Speech
EVOLVING TOWARDS A BETTER CANADIAN COMMUNICATIONS SYSTEM: CALL FOR
COLLABORATION AND DIALOGUE
Notes for an address
by Françoise Bertrand
Chairperson, Canadian Radio-television
and Telecommunications Commission
at the Canadian Association of Broadcasters Annual Convention
Toronto, Ontario
October 21, 1997
(CHECK AGAINST DELIVERY)
Good morning ladies and gentlemen. I wish to thank the Canadian Association of
Broadcasters for the kind invitation to be with you at your annual convention. It
is an opportunity I welcome each year, to share some thoughts with you on the
industry in which we both work. This year's progress report reflects what has
been for me and my colleagues at the CRTC a very intense and active twelve
months.
You may recall that when I spoke to you last October at the CAB Edmonton
convention, I signalled our intention to undertake what we called a Vision
exercise. All companies undertake periodic reviews of their business plans, of
their strategic positioning. It was time for the regulator to do the same thing!
It has been a challenging exercise, one which has involved all levels at the
CRTC, staff and Commissioners. I am very proud of the work done by my colleagues,
and the results which have emerged.
We believe the Vision plan, which is fully available on the Commission's
website, signals a revitalized CRTC. It indicates a Commission which is both
ready to adapt to the changing environment, and at the same time, committed to
adapting the environment itself, to make it work better for consumers, citizens,
and business. And believe me, it will not be achieved at a snail's pace!
In everything that we do, we are guided by the objectives of the
Broadcasting Act, and the Telecommunications Act. We are fully
committed to achieving these objectives, because they meet the needs and
expectations of Canadian citizens, and truly reflect Canadian values.
But we are asking ourselves if the tools and methods we currently utilize to
meet these goals are still appropriate. We do not have all the answers to that
question. As we move forward to implement the Commission's strategic plan as
outlined in the Vision document, we will be asking for all the players to provide
us with their views and suggestions.
The CRTC wants to be a catalyst, to stimulate creativity, and to encourage
synergy. We want to bring all parties involved in broadcasting to work with us,
to find innovative solutions to meet today's needs and tomorrow's challenges.
Given the speed at which change roars through our business, it is critical
that we steer carefully, with both hands on the wheel. New communications
technologies, products and services are announced almost daily. Competition is
now firmly entrenched in the global marketplace. Traditional industry
distinctions are blurring. It is an exciting, yet intimidating time in our
industry, a true roller coaster ride.
For the Commission, these challenges deal with more than just the technology.
We have to examine the impact these changes have on both our capability, and our
responsibility to preserve our cultural sovereignty in a communications universe
which questions traditional borders. You have to worry about your bottom line.
Our bottom line is to balance cultural, social and economic objectives, in
the public interest.
We see our new Vision as a continuum, a process of evolution. It builds on
what we have accomplished in the past, with the policies that addressed the
requirements of that period. But it also reflects a firm commitment to examine
new dynamic approaches, to ensure that Canada maintains its leadership position
in the global communications industry.
Our mission is summarized in these words from our Vision statement:
World-class quality communications, with a distinct
Canadian presence in the public interest
To achieve that objective, we have created three main components which drive
the Vision: Canada's Voices, Choices for Canadians and Good
Governance. Each of these elements encompasses broadcasting and
telecommunications, and deal with content and carriage.
It is a signal that there will be convergence in the way we build our
policies. The historic, clear-cut distinctions between the two sectors of the
Commission are fading, and becoming more closely intertwined. As a consequence,
while the formal structure inside the CRTC remains unchanged, how we go about our
work will change, with the development of multi-disciplinary and cross-sectoral
teams.
As I said earlier, the Vision has three essential components:
Canada's Voices deals with the presence and diversity of Canadian
voices at home and abroad.
Choices for Canadians will ensure there is a wide array of choices
available to Canadians through strong, competitive communications industries.
The third component, Good Governance, is designed to ensure a
public process, openness, fairness, effectiveness and trust. This is an area
where we will put very strong emphasis on public dialogue, including
increased public participation and collaboration with citizens, consumer
groups and industry - both at home and at the international level.
We see open and frequent dialogue with all parties as an absolute necessity in
an environment where everything has become interdependent or inter-connected. As
never before, we need to work in concert. We need a sustained, joint effort as we
work together to achieve the objectives of the legislation under which we
operate.
Our Vision is clear, our goals succinct:
- we will promote an environment where new and innovative communication
products will be added to the existing menu of services currently available to
Canadians;
- we will ensure a strong Canadian presence in content: a programming
environment that fosters creativity and reflects our unique Canadian society
with its linguistic and cultural diversity;
- we will promote choice and diversity of high-quality communication
services; and
- and we will foster strong competitive and socially-responsible
communication industries.
Just briefly on that latter point, permit me to offer my congratulations to
CAB's television members, for their hard work and creativity in developing the
new program classification system, and the rating icons which were just
introduced on air.
Contrary to the opinions expressed yesterday in the Globe and Mail, I
believe that in Canada we have created an approach to dealing with violence on
television that is second to none in the world. The Commission supports the new
classification system, and believes it will be a useful tool for parents in
making suitable viewing choices for their families.
So, you may ask, how will we bring our new CRTC Vision to life? We believe
Canadians will see a different Commission evolving. The old CRTC would say "we
shall regulate it". The new Commission will say "regulate it if necessary", but
where appropriate, we would prefer to let the industry self-regulate, under
monitoring.
The old Commission was protectionist in its approach - which fit the
requirements of the time. The new CRTC will be much more driven by promoting
opportunity, to let Canadians show they can compete in the new environment. And
our dialogue with consumers, with citizens, and with industry, will be broader
and more interactive.
At the heart of our Vision is also a recognition that applying regulatory
solutions to every problem is neither desirable nor realistic in today's
competitive global business environment. Obviously there will continue to be
circumstances where regulation is necessary and appropriate. But we also believe
there are many circumstances in which industry self-regulation within the context
of CRTC supervision is the preferred option.
How do we translate this Vision into practical operation? We have, in fact,
been applying it for some time. The May Day decisions that opened up competition
in local telephony are a prime example. They reflect the commitment over the next
three years to undertake a broad review and revisit the entire policy landscape.
Our process will have to be a step-by-step approach: one review after another,
keeping in mind that they are all inter-connected.
In broadcasting, we will be completely reviewing both television and radio
policies. We need to explore whether new or different mechanisms would be more
suited to better achieving the objectives of the Broadcasting Act.
For example, how should we determine the appropriate Canadian content
contribution by the major players? Do we have to re-evaluate the existing "Cancon
regs" and policies in light of the new environment? Are the contributions
equitable for all?
Does the CRTC's licensing approach reflect the realities of the industry? Do
we need to assist the Canadian production industry in finding new domestic and
international windows and markets for Canadian programs? Are today's BDU carriage
rules appropriate?
Obviously, we are not able to find all the answers at once. This is why we
have outlined a three year plan which details the regulatory overview schedule
beginning this year, and going well into the year 2000.
As you are aware, upcoming hearings will study the issue of additional
networks. More importantly, we will also use this opportunity to examine some of
the fundamental issues behind the financing and structuring of the Canadian
television network system as a whole. As John Cassaday remarked in his opening
statement to the convention, we need to see if the infrastructure of the system
is in fact holding it back from producing more and better Canadian programs.
In January of 1998, we will consider the renewal of the French-language TV
stations, followed by the possible licensing of new specialty television
services. Going into the summer, we will focus on the whole issue of Canadian
content. Having revisited all aspects of the television system, we will then
proceed to the CTV and CBC English and French licence renewals. As we say: "It's
no small task!!", it represents a lot of work.
The area of Canadian content remains a singular priority for us. The
Commission's efforts over the past 29 years to ensure the availability of
Canadian programming have achieved significant results. Furthermore, the
expansion and consolidation which has occurred within English television over the
past years has set the stage for new synergies that will enrich the menu of
Canadian programming on our screens.
The fundamental cornerstone of this industry is creativity. Without the
artistic talent of the writers, performers, producers, artists and skilled
technicians, there would be nothing on our screens which reflects our daily
lives, our history, our Canadian milieu.
The forthcoming review will give us an important opportunity to reexamine our
efforts to promote Canadian talent and hopefully identify other initiatives that
will help produce more and even better Canadian programming.
Closely linked to this issue is the question of the future of the Canadian
Television and Cable Production Fund. We established the CTCPF to bolster the
funding process, to provide additional resources to make Canadian programming
that Canadians would want to watch. We further acted to ensure the levels of
contribution to the CTCPF would establish it as a stable and effective funding
mechanism for the production of Canadian programming. As announced, the minimum
of 80% of contributions required from all broadcast distribution undertakings
must be directed to this fund. It will mean more than 50 million dollars a year
flowing into this reservoir.
But we cannot be content with today's accomplishments. We must find new and
creative ways to ensure the increased production, exhibition and distribution of
distinctive, high-quality Canadian programming. To make this happen, we need your
help, your participation, and your talents to find the best solutions.
Still on the television side, there are a number of specific issues you have
raised with us. The first is the Commission's access policy with regards to
Canadian specialty services. You have asked that we clarify our interpretation of
the implementation of digital technology, and initiate a public review of the
cable industry's future analogue and digital rollout plans. I fully concur that
these two issues are of critical importance, in enabling both existing and future
specialty licensees to develop realistic business plans for the launch of their
respective services.
The first matter has been raised by a number of parties in response to our
July request for comments on the new proposed Broadcast Distribution Regulations.
As this matter is now before the Commission, you will understand that further
comment would be inappropriate at this time.
As for any review of the cable industry's plans for digital, we will be
addressing this issue within the context of the February hearings on the new
specialty service applications. I can say that the CRTC will do everything within
its power to ensure the existing regulations are fully applied and respected.
As you are probably aware, we have invited the CAB, the SPTV and the cable
industry to undertake a post-mortem of last's Friday's launch, in order to
identify issues and ideas. I see this as a first step in addressing the problems,
and creating a win-win environment. We are a small country. If we are to succeed
in our mutual endeavours, we must find ways to work together.
To address some of the longer-term issues, the Commission intends to establish
new forums of consultation: task forces, round tables, and consultative
committees. It is another indication of our new commitment to fresh approaches in
solving problems.
Turning now to radio, we feel the time is right to examine all aspects of our
radio system, including commercial radio, the various types of not-for-profit
radio, as well as CBC radio in the context of its licence renewals in 1999. This
fall's radio proceedings will be focused on your sector, commercial radio.
When the current radio policies and regulations were developed, the world was
a very different place. The availability of frequencies in the AM and FM band was
limited. The technical characteristics of the two bands differed substantially in
terms of signal quality and coverage, which led to the evolution of different
content on the two bands.
We are now within three years of a new century. Digital audio signals will be
increasingly available through such distribution technologies as the Internet,
cable and satellite. As more stations convert to digital transmission with its
resulting enhanced signal quality, everyone will be on equal footing.
But radio issues go beyond technology. On the content side, is there a reason
for the Commission to be concerned about talk radio? Are we witnessing an
increased reliance on imported US product instead of developing Canadian
programming? Does this mean we will see increasing americanization of Canadian
radio, both in terms of air time and values?
There is no doubt the tone of talk radio is changing. In this particular
field, the Commission has chosen the self-regulatory approach, confident the
industry will continue to act in good faith to reflect the voices and values of
Canadians. However, the Commission will continue to monitor developments in this
area.
As we look at radio's role within the overall broadcasting system, we will
have to consider the interdependence of all players, not only within the private
sector, but also between the private and public sectors. While you are
competitors, you are, in a larger context, also partners. This is why the
Commission is encouraging the participation of all sectors of radio in the
various reviews that it will be undertaking. All broadcasters and the regulator
share a common responsibility to contribute to our industry, to help it achieve a
variety of social, economic and cultural goals.
The range of policy and regulatory issues surrounding radio is far-reaching.
They include multiple ownership, market entry criteria, music content, linguistic
diversity, and the differences between French and English realities.
As is the case in television, we will be asking for help in better
understanding the structuring and financing of radio. On the ownership question,
should new limits be established, and if so, what should they be? Can we ensure a
diversity of voices within a multiple ownership environment? And if so, how? To
whose benefit?
Are the guidelines for Canadian music content adequate and appropriate for
both the English and French markets, and within the different genres of music
formats? Is the current definition of a Canadian music cut realistic within
today's music industry environment? Can the MAPL system be improved? All are
important questions, with no easy answers.
We firmly believe we have to take a hard look at the tools used by the
Commission to regulate radio; they are in fact the tools that we will choose
together. Are they still relevant, or should they be adapted for today's
environment? Whatever the result of that exercise, our goal remains clear:
enhance Canadian voices and give them new opportunities to be heard.
But we are the first to admit that there is no monopoly on good ideas. The
more there are, the more chances we will have to improve our communications
system that is already the envy of the world. We are asking your industry, its
associations and its individual companies to join with us in this exciting and
challenging exercise.
As we go through the process, we will be paying considerable attention to the
progress we have made in achieving our goals. When I spoke last year in Edmonton,
I touched on a number of key indicators we would be using to measure our success.
These barometers have in fact been incorporated into the Vision document. But
we need to work together to make them a reality. We will be given the opportunity
to do so each time these various issues are raised during our three-year review
process.
The CRTC is making every effort to ensure that it will be a more effective,
more engaged, and more results-oriented partner. We have laid out a focused and
consistent direction for the future. We want to develop this direction with your
active participation.
We have only begun what will be a long, complex, and I am sure, a demanding
but fascinating journey. With your commitment to your Canadian listeners and
viewers, I know we can succeed. The time to begin is now — for every minute
counts.
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Contact: CRTC Communications Branch, Ottawa, Ontario K1A 0N2
Tel.: (819) 997-5427, TDD: (819) 994-0423, Fax: (819) 994-0218
This document is available in alternative format upon request.
Date Modified: 1997-10-21 |
