadcaster in the industry and focuses its resources where it counts — on programming.

One thing is apparent, the CBC must build on its core competencies like news and information. It must respect its regional base and enhance its role both in the regions and in explaining one part of the country to another.

I am pleased that today the CRTC has expressed confidence in our Radio services, and our all-news channels, Newsworld and RDI

However I am very disturbed by its conditions of licences for our two main television networks. These conditions do not take into account fiscal realities and micro-manage our programming.

As my Board was quick to remind me, it is the Board and Management that have the ultimate responsibility for programming under the Broadcasting Act.

In December, I met with the CRTC and expressed my concerns and asked them for more time to implement basic changes.

At the same time, I outlined our plans for re-engineering Canada's public broadcaster

CBC's budget is fixed and has been cut from $1 billion to $750 million in the last five years. The budget is frozen; at the same time, costs are going up for such necessities as copyrights and labour.

It is in this environment I have received the CRTC's licence conditions.

Our initial analysis shows these conditions would cost an additional $50 million per year on top of what we had committed to doing last Spring.

They would also change the look and feel of the CBC: Radio-Canada Télévision for example would be turned into an elitist PBS of the North, a result which is inconsistent with the Broadcasting Act.

I'm also disappointed that the conditions do not build on our strengths such as News and Current Affairs, nor does it help us achieve a less commercial programming service.

In conclusion, we will review all our commitments within the context of fiscal responsibility.

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