CRTC Report on Plans and Priorities 2013-2014 Report on Plans and Priorities

The Honourable James Moore, P.C., M.P.
Minister of Canadian Heritage and Official Languages

Supplementary Information Tables

Return to 2013-2014 Report on Plans and Priorities

Sources of Respendable and Non-Respendable Revenue

Respendable Revenue ($ millions)
Programs Forecast Revenue 2012-13 Planned Revenue 2013-14 Planned Revenue 2014-15 Planned Revenue 2015-16
Canadian Broadcasting Broadcasting Licence Fees Part I 22.8 - - -
Canadian Content Creation, Connection to the Communication System and Internal Services Broadcasting Licence Fees Part I - 23.7 23.7 23.7
Canadian Telecommunications Telecommunications Fees (Note 2) 19.8 - - -
Connection to the Communication System and Internal Services Telecommunications Fees (Note 2) - 20.2 20.2 20.2
Unsolicited Telecommunications Fees (Note 3) - 2.6 2.6 2.6
Total Respendable Revenue (Note 1) 42.6 46.5 46.5 46.5

 

Non-Respendable Revenue ($ millions)
Programs Forecast Revenue 2012-13 Planned Revenue 2013-14 Planned Revenue 2014-15 Planned Revenue 2015-16
Canadian Broadcasting Broadcasting Licence Fees Part I 7.8 - - -
Canadian Content Creation, Connection to the Communication System and Internal Services Broadcasting Licence Fees Part I - 6.8 6.5 6.4
Canadian Broadcasting Broadcasting Licence Fees Part II 104.8 - - -
Canadian Content Creation Broadcasting Licence Fees Part II - 106.3 107.9 109.5
Canadian Telecommunications Telecommunications Fees 6.5 - - -
Connection to the Communication System and Internal Services Telecommunications Fees - 6.2 6.0 6.0
Unsolicited Telecommunications Fees - 0.7 0.7 0.7
Administrative Monetary Penalties 0.1 0.2 0.2 0.2
Total Non-Respendable Revenue
(Note 4)
119.2 120.2 121.3 122.8
Total Respendable and
Non-Respendable Revenue
161.8 166.7 167.8 169.3

 

Note 1: The CRTC retains respendable (vote netted) revenue to fund its operating budget. This revenue is comprised of a part of the annual Broadcasting Licence Fees Part I, Telecommunications Fees and Unsolicited Telecommunications Fees.

Note 2: The Telecommunications Fees Regulations, 2010, made in March 2010 (Telecom Decision CRTC 2010-183 dated 25 March 2010) require all telecommunications service providers (TSPs), or groups of related TSPs, with at least $10 million dollars in Canadian telecommunications service revenues (CTSR) to pay Telecommunications Fees.

Note 3: New Unsolicited Telecommunications Fees Regulations will come into effect on April 1, 2013 for fiscal year 2013-14. These fees will recover the annual approved budgetary authorities pertaining to the CRTC's National Do Not Call Lists investigation and enforcement activities. If fees collected in any given fiscal year exceed the approved budgetary authorities, there is a provision in the regulations that will allow excess amounts over a minimum amount of $5 to be refunded to telemarketers.

Note 4: Non-Respendable Revenue for the CRTC is attributed to four main factors that are described below:

  1. Statutory Costs and Costs of Services provided by other government departments on behalf of the CRTC - Part I Broadcasting Licence Fees, CRTC Telecommunications Fees, and Unsolicited Telecommunications Fees (re: National Do Not Call List) recover the costs incurred by other federal government departments for most services rendered without charge to the CRTC (e.g. PWGSC accommodation costs) and the statutory costs of employee benefit plans.
  2. Annual Adjustment (True-up) of Part I Broadcasting Licence Fees and annual Telecommunications Fees - The Commission's broadcasting and telecommunications fees regulations have a provision whereby the Commission is able to adjust the annual fees (Part I Broadcasting Licence Fees and Telecommunications Fees) to take into account the Commission's actual expenditures on both Broadcasting and Telecommunications activities during the fiscal year. The adjustments represent the difference between the estimated costs initially billed in a previous fiscal year and the actual costs incurred and are accounted for as non-respendable revenue.
  3. Part II Broadcasting Licence Fees - The Broadcasting Licence Fee Regulations, 1997 were amended in 2010 for the Part II Licence Fees (Broadcasting Regulatory Policy CRTC 2010-476 dated 14 July 2010). A cap of $100 million was introduced for the calculation of Part II Licence Fees and this cap is adjusted annually on a compound basis in accordance with the percentage increase or decrease to the Consumer Price Index (CPI) for the calendar year prior to the year of the adjustments. The CPI is the annual average all-items CPI for Canada that is published by Statistics Canada. The planned revenue figure for Part II Licence Fees is adjusted and communicated to stakeholders once the CPI information is available. The CPI index was 1.8% for fiscal year 2011-12, 2.9% for fiscal year 2012-13, 1.5% for 2013-14 and estimated at 1.5% for 2014-15 to 2015-2016.

    Part II Broadcasting Licence Fees are non-respendable revenue as these fees recover part of the Government of Canada's substantial annual investment in the Canadian broadcasting system.
  4. Administrative Monetary Penalties - The Commission has statutory responsibility for the National Do Not Call List (DNCL), including additional enforcement tools, including the imposition of Administrative Monetary Penalties (AMPs) for telemarketers found to be in violation of the Unsolicited Telecommunications Rules. The amounts recovered from the AMPs are deposited to the Consolidated Revenue Fund.

Explanation of Revenue

The CRTC collects fees under the authority of regulations in the Broadcasting Act and Telecommunications Act. For the fiscal year 2013-2014:

Broadcasting Licence Fees

Section 11 of the Broadcasting Act gives the Commission the authority to make regulations respecting licence fees. These regulations apply to most licensees, who are required to pay their Part I and Part II licence fees to the Commission annually. The last amendment to the Broadcasting Licence Fee Regulations was done in 2010. Details on the amendment can be found in Broadcasting Regulatory Policy CRTC 2010-476 on the CRTC website. The Broadcasting Licence Fee Regulations can be found on the Department of Justice web site.

Part I Licence Fees

For 2012–2013, the CRTC assessed $30.6 million in Part I fees, including "true-up" and adjustments.

Part I Licence Fees are based on the broadcasting regulatory costs incurred each year by the Commission and other federal departments or agencies, and are equal to the aggregate of:

The CRTC's estimated broadcasting regulatory costs are set out in its Expenditure Plan published in Part III of the Estimates of the Government of Canada (Part III Report on Plans and Priorities).

There is an annual adjustment (‘true-up') amount to the Part I fee to adjust estimated costs to actual expenditures. Any excess fees or shortfalls are credited or charged to the licensee in a following year's invoice.

Part II Licence Fees

The Broadcasting Licence Fee Regulations, 1997 were amended in 2010 (Broadcasting Regulatory Policy CRTC 2010-476). A cap of $100 million was introduced for the calculation of Part II Licence Fees and this cap is adjusted annually on a compound basis in accordance with the percentage increase or decrease to the Consumer Price Index (CPI) for the calendar year prior to the year of the adjustments. The CPI is the annual average all-items CPI for Canada that is published by Statistics Canada.

These fees recover part of the Government of Canada's substantial annual investment in the Canadian broadcasting system.

For 2012–2013, the CRTC assessed $104.8 million in Part II Licence Fees.

Telecommunications Fees

Section 68 of the Telecommunications Act grants the CRTC authority to create the Telecommunications Fees Regulations.

The Telecommunications Fees Regulations, 2010, made in March 2010 (Telecom Decision CRTC 2010-183 dated 25 March 2010) require all telecommunications service providers (TSPs), or groups of related TSPs, with at least $10 million dollars in Canadian telecommunications service revenues (CTSR) to pay Telecommunications Fees, whether or not they file a tariff for approval with the Commission. The Telecommunications Fees Regulations can be found on the Department of Justice web site.

For 2012–2013, the CRTC assessed $26.3 million in Telecommunications Fees, including "true-up" and adjustments.

The CRTC's annual Telecommunications Fees are equal to the aggregate of:

The CRTC's estimated telecommunications regulatory costs are set out in its Expenditure Plan, published in Part III of the Estimates of the Government of Canada (Part III - Report on Plans and Priorities).

There is an annual adjustment (‘true-up') amount to the Telecommunications Fees to adjust estimated costs to actual expenditures. Any excess fees or shortfalls are credited or charged to the carriers in the following year's invoice.

Unsolicited Telecommunications Fees Regulations

Cost Recovery of National Do Not Call List (DNCL) investigation and enforcement costs from telemarketers

On June 29, 2012 Bill C-38 “An Act to Implement Certain Provisions of the Budget Tabled in Parliament on March 29, 2012 and other measures” received Royal Assent. As part of this Bill, changes to the Telecommunications Act (e.g. section 41.21(1)) were approved that allow the Commission to make regulations prescribing fees for the purposes of recovering all or a portion of the costs that the Commission determines to be attributable to its responsibilities under section 41.2 and following of the Telecommunications Act and that are not recovered under any regulation made under section 68 of the Act.

In accordance with section 41.21(3) of the Act, the CRTC issued a Notice of Consultation (NoC # 2012-588) on October 23, 2012. In this NoC, the CRTC was seeking comments on the new “Unsolicited Telecommunications Fees Regulations” that, when implemented, will be used to fund the CRTC's DNCL investigation and enforcement activities, on a cost recovery basis, from fees  paid by to telemarketers.  The Commission considered all public comments received and approved the new fees regulations that will come into effect on April 1, 2013, for the 2013-14 fiscal year.

For 2013-14 the CRTC will be seeking to recover $3.3 million in costs though the fees assessed to telemarketers.  The fee schedule is contained in a schedule to the regulations.

These fees will be collected by the Commission's delegate (National DNCL List Operator) and remitted to the Commission for deposit to the Consolidated Revenue Fund.  In the event that, in any given fiscal year, the amount collected exceeds the Commission's approved budgetary authorities (i.e. $3.3 million for 2013-14), the regulations set out a refund mechanism to refund telemarketers excess fees paid over a minimum amount of $5.

The Unsolicited Telecommunications Fees Regulations can be found on the Department of Justice web site.

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