Broadcasting Ownership Regulations Revised
OTTAWA, April 11, 1996 Deputy Prime Minister and Minister of Canadian Heritage Sheila Copps today announced that new regulations governing foreign investment in Canadian broadcasting undertakings are now in force. The regulations give effect to the Government's November 23, 1995, policy decision.The regulations amend the 1968 Direction to the Canadian Radio-television and Telecommunications Commission (CRTC) (Eligible Canadian Corporations). They allow for higher levels of foreign investment, while maintaining requirements for majority ownership and effective control to remain in the hands of Canadians. A summary of the new rules is attached.
The amendments to the Direction are part of the federal Government's evolving policy framework on convergence and address a key recommendation of the Information Highway Advisory Council. They are part of the government's approach to encouraging competition, innovation and jobs, consumer choice, and Canadian culture. New sources of capital are expected to nurture both broadcasting technology and Canadian programming.
The regulations are available upon request from the Department of Canadian Heritage (819) 994-5589, and will be available via the Internet at: http//www.pch.gc.ca under What's New . They will also be published in the Canada Gazette.
Information:
Duncan Dee
Press Secretary
Office of the Deputy Prime Minister and
Minister of Canadian Heritage
Telephone: (819) 997-7788
Facsimile: (819) 994-5987
Internet: duncan_dee@pch.gc.ca
Larry Durr
Director, Regulatory Policy
Broadcasting Branch
Department of Canadian Heritage
Telephone: (613) 990-1003
Facsimile: (613) 947-3348
Internet: larry_durr@pch.gc.ca
BACKGROUNDER
Foreign Investment Guidelines for Broadcasting Undertakings
The 1968 Direction to the CRTC (Eligible Canadian Corporations) has been amended concerning:
The holding company
- to raise the maximum allowable foreign investment in the voting shares from the current 20% to 33 1/3 %;
- to eliminate the present 20% limit on the number of non-Canadians who can be directors or other similar officers, and the present requirement that the chairman, chief executive officer or other presiding officer be a Canadian, but to add the requirement that the holding company must not control or influence the programming decisions of the licensee.
The broadcasting licensee
- to retain at 20% the maximum allowable foreign investment in the voting shares;
- to raise from 0% to 20% the maximum limit on the number of non-Canadians permitted among the directors or other similar officers, but retain the present requirement that the chief executive officer or other presiding officer be a Canadian.
The holding company and the licensee
- to remove entirely the existing foreign equity test, which now requires that Canadians own 80% of the equity;
- in the clause giving the CRTC residual authority to deny eligibility to hold a broadcasting licence, to retain the reference to the CRTC's "opinion," but clarify the clause to have the CRTC assess whether effective control is exercised by Canadians rather than by non-Canadians;
- to include in the definition of "Canadian," a citizen within the meaning of the Citizenship Act who is ordinarily resident in Canada, and a permanent resident within the meaning of the Immigration Act, as long as the permanent resident demonstrates the intention to become a Canadian citizen by applying for citizenship as soon as legally eligible in order to acquire Canadian citizenship within one year of becoming eligible.
[ Media Room ]
