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TRANSCRIPT OF PROCEEDINGS FOR THE CANADIAN RADIO-TELEVISION AND TELECOMMUNICATIONS COMMISSION TRANSCRIPTION DES AUDIENCES DU CONSEIL DE LA RADIODIFFUSION ET DES TÉLÉCOMMUNICATIONS CANADIENNES SUBJECT / SUJET: CANADIAN TELEVISION POLICY REVIEW / EXAMEN DES POLITIQUES DU CONSEIL RELATIVES À LA TÉLÉVISION CANADIENNE HELD AT: TENUE À: Conference Centre Centre des conférences Outaouais Room Salle Outaouais Place du Portage Place du Portage Phase IV Phase IV Hull, Quebec Hull (Québec) September 24, 1998 24 septembre 1998 Volume 2 tel: 613-521-0703 StenoTran fax: 613-521-7668 Transcripts Transcription Afin de rencontrer les exigences de la Loi sur les langues officielles, les procès-verbaux pour le Conseil seront bilingues en ce qui a trait à la page couverture, la liste des membres et du personnel du CRTC participant à l'audience publique ainsi que la table des matières. Toutefois, la publication susmentionnée est un compte rendu textuel des délibérations et, en tant que tel, est enregistrée et transcrite dans l'une ou l'autre des deux langues officielles, compte tenu de la langue utilisée par le participant à l'audience publique. StenoTran Canadian Radio-television and Telecommunications Commission Conseil de la radiodiffusion et des télécommunications canadiennes Transcript / Transcription Public Hearing / Audience publique Canadian Television Policy Review / Examen des politiques du Conseil relatives à la télévision canadienne BEFORE / DEVANT: Andrée Wylie Chairperson / Présidente Vice-Chairperson, Radio- television / Vice- présidente, Radiodiffusion Joan Pennefather Commissioner / Conseillère Andrew Cardozo Commissioner / Conseiller Martha Wilson Commissioner / Conseillère David McKendry Commissioner / Conseillère ALSO PRESENT / AUSSI PRÉSENTS: Jean-Pierre Blais Commission Counsel / Avocat du Conseil Carole Bénard / Secretaries/Secrétaires Diane Santerre Nick Ketcham Hearing Manager / Gérant de l'audience HELD AT: TENUE À: Conference Centre Centre des conférences Outaouais Room Salle Outaouais Place du Portage Place du Portage Phase IV Phase IV Hull, Quebec Hull (Québec) September 24, 1998 24 septembre 1998 Volume 2 StenoTran TABLE OF CONTENTS / TABLE DES MATIÈRES PAGE Presentation by / Présentation par: CFTPA, Canadian Film and Television Production 289 Association / Association canadienne de production de film et télévision APFTQ, Association des producteurs de films 377 et de télévision du Québec CBC, Canadian Broadcasting Corporation/ 468 SRC, Société Radio-Canada ATEC, Association for Tele-Education in 552 Canada TVOntario 572 Province of British Columbia 598 StenoTran 289 1 Hull, Quebec / Hull (Québec) 2 --- Upon resuming on Thursday, September 24, 1998 3 at 0900 / L'audience reprend le jeudi 4 24 septembre 1998 à 0900 5 PRESENTATION, Continued / PRÉSENTATION, suite 6 1234 MS McDONALD: Madam Chair, good 7 morning. 8 1235 We would first of all like to explain 9 that unfortunately Ira Levy from Breakthrough 10 Entertainment was unable to stay over last night 11 because of work and family commitments. He really 12 regrets that he couldn't stay. 13 1236 The other thing we would just like to 14 do is complete one piece of discussion that we were 15 having with you. The first one is to say that we were 16 both right yesterday. You were right that it wasn't 17 clear about our spending commitments. 18 1237 THE CHAIRPERSON: Perhaps before you 19 go ahead, I would like to make some explanation as 20 well. 21 1238 Apparently towards the end of the 22 day, I was told, there were times when instead of using 23 10 per cent of the previous year's revenues for 24 spending, I was using 10 million. I apologize. I do 25 understand. Go ahead now. StenoTran 290 1 1239 MS McDONALD: First of all, as I was 2 saying, we were both right. We weren't clear in our 3 submission about our expectation about when the 4 10/10/10 formula would be introduced in terms of the 5 percentage of revenues. In fact, we would see it 6 ramping up with the time period as well. 7 1240 It's not clear in our brief and we 8 recognize that. We would like to clarify that. 9 1241 The other thing that you and I were 10 discussing yesterday was our position that the most 11 powerful and effective way to move forward is a 12 combination of both hours and dollars. I just think we 13 would like to explain why we think it's more powerful. 14 It was at the end of the day and sometimes, I guess, I 15 was a bit fuzzy. 16 1242 First of all, as we tried to point 17 out yesterday, the Commission's own figures show that 18 if we go to overall spending alone, we have not seen an 19 increase in the kind of programming that attracts the 20 largest share of viewing, and that's entertainment 21 programming. 22 1243 We do also have a concern that if we 23 go to spending alone, it will be focused on a small 24 amount of programming and could in fact liberate more 25 hours to U.S. simulcast and not achieve the goal which StenoTran 291 1 we think is important for the system, and that is 2 reclaiming prime time for Canada. 3 1244 We think if we go to hours alone that 4 broadcasters in the past have reacted by going with 5 cheaper programming that does not attract audience. 6 Over the past year we have seen no growth in the real 7 viewing few years to real viewing to Canadian 8 entertainment programming because we believe that 9 broadcasters who have gone hours have satisfied this 10 with cheaper Canadian programming, including inhouse 11 programming that does not draw significant audience. 12 1245 However, we do think that the 13 Commission has two examples where you have commitments 14 on both hours of entertainment programming, including 15 documentaries and spending. That's with Global and 16 CTV. If you look at the figures the Commission 17 released in June, you will see that the two companies 18 did spend a much higher percentage of their Canadian 19 program budgets on entertainment programming than 20 either of those who had dollars only or hours only on 21 entertainment. I think if you look at the fall 22 schedules, particularly this year, you will see 23 evidence of that. 24 1246 We think that experience shows when 25 the two are put together that is going in the right StenoTran 292 1 direction. We think of the renewals last year. It was 2 the first renewals with Global and Baton. It was a 3 first great step. We think that the 10/10/10 plan will 4 continue in the direction that you started and be a win 5 for the Canadian audiences and for Canadian 6 programming. 7 1247 THE CHAIRPERSON: Thank you. You 8 see, even if you lost Mr. Levy, there is some advantage 9 to going home and thinking about it. 10 1248 It raises, of course, the question of 11 how nevertheless this 10 per cent of revenue has been 12 arrived at. In reading your submission before the 13 clarification of this morning, one would have wondered 14 why 10 per cent of the previous year's revenue was 15 required as you ramped up the number of hours so that 16 you spent presumably a large amount of money the first 17 year to produce fewer hours than in the fourth year. 18 1249 Now what you are suggesting is there 19 will be a ramp-up of the spending requirements, but you 20 understand what I mean by the other reflection from 21 your position as it was, that it required 10 per cent 22 of the previous year's revenues to produce far fewer 23 hours since it took four years to get to the ten hours. 24 1250 MS SCHUYLER: Much as there are some 25 of us who would have really enjoyed that in terms of StenoTran 293 1 our production budgets, we realize that that was not 2 correct. 3 1251 THE CHAIRPERSON: I am also curious 4 about how you arrive at this 10 per cent to produce 5 this number of hours. Let me see if I understand your 6 reasoning. 7 1252 On page 55, you seem to look at the 8 amount of programming spent by the specialty services 9 on Canadian programming at the top. Why 10 per cent? 10 You find that to be 40 per cent whereas English 11 language conventional broadcasters is 27, let's say, 12 per cent. Then that's 14 per cent, so you take half of 13 that. You add it to what is spent at the moment, 3.5, 14 and that's how we get ten. 15 1253 MS SCHUYLER: We are talking 10 hours 16 here or 10 per cent. 17 1254 THE CHAIRPERSON: Ten per cent of 18 revenues on spending, page 55. I'm curious about how 19 you arrived at 10 per cent. Why not 9, why not 13. Is 20 that the reasoning that I am to understand from that 21 part on page 55? That's the scientific calculation 22 towards 10 per cent? 23 1255 You say specialty services spent 40 24 per cent on Canadian programs, conventional 25 broadcasters 26.6, 27, then you get a difference of 14 StenoTran 294 1 and you say well, we can't go as far as 14 so we will 2 half it and that will be 7. We will add it to 3.5 and 3 we get 10. 4 1256 MS SCHUYLER: Exactly. 5 1257 THE CHAIRPERSON: So that's how you 6 arrive at 10 as a number. I believe you may have said 7 somewhere that doing more than that would be too 8 damaging to the profitability of broadcasters. 9 1258 MS McDONALD: We were trying to 10 balance the business realities that the broadcasters 11 deal with and also to consider what needs to be done to 12 reclaim prime time with quality programming. 13 1259 MS SCHUYLER: We should remember that 14 when we talked in our opening remarks yesterday in 15 terms of the domestic claim hold on prime time in 16 England, France, Italy and Germany, they were up at the 17 80, 90 and 100 per cent levels. We are only asking at 18 this point to go to 50 per cent of the entertainment 19 level. 20 1260 THE CHAIRPERSON: There is also some 21 suggestion of using the French language market, 22 Canadian French language market as some type of 23 benchmark, but there you recognize the differences in 24 the market. 25 1261 MS McDONALD: I think we have to StenoTran 295 1 acknowledge that the French language market is a real 2 success story for Canada in terms of the audience that 3 is attracted to entertainment programming, but we were 4 also I think pointing out that the French language 5 private broadcasters in fact spend more than 10 per 6 cent of their revenues -- I think its 10.9 per cent of 7 their revenues -- on entertain programming in these 8 categories, so we did try to look at other realities in 9 the system. 10 1262 THE CHAIRPERSON: But your benchmark 11 appears to be if we could, what we would want is to 12 drive the spending of conventional programming towards 13 specialty programming. The only reason that's not 14 possible is their PBIT margins would drop to zero. 15 1263 Are there other reasons why the 16 performance of specialty services may not be a proper 17 reference point for measuring the expenditures of 18 conventional broadcasters? Is it just a simple 19 calculation that that's what we would want, but if we 20 did it they would make no money, so obviously that 21 doesn't make any sense. 22 1264 You seem to recognize that the French 23 market has different characteristics and it's difficult 24 to use the same benchmarks, but what about the 25 specialties? Do you not see differences there too? StenoTran 296 1 1265 MR. MacMILLAN: It would be very 2 tempting for us to use the specialty channels as a 3 yardstick by which to measure conventional 4 broadcasters' commitments to these categories of 5 programs, but it wouldn't be entirely fair because many 6 of these specialty channels are not focused on these 7 categories of programs. 8 1266 An example I am well familiar with, 9 Life Network I think spends 65 per cent of its 10 revenues, previous year's revenues, on Canadian 11 programming, but it's not in category 7, 8 and 9 and 12 they have a lower cost. That's a pretty typical 13 example in terms of which categories of programs, so we 14 did not think it was fair to draw that conclusion 15 directly and, therefore, we were not tempted to suggest 16 that we should have the conventional broadcasters mimic 17 those levels. 18 1267 THE CHAIRPERSON: You would admit as 19 well to differences in infrastructure and costs, et 20 cetera. 21 1268 MR. MacMILLAN: Absolutely. The 22 engineering cost in delivering a specialty channel is a 23 fraction of that of the cost for a broadcaster. There 24 are also two streams of revenues, subscriber fees and 25 advertising revenue. They are not comparable, so StenoTran 297 1 therefore we didn't seek to make the document. 2 0910 3 1269 THE CHAIRPERSON: It just seemed like 4 a nice high figure to aim for. 5 1270 MR. MacMILLAN: It would have been, 6 but we didn't think it would be credible. 7 1271 THE CHAIRPERSON: Your proposal is 8 based on the percentage of advertising revenues. Is 9 that, to you, important as a reference point as opposed 10 to an entertainment base amount? 11 1272 MR. MacMILLAN: I would suggest 12 either one could work. A percentage of revenues is a 13 model that has been used within the system on occasion 14 and seems to work and is not static, does reflect 15 success and growth. On the other hand, it is possible 16 to do it from some base amount as long as it were done 17 in an equitable way. The one merit driving it from the 18 previous years' revenues is that, pro rata, it's 19 equitable and if we started from simply what they are 20 currently spending, we could be starting from a very 21 different basis. 22 1273 THE CHAIRPERSON: But that base 23 amount need not be what they are doing. 24 1274 MR. MacMILLAN: Correct. 25 1275 THE CHAIRPERSON: It could be StenoTran 298 1 something that is determined. I am curious to see 2 whether you would think that perhaps it would give the 3 Commission greater flexibility to establish a base 4 amount based on various characteristics. For example, 5 we have been speaking of focus on multi-station groups 6 -- and we will speak, obviously, more about that as the 7 hearing progresses -- in order to achieve equity. You 8 are referring here to, the way I understand it -- and 9 again I stand to be corrected because I wasn't here 10 when that was done -- where a base amount was chosen to 11 which a certain percentage was applied. Right? 12 1276 So, I don't know how much energy or 13 what exercise was gone through to establish whether 14 that base amount made sense, but could you not see a 15 system where, after consultation, a base amount was 16 actually set from which you proceed, which would give 17 you, it would seem to me, possibly greater flexibility 18 than applying 10 per cent of revenues right off the 19 bat. 20 1277 MR. MacMILLAN: I could see something 21 like that working, depending how it was calculated, 22 absolutely. But, in any event, I would hope that if 23 such a system were adopted, it would create for more 24 predictability and reliability and ultimately equitable 25 rules across the board. For example, if a station StenoTran 299 1 group had access to a certain threshold percentage of 2 the population, whatever that was, 50 per cent, 70 per 3 cent, whatever, they would then be entering a realm 4 where certain expectations would come or a certain base 5 level for entertainment spending would be expected. 6 1278 If they then moved into a larger 7 group through acquisitions or mergers, they would then 8 probably move into a higher level of expectation. I 9 think that still would give the Commission the ability 10 to achieve equitable rules and I would be quite 11 concerned by the CAB's suggestion yesterday that 12 everything should still be done on a case-by-case 13 basis. The problem with a case-by-case basis is that 14 we are moving into a system of national players, which 15 is terrific and there is lots of good reasons for that. 16 It gives them the strength to schedule, to promote, a 17 better chance at being more profitable, but the rules, 18 therefore, need to be similar. 19 1279 THE CHAIRPERSON: But with sufficient 20 flexibility to take into account differences. 21 1280 MR. MacMILLAN: Yes, but I would hope 22 a system that meant that if one wanted to grow and 23 become a national player, one would know roughly what 24 the expectations were going to be. 25 1281 THE CHAIRPERSON: I don't know if you StenoTran 300 1 have looked at the CBC discussion of constellation and 2 the advantages that flow from it, as well as possibly 3 -- at least we can discuss it with them -- the 4 safeguards that are required, but it would be a model, 5 the way I understand it, that would say constellations 6 is the way the world is going to go and, therefore, we 7 should take it into consideration. 8 1282 I understand it to mean acceptance of 9 concentration and integration, horizontally and 10 vertically, et cetera. Would that, in your view -- or 11 should the Commission, in your view, take that into 12 account to examine the strength of an undertaking when 13 setting out spending requirements? In other words, 14 whether the conventional broadcaster also has specialty 15 services, et cetera, et cetera, should equity require 16 that these tentacles be taken into consideration? 17 1283 MS TAIT: Our answer to that would be 18 yes. 19 1284 THE CHAIRPERSON: And should the 20 Commission look at whether all their tentacles are 21 regulated or even take into consideration those that 22 are not in measuring the ability of a licensee to 23 participate? 24 1285 MS TAIT: I think if you are going to 25 be following the constellation model, I think the CBC's StenoTran 301 1 point is that the revenue streams are important. So, 2 if the Commission is looking at an entity, it's going 3 to be needing to look at all of its parts and all the 4 revenue streams. 5 1286 THE CHAIRPERSON: And the production 6 industry would see that as a sensible way to approach 7 it? 8 1287 MS TAIT: Yes. Yes, we would. 9 1288 THE CHAIRPERSON: Now, we discussed 10 very briefly yesterday what the Commission should do if 11 it retained this 10 per cent spending requirement and 12 today we are speaking of a ramp-up, which would be, I 13 suppose, paralleling the ramp-up for ours. What 14 happens to the conditions of licence and the 15 requirements that are imposed at the moment on 16 licensees if we were to retain that idea by regulation? 17 1289 MS McDONALD: We have proposed that 18 we take a regulation approach and the reason that we 19 propose regulation is to try to have some coherency in 20 the system. I think one of our major -- I mean it is 21 clearly up to the Commission to decide what the best 22 way is to approach it, but I think we have a concern 23 that if we do it by conditions of licence, we will all 24 be here until 2005. 25 1290 THE CHAIRPERSON: I think you StenoTran 302 1 misunderstood or I wasn't clear, which is quite 2 possible. The question was: If we do pass a 3 regulation within the next eight months to a year and 4 presumably maybe have a ramp-up that goes 7, 9, 5 whatever, to 10 per cent, what should happen, in your 6 view, pending coming back to the Commission for renewal 7 with the conditions of licence that people have related 8 to spending in some cases? Are you expecting that they 9 would come for amendment and say, "Now that we have 10 this other requirement, amend our current 11 requirements." 12 1291 MS McNAIR: We recognize that the 13 existing conditions of licence might be lower than what 14 the CFTPA is requiring, but you have some major 15 licensees coming before you in the near future and we 16 would think that if a regulation is imposed subject to 17 the typical language of "subject to conditions of 18 licence", the licence's existing conditions would take 19 precedence, but there would clearly be an expectation 20 that these more onerous requirements, if they are more 21 onerous, be implemented and with the schedule before 22 you for the television licensees, we think most of the 23 major players will be before you in the next few years. 24 1292 THE CHAIRPERSON: So, possibly we 25 will have two ramp-ups, one which would be based on the StenoTran 303 1 formula and one which would result from the fact that 2 changes are made as licensees appear for renewal? 3 1293 MS McNAIR: That's correct. We 4 proposed the regulation approach because we thought 5 that it was more equitable that licensees would realize 6 what the rules were going to be. I don't think that we 7 would go so far as saying the regulation should 8 override existing conditions, given that most of the 9 major players in the conventional system will be before 10 you in the next two years. 11 1294 THE CHAIRPERSON: Nor were you 12 envisaging an incremental requirement? 13 1295 MS McNAIR: Well, we would like an 14 incremental requirement. 15 0920 16 1296 THE CHAIRPERSON: But not 17 immediately. 18 1297 MS McNAIR: Not immediately. 19 1298 THE CHAIRPERSON: So that could take 20 some time. 21 1299 Now, if I recall, your proposal says 22 that a station which is part of a multi-station 23 group -- and it is defined as two stations under the 24 same control with 50 per cent, correct, 50 per cent 25 capacity to reach English Canada -- you would expect StenoTran 304 1 those stations to be under the 10/10/10 rule. Even 2 with the ramp-up, aren't we going to have in some cases 3 pretty steep increases in spending over -- I suppose 4 your ramp-up will be four years, as is the ramp-up for 5 hours? 6 1300 MS McDONALD: That's correct. 7 1301 THE CHAIRPERSON: Have you had a look 8 at some of the stations and the spending? 9 1302 MS McDONALD: Yes, we have. 10 1303 THE CHAIRPERSON: And you feel that, 11 even if it is a station in a small market, if it is 12 part of a group, it, apart from the group, should spend 13 the 10 per cent of previous years' revenues on Canadian 14 content? 15 1304 MS McNAIR: Yes. 16 1305 THE CHAIRPERSON: Have you made any 17 calculations as to what that represents in any case as 18 the world exists today? 19 1306 MS McDONALD: We don't have access to 20 all of those figures. We usually have to deal with 21 aggregate figures. 22 1307 THE CHAIRPERSON: You have no idea 23 what it would represent. 24 1308 MS McDONALD: You can see in some 25 places we have tried to sort of represent spending, StenoTran 305 1 but, as you know, that's aggregate numbers and not made 2 available to us. 3 1309 THE CHAIRPERSON: Now, while we look 4 at spending, one of the concerns that is expressed by 5 producers is the lowering of licence fees which, at 6 page 45 of your submission, I think you peg at a drop 7 of 30 per cent to 20 per cent in the early 1990s. 8 1310 Considering the fact that there has 9 been a marginal increase in overall contributions to 10 the production of Canadian drama, is it not possible 11 that lower fees were given but more projects were 12 funded? You use that as a measure of the decrease in 13 broadcasters' performance in that area, but the record 14 shows a marginal increase over that period. If you 15 look at each licence fee or average licence fees you 16 see there is a decrease of 10 per cent. 17 1311 MR. THOMSON: According to the CBC 18 research that was filed actually by the CAB, the 19 available hours of programming per week in 1992-93 20 compared to 1994-95 compared to 1996-97 have dropped. 21 Drama, music and variety, Category 7, 8 and 9, went 22 from 3.9 per cent in 1992-93 to 3.6 per cent in 1994-95 23 to 3.0 per cent in 1996-97. 24 1312 So, in spite of the fact that there 25 has been more funding coming into the system through StenoTran 306 1 programs such as the Cable Fund and then the Canada 2 Television and Cable Production Fund, the amount of new 3 programming that's generated has in fact gone down over 4 the last few years. 5 1313 THE CHAIRPERSON: You were using 6 hours of programming aired. Right? 7 1314 MR. THOMSON: That's correct, hours 8 available. 9 1315 THE CHAIRPERSON: Is that necessarily 10 a measure of financial contributions -- 11 1316 MS McDONALD: Yes. 12 1317 THE CHAIRPERSON: -- of how many 13 licence fees were actually given -- 14 1318 MS McDONALD: Yes. 15 1319 THE CHAIRPERSON: -- or how much 16 money in licence fees was actually expended? 17 1320 MR. THOMSON: Well, I think what we 18 are trying to say is that the amount of hours has 19 stayed roughly the same; it has gone down a little bit, 20 but clearly the statistics from agencies like the Cable 21 Fund have indicated that the broadcaster contribution 22 to that same amount of programming has decreased by 10 23 per cent. And the figures we have from the CTF aren't 24 necessarily totally licence fees; they include equity 25 and other forms of investment. But they have gone down StenoTran 307 1 over the last three years from 29 or 30 per cent to 2 just under 20 per cent this year. 3 1321 THE CHAIRPERSON: The figures that 4 you are using from the Fund would say for the same 5 number of hours, the same money was given? Because 6 presumably, when you are talking about licence fee, you 7 are talking about the proportion of a project to which 8 a licence fee is given. I was trying to relate to 9 perhaps each project had lower licence fees but there 10 were more projects funded, and therefore the 11 contribution may not be 10 per cent less. 12 1322 MR. THOMSON: I think that's probably 13 true. If you look at the CTF statistics, there has 14 been less money per project contributed; there have 15 been more projects, but the vast majority of those new 16 projects have ended up on the specialty channels, not 17 on the conventional networks. 18 1323 MR. MacMILLAN: And, on a per-project 19 basis, our experience is that licence fees have 20 declined materially over the past five years. In the 21 Atlantis submission -- and perhaps I should be talking 22 about it when we are here separately and not as part of 23 the CFTPA, but in our submission we supplied 24 information relating to the most recent approximately 25 400 hours of Canadian content drama that we had StenoTran 308 1 produced, about a half a billion dollars; so enough 2 that we felt it was statistically valid and wouldn't be 3 swayed by one exception or another. 4 1324 Of that, over the past four years, 8 5 per cent of the budgets were supplied by Canadian 6 broadcaster licence fees -- 8 per cent -- and that 7 number is a lower per cent than we would have found had 8 we calculated any previous three- or four- or five-year 9 rolling period. They definitely have gone down. 10 1325 THE CHAIRPERSON: So you feel that 11 the argument that it is a decrease of 10 per cent is a 12 fair assessment of the situation? 13 1326 MS McDONALD: Definitely. 14 1327 THE CHAIRPERSON: Now, I believe 15 that, talking about how programming is funded -- I may 16 not find it right away, but you have a chart where you 17 express in numbers -- here it is; page 18, that's what 18 I thought -- where you express what you see as the 19 producers' contribution in the financing of Canadian 20 programming and you express it at 30 per cent, 29.65 21 per cent, and conclude from that that the production 22 industry's contribution is the largest. 23 1328 An important line is tax credits, 16 24 per cent. Is it fair to put that in the calculation to 25 arrive at that conclusion when tax credits, I StenoTran 309 1 understand you may have to wait and underwrite the 2 investment, but you will get it back. Is it fair to 3 put that in the calculation at that level to arrive at 4 the conclusion that the production industry is the 5 largest contributor? 6 1329 MR. MacMILLAN: Clearly, the source 7 of tax credit money is the federal government, it is 8 the federal treasury, and you could argue it both ways. 9 The risk, however, is held by the producer because if 10 that tax credit fails to materialize or is lower than 11 hoped -- and, insofar, a lot of them have failed to 12 materialize or taken a long time -- it would be the 13 producer who is at risk. But there is no doubt about 14 it it is not the producer's money to start with, it is 15 federal treasury's to start with, absolutely. 16 1330 In our experience, though, at 17 Atlantis over the years we have found -- not including 18 tax credits, so excluding tax credits -- that the 19 broadcasters have contributed 8 per cent, that the 20 combination of Telefilm and CTCPF and provincial 21 governments combined have contributed 9 per cent, that 22 we, through our own distribution advances, our own 23 advancements or co-production deals, pre-sales we have 24 assembled elsewhere in the world, have contributed 25 70 -- 7-0 -- per cent, and the tax credits about StenoTran 310 1 another 11 per cent. 2 1331 Our experience is that it is the 3 producer who finances the vast majority, and I was 4 disappointed yesterday in the suggestion that the 5 million dollars for "Traders" -- and, by the way, it is 6 not a million bucks, it is less than that -- was 7 somewhat being paid for by the broadcaster and compared 8 to "E.R." at some $20 million cost. The reality is the 9 vast majority of the production cost for Canadian drama 10 is organized and paid for or financed by the producer. 11 0930 12 1332 Broadcast fees are much appreciated 13 and very essential and we absolutely need them, but it 14 would be a misrepresentation to suggest that these 15 costs of $800,000 or a million dollars, a million two 16 an hour is what the broadcaster is at risk for. It's 17 simply not true and a misleading comparison, quite 18 frankly, to cite ER $13 or $20 million per episode 19 cost. That's apples and oranges being compared. 20 1333 THE CHAIRPERSON: When we look at 21 that sheet on page 18, what strikes one, it would seem, 22 is that the taxpayer is the greatest contributor which, 23 I suppose, is what would support Dr. Matthew's comment 24 that Canadian taxpayers, or does it, that Canadian 25 taxpayers are not subsidizing Canadian program StenoTran 311 1 production as intended, but they are subsidizing the 2 bottom lines of Canadian broadcasters? 3 1334 MR. MacMILLAN: Well, the 4 contribution of the cable production fund and the tax 5 credits, which have been significant, that increase has 6 coincided with a decrease in licence fees. 7 1335 MR. FRASER: There I was talking 8 about the licence top-up money, not the tax credits. 9 1336 THE CHAIRPERSON: But would it not be 10 the same? Isn't that taxpayer money in the last 11 analysis that is in those funds? 12 1337 MS McDONALD: I think one of our 13 experiences -- 14 1338 THE CHAIRPERSON: It's not producers' 15 money. 16 1339 MS McDONALD: Our experience with tax 17 credits, and we are very experienced with them both 18 federally and -- 19 1340 THE CHAIRPERSON: No, no. I am 20 talking about the fund here. The comment was about the 21 fund, whose money was in the fund. I suspect it's the 22 taxpayers' money. 23 1341 MS McDONALD: It's only half. 24 1342 MR. FRASER: You could argue whether 25 the fund is taxpayer money or cable money. I mean, it StenoTran 312 1 was a CRTC mechanism that started the fund, so was it 2 public money or is it from the cable industry? It's 3 called the cable fund. 4 1343 THE CHAIRPERSON: The 5 per cent is 5 passed on to the subscriber, so -- 6 1344 MR. MacMILLAN: Let's not split 7 hairs. It's the public's money. Absolutely. Part 8 comes directly from the taxpayer from the federal 9 treasury. The other part is filtered through the cable 10 operators and viewers pay for it. That's right. It's 11 not our money to start with, either way you slice it. 12 1345 It does subsidize the industry, which 13 is required. It does help make better programs. 14 Absolutely. A key beneficiary in that is not merely 15 the producer, but also the broadcaster. It's getting 16 better programs made for, paid for in part by 17 taxpayers' dollars or viewers' dollars. That's the 18 truth. 19 1346 THE CHAIRPERSON: But the point of 20 page 18 is to show that the broadcaster is not 21 contributing enough, which is why you would want that 22 level of contribution increased. 23 1347 MR. MacMILLAN: We do think -- first 24 of all, as producers we always think broadcasters pay 25 us more licence fees. That sort of goes with the StenoTran 313 1 territory. But we do think though there has been a 2 decline during this decade and we would like to reverse 3 that decline. Absolutely. 4 1348 MR. MAYSON: If I could just add a 5 little bit on that too. I think the point on page 18 6 is to show that there is a wide funding for productions 7 coming from a wide range of sources, most of which are 8 organized and controlled and developed by the producer. 9 I think it wasn't solely there to show the extent of 10 broadcaster funding. There's a wide range of sources 11 there. Producers are the ones who pull it together. 12 1349 THE CHAIRPERSON: Yes, who pull it 13 together. I understand the concept of this. I was 14 looking at where the actual dollars come from. 15 1350 MR. MAYSON: If I could just add on 16 that point too. I think it's important that tax 17 credits are also treated as an equity position in a 18 recoupment schedule normally. It's part of the 19 producer's investment. While it's certainly true that 20 the ultimate source is public, it's recognized in terms 21 of any kind of recoupment schedule a producer's equity 22 position. 23 1351 THE CHAIRPERSON: Now, that same page 24 18 shows a large contribution from foreign sources in 25 those calculations. On page 17 you have a paragraph StenoTran 314 1 that says: 2 1352 "-- in production ... money 3 talks. When the driver for a 4 production is the foreign 5 broadcast, the chances are 6 greater that the production must 7 be adapted to the perceived 8 needs of that marketplace." 9 1353 You ask the question: 10 1354 "Does this mean that 11 identifiable Canadian 12 programming is not exportable? 13 Not necessarily --" 14 et cetera. 15 1355 You conclude in that paragraph by 16 saying "A strong domestic demand which provides the 17 most significant portion of the financing will ensure 18 distinctiveness". 19 1356 Is your point here that we have to 20 rely less on foreign money and more on broadcaster 21 money, would that be your conclusion, in order to 22 ensure that we don't dance to the tune of the foreign 23 market that invested 30.94 per cent in the production? 24 1357 MS TAIT: I think our point there is 25 to try to establish that the Canadian production StenoTran 315 1 industry represents a broad spectrum of production, 2 some of which travels extremely well. Obviously a 3 portion of the industry has been built on service 4 production and that has contributed very importantly to 5 economic infrastructure. 6 1358 Within the category of identifiable 7 Canadian programs, there is a misconception that all 8 Canadian programs don't travel. We would first of all 9 like to clarify that we are not in the business of 10 making shows that don't travel, however within Canadian 11 identifiable we have certain types of programs that 12 don't have necessarily the same exportability, programs 13 like "This Hour Has 22 Minutes" for example, or "Air 14 Farce". 15 1359 On the other hand, identifiable 16 Canadian shows do travel, like "Road to Avonlea" or 17 "Emily of New Moon" or a number of others. I think our 18 point there is really to describe the complexity, the 19 range of programming that is in the system and to 20 indicate that if we are going to do shows that travel, 21 there are going to be creative costs associated with 22 that. 23 1360 Have I answered your question? 24 1361 THE CHAIRPERSON: Well, I know it's 25 complicated, but you seem to be saying there get more StenoTran 316 1 money into Canadian production and less foreign money. 2 We may make programming that travels, such as "Road to 3 Avonlea", but the effect will be to make more of that 4 type of programming because we won't have the pressure 5 of doing the programming or producing the programming 6 for a future market. We will have lots of money to 7 make it so it will be good and probably will be 8 exportable as a result. Is that it? 9 1362 MS TAIT: Yes, it is. We want to 10 make sure that within the category of identifiable 11 Canadian we can do both distinctly Canadian shows that 12 may not travel but also those other shows that will and 13 that we will have the freedom to finance them in the 14 best possible way. 15 1363 THE CHAIRPERSON: But that's not 16 quite the same as saying if we have more money, we will 17 make such good programming, it doesn't matter if it's 18 distinctively Canadian, it will be exportable, which is 19 what I thought that said as well. 20 1364 MS TAIT: Does somebody want to add 21 to that? Linda? 22 1365 MS SCHUYLER: I can only really agree 23 with Catherine's point. What we are looking for here 24 is we are trying to see that we have a landscape of 25 programming that ranges from our industrial type StenoTran 317 1 programming right up to the highly distinctive 2 programming. We don't expect the financing model for 3 each program to be the same. 4 1366 In the system we want to end up with 5 a great mix of public/private money but we don't think 6 that each individual show should be expected to carry 7 that same mix. Otherwise we are going to end up all 8 producing the same types of shows, which is not what 9 our mandate is and not what we want to be doing. 10 1367 It is a problem when you look to ask 11 a show to be immediately identifiably Canadian and 12 exportable. The great shows that are able to do that, 13 it's tremendous, but there are certain shows that need 14 to be developed from the ground up and so they are for 15 a Canadian audience. 16 1368 I found that specifically with our 17 "Degrassi" experience. We developed that show 18 specifically for a Canadian audience, not even looking 19 at that time for export. The fact that we have sold it 20 in over 50 countries of the world and continue to sell 21 it has been a tremendous bonus whereas there are other 22 shows that right off the top have been designed so that 23 they can be exportable. We need those shows in the 24 system as well. 25 1369 It's only by allowing us to have StenoTran 318 1 various financing models that we are going to get the 2 diversity of programming that we are all looking for. 3 1370 THE CHAIRPERSON: Yes. So then this 4 paragraph would mean that for "Degrassi" you are not 5 going to get as easily foreign money into it so you 6 need more Canadian money to make that type of 7 programming. 8 1371 Mr. MacMillan, you have something 9 else to add? 10 1372 MR. MacMILLAN: I just want to add 11 one thing. In the television industry worldwide, 12 licence fees that are committed in advance of a 13 production are almost always much, much, much higher 14 than a licence fee that will be committed by that very 15 same broadcaster for that very same program were they 16 buying it after production or after the fact. 17 1373 When it is being sold as an idea or a 18 dream or a concept, the licence fee is much higher, 19 partly because the broadcaster involved can be part of 20 the creative process, can give input, can make 21 suggestions, can suggest casting that might have 22 spill-over promotional opportunities for other shows on 23 its schedule, et cetera, et cetera. 24 1374 Although all sales are important, the 25 most important ones are sales contracted before StenoTran 319 1 production. That is therefore the case of who pays the 2 piper calls the tune. What we are saying is although 3 we need a mixed economy, we need a diversity of 4 programs, it's essential as much as possible in some 5 cases the greatest creative influence is coming from 6 Canada. We are in some cases at least trying to make 7 programs especially for the Canadian viewer. 8 1375 We can always make them to suit the 9 rest of the world. That's not that hard. It's a 10 bigger challenge in making them specifically sing to a 11 Canadian audience. If we are always financing with 12 American pre-sales, let's face it, we are going to be 13 specifically tailoring it to that viewer. If that were 14 the case, we wouldn't be here because there wouldn't be 15 a CRTC. 16 1376 MS SCHUYLER: I would just like to 17 add sort of a personal anecdote to this. 18 1377 I grew up in a fairly large raucous 19 family in Paris, Ontario, which is a town of 6,000 in 20 southwestern Ontario. One night the television was on 21 and we were half watching it. It was Wayne and 22 Schuster. They were doing a skit called "The Scarlet 23 Pumpernickel". I believe they were singing "I love 24 Paris". 25 1378 Nobody was really paying much StenoTran 320 1 attention. They were singing "I love Paris, I love 2 Paris, why do I love Paris" because Brantford is only 3 seven miles away. All of a sudden there was this dead 4 still and quiet in my family. It was as though 5 somebody out there in television land knew where we 6 lived. 7 1379 That moment has stayed with me all 8 the times in my school teaching years and through my 9 producing years. I watched a lot of foreign 10 programming when I was growing up, "Father Knows Best", 11 "Leave it to Beaver", but that one moment from Wayne 12 and Schuster is a moment that has stayed with me. 13 1380 I think that what we are asking for 14 when we are asking to reclaim our prime time is to 15 allow Canadians to have those moments that are sort of 16 these culturally identifying moments, they are nation 17 building. This is why we are fighting so hard to 18 reclaim the prime time. This is sort of a legacy that 19 we can pass on to our kids. 20 1381 THE CHAIRPERSON: That brings the 21 question to understand, in English Canada at least, the 22 problem that you got excited when you saw Paris, but 23 it's difficult to get Vancouverites excited on 24 "Riverdale" perhaps. There isn't that recognition very 25 easily in English Canada in comparison to French StenoTran 321 1 Canada. It's more difficult to get that reaction. 2 1382 MR. MacMILLAN: One of the 3 difficulties I had with the viewership model proposed 4 by the CAB yesterday, quite apart from the fact I don't 5 know actually how you measure it and it will take years 6 and years to figure out the structure and, therefore, 7 accountability delayed will become accountability 8 denied. 9 1383 That aside, raw viewership per se 10 doesn't necessarily create diversity. What was 11 attractive to Linda with her Paris/Brantford story or 12 what is attractive to or people who can connect to her 13 series "Riverdale" now might not be the same people 14 that can connect to a Vancouver story, not just by 15 location but by background. 16 1384 We have a very diverse country. I 17 believe that part of the broadcasting system should be 18 structured to ensure that diversity. That doesn't mean 19 everybody reading the equivalent or watching the 20 equivalent of mass market paperbacks. 21 1385 We need differences in the system. 22 Those differences won't come necessarily if it's only a 23 raw viewer rating, the largest number of mass viewers 24 for one show wins. 25 1386 THE CHAIRPERSON: Yes. We can StenoTran 322 1 discuss that later. It also gets into the need to 2 promote and try to emulate perhaps the star system that 3 exists in Quebec and helps to broaden recognition. 4 1387 You propose that Canadian 5 documentaries be added to the categories of programming 6 that are considered under-represented and, therefore, 7 would fit into the 10/10/10 formula. Do you think that 8 there is a need to define what a Canadian documentary 9 is in order to qualify for that exhibition requirement? 10 1388 MR. THOMSON: I think we agree with 11 CAB that documentaries should be included in these 12 categories. I think probably it would be sensible for 13 the same definition that both Telefilm and the cable 14 fund or the Canadian Television Fund used for 15 documentaries to apply in the case of recognition of a 16 documentary as a qualifying program. 17 1389 THE CHAIRPERSON: With regard to the 18 150 per cent credit rule which you propose to maintain, 19 but to amend the definition of first run to include 20 second run, now as far as I understand, this credit 21 applies for more than two runs. 22 1390 Is it intentional to have it 23 tightened and why do you feel that the 150 per cent 24 credit rule be maintained since your emphasis is on 25 hours of exhibition of certain categories of StenoTran 323 1 programming in prime time, considering that it means 2 for every hour then you have a half hour less. 3 1391 MR. MacMILLAN: Well, the one benefit 4 of having the 150 per cent rule maintained is that it 5 gives broadcasters greater choice in how they will get 6 there. We are not for a moment trying to suggest that 7 there's only one way, one basic cookie cutter method 8 for them to meet these goals. We believe that that 9 creates some more flexibility. 10 1392 THE CHAIRPERSON: But you would feel 11 that the 200 per cent credit that the CAB proposes is 12 going too far in limiting the number of hours of 13 Canadian programming. 14 1393 MS TAIT: Yes, we feel it's too far 15 except that we did note that as an option for future 16 film programming, we felt that because the feature film 17 industry in Canada is, quite frankly, in a state of 18 distress in terms of production and in terms of 19 reaching audiences that this might be a very useful 20 mechanism to provide broadcasters with the added 21 incentive to air Canadian feature films. 22 1394 MS SCHUYLER: I think it's important 23 though to note that in some of the independent 24 submissions that have come from some of our members 25 that there are some recommendations for a 200 per cent StenoTran 324 1 bonusing. 2 1395 I would just like to make this 3 comment. You will be hearing from other members of our 4 association that even though some of us are suggesting 5 perhaps different ways, either higher bonusing or 6 allowing first runs on different windows to be counted 7 in, basically these are all variations on a theme to 8 try and make the system that we are proposing working. 9 1396 What I would like you to do as a 10 Commission is if you could take a sort of mental 11 photograph of this panel that is sitting in front of 12 you and remember that you have producers here that come 13 from the west coast, who are privately owned, the east 14 coast, recently publicly owned, the largest company in 15 Canada right now and I believe one of the 12 in the 16 world -- is that correct, Michael? -- and then Ira and 17 myself who represent small and medium sized companies. 18 1397 We have all jointly come together as 19 a team and we have worked very hard on our proposal and 20 we have included many other members of our association 21 as we have worked on this proposal with our staff. 22 1398 If you hear different points of view, 23 it is really how different members see a different way 24 of implementing what will be at the end of the day the 25 same net result that we are trying to achieve. That's StenoTran 325 1 why we haven't come in with one clear implementation 2 plan. To a certain extent, this is going to be your 3 job to wade through the various proposals that have 4 been put forward. 5 1399 Certainly we do feel that some kind 6 of bonusing is needed in the system and some kind of 7 flexibility is going to have to be there to make our 8 plan an achievable plan. 9 1400 MR. MacMILLAN: I think Kathleen 10 McNair would like to respond. 11 1401 MS McNAIR: When we were developing 12 first run having two plays in the submission, we did 13 look at Public Notice 88/197 that the Commission issued 14 on first run television programming. While the 15 decision was to continue to address the question of 16 first run on a case by case basis, there was general 17 consensus in that public notice that first run would be 18 the first time it was broadcast by a particular 19 licensee in a given market. 20 0950 21 1402 So that if another licensee had 22 broadcast that program, it would count for that 23 licensee and then also if a second licensee broadcast 24 that program, but it would be the first time that it 25 was run by a particular licensee. So, when we were StenoTran 326 1 developing our proposal, we thought we should make it 2 clear that there should be two plays in our definition 3 of first run. 4 1403 THE CHAIRPERSON: Regardless of how 5 many licensees? 6 1404 MS McNAIR: That's right. 7 1405 THE CHAIRPERSON: So, if you had a 8 third licensee, it wouldn't be first run for that 9 licensee? 10 1406 MS McNAIR: No, each licensee would 11 be able to count it as first run if they played it -- 12 1407 THE CHAIRPERSON: Twice. 13 1408 MS McNAIR: -- twice. 14 1409 THE CHAIRPERSON: I see. So, you 15 could have exposure among more than one licensee in 16 time. 17 1410 We discussed a bit or touched upon, 18 Mr. MacMillan, the importance or at least I raised the 19 question of the importance of promotional efforts 20 towards ensuring viewership to Canadian programs. Of 21 course, the CAB aiming for viewership has quite a few 22 proposals with regard to promotion. You say at page 64 23 under "Promotion of Canadian Programs" that you feel 24 that: 25 1411 "...broadcasters should as a StenoTran 327 1 matter of course want to spend 2 resources on programs that they 3 have paid their money to acquire 4 licensees for." 5 1412 But at page 60 you said that: 6 1413 "Most of the ideas that have 7 been advanced unfortunately, 8 merely transfer money from 9 Canadian programs to Canadian 10 promotion." 11 1414 Is your concern the lack of value of 12 the promotional efforts of broadcasters or of their 13 scheme for promotion to achieve Canadian content 14 viewership goals or is it that you don't want these 15 efforts to be incremental? 16 1415 MR. MacMILLAN: It's not, in my view, 17 a question -- 18 1416 THE CHAIRPERSON: No, rather, I'm 19 sorry, that you want these efforts to be incremental to 20 the spending goals. 21 1417 MR. MacMILLAN: Exactly, because it's 22 not a question of the lack of value. In fact I believe 23 that Canadian broadcasters have done terrific jobs in 24 promoting Canadian drama and in our recent experience 25 with "Traders" on Global and "Cold Squad" on CTV, they StenoTran 328 1 have both done magnificent promotional jobs and their 2 ratings, therefore, show it. So, it's not a question 3 of their inability or lack of desire to promote. They 4 do. They can and should do more. Producers can and 5 should also do more to make sure they are part of that 6 solution as well. 7 1418 Our concern merely is that the money 8 spent on promotion should be in addition to the 9 commitments for spending on programming. We have seen 10 licence fees declining for the past four, five or six 11 years and our fear is that if the costs spent in 12 promotion were part of the licence fees or the spending 13 commitments, that would only drive licence fees down 14 further. So, it's not a question that we are concerned 15 that they are unable or unwilling, we just think it 16 should be in addition to the commitments for program 17 spending. 18 1419 THE CHAIRPERSON: Their proposal for 19 having entertainment or star-building type of programs, 20 you have a concern about the extent to which it's 21 Canadian stars or players in the market that are 22 involved and you also feel that they should be produced 23 by independent producers. Number one, why must they be 24 produced by independent producers to achieve their aim 25 and how would you monitor or calculate that 66 per cent StenoTran 329 1 of the items in them must be by reference to Canadians 2 to count as Canadian expenditures? If I recall, your 3 proposal would be no more than half an hour per week. 4 Correct? 5 1420 MS McDONALD: First of all, the 6 intent of our proposals is categories 7, 8 and 9 and it 7 falls as directly into the areas that we feel are most 8 critical. We are trying to recognize the importance of 9 trying to counter the "Entertainment Tonight" 10 phenomena. We did actually adjust our proposal 11 yesterday and suggest that in fact that programming 12 does not have to be produced by independent producers. 13 We do recognize that broadcasters are putting more 14 entertainment programming out and I guess we would 15 probably want to -- I mean we have to realize every day 16 would not be the balance, but overall we are looking 17 for predominantly Canadian promotion. 18 1421 We really don't, I don't think in 19 this country -- we do not believe in this country that 20 we need to know anything more about the entertainment 21 market. It's quite readily available, whether it's on 22 "Entertainment Tonight", whether it's in People 23 Magazine. So, we are proposing a half-hour week. We 24 are hoping it will be well scheduled and we are hoping 25 we can build on star phenomena so that we have the kind StenoTran 330 1 of environment in English Canada they have in Quebec. 2 1422 Some people might remember that last 3 November we had a stars day up at Parliament Hill and 4 if you bring them, it works. If you bring Paul Gross 5 into a room, you can get a lot of people very excited. 6 More people need to know about that and a whole lot of 7 other Canadian stars that the producers and 8 broadcasters brought to Ottawa and we really turned 9 this city around. So, I think we have to do more of 10 that. We have to do it on national television and we 11 have to counter the "Entertainment Tonight" phenomena. 12 But we have changed our proposal and are proposing that 13 it can be produced by broadcasters. 14 1423 THE CHAIRPERSON: So, then the half 15 hour would go towards the 10 hours and your spending 16 would be countered -- 17 1424 MS McDONALD: Yes. 18 1425 THE CHAIRPERSON: -- towards the 10 19 per cent of revenues. Was that in your presentation 20 yesterday? 21 1426 MS McDONALD: Yes. 22 1427 THE CHAIRPERSON: Oh, I'm sorry, I 23 missed that. You didn't see any need for the 24 independent producer to make this programming, but you 25 would certainly see a need to do a calculation that it StenoTran 331 1 be two-thirds about Canadian items. 2 1428 MS McDONALD: To be clear, Madam 3 Chair, if a broadcaster wanted to license with a 4 Canadian independent producer, we would not discourage 5 them. 6 1429 THE CHAIRPERSON: Yes, of course. I 7 didn't think that just overnight was sufficient to 8 create such a big change in your approach. I would 9 have thought then it was Mr. Levy was driving this 10 team. 11 1430 With regard to the proposals to 12 exempt certain promotional efforts from the definition 13 of the advertising restriction, your proposal is not to 14 have this exemption -- it's recommendation 14 -- or is 15 it to allow the 12 minutes of advertising to allow the 16 CAB members to not take that into consideration? 17 1431 MS McDONALD: Let me just look at 18 Recommendation 14. We have a lot of recommendations, 19 so I just want to make sure. 20 1432 THE CHAIRPERSON: No, it's the 21 opposite. You feel that broadcasters be permitted to 22 apply to be exempted, except that having it as -- it's 23 a middle course, the CAB wants it to be automatically 24 exempted by redefining advertising. You are saying 25 they would have to apply to the Commission and make StenoTran 332 1 other commitments, if they want to do that. What other 2 commitments are you looking at? 3 1433 MS McDONALD: The commitments we are 4 hoping to see is promotion of Canadian programs in 5 exchange for that just to ensure that -- I think it is 6 our view, and I think we are quite clear in our 7 submission, that our expertise is not advertising. In 8 fact some broadcasters may choose not to go beyond 12 9 minutes, but we see them as mature, being as they have 10 certainly pointed out yesterday audience driven. So, 11 they would want to put in what would be the appropriate 12 level of advertising for their audience and for their 13 clients. 14 1434 But our view is that that would be a 15 privilege and in exchange for that privilege and that 16 freedom, again it's all about programming. So, if 17 there is, within that privilege, an opportunity to get 18 more promotion of Canadian programming, then that would 19 benefit the system, as well as the broadcaster. 20 1435 THE CHAIRPERSON: You have stated, as 21 I said earlier, at page 64 that: 22 1436 "...broadcasters should as a 23 matter of course want to spend 24 resources on programs that they 25 have paid their money to acquire StenoTran 333 1 licence fees for." 2 1437 A number of parties, including the 3 CAB and the CBC, propose that the producers should have 4 the same natural instinct and that some requirements 5 somehow be made of them as well to engage in the 6 promotion of Canadian programming. What is your 7 reaction to that? 8 1438 MS McDONALD: We in fact agree with 9 the CBC and the CAB on that point and in fact have 10 sought to come up with proposals at the Canadian 11 Television Fund that would see both parties being 12 involved in promotion. I think part of the issue, 13 though, here is that it is the broadcaster's job to 14 bring the audience to the top of the hour and then it's 15 our job to create the entertainment programming that 16 holds them. 17 1439 So, I think what we want to do is we 18 believe that it should be a cooperative effort and in 19 fact, through Telefilm, producers have to make -- part 20 of the Telefilm commitment is to ensure that there is a 21 promotional plan. We are encouraging Telefilm to work 22 hard on that. The truth is that there are, within our 23 membership, various sizes of production companies and 24 it is easier for some companies to participate 25 financially more actively than others. StenoTran 334 1 1440 Linda Schuyler has pointed out many 2 times that the most important thing that can happen is 3 that the promotion plan be worked on by the broadcaster 4 and producer right from the beginning. 5 1441 Linda? 6 1442 MS SCHUYLER: I think for a while we 7 were operating sort of in a void, that the producers 8 were producing the programming and then it was being 9 delivered to the broadcaster and, admittedly, we have 10 no control over where the scheduling of this 11 programming goes, but certainly in terms of promotion, 12 I think it is a joint responsibility of the broadcaster 13 and the producer. 14 1443 That doesn't mean that they each 15 share equally in the funds to promote, but it does 16 mean, I believe very strongly, that when a show first 17 goes into development and it is then going to go into 18 production, there should be a promotion plan in place 19 right from the beginning because there are then times 20 throughout your production you can take advantage of 21 ways of promoting that don't necessarily cost money, 22 but you can take advantage of what is happening in 23 production at that time and I think it's an area that 24 broadcasters and producers have to work on together. 25 1444 THE CHAIRPERSON: Is that what's StenoTran 335 1 intended by your comment at page 64 of your submission 2 that: 3 1445 "...we will work with our 4 broadcaster colleagues on the 5 board of the CTCPF to develop a 6 new criterion that will require 7 a percentage of the budget of 8 any eligible program to be spent 9 on third party promotion." 10 1446 MS McDONALD: One of the goals of the 11 Canada Television Fund is also to ensure that there is 12 audience for Canadian programming and that was a 13 proposal that was being discussed at the time and will 14 continue to be discussed. I think it's a very 15 important common goal for both broadcasters and 16 producers on the Canada Television Fund to ensure that 17 the programming that receives that public money that 18 you discussed before with Michael is viewed so that 19 people know it's there and can find it. 20 1447 As you know, we are in the pre-1999 21 guideline-creation period, so there is a number of 22 proposals being looked at. But I think it is very fair 23 to state that we who sit on that Board together do want 24 to see the programming promoted and we do want to bring 25 Canadians to it and we will look at whatever proposals StenoTran 336 1 are available with our broadcaster colleagues. 2 1448 THE CHAIRPERSON: Vertical 3 integration now. Like many others, you have expressed 4 concern over the growing desire of broadcasters to see 5 the system sanction vertical integration between 6 broadcasters and producers. You state that if vertical 7 integration is sanctioned by policy without adequate 8 safeguards, the implications could be very significant 9 for the independent production sector. You mention 10 program financing, self-dealing and access to 11 distribution networks would require resolution. In 12 fact at page 28 of Dr. Matthew's paper it's stated 13 that: 14 1449 "...a return to vertical 15 integration would, once again, 16 pose potential obstacles to the 17 economic model of cross- 18 subsidization, for broadcasters 19 would be able to keep Canadian 20 program expenditures within a 21 supply-and-demand cycle under 22 their own control." 23 1450 By "cross-subsidization" here I 24 understood you to mean money that flows from foreign 25 programming -- StenoTran 337 1 1451 MR. MacMILLAN: Yes, that is correct. 2 1452 THE CHAIRPERSON: -- to Canadian 3 programming. 4 1453 When there is a peak time requirement 5 for certain hours and we are aiming for more product, 6 more quality and profitability presumably for the 7 licensees of the Commission, what are the problems and 8 what are the safeguards needed? If you look at the 9 broadcasting system -- and that's the aim that we 10 established at the beginning was to look at how do we 11 get more product, better quality and more profitability 12 -- other than what is the problem with vertical 13 integration, how much should be sanctioned and what are 14 the safeguards that, in your view, would ensure that 15 those goals are, nevertheless, reached? I understand, 16 of course, the business proposition of an industry that 17 you are participating in. 18 1454 MR. MacMILLAN: I am sometimes struck 19 by the amount of anxiety that this topic causes 20 producers and broadcasters. 21 1455 THE CHAIRPERSON: Anxious? 22 1456 MR. MacMILLAN: Actually, I'm not 23 particularly anxious about it, but certainly it has 24 been a cause of anxiety throughout the system, a great 25 deal of the discussion about it. The reality is that StenoTran 338 1 today broadcasters are able to produce programs 2 including in the under-served categories, drama 3 specifically, and how those programs qualify as 4 Canadian content towards their quotas. 5 1457 They can distribute them around the 6 world and they can get tax credits and they can even 7 get Canadian Television Fund financing because up to a 8 third of the CTF is dedicated or available for 9 broadcaster in-house productions. To date they have 10 not used a significant portion of that CTF funding and 11 are not filling any material portion of their schedules 12 for categories 7, 8 and 9 with in-house production 13 partially because it's a very competitive and difficult 14 world making drama that's compelling and comedy that's 15 funny and that makes financial sense and is exportable, 16 et cetera, et cetera. So, they haven't to date been 17 abusing that whatsoever. 18 1458 THE CHAIRPERSON: Is this the concern 19 expressed by the Director's Guild that you are 20 referring to? 21 1459 MR. MacMILLAN: It has been the 22 concern expressed by many producers who are worried if 23 broadcasters are selling to themselves that producers 24 will be cut out and won't get access to signals -- to 25 Canadian shelf space and it's an anxiety and a concern StenoTran 339 1 expressed by broadcasters who say, "Why can't we be 2 producers, why can't we be distributors?" I am just 3 pointing out that there currently are no barriers to 4 distributing or getting tax credits or getting CTF 5 money now. 6 1460 The one barrier that there is, 7 however, is Telefilm equity funding. That debate is, 8 say, a $30 or $35 million a year issue. That's the 9 English-language private broadcaster TV portion of 10 Telefilm, roughly $30, $35 million, which in the scheme 11 of a $1.7 billion advertising-driven industry is not 12 really the fundamental financial structure to the 13 industry. When I said that broadcasters aren't abusing 14 it now, what I meant was there is a privilege, I 15 believe, in holding a broadcast licence. 16 1461 For those who don't have broadcast 17 licences, they are now allowed to be a broadcaster. 18 So, the safeguards, I think, to get to the key of your 19 question, is how do we make sure that producers who are 20 not broadcasters, either who are not owned by 21 broadcasters or are in-house or who own a broadcaster, 22 when that producer is licensing a program to the 23 broadcaster to which it's related, there is a real 24 privilege of relationship there. 25 1010 StenoTran 340 1 1462 All the other producers who don't 2 have any such relationship, are they still going to 3 have access to the system or will only undue preference 4 be given by broadcasters to their related suppliers? 5 And that's why I believe that limited Telefilm Canada 6 dollars should not be invested in projects where the 7 buyer and the seller are, in essence, the same company, 8 where that privileged relationship can inform the 9 transaction in the first place. 10 1463 But apart from that, my view is that 11 this is a small country. We need every producer we can 12 get, broadcaster-related or not, trying to produce, 13 finance and sell good Canadian programs in these under- 14 served categories. But the safeguard has to be to make 15 sure that those who don't have the privilege of holding 16 a licence aren't cut out of the process because if they 17 are, we are going to have a lot less diversity of 18 program supply. 19 1464 MS TAIT: Just to add to Michael's 20 point, I think we have the harrowing experience of the 21 United States and really the total disappearance of the 22 independent production sector in that country as a very 23 important example. The structural separation in the 24 Canadian system for the last 15 years has contributed 25 to an incredible vibrant, strong independent production StenoTran 341 1 sector. 2 1465 Just on a personal note, I came back 3 to Canada after 10 years in the United States because 4 my choice was to work in a studio or to be a gorilla 5 filmmaker and I decided to move to Halifax because 6 there was a company that was growing, that was strong 7 and that was making really incredibly interesting 8 programming. When you look across this country at 9 companies like Great North or Munzai (ph.) or some of 10 the -- not just in central Canada, really coast to 11 coast, we have achieved an incredible thing in Canada 12 through public policy and through bodies like the CRTC. 13 1466 So, our concern is not to undercut 14 the ability of the broadcaster to participate in the 15 success of Canadian programming, but it is to maintain 16 diversity and quality. We have seen since the FINSYN 17 rules have been rescinded in the United States a very 18 significant drop in the kind of quality and diversity 19 in the programming schedules that are available 20 provided by the networks. Obviously, this is really 21 our concern. 22 1467 THE CHAIRPERSON: Is it your view, 23 Mr. MacMillan, that the type of safeguard that the 24 Commission has imposed where producers become 25 broadcasters and join the privileged group would be StenoTran 342 1 sufficient? If it were based, let's say, on the number 2 of hours that had to be purchased from independent 3 producers, do you see some middle ground where there 4 would be a sufficient safeguard while relaxing the 5 ability to get into production themselves by affiliated 6 companies or related companies? 7 1468 MR. MacMILLAN: I think that the -- 8 1469 THE CHAIRPERSON: Because, of course, 9 we are told the producers are into broadcasting and we 10 found safeguards there that appeared to be sufficient. 11 Can we use the same type of safeguard to allay your 12 concerns? 13 1470 MR. MacMILLAN: I think we can and, 14 by the way, I am delighted to have joined that 15 privileged group. The safeguards that were established 16 for Showcase television, for example, were that 17 Alliance, or now Alliance Atlantis if the Commission 18 approves the de facto change of control -- 19 1471 THE CHAIRPERSON: That was a bit 20 particular, but go ahead. 21 1472 MR. MacMILLAN: But, nevertheless, it 22 is the best example because Showcase is exhibiting 23 drama and that goes to the heart of the under-served 24 categories. In that case, the producer/owner can't 25 make original programs for Showcase and, therefore, StenoTran 343 1 can't access tax credits or CTF or Telefilm for any 2 projects for Showcase. Indeed, that's a very efficient 3 safeguard because it stopped that entirely. 4 1473 THE CHAIRPERSON: Yes. 5 1474 MR. MacMILLAN: The safeguards that I 6 am suggesting for conventional broadcasters are in fact 7 looser safeguards because already they are able to make 8 original prime time drama for their own channels and 9 get tax credits and get cable fund money and distribute 10 them. So the safeguards that I am at least suggesting 11 are laxer, are more liberal, much less intrusive than 12 the blanket obligation for Showcase. So I think that 13 it is entirely possible to come up with workable 14 safeguards that make it certain that the vast majority 15 of producers who don't enjoy this privilege are not cut 16 out of the system. 17 1475 THE CHAIRPERSON: With regard to the 18 distribution limitation inherent in Telefilm, if I 19 recall, the CAB would like that to be altered. Do you 20 think it is necessary to maintain it? 21 1476 MR. MacMILLAN: I think that the 22 concern here amongst producers is that they are worried 23 that if a broadcaster has the right to be the 24 distributor, somehow the decision to licence the 25 program in the first place or the negotiation for the StenoTran 344 1 payment of a licence fee could somehow be rolled into 2 the expectation or the negotiation for that broadcaster 3 to be the international distributor as well. That's a 4 real concern. 5 1477 The solution there is to make sure 6 that any distribution rights held by a broadcaster 7 outside its own market are the object of a very 8 separate and distinct negotiation, quite separate from 9 the decision to license or the negotiation for the 10 licence fee. Personally, I do see some point in the 11 broadcaster's observation: Why is it that a foreign 12 distributor can distribute something and a broadcaster 13 can't bid? But there would need to be safeguards to 14 make sure that it didn't end up that you couldn't get 15 your show licensed unless you also gave up 16 distribution. 17 1478 THE CHAIRPERSON: And that safeguard, 18 you would see as negotiation up front for -- how do you 19 see the safeguard? 20 1479 MR. MacMILLAN: I am not sure of the 21 exact mechanism. Brighter minds than mine would have 22 to focus on it, but the object of the safeguard will be 23 to make sure that the discussion and the negotiation 24 for any distributions rights was entirely separate from 25 the decision and the negotiation for the licence and StenoTran 345 1 the licence fee for the use of the program within that 2 broadcaster's own market. 3 1480 THE CHAIRPERSON: Now, with regard to 4 equity investment, you say at page 27 that you: 5 1481 "...welcome broadcasters' 6 investments in our programs but 7 these equity investments should 8 not be considered as a portion 9 of the licence fee." 10 1482 Nor should such investments be usable 11 -- I am paraphrasing here -- to meet the obligations of 12 the Act. 13 1483 Do I read from that that you don't 14 have a problem with equity investment, but it should be 15 completely a business decision and not be included in 16 meeting your 10/10/10 rule? In other words, what the 17 broadcasters can do now, I understand, if there are 18 losses, is to use them towards spending requirements, 19 but you don't want these equity investments to go 20 towards meeting the 10 per cent. 21 1484 MR. MacMILLAN: That's quite right. 22 We welcome any broadcaster who wanted to make an 23 investment in our programs, although I note that rarely 24 do they wish to. It can be a risky business. But we 25 absolutely welcome broadcaster investments as long as StenoTran 346 1 they are not counted towards the -- whether it is 2 10/10/10 or whatever variation of that, because we 3 believe that those spending requirements should be 4 organized with respect to the Canadian market to 5 Canadian viewers, and if vast amounts of money are 6 invested with the eye to the program reaching viewers 7 in other countries because that's the only way you are 8 going to get back your investment, that has nothing to 9 do with Canadian viewers. But we do welcome 10 investments, as long as they are in addition to the 11 Canadian content obligations as prescribed by the 12 Commission. 13 1485 THE CHAIRPERSON: So the programming 14 that could result from that would go towards meeting 15 the 10 hours if it fits the definition and it is in the 16 right category. It is just that 10 per cent of the 17 previous year's revenues must be expended over and 18 above expenditures that are an equity investment. 19 1486 MR. MacMILLAN: Sorry, and, much like 20 the distribution rights discussion of a moment ago, as 21 long as that equity investment in the program is 22 separate and apart from the licence fee because there 23 should be an appropriate licence fee paid for the right 24 to use a program in Canada. 25 1487 THE CHAIRPERSON: Yes. So, when you StenoTran 347 1 say that it shouldn't be used to meet the objectives of 2 the Act, you have no problem with it being used to meet 3 the objective of 10 hours in certain categories. What 4 you are focusing on here is the spending. 5 1488 MR. MacMILLAN: That's right, as long 6 as the broadcaster has licensed the program for Canada, 7 paid an appropriate licence fee, whatever that 8 negotiation results in. Separate from that, to make an 9 investment, terrific. 10 1489 THE CHAIRPERSON: I think I may have 11 asked you earlier, but if I did not, I will. This 12 scheme would obviously make it impossible for the 13 Commission to choose a model where it would go to hours 14 only to meet its goals. I think we raised that 15 yesterday, if I recall. 16 1490 MS McDONALD: That's right, and I 17 think what we said this morning is our concern about 18 the hours only is that our experience is that that just 19 spreads small amounts of money over larger periods of 20 time and if our common goal is to get better Canadian 21 programming to more Canadians who want to make sure 22 they want to watch it, it is just not filling up an 23 obligation and, therefore, good programming needs good 24 investment. 25 1491 THE CHAIRPERSON: So this would be StenoTran 348 1 another practical reason why you would want both. 2 1492 MS McDONALD: Yes, absolutely. 3 1493 THE CHAIRPERSON: I meant to ask you 4 and forgot. You mentioned the state of the feature 5 film industry. The CAB proposed to exclude from the 6 definition of "advertising content" the promotion of 7 Canadian feature films and, if I recall, it was whether 8 or not they were shown on -- I will see whether anybody 9 from the CAB frowns at me, but I think it included the 10 promotion of feature films even if they were not 11 broadcast on television stations. 12 1494 What is your view about that? You 13 mentioned, Ms Tait, earlier when we were talking about 14 what you were ready to include as promotional efforts. 15 1495 MS TAIT: As you know, the Minister 16 of Canadian Heritage presently has a feature film 17 review on and I know that it is her expectation that 18 broadcasters become more active in making Canadians 19 aware of Canadian features because that's a marketplace 20 we really don't own in any way. So I think we would be 21 open to that. 22 1496 Our first preference is clearly to 23 see Canadian feature films on Canadian screens, but if 24 we could get more Canadians to go to Canadian features 25 because they are being promoted actively and well in StenoTran 349 1 Canadian television, that would be a significant win as 2 well. But I think we did make the point yesterday that 3 in other countries, the U.K., France, the broadcasters 4 are significant participants in the financing of 5 feature film, but again if we can get more Canadians to 6 more Canadian features by promoting them on Canadian 7 television, then that would be a good step forward for 8 Canadian features. 9 1497 THE CHAIRPERSON: The last area I 10 said I had a few questions on was the program rights 11 issue, which is, of course, addressed by many parties 12 and proposals are made as to how you can somehow get 13 contribution from foreign services and, even more 14 importantly, try to diminish the problems that may be 15 encountered by the North Americanization of rights. 16 1498 You suggest at Recommendation 11 -- I 17 am looking at page 68, but I guess it is in the 18 beginning of your submission as well -- that: 19 1499 "As a condition for the addition 20 of a non-Canadian service to the 21 CRTC Lists of Eligible Satellite 22 Services, the service should 23 have to provide an unequivocal 24 commitment to acquire Canadian, 25 as distinct from North American, StenoTran 350 1 rights for its programming and 2 specifically state that it 3 recognizes that a breach of this 4 commitment will result in its 5 removal from the Lists." 6 1500 I suspect you must have discussed 7 with your counsel how one would do this. Do you see 8 that as something that would be easy? 9 1501 Mr. MacMillan is laughing already. 10 1502 MS McDONALD: We don't always think 11 that things will be easy. I would like to state -- 12 1503 THE CHAIRPERSON: I haven't seen him 13 laugh so readily since he started. You are not 14 laughing at your counsel? 15 1504 MR. MacMILLAN: Oh, no. I have 16 learned not to do that. 17 1505 MS McDONALD: First of all, I am on a 18 number of international committees with the MPAA, the 19 Motion Picture Association of America, run by 20 Mr. Valente. I am always amazed when we talk about 21 this rights issue in Canada because when I sit on 22 committees with our American counterparts and they 23 worry about the rights of their creators and what 24 happens to them if they are being abused in China or 25 Indonesia or anywhere else in the world. They will go StenoTran 351 1 to any length to make sure that the rights of a U.S. 2 creator are protected and that every opportunity is 3 given to a U.S. creator to get the maximum amount of 4 money in the marketplace. Then we stand here as poor 5 little Canadians talking about whether we can have 6 Canada as a unique market. 7 1506 We don't think that this is going to 8 be easy and we know we can't go backwards. We know 9 that there are people on the lists and that would be 10 extremely difficult and get everybody into a whole lot 11 of issues that would be difficult and bring in other 12 departments of the government of Canada. However, I 13 would also like to state that we think that before 14 there are any new U.S. services added to the eligible 15 satellite list, we would like to see all Canadian 16 services up there first. 17 1507 But I think what we are saying is if 18 we are going to introduce more foreign services into 19 this country, then they should understand that our 20 creative industry wants no more than their creative 21 industry and that is to have their rights recognized. 22 That's all we are asking for. We can go through all 23 this other stuff, but you sit down with the MPAA and it 24 is piracy and fear and loathing and everything else, 25 unless it is us. Then our market becomes their market. StenoTran 352 1 1508 So, yes, it would be difficult, but 2 it is a privilege to have access in this country, and 3 if you are on the cable system or on a distribution 4 system you are paid for it. Money flows from this 5 country. So we are stating that we expect these people 6 to recognize that they have a privilege and in exchange 7 for that they recognize our market as distinct. 8 1509 THE CHAIRPERSON: Would it be fair to 9 say that only some type of attempt at regulatory force 10 would make Mr. Valente see that he is not selling us 11 widgets? 12 1510 MS McDONALD: I think -- 13 1511 THE CHAIRPERSON: Because you seem to 14 think that, yes, of course, we can wax poetic about the 15 desire to achieve that aim. What I was asking about is 16 how realistic is it to think of that recommendation. 17 It is interesting and I would like to know whether your 18 response was, "It would be a big problem with the ones 19 that are there already, but we can impose this 20 condition on future ones." Is that what you are 21 saying, that the difficulties that you mentioned in the 22 first part would disappear if it is just forward 23 looking? 24 1512 MS McDONALD: We would love to be 25 able to go back and in fact I think by taking a StenoTran 353 1 stronger position on intellectual property rights we 2 are beginning to see with some of the parties that 3 there were complaints with changes. We are starting to 4 see it and we are not going to let this one go and I 5 recognize the challenge. However, there are a number 6 of other options available. We can license Canadian 7 services in those genres and then we don't have a 8 problem. In fact I think we are seeing that Canadians 9 really prefer Canadian specialty services, so I think a 10 solution is definitely to license Canadian services. 11 1513 I appreciate what everybody says 12 about Jack Valente, but I think that it is about time 13 that Canadians recognized that the line we get in this 14 country about North American rights is just a one-way 15 line and the reality is what our counterparts in the 16 United States want is to ensure that they maximize 17 their opportunities and they wouldn't accept it. It is 18 a very clean line when you look at it that way. 19 1514 THE CHAIRPERSON: Thank you for your 20 cooperation. These are my questions. 21 1515 Mr. McKendry has questions and so has 22 legal counsel, but I think, although it is 10:30, if it 23 is okay with you, we will proceed and you will be able 24 to stand down then, unless you want a break first. 25 1516 MS McDONALD: No. StenoTran 354 1 1035 2 1517 THE CHAIRPERSON: No? Okay. 3 1518 Commissioner McKendry. 4 1519 COMMISSIONER McKENDRY: Thank you. 5 1520 I would like to ask you about 6 something that Ms Schuyler said yesterday. I am just 7 going to read two or three sentences from the 8 transcript rather than interpret what she said. 9 1521 "I think it's very important to 10 look at one of the schedules 11 that are launched this fall from 12 one of the private stations. It 13 very much fits into our 10/10/10 14 plan in its phase-in level. We 15 are seeing the level of 16 programming commitment in prime 17 time to Canadian shows that we 18 are expecting in our first level 19 ramp-up." 20 1522 I'm wondering who that broadcaster 21 is. 22 1523 MS SCHUYLER: That particular 23 reference was to the Baton schedule, but we should also 24 point out that when we were making our remarks about 25 tying spending and hours together that we also see the StenoTran 355 1 same from Global, that when the two are combined then 2 we are achieving the results that we want from our 3 10/10/10 solution. That was the remarks that Elizabeth 4 gave us earlier this morning. 5 1524 COMMISSIONER McKENDRY: So you 6 include Global as well in this reference. 7 1525 MS SCHUYLER: I was referring 8 particularly in terms of the schedule to the CTV, but I 9 was also saying that in terms of making an argument for 10 money and hours tied together, you can also see the 11 same effect on Global. The schedules aren't similar, 12 but -- 13 1526 COMMISSIONER McKENDRY: I see your 14 point. The next sentence you gave us was: 15 1527 "This has happened without 16 regulation." 17 1528 I assume you are not using that as an 18 argument to suggest that there should be no regulation. 19 1529 MS SCHUYLER: Forgive me because I am 20 very new to this process, and if I use these words 21 incorrectly, it is not because I am intending them that 22 way. 23 1530 COMMISSIONER McKENDRY: I assumed 24 that was the case, but I couldn't resist asking the 25 question. StenoTran 356 1 1531 I wanted to ask a question about the 2 risk associated with your business. Mr. MacMillan said 3 earlier this morning that it can be a risky business. 4 I want to understand where the risk associated with 5 your business should be lodged and if your proposals 6 would result in some of your business risk in effect 7 being transferred to the broadcasters. 8 1532 What's leading me to that thought is 9 that yesterday we heard from you that under your 10 proposals, existing foreign program would be replaced 11 to a certain extent. You also told us that we are 12 asking the broadcasters to put their -- what we are 13 asking the broadcasters to do will probably cost more 14 than the comparable American programming. 15 1533 That in itself I suppose increases 16 risk somewhat for broadcasters, but I was also taking a 17 look at a public opinion survey that was submitted to 18 this proceeding by CTV. One of the questions that was 19 asked of the respondents dealt with the most important 20 issue in television programming and only 1.7 per cent 21 of the respondents felt that there wasn't enough 22 Canadian programming. 23 1534 From a broadcaster's perspective, if 24 costs are going to go up, foreign programming, American 25 programming, is going to be displaced. Surveys StenoTran 357 1 indicate that there isn't a strong demand for more 2 Canadian programming or it is not seen as a key issue. 3 1535 Is the risk from your business 4 activities in effect going to be shifted to the 5 broadcasters? 6 1536 MR. MacMILLAN: We are seeking for a 7 larger number of Canadian 7,8 and 9 category programs 8 to be broadcast and for licence fees to increase. That 9 goes to the heart of two of the tens. 10 1537 I don't see it as a fundamental 11 shifting of risk. Broadcasters have said very 12 eloquently and repeatedly that Canadian programming is 13 their future and that in a fragmented world where 14 borders are less honoured by new technologies, it is 15 going to be having distinctive Canadian programs that 16 will set them apart from all the other plethora of 17 American signals, or usually American signals, and that 18 owning programs to which they are the sole Canadian 19 user, thus making them distinctive in that marketplace, 20 is key to their future. 21 1538 If it is that key to their future, 22 then they ought to want to spend money to grow it, to 23 invest in it, R&D, and more than R&D because it 24 actually comes up with pretty immediate results 25 programming that can go on the schedule right away. StenoTran 358 1 1539 I think it's a fairly logical place 2 for them to invest if it is that important to them. 3 Nevertheless, the vast majority of the cost of 4 producing those programs still is either provided by 5 the producer or assembled by the producer or provided 6 by the taxpayer, depending on how exportable, how 7 focused the Canadian program is. 8 1540 The vast majority of the program cost 9 is not paid by the broadcaster. It is paid by others 10 in the same way as the vast majority of an American 11 program which they import is not paid by the Canadian 12 broadcaster. It is paid by others in other countries. 13 1541 I don't see it as a fundamental 14 shifting of risk. In fact, the decline in licence fees 15 over the past several years has already shifted 16 some risk this way, I suppose. We are trying to push 17 it back to them. 18 1542 MR. THOMSON: I will just start with 19 what Michael said. I think I agree that we are not 20 shifting any risk. In fact, our industry is probably 21 going to incur more risk because we are asking for the 22 production of more programming. In view of the fact 23 that we contribute the bulk of the funding to the 24 programming produced, if we are going to produce more 25 of it, that's going to be more exposure for us. StenoTran 359 1 1543 I also agree with Michael that the 2 only risk to the broadcasters is that we can't attract 3 Canadian audiences to Canadian programs. I think we 4 have all agreed in these hearings that Canadians want 5 to watch Canadian programming. If that's true, then 6 there shouldn't be a risk. 7 1544 MR. MacMILLAN: If I may just finish 8 up. I think that merely looking at licence fees and 9 obligations that broadcasters have or obligations we 10 are proposing for them to have, you need to look at the 11 whole picture. I don't believe that this debate can be 12 an a la carte one. It's a whole deal meal. 13 1545 You talk about the whole system. 14 Part of that system is obligations for Canadian 15 broadcasters to spend money and schedule Canadian 16 shows. We think that should be focus prime time 17 category 7, 8 and 9. You know our position. 18 1546 It's not a la carte. There are a lot 19 of other advantages for Canadian broadcasters operating 20 in this system. They have a licence. Others can't get 21 licences. Simultaneous substitution, Bill C-58. 22 There's a web of policies and plans, many of which 23 support the broadcaster, give them things. Others 24 expect investment back from them. 25 1547 I think we have to look at as the StenoTran 360 1 whole package and not just focus a la carte on that one 2 obligation because if we are talking about risk, there 3 are other benefits that they are getting as well. 4 1548 COMMISSIONER McKENDRY: Thank you. 5 1549 I would like to just ask you about 6 digital television and the extent to which your 7 industry is prepared for the new digital TV world which 8 is arriving in the United States very shortly and, I 9 guess, it's a little less clear when it is going to 10 arrive in Canada. To what extent is this an issue for 11 you and where are you at in relation to that issue? 12 1550 MS McDONALD: I am the person on the 13 panel that was on the Minister's digital task force. 14 We are market driven, so we will respond to the demands 15 of the marketplace. In fact, we have a producer on 16 this panel that has converted to digital because that's 17 what her broadcaster asked. 18 1551 I think that is the answer. We are 19 going to be working with our partners in broadcasting. 20 I think the most important issue for us will be 21 training to ensure that we have the crews to support 22 that. We are currently in meetings to try to discuss 23 what kind of training programs will be available, how 24 we roll them out, et cetera. 25 1552 It will be as much as it is a cost of StenoTran 361 1 doing business for the broadcaster, it will be a cost 2 of doing business for the producer as well. We will 3 respond to the marketplace as the demands come. 4 1553 Linda, do you want to talk about your 5 experience? 6 1554 MS SCHUYLER: It's interesting for me 7 because working with the CBC to do this new prime time 8 soap opera that we are producing, I actually took a 9 look backwards and a look forward at the same time. 10 1555 One of the objectives of this soap 11 opera was to bring to prime time low cost high volume 12 drama because I believe that in the whole landscape of 13 drama one of the ways that we fill the funding gap that 14 we talk about is by introducing low cost drams as well 15 as the high cost drama. 16 1556 In order to do low cost drama, I 17 looked backwards to techniques that we were using when 18 television first came on the air, which is basically 19 you shoot your drama from three cameras and you switch 20 on the floor. 21 1557 Looking forward, when I realized that 22 to build a video studio was going to be the way to go 23 for this new production, we realized that we would be 24 crazy if we did not build this studio as a digital 25 studio. I now have, own, or the bank owns, a hundred StenoTran 362 1 thousand square feet of digital square feet in Toronto. 2 It's a huge operation there. 3 1558 We have absolutely kilometres and 4 kilometres of digital wires. On our last day of 5 production, we had a camera flown in especially from 6 Japan with a high definition television so that we 7 could do a direct comparison between the digital Beta 8 cam and the high definition that we know at some point 9 is also going to be coming in. 10 1559 From our perspective, it was just 11 beautiful to look at because it's like looking at 16 12 millimetre film compared to 35 millimetre film. 13 1560 We, the producers, as well as the 14 broadcasters have to be very mindful of this new 15 technology. As we are buying new equipment, we have to 16 be forward thinking. It is a cost of doing business to 17 us as well. We are there along with them. 18 1561 COMMISSIONER McKENDRY: The Canadian 19 Independent Film Caucus in their submission -- I will 20 just read one sentence from it. They said: 21 1562 "Broadcaster contributions and 22 other contributions are more 23 necessary than ever to enable 24 the independent production 25 sector to make a successful StenoTran 363 1 transition to DTV." 2 1563 I take it that it isn't your position 3 that you require contributions from broadcasters or 4 others. 5 1564 MR. MacMILLAN: I believe the 6 reference in the caucus is to the concern about 7 lowering contributions from broadcasters if we have to 8 invest and we have to make sure that we maximize our 9 revenue opportunities as well. I think that's what the 10 reference is. We are not expecting a direct 11 contribution. 12 1565 COMMISSIONER McKENDRY: Thank you. 13 1566 Thank you, Madam Chairman. 14 1567 THE CHAIRPERSON: Mr. McKendry's 15 question about risks shifting has made me think of the 16 conversation we had yesterday, Mr. Thomson. Maybe you 17 are as stubborn as I am. 18 1568 You said again that the only risk was 19 getting Canadian audiences to watch Canadian 20 programming, but given what is documented and what we 21 know about the appetite of the audiences, the risk will 22 be shifted to the extent or until for the same cost you 23 can show programming that will get you the same 24 audiences and the same advertising revenues if it is 25 shown at the same peak hours. StenoTran 364 1 1569 MR. THOMSON: There's a lot to talk 2 about there, so -- 3 1570 THE CHAIRPERSON: I am just talking 4 about your answer to Commissioner McKendry. I think it 5 was that the only risk is getting Canadian audiences to 6 watch the programming, but it's a little more 7 complicated than that. 8 1571 MR. THOMSON: Yes. 9 1572 THE CHAIRPERSON: If you force peak 10 hours to substitute Canadian programming for American 11 programming, there's a financial result until you 12 equalize costs and revenues that flow from this 13 exhibition. 14 1573 MR. THOMSON: Yes. There are a 15 couple of points. First of all, the ten hours that we 16 ask broadcasters to get to isn't all going to be the 17 distinctively Canadian high quality 150 per cent bonus 18 kind of programming that costs them the major licence 19 fees because that's a requirement of triggering the 20 public funds. 21 1574 It is possible to buy very, very good 22 Canadian programming, shows that are produced by 23 members of our association for reasonable prices for 24 the same amount of money that they are paying for 25 comparable American programming. StenoTran 365 1 1575 I think "Outer Limits" on Global is a 2 good example. It's a show that's probably one of their 3 highest rating shows. I'm sure they don't pay a huge 4 licence fee for that compared to what they would pay 5 for something like "Traders". 6 1576 It's not just across the board. We 7 are not asking to pay more money for the hour they are 8 going to fill. We are just asking to try and find ways 9 of making that hour Canadian. 10 1577 I think the other issue that comes 11 out of this too is we saw yesterday in the figures that 12 Catherine presented is that Canadian audiences for 13 Canadian shows are pretty close to what they are for 14 the American shows. There wasn't that much of a 15 discrepancy between the audiences for some of the U.S. 16 shows, "Chicago Hope", compared to the audience we were 17 getting for "Due South". 18 1578 The figures that I talked about 19 earlier this morning very, very clearly show that the 20 Canadian audience is directly related to the amount of 21 Canadian content. If there is only 4 per cent Canadian 22 content in prime time in underserved categories, the 23 audience is roughly -- the amount of audience tuning to 24 the Canadian content is about 4 per cent. 25 1579 The issue seems to be if we can get StenoTran 366 1 more Canadian programming in prime time, we will get 2 bigger Canadian audiences. Then the issue sort of 3 trickles down to convincing the advertisers. I don't 4 think it's a question of convincing the audience as it 5 really seems to me to be a question of convincing the 6 advertisers that Canadian programming is as good a 7 place to put their ad, to put their money as American 8 programming. 9 1580 That's the real issue. I think we 10 will get there as we slowly build the amount of 11 Canadian content there as the audiences grow and we 12 will finally convince the people who actually pay for 13 the programming, because that's the people who spend 14 their advertising dollars, will finally convince them 15 that Canadian programming is a good bet. 16 1581 THE CHAIRPERSON: The measurements I 17 suppose will very quickly give you that convincing 18 advertisers or should. 19 1582 MR. THOMSON: Well, it should but we 20 still have that problem. We still have the problem 21 with the people that are out there selling ads saying 22 "We can't sell ads on Canadian". It's just a 23 historical position that they take. We have got to 24 change that perspective somehow. 25 1583 THE CHAIRPERSON: I would have StenoTran 367 1 thought that the risk is also minimized if you consider 2 that ten hours over the week is not all of peak time, 3 that scheduling allows you to minimize the type of risk 4 I was talking to you about, the relationship between 5 cost and audiences. It's not as if the entire peak 6 time every day is going to be taken up by Canadian 7 programming of those categories. 8 1584 MR. THOMSON: That's correct. 9 1585 THE CHAIRPERSON: A broadcaster can 10 still have some cost subsidization left. 11 1586 MR. THOMSON: Yes. We are still 12 talking considerably less than 50 per cent which is 13 considerably less than any other first world country in 14 the world. We are not taking over prime time. We are 15 just trying to get a decent representation of Canadian 16 programming in prime time. 17 1587 THE CHAIRPERSON: Thank you. 18 1588 MR. MacMILLAN: I do believe there 19 are some risks involved, but there is also some rewards 20 that can come from it. I think that it's a reasonable 21 level of risk that we are proposing. I believe there 22 is some risk, to be fair, but I think it's a challenge 23 worth taking. 24 1589 I would much prefer to do that than 25 try to have a decent representation in prime time and StenoTran 368 1 be a real live grown-up country and doing so instead of 2 what the CAB suggested yesterday where they said "You 3 know, raise the white flag and give up and don't bother 4 to have any effort or any rules for 7, 8 and 9 in prime 5 time". It's far, far too soon to give up. This is 6 doable. 7 1590 THE CHAIRPERSON: You are not scared 8 by Mr. Valente. 9 1591 MR. MacMILLAN: No. 10 1592 THE CHAIRPERSON: Legal counsel. 11 1593 MR. BLAIS: Thank you, Madam Chair. 12 1594 As I did yesterday with the CAB, I am 13 going to suggest that some of the more detailed 14 questions be the subject matter of a written exchange 15 so we get that on the record, but we would ask some 16 broader questions at that point that need to be 17 clarified right now. 18 1595 You have put a lot of emphasis in 19 your submissions concerning documentaries. Is it 20 correct to assume that you hope that the 150 per cent 21 credit would be extended to documentaries as well as 22 drama? 23 1596 MR. THOMSON: Yes. I think our 24 proposal is that anything that meets the super-Canadian 25 or distinctively Canadian criteria that is being StenoTran 369 1 established right now by the Canadian Television Fund, 2 whether it's a documentary, children's programming or 3 drama or variety, would qualify for the 150 per cent 4 bonus. 5 1597 MR. BLAIS: Thank you. 6 1598 We also had a discussion a little 7 earlier on about the definition of first run and second 8 run. I just want to clarify exactly what your proposal 9 is. 10 1599 In Public Notice 1984-94 when we 11 created the 150 per cent credit, it is provided for 12 that that credit is available for each licensee when 13 the showing of the drama occurs within two years of the 14 date from the first showing. In other words, it is a 15 time period limit. 16 1600 You are now suggesting, as I 17 understand it, each broadcaster would get two first 18 runs or two runs that would quality as first runs. Are 19 you suggesting that we should amend the definition 20 found in the public notice to reflect that? 21 1055 22 1601 MS McDONALD: I know our legal 23 counsel is very anxious to take up this topic again. 24 1602 MS McNAIR: No, we are not. I think 25 the two-year limit for the first time it is played is a StenoTran 370 1 good limit, but to give some flexibility we felt that a 2 second play should be permitted and still count as 3 first run. 4 1603 MR. BLAIS: So, both the criteria 5 would run concurrently. I understand that. 6 1604 It would happen, though, as we 7 mentioned, there could be two runs per broadcast or 8 one, two, three, perhaps even four broadcasts over a 9 two-year period. I understand from the producer's 10 perspective that adds to the commercial value of your 11 product and helps your business. What does it do for 12 Canadian viewers in diversity? 13 1605 MR. MacMILLAN: With fragmentation, 14 obviously, it means that fewer people are watching any 15 particular program at any given time and that's, 16 indeed, one of the challenges or difficulties that our 17 broadcast colleagues point out, that they are fighting 18 for an increasingly shrinking fraction of the viewing 19 pie. 20 1606 On one hand, you might think, gee, 21 that's not going to increase diversity because they are 22 going to be seeing the same old programs over and over 23 again. On the other hand, now a popular effective 24 program still hasn't been seen by the vast majority of 25 viewers, in any event. I think it will increase StenoTran 371 1 diversity because for those who have missed it, they 2 will have another opportunity on a different channel. 3 1607 MS TAIT: If I could just add as an 4 anecdote, "This Hour Has 22 Minutes" had a very loyal 5 following on Monday nights and when the CBC decided to 6 do a second play on Friday nights we were concerned 7 about what would happen to our viewing audience, and we 8 held. There was some migration to Friday night. In 9 fact there is now a greater audience on Friday night 10 than Monday night. So, I think this demonstrates that 11 audiences are loyal and they will follow the 12 programming and they will find the place on the dial 13 when they need to. 14 1608 MR. BLAIS: Thank you. 15 1609 In the United States, as I understand 16 it, the notion of independent production is defined 17 vis-à-vis major studios, the historically major 18 Hollywood studios, particularly in the film industry. 19 In Canada, I think, there is a different notion of 20 independent production and I was wondering if you could 21 give us your definition of the independent production 22 sector as it applies in the Broadcasting Act. In other 23 words, what if there is cross-ownership at the level of 24 20 or 30 per cent without necessarily having control? 25 When does it cease to be an independent production StenoTran 372 1 sector? Is it a question of ownership, of control, of 2 economic reliance? 3 1610 MS McDONALD: I think it's really 4 important to understand that the Association has always 5 taken a position on programming because it's obviously 6 a challenge to deal with it on a corporate basis. 7 Basically, when a program goes forward does the 8 producer have economic control, creative control? 9 There is a whole lot of guidelines that CAVCO and 10 Telefilm use for those definitions and that is how we 11 define independent production. 12 1611 MR. BLAIS: So, you could have an 13 independent production company owned at 100 per cent by 14 a broadcaster, but provided the control is in the hands 15 of the producer, you still would qualify that as 16 independent production? 17 1612 MR. MacMILLAN: I wouldn't define it 18 that way. I would define it as if there is an 19 ownership similarity of 50.1 per cent -- i.e., the 20 broadcaster owns at least that or the producer or vice 21 versa or the same parent at those levels -- that is 22 then creating them as related parties. 23 1613 If it's a lower percentage, if it's 24 lower than 50 per cent, it still could qualify as being 25 related parties if, let's say, they had a 25 per cent StenoTran 373 1 shareholding similarity, but as a result of a 2 shareholders' agreement they were given certain 3 guaranteed access to the broadcaster because the issue 4 of independence for us is: Does the privilege of the 5 relationship accord them undue preference in access to 6 the broadcaster? If they control 50.1 per cent of the 7 votes, probably they have authority over both sides of 8 the relationship. 9 1614 If they have less than 50.1 per cent 10 but, nevertheless, are armed with the benefit of a 11 shareholder's agreement entitling them to cause the 12 broadcaster to act in a certain way, then they probably 13 also have the same undue preference. So, it's that 14 relationship that we would say determines is a 15 broadcaster and a producer independent. 16 1615 MS McDONALD: Catherine Tait would 17 also like to respond to that. 18 1616 MS TAIT: If I could just add to 19 that, I think also for most producers the retention of 20 rights does determine the profile of the truly 21 independent producer, just to underline that. So, in 22 the United States you may have many independent 23 producers who hold no rights to any of their programs. 24 As far as we are concerned, that does not constitute 25 independence. StenoTran 374 1 1617 MR. BLAIS: Thank you for that. 2 1618 Subject to the written questions, 3 that's all for now. Thank you. 4 1619 THE CHAIRPERSON: Thank you very 5 much. 6 1620 MS McDONALD: I understand our legal 7 counsel would like to address an issue. 8 1621 THE CHAIRPERSON: No questions on 9 impeachment! 10 1622 MS McNAIR: I just want to make a 11 clarification on the discussion we had about 12 regulation. I mean we have assumed that any regulation 13 on the 10/10 would be worded "except by condition of 14 licence", but we also noted in our submission for the 15 multi-ownership groups we would expect at a minimum 16 that the 10/10 be imposed upon them and as their first 17 station came up for renewal, this corporate commitment, 18 in addition to others, would be imposed as a condition 19 of licence. 20 1623 The other clarification I would just 21 like to make is we are proposing a dual requirement, 22 spending and exhibition. So, the stations that only 23 would have a spending or an exhibition commitment on, 24 our second one would kick in immediately by regulation. 25 I just didn't want to mislead anyone. StenoTran 375 1 1624 MS McDONALD: Madam Chair, Linda 2 Schuyler would like to say a few words on behalf of Ira 3 Levy, who is the Chair of our Children's Committee. We 4 haven't talked children's programming at all, so if we 5 could just have a moment. 6 1625 MS SCHUYLER: When Ira had to leave 7 very quickly yesterday, he asked me if I could just 8 make sure that the Commission is very clear that when 9 we say our 10/10/10 proposal, it's really a 10/13/10 10 proposal. We feel it's really important that the 11 conventional broadcasters take on this requirement for 12 three hours of children's programming. 13 1626 Yes, we know there is children's 14 programming available from some of the specialty 15 channels. Not all homes in Canada have the privilege 16 or are able to be wired and have access to those 17 services. So, we think it is crucial that this three 18 hours for children is a fundamental building block in 19 our program and we know that in the United States it is 20 the requirement of every broadcaster there. 21 1627 THE CHAIRPERSON: We didn't raise it. 22 Obviously, my understanding is it's not in peak time 23 necessarily, it's in children's time. It would be over 24 and above the 10 hours, so it would be really 13 hours, 25 but still 10 per cent of revenues. You would leave to StenoTran 376 1 the broadcaster what children's time is. 2 1628 MS SCHUYLER: Absolutely, that's 3 correct, it would be in children's peak time, at their 4 discretion. 5 1629 THE CHAIRMAN: Thank you for raising 6 that. Give our regards to Mr. Levy. We assume he has 7 gone back to his children. 8 1630 MS McDONALD: He has, but he will be 9 back next week, I think. 10 1631 THE CHAIRPERSON: Thank you very much 11 for your collaboration, especially this morning. We 12 have been with you for two hours. We have enjoyed it, 13 of course. I am sure you did. 14 1632 We will now take a 15-minute break 15 and be back at 11:15. Thank you. 16 --- Short recess at / Courte pause à 1102 17 --- Reprise à / Upon resuming at 1116 18 1633 LA PRÉSIDENTE: À l'ordre, s'il vous 19 plaît. 20 1634 Madame la Secrétaire, s'il vous 21 plaît, voulez-vous inviter le prochain participant. 22 1635 Mme BÉNARD: Merci, Madame la 23 Présidente. 24 1636 La prochaine présentation sera celle 25 de l'Association des producteurs de films et de StenoTran 377 1 télévision du Québec, et j'inviterais Mme Baillargeon à 2 présenter ses collègues. 3 PRÉSENTATION / PRESENTATION 4 1637 Mme BAILLARGEON: Bonjour, Madame la 5 Présidente, Mesdames, Messieurs les Conseillers. Si 6 vous nous permettez, puisque nous savons que 7 Mme Bertrand est à l'écoute, nous aimerions lui offrir 8 nos plus chaleureuses salutations. 9 1638 Je me présente, je suis Louise 10 Baillargeon, présidente-directrice générale de 11 l'Association des producteurs de films et de télévision 12 du Québec, qu'on appelle l'APFTQ. Je suis accompagnée, 13 à ma gauche, de M. Jacques Blain, président de Cirrus 14 Communications et administrateur représentant la 15 télévision au conseil d'administration et, à ma droite, 16 de M. André Picard, président et directeur de SDA 17 Productions et président du conseil d'administration de 18 notre association. Malheureusement, M. Jaquelin 19 Bouchard, président et chef de direction du Groupe 20 Pixcom, qui était avec nous hier, a dû rentrer à 21 Montréal pour questions professionnelles et ne pourra 22 pas être présent avec nous ce matin. 23 1639 Nous remercions le Conseil de nous 24 inviter à donner le point de vue des producteurs 25 indépendants du Québec à ces audiences déterminantes StenoTran 378 1 pour l'industrie de la radiodiffusion canadienne. 2 Active depuis plus de 30 ans, l'association regroupe la 3 presque totalité des sociétés de production oeuvrant 4 dans les deux langues officielles et dans tous les 5 secteurs de la production audio-visuelle au Québec. 6 Les activités de ses membres génèrent 95 pour cent et 7 plus du volume annuel total de la production 8 indépendante, tant en cinéma qu'en télévision. 9 1640 Notre intervention aujourd'hui 10 traitera essentiellement des enjeux de la révision des 11 politiques relatives à la télévision de langue 12 française, sans oublier l'importance que doit accorder 13 le Conseil à la définition d'"émission canadienne". 14 Cependant, en ce qui concerne la télévision de langue 15 anglaise, nous appuyons le mémoire qui a été déposé par 16 notre homologue CFTPA dans le cadre de cette audience. 17 1641 Je passe maintenant la parole à André 18 Picard. 19 1642 M. PICARD: Merci, Louise. 20 1643 Avant de commencer la lecture de mon 21 texte, je dois tout simplement dire que pour nous, de 22 desservir le téléspectateur et de l'avoir en tête, 23 c'est un réflexe naturel; le métier de nos membres est 24 de travailler quotidiennement à la qualité, à la 25 diversité, à la popularité de la programmation et de la StenoTran 379 1 production canadienne, à laquelle on contribue toujours 2 en partenariat avec des radiodiffuseurs publics et 3 privés. C'est essentiellement notre métier. 4 1644 Je m'excuse aussi peut-être de mon 5 ton de voix. J'ai une mauvaise grippe; je suis un peu 6 enrhumé. Je vais essayer de quand même passer à 7 travers mon texte sans trop d'interruptions. 8 1645 L'APFTQ considère essentiel que le 9 Conseil continue d'exercer sa mission de réglementation 10 et de supervision, notamment afin de reconnaître le 11 caractère distinct et restreint du marché de la 12 télévision de langue française, reconnaître la 13 spécificité des télévisions conventionnelles et 14 spécialisées, appuyer le maintien d'une télévision 15 publique forte et renforcer le mandat culturel de la 16 Société Radio-Canada, et maximiser la diversité de 17 l'offre de contenu canadien en assurant le recours 18 significatif et obligatoire à la production 19 indépendante; et, finalement, responsabiliser les 20 diffuseurs canadiens quant au soutien et à la promotion 21 du long métrage canadien. 22 1646 Afin de rencontrer ces objectifs, il 23 est essentiel que le Conseil examine attentivement les 24 points suivants: premièrement, le pourcentage de 25 contenu canadien des diffuseurs conventionnels; StenoTran 380 1 deuxièmement, les dépenses de programmation canadienne; 2 troisièmement, le rôle de la télévision publique, 3 particulièrement celui de Radio-Canada; quatrièmement, 4 la structure industrielle du système de radiodiffusion 5 canadienne; et le financement de la production 6 canadienne. Nous élaborerons maintenant sur chacun de 7 ces points, qui seront suivis de nos recommandations. 8 1647 Premier point: le pourcentage de 9 contenu canadien chez les diffuseurs conventionnels. 10 1648 Les Canadiens de langue française ont 11 un accès croissant aux diverses sources d'information 12 et de divertissement étranger. Il est crucial que le 13 Conseil veille à ce que, parmi ces choix, ils puissent 14 continuer d'avoir accès de façon prédominante à une 15 programmation canadienne de qualité en langue 16 française. 17 1649 Le Conseil doit donc maintenir les 18 seuils minima actuels de contenu canadien et inciter 19 les diffuseurs conventionnels privés et publics à 20 recourir davantage à la production indépendante, compte 21 tenu de leur succès incontestable. Au Québec, ces 22 minima sont de toute façon dépassés volontairement par 23 les diffuseurs. TVA, par exemple, augmente 24 volontairement; elle doit donc être rentable. 25 1650 De plus, pour valoriser l'apport des StenoTran 381 1 diffuseurs conventionnels aux catégories 7, 8 et 9 2 d'émissions sous-représentées, nous préconisons que le 3 Conseil établisse un crédit de pourcentage majoré de 4 l'ordre de 150 pour cent pour les dramatiques dites 5 lourdes, les documentaires et les émissions pour 6 enfants; de 125 pour cent pour les téléromans plus, ou 7 super téléromans, et de 150 pour cent pour les 8 coproductions majoritaires. Ce crédit sera applicable 9 exclusivement aux émissions originales en première 10 diffusion. 11 1651 Nous souhaitons également que le CRTC 12 établisse des exigences seuls pour chaque catégorie 13 d'émissions sous-représentées, incluant les 14 documentaires, qui doivent nécessairement faire partie 15 de ces catégories; qu'il oblige les réseaux et les 16 grands groupes de stations à inscrire à leur horaire un 17 minimum de mini-séries et de fictions lourdes 18 canadiennes aux heures de grande écoute; qu'il incite 19 les diffuseurs conventionnels privés à inclure dans 20 leur offre de programmation canadienne à l'intention 21 des enfants une plus grande proportion de productions 22 originales canadiennes; et qu'il incite les diffuseurs 23 conventionnels à offrir une plus grande proportion de 24 documentaires canadiens. 25 1652 Par ailleurs, nous rappelons au StenoTran 382 1 Conseil l'importance du processus d'accréditation des 2 émissions canadiennes et les observations que, à cet 3 égard, nous lui avons fait parvenir en juillet dernier. 4 1653 Nous citons ici quelques points que 5 nous jugeons essentiels à l'obtention d'une 6 accréditation canadienne: que le producteur doit être 7 une société canadienne contrôlée par des Canadiens; que 8 l'analyse d'une série télévisuelle doit se faire sur 9 l'ensemble des épisodes de la série; que le Conseil 10 doit reconnaître comme canadiennes les émissions 11 composées principalement de séquences d'archives, 12 spécialement pour les documentaires; que des conditions 13 spéciales doivent être accordées pour les émissions 14 d'animation; et, finalement que le Conseil doit faire 15 preuve de souplesse dans la définition d'"interprètes 16 principaux et secondaires", principalement pour les 17 émissions de variétés. 18 1654 Deuxième point: les dépenses de 19 programmation canadienne. 20 1655 Les diffuseurs conventionnels privés 21 de langue française se distinguent à plusieurs égards 22 de leurs homologues de langue anglaise. Dans leurs 23 dépenses de programmation ils accordent une place plus 24 grande à la programmation canadienne et aux émissions 25 sous-représentées. Par ailleurs, ces mêmes diffuseurs StenoTran 383 1 privés produisent à l'interne une proportion beaucoup 2 plus importante de dramatiques que ne le font les 3 diffuseurs anglophones. Ces dépenses canadiennes ont 4 augmenté de quelque 13 pour cent depuis l'introduction 5 du Fonds de câblodistribution. 6 1656 Il importe de souligner que les 7 diffuseurs privés devenaient alors habilités à inclure 8 la proportion des droits de diffusion versés par ce 9 même fonds dans leurs dépenses de programmation 10 canadienne. Les revenus des diffuseurs conventionnels 11 privés, quant à eux, ont augmenté de 22 pour cent au 12 courant de cette même période. 13 1657 Nous croyons qu'afin d'assurer une 14 progression constante des dépenses de programmation 15 canadienne à l'antenne des diffuseurs francophones et 16 de garantir que les dépenses engagées au titre des 17 émissions canadiennes, en particulier les émissions 18 sous-représentées, soient appropriées et équitables, 19 l'APFTQ recommande que le Conseil s'assure que les 20 dépenses des diffuseurs conventionnels pour les 21 émissions canadiennes, en particulier les émissions 22 sous-représentées, correspondent à un pourcentage de 23 leurs revenus bruts et qu'il exige que les dépenses 24 engagées par ces diffuseurs au titre des émissions 25 canadiennes produites par le secteur de production StenoTran 384 1 indépendante augmentent au minimum au prorata de 2 l'augmentation de leurs revenus bruts. 3 1658 De plus, compte tenu de l'importante 4 utilisation des longs métrages dans les diverses 5 grilles de programmation des diffuseurs conventionnels 6 et du peu de place accordée aux longs métrages 7 canadiens, l'APFTQ recommande que le Conseil veille à 8 ce que la SRC alloue au moins 5 millions de dollars par 9 année à l'acquisition de droits de télédiffusion de 10 longs métrages cinématographiques canadiens et accepte 11 de considérer comme une dépense de programmation 12 l'investissement en capital des diffuseurs 13 conventionnels privés dans un long métrage canadien 14 pour salles produit par une entreprise indépendante. 15 1659 Troisième point: le rôle de la 16 télévision publique, particulièrement Radio-Canada. 17 1660 La télévision publique contribue à 18 assurer la présence de la culture canadienne à 19 l'ensemble des Canadiens qu'elle dessert. La Société 20 Radio-Canada particulièrement, par son mandat de 21 télévision généraliste, a toujours joué un rôle de chef 22 de file dans la programmation canadienne d'émissions 23 sous-représentées et a souvent tracé la voie aux autres 24 diffuseurs francophones. Le mandat de Radio-Canada se 25 doit d'être confirmé, et le Conseil doit s'assurer StenoTran 385 1 qu'elle a les moyens de le remplir adéquatement. 2 1661 En ce sens, l'APFTQ souhaite que le 3 Conseil s'assure que Radio-Canada accentue sa 4 programmation de contenu canadien de langue française, 5 contribue davantage à la production d'émissions qui 6 mettent en valeur de nouveaux talents dans une 7 diversité de genres, encourage le développement de 8 nouveaux concepts et de formats, c'est-à-dire 9 l'innovation, et diffuse plus d'émissions de catégories 10 sous-représentées aux heures de grande écoute; enfin, 11 sous réserve de l'exercice de droits de diffusion 12 distincts et de leur juste valeur marchande, que Radio- 13 Canada puisse se doter de services spécialisés 14 additionnels qui assureraient le rayonnement d'autres 15 types de contenu culturel et renforce son mandat 16 premier et maintienne son accès à des enveloppes 17 réservées pour compenser pour les coupures budgétaires 18 qu'ils ont subies. 19 1662 Quatrièmement, la structure 20 industrielle du système de radiodiffusion canadienne. 21 1663 Pour atteindre les objectifs de la 22 Loi sur la radiodiffusion, chacun des acteurs impliqués 23 dans le développement, la production, la diffusion et 24 la distribution des contenus télévisuels doit apporter 25 sa contribution à l'ensemble du système. Sa StenoTran 386 1 contribution doit tenir compte de la position qu'il 2 occupe, de la nature de ses activités et de ses moyens. 3 Si un secteur tente de se substituer à un autre, si une 4 catégorie d'entreprises tente de court-circuiter le 5 système, il en résultera inévitablement un déséquilibre 6 industriel susceptible d'entraîne un affaiblissement 7 important du système de radiodiffusion tout entier. 8 1664 Afin de s'assurer que le système de 9 radiodiffusion continue d'évoluer dans un environnement 10 équilibré, l'APFTQ demande à ce que le Conseil veille, 11 dans le cas de tout détenteur de licence de 12 télédiffusion, à limiter l'intégration verticale pour 13 qu'il ne soit pas à la fois producteur et diffuseur 14 d'émissions qu'il programme, comme vous l'avez déjà 15 fait pour les producteurs; qu'il restreigne 16 l'intégration horizontale quant à la propriété croisée 17 de licences de tout réseau conventionnel et de services 18 spécialisés à moins qu'il ne s'engage à ne pas produire 19 ou faire produire par une société affiliée les 20 émissions destinées à ces canaux spécialisés; qu'il 21 maintienne sa politique limitant la propriété de 22 stations de télévision hertziennes dans une langue et 23 dans un marché à une par société ou par groupe; qu'il 24 revoie ses règles d'accès des services spécialisés 25 canadiens de langue française à la câblodistribution; StenoTran 387 1 qu'il réglemente les tarifs des services spécialisés 2 distribués à l'étage; qu'il assure la distribution 3 canadienne des services spécialisés de langue française 4 là où se trouve un bassin d'auditoire potentiel; et 5 qu'il incite les câblodistributeurs à procéder 6 rapidement à la modification de la technologie pour 7 remédier au piratage des services de télévision à la 8 carte et à péage. 9 1665 Cinquième point, et non le moindre: 10 le financement de la production canadienne. 11 1666 L'industrie de la production 12 indépendante, vu la très grande popularité de ses 13 émissions de langue française, apporte une contribution 14 de premier plan au succès de la télédiffusion, mais son 15 financement demeure précaire. Le marché domestique est 16 restreint et la spécificité linguistique constitue un 17 frein majeur à une exploitation sur les marchés 18 étrangers, y compris ceux de la francophonie et de la 19 France plus particulièrement. 20 1667 L'APFTQ est hautement préoccupée par 21 la tendance des diffuseurs conventionnels privés à 22 diminuer leurs droits de diffusion et à vouloir 23 produire eux-mêmes, ou par le biais de leurs compagnies 24 affiliées, les émissions de divertissement. Les 25 mémoires déposés par le CAB et les diffuseurs StenoTran 388 1 francophones dans le cadre de ces audiences confirment 2 cette tendance. De même, leur insistance à obtenir 3 l'accès à tous les fonds de financement destinés à la 4 production indépendante inquiète grandement notre 5 industrie. Ces fonds au départ ont été créés pour 6 permettre l'émergence d'un secteur de production 7 indépendante fort et autonome afin d'assurer la 8 diversité de l'approvisionnement, c'est-à-dire la 9 source de programmation qui équilibre le privilège 10 exclusif accordé aux diffuseurs. 11 1668 Afin de maintenir une industrie de 12 production indépendante solide, saine et compétitive, 13 l'APFTQ recommande que le Conseil maintienne 14 l'accessibilité exclusive de la production indépendante 15 aux fonds privés et publics, exige des seuils minima de 16 droits de diffusion plus élevés en pourcentage du 17 budget de production des diffuseurs, régisse les 18 barèmes minima de licences versées pour les droits de 19 diffusion en territoires canadien, s'assure que les 20 investissements ne suscitent pas d'exigences 21 particulières quant aux droits d'exploitation des 22 émissions de la production indépendante québécoise et 23 limite la part d'investissements des diffuseurs de 24 sorte que la propriété de l'émission puisse continuer 25 d'appartenir aux producteurs indépendants. StenoTran 389 1 1669 Voici l'essentiel de la position de 2 l'APFTQ. Nous sommes maintenant disponibles à répondre 3 aux questions que vous voudrez nous adresser. 4 1670 Merci, 5 1671 LA PRÉSIDENTE: Merci, madame, 6 messieurs. 7 1672 Le conseiller Pennefather, s'il vous 8 plaît. 9 1673 CONSEILLÈRE PENNEFATHER: Merci, 10 Madame la Présidente. 11 1674 Bonjour. Merci pour votre 12 présentation. 13 1675 J'aimerais d'abord expliquer comment 14 je vais passer dans les questions mais j'aimerais aussi 15 faire appel aux commentaires de la présidente en 16 ouvrant cette session. Spécifiquement, je veux faire 17 appel à notre objectif principal ici aujourd'hui et 18 dans les prochaines semaines, c'est-à-dire de trouver 19 les meilleures approches pour garantir plus de 20 programmes, une meilleure qualité et un accroissement 21 du rendement de l'industrie dans son ensemble. 22 1676 En plus, Mme Wylie a souligné 23 l'importance de la distinction du marché francophone en 24 nous demandant de se pencher sur la question suivante: 25 Étant donné ce marché distinct mais limité, quelle est StenoTran 390 1 l'approche qui renforcera la capacité du système de la 2 radiodiffusion de financer la production des programmes 3 de langue française tout en assurant leur succès 4 financier dans les marchés domestiques et étrangers et 5 en servant les besoins des auditoires? 6 1677 Maintenant, c'est évident que, si on 7 tourne à votre mémoire, dans le sommaire exécutif, et 8 la présentation aujourd'hui, on constate que vous 9 choisissez certains éléments clés en donnant une 10 réponse à cette question. Alors le questionnement 11 aujourd'hui va passer sur ces points clés que vous avez 12 mentionnés aussi dans la présentation, et certainement 13 la première est le caractère distinct et restreint du 14 marché de la télévision de langue française. 15 1678 Je sais, surtout André, que vous avez 16 parlé de quelques détails de cette distinction, mais 17 j'aimerais qu'on prenne un moment juste pour faire le 18 point de cette réalité dans le contexte d'aujourd'hui 19 et de demain. Croyez-vous que cette reconnaissance du 20 caractère distinct du marché de langue française est 21 plus importante aujourd'hui? 22 1679 M. PICARD: Je crois que certainement 23 le CRTC, dans son invitation, a ouvert la porte, et 24 c'est pour ça que nous l'avons mentionné et nous 25 l'avons répété ce matin dans notre mémoire. Compte StenoTran 391 1 tenu de la convergence de l'industrie, de 2 l'introduction des nouvelles technologies, de services 3 de langue étrangère accrus dans le marché domestique, 4 et si on regarde simplement la pénétration du câble par 5 exemple au Québec, qui est assez stable depuis 6 plusieurs années, et l'introduction des services par 7 satellites canadiens et étrangers, il est essentiel de 8 bâtir sur nos succès -- c'est souligné par tout le 9 monde, il faut quand même se réjouir, surtout entre 10 nous, du succès de notre industrie -- mais regarder ses 11 forces et ses caractéristiques principales et s'assurer 12 qu'on ne les oublie pas. 13 1680 Alors pour moi la réponse est 14 simplement et clairement "oui". 15 1681 CONSEILLÈRE PENNEFATHER: Oui, parce 16 que je pense que tout le monde parle de succès, surtout 17 sur le côté de la programmation canadienne dans le 18 marché francophone, mais pour être précise -- parce que 19 je veux aller plus loin dans les propos que vous faites 20 spécifiquement pour le marché francophone -- qu'est-ce 21 qui a fait en sorte que cette programmation a cet 22 auditoire tellement fidèle? 23 1682 M. PICARD: Je pense que des fois ça 24 vaut la peine de se répéter des choses qui sont 25 évidentes, parce que c'est ça qui en fait le caractère StenoTran 392 1 distinct et c'est ce à quoi une télévision doit 2 contribuer, qu'elle soit publique ou privée, et c'est 3 la langue, la langue française, l'importance de cette 4 langue dans la culture, quelle soit la langue française 5 ou la langue anglaise. Je crois que c'est ce qui donne 6 un auditoire aussi fidèle. 7 1683 Par cette langue est passée la 8 création de contenus originaux, même des fois avec des 9 moyens beaucoup plus restreints, quoiqu'en général, que 10 ce soit nos producteurs, nos réalisateurs, nos auteurs, 11 ils trouvent, de par leur sens d'innovation et ce que 12 j'appellerais aussi de la débrouillardise, à créer une 13 programmation qui peut se comparer à des succès 14 internationaux et à des budgets qui des fois sont du 15 simple au double. Mais c'est ce qu'on appelle le 16 contenu des programmes, leur originalité, le système 17 des vedettes, le star system qui fait que... bon, il y 18 en a quelques-uns qui percent, des Céline Dion, des 19 André-Philippe Gagnon, mais pour chacune de ces 20 vedettes là qu'on découvre à travers le monde il y en a 21 10, 20, 30, 40 au Québec qu'on n'a à peu près pas 22 entendus à travers le monde et très peu entendus au 23 Canada anglais. On peut penser à 10 exemples, que ce 24 soit Rock et Belles Oreilles, Jean Lapointe, Gilles 25 Vigneault, à part dans des auditoires très, très StenoTran 393 1 limités. 2 1684 Donc cet avantage de la langue est 3 fondamental et primordial et il crée certaines 4 contraintes aussi vis-à-vis le peu de potentiel 5 d'exploitation aux marchés étrangers... même en France, 6 par exemple, parce que les Français ne parlent pas la 7 même langue que nous. Ils n'ont pas le même 8 vocabulaire, la même syntaxe, et là je ne parle même 9 pas des habitudes d'affaires ou de vie. 10 1685 CONSEILLÈRE PENNEFATHER: Je veux 11 revenir sur ce point parce que je sais que peut-être on 12 parle de choses évidentes, mais je pense que c'est très 13 important d'aller dans les détails examiner cette 14 réalité. Les questions que vous soulevez, on va y 15 revenir; c'est l'exportabilité des programmes, parce 16 qu'on parle de financement et certainement d'essayer de 17 continuer ce succès à l'avenir. 18 1686 En parlant de l'avenir, quelles sont 19 les priorités pour cet avenir de la programmation 20 française? 21 1687 M. PICARD: On l'a évoqué dans notre 22 mémoire de plusieurs façons, et je vais peut-être 23 laisser mes collègues compléter ce que je vais dire. 24 1688 Les priorités pour nous passent, bien 25 entendu, par les radiodiffuseurs puisqu'ils sont nos StenoTran 394 1 clients premiers et ils sont aussi un filtre, puisque 2 nos clients ultimes sont les téléspectateurs, mais 3 c'est d'assurer les conditions, je pense, d'un rapport 4 sain et d'un équilibre industriel, comme on l'appelle 5 dans notre mémoire. C'est différent un peu pour nous, 6 les radiodiffuseurs publics, parce que je crois que 7 dans toute industrie il y a des cycles, que ce soit des 8 cycles de concentration et de diversification; là, on 9 vit un cycle de convergence et de concentration. Il ne 10 faut pas oublier, je pense, nos objectifs premiers 11 quand on passe par ces cycles, et c'est de renforcer et 12 d'assurer que la télévision publique a les moyens pour 13 accomplir ses mandats. 14 1689 Je reviens aussi à votre question 15 précédente, qu'est-ce qui a fait que notre télévision 16 est un succès aujourd'hui. Je pense que c'est à cause 17 du rôle remarquable qu'a joué Radio-Canada dans les 18 années cinquante, dans les années soixante, dans les 19 années soixante-dix en termes d'innovation et de 20 programmation. 21 1690 Ce qui est étonnant, c'est qu'il y a 22 eu beaucoup d'innovation sans compétition avant même 23 que la télévision privée arrive, et c'est vrai aussi de 24 la télévision privée chez nous, cette innovation. 25 1691 Alors quand on donne des exemples de StenoTran 395 1 ce qui doit être préservé, c'est premièrement la 2 diversité, la diversité de l'offre, qui crée une saine 3 compétition, une émulation et une innovation. Je pense 4 que c'est le principe premier de l'ensemble de notre 5 mémoire. 6 1692 CONSEILLÈRE PENNEFATHER: Vous voulez 7 ajouter quelque chose? 8 1693 M. BLAIN: Non. 9 1694 CONSEILLÈRE PENNEFATHER: Non? Ça 10 va? 11 1695 En effet, est-ce que vous trouvez 12 maintenant qu'on a obtenu un niveau satisfaisant sur la 13 diversité de la programmation française? 14 1696 M. PICARD: On hésite toujours à 15 répondre "oui" dans ces audiences, je ne sais pas 16 pourquoi, mais je pense qu'avec l'introduction des 17 services spécialisés et le nombre de services 18 spécialisés francophones et leur contribution à la 19 programmation originale en complément de celle de la 20 télévision généraliste, ma réponse serait simplement 21 "oui". Je pense que dans les catégories sous- 22 représentées on a identifié certains points où il y a 23 une lacune, où on voudrait avoir une emphase 24 supplémentaire. Il y a des bonnes émissions, mais 25 surtout en documentaires et particulièrement en StenoTran 396 1 émissions jeunesse, qui fait encore la fierté de notre 2 télévision au Canada et à travers le monde, je pense 3 qu'il y a eu, compte tenu des pressions de coupures 4 budgétaires à la télévision publique et aussi du fait, 5 particulièrement au Québec en langue française, que les 6 émissions jeunesse ne peuvent pas avoir accès à la 7 publicité conventionnelle. Il y a eu un moins grand 8 approvisionnement, un moins grand nombre d'émissions, 9 même avec la création de services spécialisés comme le 10 Canal famille. Alors c'est pour ça qu'on met l'emphase 11 dans notre mémoire; je pense que la programmation 12 jeunesse vaut la peine qu'on s'y penche de façon 13 beaucoup plus large et aussi le documentaire, 14 particulièrement le documentaire d'auteur, puisque le 15 documentaire de série, qui des fois s'apparente aux 16 magazines, avec les services spécialisés et même les 17 télévisions conventionnelles a quand même une bonne 18 place. 19 1697 Je crois que ce sont les deux points 20 où il faut mettre une attention particulière. 21 1698 CONSEILLÈRE PENNEFATHER: On va 22 revenir sur ces points-là, mais une dernière question 23 d'ordre général pour être certains qu'on a bien 24 compris. 25 1699 Je prends pour acquis qu'on parle StenoTran 397 1 d'un marché francophone, une programmation française 2 pour la population francophone canadienne. 3 1700 M. PICARD: Oui. 4 1701 CONSEILLÈRE PENNEFATHER: C'est la 5 base de notre discussion. 6 1702 M. PICARD: À travers le pays. 7 1703 CONSEILLÈRE PENNEFATHER: À travers 8 le pays. Merci. 9 1704 Mme BAILLARGEON: D'ailleurs, 10 j'aimerais rajouter que c'est pour ça qu'on a appuyé la 11 demande de TVA de devenir un réseau national. 12 1705 CONSEILLÈRE PENNEFATHER: Justement. 13 Merci. 14 1706 J'aimerais maintenant aller sur 15 certaines questions précises. 16 1707 Comme vous l'avez entendu, l'ACR a 17 proposé que le Conseil établisse des objectifs pour 18 atteindre un certain niveau d'auditoire pour les 19 émissions canadiennes. Les télédiffuseurs auraient à 20 démontrer au Conseil comment ils contribueraient à 21 l'atteinte de ces objectifs. 22 1708 Que pensez-vous de l'utilité d'un tel 23 système pour la télédiffusion francophone? 24 1709 Mme BAILLARGEON: Écoutez, il est 25 difficile au Québec, surtout en langue française et StenoTran 398 1 surtout en télévision de langue française, où on a au 2 Québec des auditoires assez exceptionnels, qui sont à 3 peu près les auditoires les plus importants au prorata 4 de la population -- et on parle de la totalité de la 5 population de langue française au Canada -- au monde 6 pour certaines émissions, d'évaluer la performance ou 7 surtout d'imposer des critères d'évaluation basés 8 seulement sur la performance et les auditoires. Je ne 9 pense pas que ça pourrait répondre aux besoins de la 10 télévision de langue française. 11 1710 Pour nous, c'est évident qu'il y a 12 autre chose. Il y a la qualité des émissions à offrir 13 et le moment où l'on offre ces émissions qui est aussi 14 très important. 15 1711 Il est important de maintenir la 16 qualité des émissions qu'on a toujours offertes à notre 17 population de langue française, et on voit 18 tranquillement un certain glissement de la part des 19 diffuseurs où les séries lourdes, par exemple, qui sont 20 peut-être les séries les plus exportables, trouvent 21 moins d'intérêt chez les diffuseurs actuellement à 22 cause du coût, bien sûr, même si le coût en français 23 est du simple au double souvent par rapport aux coûts 24 de production en anglais pour les séries lourdes; les 25 diffuseurs sont de moins en moins intéressés à donner StenoTran 399 1 des droits... à acheter des licences de diffusion pour 2 les séries lourdes. 3 1712 Il s'en fait encore, Radio-Canada est 4 encore très présente dans la série lourde, mais on sent 5 chez les diffuseurs privés une tendance à aller plus au 6 téléroman plus ou à des séries qui sont beaucoup moins 7 coûteuses. Ça, c'est préoccupant parce que c'est le 8 genre d'émissions de langue française qui sont le plus 9 exportables à travers le monde. 10 1713 CONSEILLÈRE PENNEFATHER: Si je 11 comprends bien, si on était pour aller vers un tel 12 système, vous aurez les exigences en termes de 13 réglementation nécessaires pour que ce système n'ait 14 pas un résultat qui baisse la qualité et quantité de la 15 programmation française canadienne 16 1714 M. BLAIN: On a été un peu étonnés de 17 voir cette proposition-là parce que c'est un peu 18 dichotomique avec le discours du diffuseur, qui a la 19 responsabilité de programmer des émissions qui 20 conviennent aux attentes et aux besoin des 21 téléspectateurs, et la proposition remet finalement 22 dans les mains des téléspectateurs ce pouvoir de dire 23 de quelles émissions canadiennes ils ont envie. 24 1715 C'est assez particulier parce que, 25 pour les diffuseurs francophones, André l'a noté StenoTran 400 1 tantôt, ils n'ont aucun problème à aller au-delà des 2 minimums, des quotas imposés par le CRTC; même qu'ils 3 vont volontairement et allègrement au-delà des quotas 4 parce qu'on sait au Québec... enfin, on a appris au 5 Québec qu'il est possible de faire une télévision qui 6 ressemble à ce que les gens veulent voir. 7 1716 Les Québécois aiment beaucoup leur 8 télévision parce qu'on a fait de la télévision qui leur 9 ressemble, parce que les référants dans les émissions 10 ressemblent à ce que les Québécois veulent voir. Et 11 c'est assez étonnant que les collègues, que les 12 diffuseurs de langue anglaise au Canada nous disent que 13 les Canadiens ne veulent pas de contenu canadien alors 14 que partout dans le monde on sait que les contenus 15 nationaux, en fiction et dans d'autres genres, sont 16 toujours les contenus les plus populaires. Pourquoi ce 17 serait différent au Canada anglais? Au Québec, on fait 18 des contenus qui correspondent aux attentes de nos 19 nationaux. Pourquoi ce serait différent? 20 1717 Donc la responsabilité de programmer 21 des émissions qui conviennent aux téléspectateurs doit 22 toujours être dans les mains des diffuseurs et des 23 producteurs. C'est notre responsabilité de trouver les 24 formules d'émissions qui conviennent. Les quotas 25 canadiens n'ont jamais été pour nous des enfarges à la StenoTran 401 1 production et des enfarges à la qualité et au succès de 2 la télévision québécoise. 3 1718 CONSEILLÈRE PENNEFATHER: Alors vous 4 trouvez qu'il ne faut pas avoir d'objectifs 5 1719 M. BLAIN: Oui, bien sûr, il faut 6 avoir des objectifs. 7 1720 CONSEILLÈRE PENNEFATHER: Ah, bon. 8 1721 M. BLAIN: Je me suis peut-être mal 9 exprimé, mais il faut avoir de tels objectifs et il 10 faut les atteindre. De toute façon, il y a des lois 11 économiques qui nous imposent de les atteindre. 12 1722 CONSEILLÈRE PENNEFATHER: Et quel est 13 le rôle des producteurs en ce sens-là 14 1723 M. BLAIN: De faire des bonnes 15 émissions, de faire des émissions qui génèrent des 16 cotes d'écoute, de faire des émissions qui 17 fonctionnent. C'est notre rôle. 18 1724 CONSEILLÈRE PENNEFATHER: Alors, dans 19 un certain sens, c'est le même objectif, d'aller 20 chercher les auditoires. 21 1725 M. BLAIN: On le partage parfaitement 22 mais on veut quand même un maintien des quotas 23 d'émissions canadiennes. 24 1726 CONSEILLÈRE PENNEFATHER: C'est parce 25 que je pense qu'on a une discussion importante ici en StenoTran 402 1 termes de comment aller chercher des auditoires et 2 donner la flexibilité aux télédiffuseurs d'aller en 3 faire et en effet de trouver les moyens, on espère, de 4 financer la production. 5 1727 Alors est-ce que vous trouvez qu'il y 6 a moyen de donner plus de flexibilité aux 7 télédiffuseurs dans ce sens-là d'aller peut-être, comme 8 M. Lamarre a exprimé hier, chercher plus de rendement? 9 1728 M. PICARD: Si je peux revenir juste 10 deux secondes à votre question précédente, je pense 11 qu'il est louable, dans le mémoire du CAB, de l'ACR, de 12 se rappeler que c'est le téléspectateur que nous 13 desservons tous et peut-être de se donner des objectifs 14 parapluie. On ne peut pas être contre la vertu, donc 15 contre un désir d'augmenter le pourcentage atteint 16 d'écoute par les Canadiens de langue française et 17 anglaise des services canadiens et de la programmation 18 canadienne. Disons que je respecte ça et je trouve que 19 c'est une bonne idée de se donner des objectifs 20 d'affaires, comme dans une entreprise, collectivement 21 comme industrie. Quand on se rencontre dans un forum 22 comme celui-ci de façon aussi large en regardant des 23 grandes questions de politiques, on ne peut pas être 24 contre ça, et je pense que c'est une bonne idée. 25 1729 Que ça découle et que ça ait des StenoTran 403 1 conséquences pratiques dans une réglementation, je 2 pense que je trouve ça difficile. Comme certains de 3 mes collègues, ça me semble un défi de voir comment ça 4 peut avoir des conséquences qu'on pourrait mesurer sur 5 une base et en faire des promesses de performance 6 surtout puisqu'on dit que c'est global et que ce n'est 7 pas spécifique à chacun des fournisseurs de programmes. 8 1730 Encore une fois, personne ne peut 9 être contre la flexibilité, mais nous trouvons que les 10 télédiffuseurs ont quand même des moyens énormes et des 11 privilèges qui sont à leur portée. Si on parle juste 12 de TVA, avec le volume de production interne qu'ils ont 13 déjà -- et là, on ne parle pas simplement de nouvelles, 14 d'affaires publiques et de sports comme au Canada 15 anglais, mais pour les diffuseurs canadiens-français 16 ils font des émissions magazines, des émissions de 17 variétés, des séries de variétés, des séries de 18 magazines, de ce qu'on appelle en anglais des talk 19 shows et des dramatiques, des téléromans. 20 1731 Alors ils ont accès au crédit d'impôt 21 au fédéral, ils ont accès au Fonds des câblos. Vous 22 savez, on a mené une lutte de tous les instants le 23 printemps dernier pour qu'ils n'aient pas accès au 24 crédit d'impôt provincial et ils y ont maintenant accès 25 avec certaines restrictions qui ont été négociées avec StenoTran 404 1 la SODEC au Québec. Il nous semble aujourd'hui que, 2 dans l'équilibre des forces -- en anglais un level 3 playing field -- ce n'est quand même pas si mal quand 4 on regarde ce que ça leur permet de créer comme 5 infrastructure, base de capitalisation. 6 1732 C'est certain que les choses évoluent 7 vite; moi-même, je suis président d'une société qui est 8 une filiale d'un groupe dont le principal actionnaire 9 est maintenant une compagnie de téléphonie; c'est la 10 première. Donc il faut garder l'esprit ouvert, mais il 11 ne nous semble pas aujourd'hui qu'il y ait des 12 restrictions qui empêchent les télédiffuseurs 13 d'accomplir leur mandat premier. 14 1733 CONSEILLÈRE PENNEFATHER: En effet, 15 il y avait certains intervenants qui s'inquiètent du 16 phénomène de l'intégration verticale, qui amèneraient 17 un télédiffuseur à posséder des maisons de 18 distribution. L'ACR et certains télédiffuseurs 19 estiment que l'intégration verticale doit être permise 20 pour s'assurer que les télédiffuseurs demeurent 21 concurrentiels mais qu'il faudrait continuer d'encadrer 22 ce type d'intégration pour que les producteurs qui sont 23 vraiment indépendants aient autant de chance de 24 produire des émissions pour un télédiffuseur qu'un 25 compétiteur qui est possédé par le télédiffuseur. StenoTran 405 1 1734 Alors si l'intégration verticale est 2 rencontrée de façon telle que tous les producteurs ont 3 une chance égale de produire pour les télédiffuseurs, 4 verriez-vous un problème avec une intégration 5 verticale? 6 1735 M. PICARD: Ça, c'est l'essentiel 7 d'un des points de notre mémoire, de nos 8 représentations. Pour nous, il nous semble que le 9 niveau d'intégration a atteint une certaine limite, que 10 le diffuseur, surtout dans le marché francophone... le 11 marché peut évoluer peut-être de façon différente dans 12 le marché anglophone, mais dans le marché francophone 13 canadien, surtout pour nos diffuseurs privés, qu'ils 14 ont des bénéfices d'intégration réelle existants 15 aujourd'hui. Et, comme je vous le dis, ils font de la 16 dramatique, ils en font régulièrement. Cette 17 dramatique-là peut être financée par le Fonds des 18 câblos. 19 1736 Si vous regardez l'accès au crédit 20 d'impôt fédéral et au Fonds des câblos, c'est 21 essentiellement les diffuseurs francophones et c'est 22 essentiellement TVA qui lui fait appel. Alors je pense 23 qu'ils ont pu trouver une diversification des sources 24 de leurs revenus, qui est leur objectif d'affaires, 25 qu'on doit respecter, et que le gouvernement fédéral et StenoTran 406 1 que le gouvernement provincial du Québec les ont 2 soutenus dans cette démarche. Mais on croit qu'il y a 3 une limite, sans ça il y a une concentration de pouvoir 4 qui, nous croyons, n'est pas à l'avantage ultimement du 5 téléspectateur et de la diversification des sources 6 1737 M. BLAIN: Il y a une espèce de 7 distorsion actuellement dans l'industrie. Je pense 8 qu'il y a un équilibre qui est très précaire mais il y 9 a quand même une distorsion à savoir que les 10 diffuseurs -- et c'est quelque chose qu'ils ont 11 tendance à oublier eux-mêmes -- ont un privilège, les 12 diffuseurs ont une licence qui est donnée par le CRTC; 13 c'est donc un privilège que les producteurs n'ont pas. 14 1738 Quand les producteurs ont commencé 15 timidement à s'intéresser à la diffusion, on leur a mis 16 des barrières à l'entrée, on leur a fait promettre de 17 ne pas être des clients privilégiés, et actuellement 18 les diffuseurs qui veulent s'intégrer verticalement ne 19 voudraient surtout pas avoir de limites. Ils le sont 20 déjà dans certains cas; au Canada français, ils le sont 21 déjà. Il n'y a aucune restriction pour les diffuseurs 22 à l'intégration verticale. Il faut qu'il y en ait, il 23 faut qu'il y ait des limites, sinon on va déséquilibrer 24 le système, qui est très précaire. 25 1739 Souvenons-nous aussi que, par StenoTran 407 1 exemple, le Broadcast Fund, qui date de 1983, c'est un 2 fonds qui a été très utile, qui a lancé la production 3 indépendante au Canada et qui a été mis sur pied 4 justement pour rétablir cette espèce d'équilibre entre 5 la diffusion et la production. 6 1740 Maintenant, tantôt j'écoutais mon 7 collègue MacMillan qui parlait d'éviter à tout prix des 8 relations privilégiées entre les diffuseurs et les 9 producteurs. C'est ce qui devrait animer toute la 10 réglementation, d'éviter le déséquilibre des forces en 11 laissant s'établir un phénomène de relations 12 privilégiées entre diffuseurs et producteurs. 13 1741 Je pense que le discours de MacMillan 14 convient parfaitement, peut-être pas... à des degrés 15 différents parce que, pour nous, on ne va pas aussi 16 loin que 50 pour cent dans les propriétés croisées, 17 mais le principe devrait toujours être de tenir compte 18 du privilège qu'ont les diffuseurs et de tout faire 19 pour maintenir un équilibre des forces en présence. 20 1742 Mme BAILLARGEON: J'aimerais peut-être 21 juste rajouter que la situation est exacerbée au Québec 22 parce qu'on n'a que deux télédiffuseurs conventionnels 23 privés et les deux sont intégrés à des degrés 24 différents. Le plus gros est intégré verticalement, 25 je veux dire, c'est presque un oligopole; c'est le StenoTran 408 1 câblo, c'est le diffuseur, c'est la maison de 2 production affiliée qui a accès à différents fonds. 3 Alors la situation est beaucoup plus exacerbée en 4 langue française qu'elle ne peut l'être en langue 5 anglaise. 6 1743 CONSEILLÈRE PENNEFATHER: Dans ce 7 sens-là, quels moyens concrets... le Conseil devrait 8 obtenir une certitude qu'en effet le télédiffuseur 9 garantira des droits distincts pour l'acquisition et la 10 production des émissions? Qu'est-ce qu'on peut faire 11 pour continuer d'avoir une certitude qu'il y aura un 12 secteur indépendant de production? Et, en faisant ça, 13 peut-être que vous pouvez nous donne une définition 14 clair de ce que c'est, la production indépendante. 15 1744 Mme BAILLARGEON: Premièrement, je 16 vais vous donner la définition que nous adoptons à 17 l'association pour définir la production indépendante. 18 Un producteur indépendant est une société de production 19 qui n'est pas détenu à plus de 33 1/3 pour cent par un 20 diffuseur ou qui ne détient pas plus que 33 1/3 pour 21 cent des actions, votantes dans les deux cas, du 22 diffuseur. C'est notre définition. 23 1745 Par rapport à l'intégration 24 verticale, le CRTC aura à statuer pour un certain 25 nombre de demandes de chaînes spécialisées qui StenoTran 409 1 proviennent des diffuseurs conventionnels. Ce que nous 2 préconisons pour maintenir l'équilibre du système, 3 c'est que si ces diffuseurs obtiennent les licences de 4 canaux spécialisés, que les sociétés de production 5 affiliées aux mêmes diffuseurs conventionnels ne 6 puissent pas produire pour la chaîne spécialisée. 7 1746 M. PICARD: Juste pour compléter, je 8 pense que c'est en partie vrai pour le marché 9 anglophone, mais pour le marché francophone, que ce 10 soit les parts d'investissement ou les droits de 11 distribution, dont on parle beaucoup aujourd'hui, il 12 est tellement difficile d'établir dans le marché 13 canadien-français la juste valeur marchande d'une 14 licence, c'est-à-dire quel est le prix... puisque ce 15 n'est pas, honnêtement, vraiment un marché très 16 compétitif. Comme on le dit, il y a deux joueurs 17 principaux au niveau de la radiodiffusion qui, 18 aujourd'hui, font des dramatiques. Si on prend la 19 dramatique, par exemple, Télé-Québec a arrêté de faire 20 de la dramatique il y a trois ou quatre ans, TQS il y a 21 deux ans; il n'y a que TVA et Radio-Canada. Alors dire 22 qu'une juste valeur marchande d'une licence s'établit, 23 c'est très difficile. 24 1747 Alors, à partir de ce moment-là, même 25 si, comme l'a suggéré un certain membre du CFTPA, on StenoTran 410 1 établit une négociation distincte pour l'investissement 2 ou une négociation distincte pour les droits de 3 distribution, c'est très difficile de faire la part des 4 choses, d'après moi, dans le marché canadien en 5 général, mais particulièrement dans le marché 6 francophone. 7 1748 Alors je pense que le CRTC, quant à 8 nous, si on se permet d'insister, doit aller jusqu'à un 9 certain moment dire qu'il n'est peut-être pas question 10 que des droits de distribution soient possédés par un 11 télédiffuseur en dehors du marché national et 12 domestique. 13 1749 Encore une fois, nous, on intervient 14 surtout en langue française. Je vous donne un exemple: 15 TVA a décidé de faire une série de téléfilms de langue 16 anglaise. Ils ont établi une filiale de TVA 17 International à Vancouver et ils produisent une demi- 18 douzaine de films. On n'a pas de marge là-dessus. Là- 19 dessus, ils détiennent 100 pour cent des droits de 20 distribution, des droits d'exploitation, ils le font 21 avec des partenaires; donc ils sont devenus un 22 producteur. Nous, on regarde le marché francophone 23 aujourd'hui, parce que c'est là-dessus qu'on s'est 24 concentrés, et on se dit qu'il faut vraiment être très 25 vigilants pour maintenir le minimum de potentiel de StenoTran 411 1 capitalisation et de diversification des sources de 2 revenus du producteur indépendant, qui est très limité 3 comparé au diffuseur. 4 1750 CONSEILLÈRE PENNEFATHER: On peut 5 revenir peut-être plus tard, mais vous avez mentionné 6 au début, Madame Baillargeon, dans votre mémoire 7 aujourd'hui que vous appuyez le mémoire de CFTPA, mais 8 étant donné que le marché francophone est un marché 9 distinct, différent, j'aimerais faire le point sur les 10 aspects différents que vous proposez pour le marché 11 francophone, parce que même si on est d'accord avec les 12 propos de CFTPA, j'imagine qu'il y a des différences 13 importantes à souligner. 14 1751 On peut passer sur les points précis 15 que vous avez proposés, si vous voulez bien. 16 1752 Mme BAILLARGEON: Juste avant, 17 j'aimerais préciser que nous appuyons le mémoire de 18 CFTPA en ce qui concerne la télévision de langue 19 anglaise. Pour nous, ça ne s'applique pas à la 20 télévision de langue française. 21 1753 CONSEILLÈRE PENNEFATHER: Commençons 22 alors avec le contenu canadien. À la page 4 de votre 23 mémoire vous souhaitez, et je cite: 24 1754 "... s'applique également pour 25 les émissions de langue StenoTran 412 1 française, comme pour celles de 2 langue anglaise, la 3 recommandation visant à ce que 4 les investissements des 5 télédiffuseurs qui se qualifient 6 au bonus canadien du Programme 7 de droits de diffusion du 8 FTCPEC..." 9 -- sauf, j'imagine, changer le nom -- 10 1755 "... puissent être inclus dans 11 leurs dépenses de programmation 12 sous réserve que, i) des droits 13 de diffusion minima de 25%, 14 excluant tout investissement, 15 aient été versés, ii) que 16 l'investissement ne soit pas 17 supérieur à 40% des droits de 18 diffusion et à 20% du budget de 19 production total et iii) que le 20 contrôle effectif de la 21 production demeure entre les 22 mains du producteur." 23 1756 La politique actuelle du Conseil 24 telle qu'établie dans l'avis public CRTC 1993-93 25 stipule que, et je cite: StenoTran 413 1 1757 "Qu'en règle générale les 2 activités réglementées d'une 3 titulaire de licence de 4 radiodiffusion ne doivent pas 5 englober ni les bénéfices ni les 6 pertes qui peuvent résulter de 7 ces investissements en capital 8 dans ces émissions. Par 9 conséquent, les investissements 10 en capital des titulaires de 11 licences de télévision ne 12 peuvent être considérés comme 13 des dépenses au titre des 14 émissions canadiennes aux fins 15 de l'application de la formule. 16 Cependant, le Conseil est 17 conscient de l'importance des 18 investissements en capital dans 19 la production des émissions 20 canadiennes, plus 21 particulièrement pour le secteur 22 indépendant. Par conséquent, 23 afin d'inciter des 24 télédiffuseurs à en venir à des 25 ententes relatives à des StenoTran 414 1 investissements en capital avec 2 les producteurs indépendants, 3 les pertes liées aux 4 investissements en capital dans 5 les productions indépendantes 6 d'émissions canadiennes avec des 7 sociétés sans lien de dépendance 8 peuvent être calculées dans les 9 obligations de la titulaire 10 relative aux dépenses." (Tel que 11 lu) 12 1758 À la lumière de cette politique, 13 veuillez expliquer pourquoi serait-il maintenant dans 14 l'intérêt public de permettre qu'une activité non 15 réglementée, c'est-à-dire les investissements en 16 capital dans des émissions, soient incluses parmi les 17 activités réglementées, c'est-à-dire les exigences sur 18 les dépenses en émissions canadiennes, et comment votre 19 proposition pourrait-elle bénéficier davantage aux 20 producteurs indépendants que, disons, les droits de 21 diffusion? 22 1759 M. PICARD: Les diffuseurs sont nos 23 partenaires et ils nous ont fait part de leur intérêt à 24 l'occasion, pour certains projets, d'aller au-delà de 25 leur licence, que ce soit en dollars absolus ou en StenoTran 415 1 proportion des budgets de production pour innover, 2 aller plus loin. C'est un peu le propos, par exemple, 3 de TVA dans le cas d'avoir accès au crédit d'impôt 4 provincial; une grande partie de leur argumentation 5 était basée sur le fait qu'ils voulaient valoriser leur 6 programmation, leur production interne vis-à-vis la 7 production indépendante. 8 1760 Alors si on les prend au mot et 9 qu'ils veulent innover en termes de production et de 10 programmation, et veulent le faire en partenariat avec 11 le secteur indépendant, ils nous disent qu'ils veulent 12 valoriser, augmenter leur part, leur participation au 13 financement. 14 1761 À partir de ce moment-là, on dit: Si 15 telle est leur intention, comment est-ce qu'on peut 16 reconnaître cette contribution-là, qui est réelle, qui 17 permet de faire de nouveaux programmes ou de faire des 18 programmes existants différemment? C'est en 19 reconnaissant cette part d'investissement de la même 20 façon que l'est aujourd'hui celle de la licence. 21 1762 Alors c'est une tentative d'être 22 souple en partenariat avec eux pour reconnaître leur 23 contribution. 24 1763 CONSEILLÈRE PENNEFATHER: Si le 25 Conseil permettait que les investissements en capital StenoTran 416 1 soient maintenant considérés comme dépenses en 2 émissions canadiennes éligibles, on devrait examiner 3 quatre points, je pense. 4 1764 En premier lieu, dans la mesure où de 5 tels investissements peuvent générer des retours en sus 6 des récupérations de l'investissement, comment 7 proposez-vous de traiter les retours s'il y a lieu? 8 Serait-il logique d'assumer que de tels retours 9 représenteraient une sorte de recouvrement de coûts par 10 lesquels les sommes dépensées sur les émissions 11 canadiennes seraient réduites par une somme équivalente 12 au retour? 13 1765 M. PICARD: Je pense que c'est un bon 14 point, et le Groupe Coscient, dans son mémoire, a fait 15 état qu'eux autres, ils suggèrent que ce soit les 16 pertes qui soient comptabilisées comme contribution. 17 C'est une solution simple mais qui retarde peut-être la 18 reconnaissance, parce que combien de temps on attend 19 avant de déclarer la perte quand l'investissement a 20 peut-être été fait une année et les revenus s'étendent 21 sur cinq ans? Je pense que c'est une formule qu'il 22 faudra regarder, et on pourra peut-être revenir au CRTC 23 avec une suggestion spécifique. 24 1766 CONSEILLÈRE PENNEFATHER: Peut-être 25 aussi, en deuxième lieu, une autre question. Est-ce StenoTran 417 1 que les pertes sur lesdits investissements continuent à 2 être éligibles pour déterminer les contributions aux 3 dépenses sur les émissions canadiennes? Peut-être que 4 vous voulez revenir sur ce point aussi. 5 1767 Alors je vous donnerai deux autres 6 points de détail sur ce propos. 7 1768 Troisièmement -- et ceci est une 8 question de synchronisation, puisque les 9 investissements surviendraient probablement au cours 10 d'une période différente de celle durant laquelle 11 l'émission serait diffusée, s'il y a lieu -- 12 proposerez-vous que les investissements soient 13 considérés seulement dans les cas où l'émission est 14 réalisée et diffusée par le télédiffuseur ou seraient- 15 ils reconnus durant la période où l'investissement est 16 fait sans regard à la diffusion? 17 1769 Et, finalement, est-ce que ces 18 investissements en capital dans les DEC seraient 19 limités strictement aux producteurs sans lien de 20 dépendance avec les télédiffuseurs? 21 1770 Je pense que c'est important parce 22 que c'est un changement fondamental, je trouve, dans 23 l'approche que vous proposez concernant les obligations 24 et les possibilités pour l'investissement dans la 25 production indépendante. StenoTran 418 1 1771 M. PICARD: Oui. Comme je vous l'ai 2 dit au départ, nous y allons avec un peu de réserve 3 compte tenu du problème d'établissement de la juste 4 valeur marchande, mais pour réagir rapidement, peut- 5 être quitte à vous faire parvenir une réflexion un peu 6 plus approfondie, il est exceptionnel qu'une 7 émission... peut-être des pilotes, parce que ça sert à 8 ça, mais il est exceptionnel -- je ne sais même pas si 9 c'est arrivé une fois -- qu'une série ne soit pas 10 diffusée, surtout une série de production originale; 11 c'est peut-être arrivé une ou deux fois. Elle est 12 éventuellement toujours diffusée, mais des fois peut- 13 être pas dans le créneau horaire prévu au départ si 14 tout à coup elle n'a pas eu de succès pendant ses 15 premières diffusions. 16 1772 Il me semble naturel que ce soit lié 17 à la diffusion, et je ne crois pas que ce soit un 18 problème puisqu'essentiellement toutes les émissions 19 dans lesquelles, je pense, un diffuseur investit ou 20 fait un pré-achat sont diffusées. 21 1773 Pour la deuxième partie.. 22 1774 M. BLAIN: Il y aurait peut-être un 23 autre élément aussi. C'est étonnant que nous ayons 24 fait une telle proposition, mais nous voulons rappeler 25 que, depuis quelques années, le niveau de licences des StenoTran 419 1 diffuseurs n'a jamais arrêté de baisser. Il y a une 2 époque où Téléfilm imposait un minimum de 30 pour cent. 3 Depuis ce temps-là, c'est passé à 20 et, d'après nos 4 chiffres, qu'on peut vous fournir si vous le voulez, le 5 niveau de licences des diffuseurs depuis trois ou 6 quatre ans n'a jamais cessé de diminuer. 7 1775 Alors pour nous c'est une façon 8 d'essayer de les ramener parce que, évidemment, les 9 exigences seuils décrétées par les nouveaux fonds 10 deviennent toujours des maxima. Alors avec le Fonds 11 des câblos qui est à 20 pour cent, c'est à la fois le 12 plancher et le plafond. Tout le monde bloque à 20 pour 13 cent; c'est la norme. Donc, pour nous, c'est une façon 14 d'essayer de ramener un peu d'argent parce que dans la 15 proposition aussi on parle d'un minimum de 25 pour 16 cent. Quant à nous, c'est un gain de 5 pour cent, et 17 pour ce gain de 5 pour cent par rapport au 20 pour cent 18 on est prêts à faire un peu de place dans le capital du 19 projet. 20 1776 Cette innovation-là, on la fait un 21 peu en se marchant sur le coeur; c'est parce qu'on n'a 22 pas le choix: les licences n'ont jamais cessé de 23 diminuer. 24 1777 CONSEILLÈRE PENNEFATHER: C'est 25 pourquoi je pense que c'est important qu'on aille en StenoTran 420 1 détail, parce que c'est clair, si j'ai bien compris 2 dans l'intervention que vous avez faite, que vous 3 mettez beaucoup d'emphase sur le financement dans la 4 production indépendante étant donné la situation 5 spécifique francophone en termes d'auditoire, en termes 6 de placement, en termes de présence de la programmation 7 francophone sur les ondes, mais quand même il faut 8 qu'on voie le système dans sa totalité aussi. Je pense 9 que notre discussion tantôt était un peu sous le même 10 angle, c'est-à-dire: en supportant plus d'argent, plus 11 de financement pour le secteur de la production 12 indépendante, est-ce qu'on force que le risque en 13 production soit remis au télédiffuseur? 14 1778 Alors je trouve que c'est sur ça 15 qu'on veut aller voir l'équilibre et les moyens 16 nécessaires pour faire ça. 17 1779 Par exemple, vous proposez que le 18 CRTC exige que les dépenses engagées par les diffuseurs 19 conventionnels privés pour l'achat des émissions 20 indépendantes, et en particulier les émissions de 21 divertissement, augmentent au minimum au prorata de 22 l'augmentation de leurs revenus bruts. C'est aux pages 23 2 et 11 de votre mémoire, 2 dans le sens de 24 l'introduction. 25 1780 Avez-vous un modèle à proposer à cet StenoTran 421 1 égard? 2 1781 M. BLAIN: Pour nous, partons de ce 3 que nous connaissons aujourd'hui parce que, comme l'a 4 souligné le CAB, célébrons notre succès, et dans le 5 cadre réglementaire établi par le CRTC il y a des 6 dépenses qui sont faites aujourd'hui, il y a une part 7 quand même importante de la production indépendante à 8 l'antenne des radiodiffuseurs. Alors partons des 9 proportions existantes. 10 1782 Pour nous, honnêtement, de vous 11 donner un chiffre, un pourcentage spécifique, c'est un 12 peu difficile parce que -- c'est un des points de notre 13 mémoire aussi -- il n'y a pas une parfaite transparence 14 des contributions des diffuseurs dans leur ensemble. 15 Chaque producteur le sait pour sa production, Téléfilm 16 l'a pour toutes les productions dans lesquelles 17 Téléfilm participe, la SODEC l'a pour toutes les 18 productions dans lesquelles la SODEC participe, mais il 19 n'y a pas de chiffres clairs, indéniables et précis 20 pour l'ensemble de production des contributions à 21 licences puisqu'il y a des productions indépendantes 22 qui ne font appel qu'aux crédits d'impôt et à la 23 licence, il y a même des productions indépendantes qui 24 ne font appel qu'à la licence du diffuseur. 25 1783 Alors, que ce soit pour Radio-Canada, StenoTran 422 1 TVA ou d'autres diffuseurs, il faut travailler en 2 collaboration avec eux et, on le suggère, avec le CRTC 3 pour établir ces chiffres, même si certaines données 4 doivent rester confidentielles. Je crois que c'est un 5 rôle qui reviendrait peut-être au CRTC, à moins que les 6 diffuseurs décident de mettre ces chiffres-là sur la 7 table simplement. 8 1784 CONSEILLÈRE PENNEFATHER: Vous n'avez 9 pas un pourcentage en tête à ce moment-ci? 10 1785 M. BLAIN: Non. Il est plus élevé 11 que les diffuseurs de langue anglaise, bien entendu; 12 donc ce n'est pas 10 puisque déjà c'est de beaucoup 13 supérieur. Mais vous donner un chiffre spécifique, 14 malheureusement... 15 1786 CONSEILLÈRE PENNEFATHER: Ni 7, ni 16 13. 17 1787 M. BLAIN: Au moins, oui, mais ces 18 chiffres-là doivent être faits en collaboration avec 19 les radiodiffuseurs. 20 1788 CONSEILLÈRE PENNEFATHER: Mais est-ce 21 que cette proposition de pourcentage, qu'on va peut- 22 être trouver à un moment donné, s'appliquerait à tous 23 les télédiffuseurs, grands et petits? 24 1789 M. BLAIN: La notion de programmation 25 locale, je pense, n'a pas le même sens au Canada StenoTran 423 1 français qu'au Canada anglais. Alors je pense qu'il y 2 en a de moins en moins puisqu'il y a une consolidation 3 des réseaux. 4 1790 Ce n'est pas ça, votre question? 5 1791 CONSEILLÈRE PENNEFATHER: Je pense 6 que la question est plutôt vers, comme l'avait proposé 7 le CFTPA, le niveau de revenus d'une entreprise de 8 diffusion. Je pense que du côté CFTPA on a parlé de 10 9 millions de revenus et on a aussi insisté pour que les 10 conditions de dépenses et d'exhibition, diffusion, 11 seront appliquées aux stations dans un groupe qui ont 12 moins de 10 millions de dollars de revenus aussi. 13 Alors c'est dans ce sens-là qu'on se demande la 14 question est-ce que c'est la même approche. 15 1792 M. PICARD: Peut-être qu'il manque 16 une partie de l'équation que j'avais commencé à vous 17 exprimer tantôt, c'est-à-dire que, simultanément à la 18 diminution des licences dans les projets francophones, 19 nos études nous démontrent qu'il y a une augmentation 20 des revenus chez les diffuseurs. Alors, sans la 21 chiffrer, l'augmentation est là. Il y a eu une 22 augmentation annuelle des revenus chez les diffuseurs 23 qui est inversement proportionnelle à la diminution 24 dans les licences. Alors, si on allait chercher cette 25 augmentation-là, on a la réponse. StenoTran 424 1 1793 CONSEILLÈRE PENNEFATHER: Si, en fin 2 de compte, on arrive à une proposition, que proposerez- 3 vous comme échéancier pour l'application de ce 4 pourcentage sur les revenus? Est-ce que ça va être 5 sur, comme on a dit en anglais, un ramp-up ou est-ce 6 que ça va être mis en place tout de suite, 7 immédiatement? 8 1794 M. PICARD: Aujourd'hui, quitte à 9 simplifier un peu, en langue française on a les 10 services spécialisés qui font la totalité de leur 11 production originale avec la production indépendante, 12 et ça représente je pense jusqu'à 40 pour cent de leur 13 budget. On ne demande pas une augmentation, on demande 14 simplement que les nouveaux services spécialisés 15 respectent les mêmes proportions. 16 1795 Pour ce qui est de la télévision 17 généraliste, pour nous, la contribution aujourd'hui, 18 elle est satisfaisante. On veut éviter qu'elle recule. 19 Il faudra voir s'il faut l'augmenter, mais le seuil 20 existant aujourd'hui est, pour l'ensemble de nos 21 membres, je pense, assez satisfaisant. 22 1796 Il n'y a pas la même mécanique parce 23 que, pour la production indépendante du Canada anglais 24 comme je la comprends, l'accroissement de l'offre 25 générale au public, eux la voient augmenter avec StenoTran 425 1 l'accroissement de l'offre par la production 2 indépendante. Pour nous, l'offre de la programmation 3 canadienne de langue française aujourd'hui est déjà à 4 un niveau très satisfaisant qui dépasse même les minima 5 du CRTC. Alors on ne partage pas les mêmes nécessités 6 d'augmenter l'ensemble de notre contribution. 7 1797 CONSEILLÈRE PENNEFATHER: Je vois 8 l'heure; j'aimerais me pencher vers une autre question, 9 mais je voulais juste être certaine, sur le dernier 10 point, que vous m'avez bien comprise. 11 1798 Si on a retrouvé un pourcentage que 12 les télédiffuseurs devraient augmenter au minimum au 13 prorata de l'augmentation de revenus bruts, si on 14 trouve une réponse à cette question, si on trouve un 15 pourcentage, est-ce que c'est votre idée de faire en 16 sorte que ce pourcentage serait en vigueur 17 immédiatement ou pourrait-il être implanté 18 graduellement? 19 1799 M. PICARD: Non. Nous, on pense tout 20 simplement que c'est une façon qui est un principe 21 d'affaires, qui est simple de calcul et qui pourrait 22 être mis en vigueur immédiatement et, pour répéter 23 peut-être ce que j'ai dit, qui n'aurait pas besoin 24 nécessairement d'augmenter. On voit je pense trop 25 souvent les collaborations entre diffuseurs et StenoTran 426 1 producteurs indépendants comme, comme le dit Michael 2 MacMillan, a non-zero sum game, pour que quelqu'un 3 gagne il faut que l'autre perde. Non. Je pense que 4 chacun a ses sphères d'influence, chacun a son plan 5 d'affaires, et nous sommes relativement contents des 6 équilibres qui existent aujourd'hui. 7 1800 CONSEILLÈRE PENNEFATHER: Et si on a 8 ce pourcentage de revenus, quel sera l'impact sur la 9 production indépendante, sur le nombre de programmes de 10 qualité disponibles pour les auditoires francophones? 11 Je voulais juste être certaine du but que vous avez 12 pour cette recommandation en termes de qualité, en 13 termes de nombre d'émissions, en termes de financement 14 du secteur en général. 15 1801 M. PICARD: Nous, on veut que ça 16 complémente, que ça ne remplace pas les exigences au 17 niveau du nombre d'heures; comme on vous l'a dit, le 18 baser sur le marché tel qu'il existe aujourd'hui. 19 C'est une autre mesure qui est en fait beaucoup plus 20 simple et qui dépasse simplement le calcul dans 21 différents genres de programmes mais qui est une mesure 22 facilement appréciable pour le diffuseur, qui fait 23 partie de données publiques pour les sociétés, qu'elles 24 soient privées ou publiques. Alors c'est simplement 25 comme ajouter une mesure aujourd'hui qui est globale. StenoTran 427 1 1802 Concrètement, je ne pense pas que ça 2 va changer le niveau de la qualité. 3 1803 CONSEILLÈRE PENNEFATHER: Et le 4 nombre d'émissions canadiennes disponibles, est-ce que 5 ça va changer ça? 6 1804 M. PICARD: Non, puisqu'on le base 7 sur les données actuelles. 8 1805 CONSEILLÈRE PENNEFATHER: C'est parce 9 que, si tout va bien, pourquoi avoir ce nouveau 10 règlement? 11 1806 Mme BAILLARGEON: L'objectif pour nous 12 est simple, c'est de maintenir ce qui se passe 13 actuellement, de maintenir l'équilibre entre la 14 production indépendante et la production faite à 15 l'interne chez les diffuseurs. Comme il y a une 16 tendance et qu'on l'a vu dans le mémoire du CAB qu'il y 17 a une volonté de produire de plus en plus à l'interne 18 et d'avoir accès de plus en plus à des fonds destinés à 19 la production indépendante, ce qu'on souhaite, c'est de 20 maintenir cet équilibre-là et on propose différents 21 moyens pour le maintenir. 22 1807 M. PICARD: Pour répondre à votre 23 question peut-être plus clairement, c'est que des 24 audiences comme celles-ci, ou que ce soit les audiences 25 de renouvellement de licences, arrivent une fois tous StenoTran 428 1 les dix ans, au minimum à tous les trois ans; la mesure 2 du pourcentage des revenus bruts se fait annuellement 3 sans l'intervention du CRTC une fois que le pourcentage 4 a été inscrit, tandis que le nombre d'heures établi 5 dans le passé, l'investissement par nombre d'heures au 6 total était fixe. 7 1808 Là, on se trouve à créer un système 8 souple qui évolue avec l'industrie et avec ses 9 partenaires, où on n'a pas besoin de se retrouver dans 10 un cadre réglementaire pour dire: Est-ce que les 11 conditions de licence ont été respectées en nombre 12 d'heures, est-ce que les revenus ont augmenté ou non? 13 Et, bien entendu, si les revenus baissent, le 14 pourcentage reste fixe, la contribution baisse. Donc, 15 pour citer les télédiffuseurs, pour nous, c'est la 16 mesure la plus flexible qui soit. 17 1809 Comme aujourd'hui déjà on trouve 18 qu'on contribue en partenariat des émissions qui sont 19 diversifiées, qui sont de qualité, de divers ordres, ça 20 va faire continuer ce partenariat-là mais créer un 21 mécanisme de calcul simple et objectif. 22 1810 Mme BAILLARGEON: Il y a aussi un 23 partage de risque à ce moment-là si les émissions 24 produites par le secteur indépendant fonctionnent bien 25 à la télévision, génèrent des revenus additionnels pour StenoTran 429 1 le diffuseur, le producteur en bénéficie. Si les 2 émissions ne marchent pas et les revenus baissent, les 3 producteurs indépendants vont également partager ce 4 risque à ce moment-là. 5 1811 CONSEILLÈRE PENNEFATHER: Je pense 6 qu'on peut aller sur une autre question et ensuite 7 prendre notre break de lunch. 8 1812 J'aimerais maintenant discuter de 9 votre proposition qui vise à favoriser la diffusion 10 d'émissions indépendantes canadiennes dans les 11 catégories sous-représentées et, par le fait même, vise 12 à encourager les télédiffuseurs à faire davantage appel 13 aux producteurs indépendants. 14 1813 Avant de se pencher sur le modèle que 15 vous proposez, j'aimerais juste rappeler 16 qu'actuellement seules les émissions dramatiques 17 canadiennes admissibles diffusées pendant les heures de 18 grande écoute bénéficient d'un crédit de 150 pour cent. 19 De votre côté vous proposez que les émissions 20 originales en première diffusion produites par le 21 secteur indépendant bénéficieraient des crédits 22 suivants: à 150 pour cent dramatiques lourdes, 23 documentaires, émissions pour enfants, coproductions 24 majoritaires, et à 125 pour cent téléromans plus. 25 Votre homologue anglophone, le CFTPA, propose une StenoTran 430 1 approche différente pour le marché anglophone, c'est-à- 2 dire le modèle 10/10/10. 3 1814 Votre suggestion s'applique-t-elle 4 seulement au marché francophone ou au système de 5 radiodiffusion dans son ensemble? 6 1815 Mme BAILLARGEON: Seulement au système 7 francophone, et nous avons spécifié en début de mémoire 8 que, pour nous, il est important de distinguer les deux 9 marchés et d'accorder des traitements différents aux 10 deux marchés. Ils sont vraiment différents. Et ça 11 vaut également pour Radio-Canada. 12 1816 CONSEILLÈRE PENNEFATHER: Cette 13 proposition d'allouer des crédits supplémentaires pour 14 les catégories sous-représentées s'applique, si j'ai 15 bien compris, seulement dans le cas des émissions 16 produites par le secteur indépendant. Qu'en est-il des 17 émissions produites à l'interne? Pour être équitables, 18 ne devraient-elles pas bénéficier des mêmes bonus? 19 1817 Mme BAILLARGEON: Écoutez, on revient 20 toujours à dire que de détenir une licence de 21 radiodiffusion est un privilège, le diffuseur contrôle 22 sa grille, le diffuseur reçoit des revenus 23 publicitaires et même, maintenant, le diffuseur reçoit 24 tous les revenus de la commandite. La commandite est 25 très peu disponible pour les producteurs indépendants StenoTran 431 1 maintenant. Puisque c'est un privilège, on pense qu'il 2 est équitable que ces bonus seraient un incitatif pour 3 les producteurs indépendants et seraient un incitatif 4 pour les diffuseurs à avoir recours à la production 5 indépendante. 6 1818 CONSEILLÈRE PENNEFATHER: Madame la 7 Présidente, j'aimerais continuer après le lunch break, 8 s'il vous plaît. 9 1819 LA PRÉSIDENTE: Très bien. 10 1820 Nous allons donc prendre une pause 11 jusqu'à 2 h 00. We will resume at 2:00. 12 --- Luncheon recess at / Suspension pour le 13 déjeuner à 1225 14 --- Upon resuming at / Reprise à 1400 15 1821 THE CHAIRPERSON: Good afternoon. I 16 hope everyone had a good lunch. 17 1822 Commissioner Pennefather. 18 1823 CONSEILLÈRE PENNEFATHER: Merci. 19 1824 Rebonjour. La question suivante est 20 sur le fonds de production. Vous vous opposez 21 catégoriquement, si je comprends bien, à ce que les 22 télédiffuseurs aient accès directement au fonds de 23 production puisque les télédiffuseurs perdraient un des 24 principaux incitatifs à travailler en collaboration 25 avec les producteurs indépendants. StenoTran 432 1 1825 Advenant le cas -- on ira avec ça un 2 peu -- où les fonds de productions sont rendus 3 accessibles aux télédiffuseurs privés, qu'est-ce que 4 ces derniers devraient donner en retour et quels 5 paramètres devraient être mis en place pour assurer 6 l'équité de l'attribution des fonds de production? 7 1826 Allez-y. 8 1827 M. PICARD: Question difficile. 9 C'est comme se mettre la main dans le tordeur. 10 1828 CONSEILLÈRE PENNEFATHER: On est là 11 pour explorer toutes les options. 12 1829 M. PICARD: Oui, je comprends. Donc 13 vous comprendrez notre hésitation. On veut rarement 14 discuter, que ce soit dans notre vie privée ou dans 15 notre vie professionnelle ou publique, des entachements 16 ou des écarts à nos principes mais, dans le cas où cet 17 accès serait permis... je pense qu'on peut peut-être 18 prendre l'exemple du Québec où, récemment, les 19 diffuseurs privés francophones membres de l'Association 20 des radiodiffuseurs de langue française ont eu accès au 21 crédit d'impôt remboursable du Québec. Cet accès fait 22 partie d'un protocole entre l'association et la SODEC 23 pour régir le niveau de participation et d'accès au 24 crédit d'impôt, donc pour le limiter, y établir un 25 plafond, et spécifiquement, compte tenu je pense des StenoTran 433 1 circonstances où il y a une réflexion nationale au 2 niveau du long métrage, de la création d'un nouveau 3 fonds de long métrage et d'autres mesures peut-être 4 législatives ou réglementaires, d'une contribution 5 spécifique des diffuseurs privés au pré-achat, à 6 l'investissement, à la promotion et à la publicité de 7 longs métrages. 8 1830 Alors, dans le cas je pense des 9 catégories sous-représentées, dont le long métrage, 10 dont on a dit qu'il faut peut-être avoir de nouvelles 11 mesures incitatives, je dirais peut-être qu'on pourrait 12 se pencher sur le fait des dramatiques lourdes, qui a 13 des engagements spécifiques puisque chez les diffuseurs 14 privés on a vu un nouveau genre, qu'on applaudit parce 15 que nos membres y participent, le super téléroman, ou 16 téléroman plus, mais on ne veut pas que ça se fasse au 17 sacrifice des dramatiques lourdes puisque ce sont à peu 18 près les seules qui ont un potentiel d'exportation 19 important, et culturel et financier. 20 1831 Deuxièmement, je dirais que pour les 21 documentaires, peut-être que ça pourrait être associé à 22 des engagements vis-à-vis les documentaires; et 23 troisièmement peut-être une contribution plus grande 24 aux émissions jeunesse. 25 1832 Dans notre réflexion concernant les StenoTran 434 1 émissions jeunesse, des fois on quasiment d'avis que 2 peut-être que les diffuseurs privés devraient se 3 retirer de la programmation, à la limite de la 4 participation à la production des émissions jeunesse. 5 Si on prend l'exemple de TVA, ils diffusent aujourd'hui 6 "Bibi et Geneviève", qui est une bonne émission, une 7 production indépendante qui a fait des bonnes années à 8 Canal famille mais maintenant qui est en reprise de 9 reprise, et il font ça plutôt que de faire une 10 production originale. Alors ou bien ils devraient 11 faire de la production originale jeunesse, ou bien ils 12 devraient peut-être se retirer. 13 1833 Alors je pense peut-être examiner les 14 catégories sous-représentées pour s'assurer qu'il y a 15 des engagements spécifiques, comme je pense que la 16 SODEC l'a fait dans le cas du long métrage pour l'accès 17 au crédit d'impôt provincial, et peut-être qu'au niveau 18 du partenariat avec l'industrie privée sur 19 l'exploitation des droits de distribution, ce serait 20 peut-être intéressant puisqu'ils souhaitent avoir des 21 droits de distribution sur les émissions auxquelles ils 22 ne participent qu'en licence. 23 1834 C'est une première réflexion. 24 1835 Louise. 25 1836 CONSEILLÈRE PENNEFATHER: Merci. StenoTran 435 1 1837 Mme BAILLARGEON: Moi, j'aimerais 2 juste dire que c'est une première réflexion mais, 3 malgré tout, on est très inquiets de la possibilité que 4 les diffuseurs privés aient accès au dernier bastion 5 qui est exclusivement réservé aux producteurs 6 indépendants, c'est Téléfilm Canada. 7 1838 Je veux juste vous donner un exemple, 8 parce qu'en langue française on n'a que deux diffuseurs 9 privés conventionnels et, depuis l'instauration de 10 l'admissibilité des diffuseurs au crédit d'impôt 11 fédéral, la première année il y a eu pour 338 000 $ de 12 crédit d'impôt fédéral accordé aux maisons de 13 production affiliées à des diffuseurs, et seulement au 14 Québec, rien au Canada anglais. L'an passé, en 15 1996-97, sur 19 638 000 $ accordés de crédits d'impôt 16 accordés à des maisons affiliées il y en a eu presque 17 13 millions accordés à des maisons affiliées de 18 diffuseurs privés québécois. 19 1839 Alors, oui, avec deux seuls 20 diffuseurs privés qui contrôlent la grille horaire et 21 qui auraient un accès additionnel à Téléfilm Canada, 22 c'est certain que la production indépendante sera 23 encore plus en péril. 24 1840 CONSEILLÈRE PENNEFATHER: Merci. 25 1841 Dans le même ordre d'idées, vous StenoTran 436 1 recommandez que le Conseil fixe les seuils minima de 2 recours à la production indépendante par les titulaires 3 de licences notamment en ce qui a trait aux émissions 4 sous-représentées. Comment ces seuils minima 5 devraient-ils être fixés en termes de dépenses en 6 programmation, d'heures par année, par semaine, 7 pourcentage par rapport à la production interne, basé 8 sur les dépenses d'achat d'émissions étrangères, et 9 caetera. Quels seraient les niveaux fixés? 10 1842 Mme BAILLARGEON: Quand on parle de 11 seuils minima, on parle de licences accordées en 12 fonction du budget de production, un pourcentage des 13 budgets de production. 14 1843 Quant aux seuils minima par rapport à 15 l'ensemble de la programmation, on parle 16 particulièrement des heures de grande écoute, qu'un 17 minimum de nombre d'heures soit accordé à tel type de 18 production. 19 1844 CONSEILLÈRE PENNEFATHER: Juste sur 20 ce point-là, sur les heures, pour que ce soit clair, je 21 pense que vous avez recommandé que les heures, la part 22 d'écoute sera de 18 h 00 à minuit. Pouvez-vous juste 23 clarifier pourquoi vous avez changé ça? 24 1845 Mme BAILLARGEON: De 18 h 00 à 25 23 h 00, en excluant les séries lourdes, qui ne StenoTran 437 1 devraient être diffusées qu'entre 20 h 00 et 23 h 00. 2 1846 CONSEILLÈRE PENNEFATHER: Ce n'était 3 pas clair. 4 1847 Je pense que ce n'est pas une 5 surprise que je veux parler un peu des longs métrages. 6 À la page 20 de votre mémoire vous proposez que le CRTC 7 évalue la possibilité de modifier les règles relatives 8 aux dépenses des émissions canadiennes pour les 9 encourager à s'impliquer dans le financement des longs 10 métrages canadiens sous forme d'investissements en sus 11 des droits de diffusion. 12 1848 Le premier point là-dessus est: En 13 quoi votre proposition sur l'admissibilité de 14 l'investissement des diffuseurs conventionnels privés 15 dans un long métrage canadien pour salles diffère-t- 16 elle de votre proposition qui s'applique à l'ensemble 17 des investissements à la page 4 de votre mémoire? 18 1849 M. PICARD: Ça diffère un peu, parce 19 que je pense qu'on parle, premièrement, d'un nouveau 20 secteur d'activités. Il est question au Canada depuis 21 plusieurs années de pourquoi on ne suit pas un modèle 22 semblable à la France, où il y a TF1 Films, France 3 23 Cinéma, France 2 Cinéma, ou en Angleterre il y a 24 Channel 4 qui s'est bâti autour du cinéma; à PBS aux 25 États-Unis il y a American Playhouse qui a fait place à StenoTran 438 1 beaucoup de longs métrages; beaucoup qui avaient été 2 des téléfilms qui, finalement, ont été diffusés en 3 salles, et certains ont été de très bons succès. 4 1850 On se dit pourquoi ne pas se servir 5 du principal instrument de communication au pays entre 6 les producteurs et leur public... ce n'est pas pour 7 éliminer la distribution et l'exploitation en salles, 8 mais on sait la domination qu'il y a de films 9 américains dans l'exploitation traditionnelle. C'est 10 dire: Regardons avec un oeil ouvert. Malgré qu'on a 11 un certain modèle en télédiffusion traditionnel pour 12 les émissions de télévision où on va avec un peu 13 d'hésitation vis-à-vis les investissements... puisqu'il 14 y a un modèle qui existe et que les licences sont 15 établies. On a un souci qu'elles se réduisent depuis 16 quelques années avec Fonds des câblos. Le long 17 métrage, c'est presque un terrain vierge. Et il y a eu 18 des expériences ponctuelles à travers le temps. 19 Disons-nous: Établissons un nouveau modèle. 20 1851 On sait que pour financer un long 21 métrage qui, au coût unitaire, est très élevé comparé à 22 une émission de télévision, où un épisode de dramatique 23 conventionnelle peut coûter quelques centaines de 24 milliers de dollars... un long métrage, c'est quelques 25 millions. On sait que seulement avec sa licence un StenoTran 439 1 télédiffuseur ne pourrait pas compléter une part 2 importante du financement, alors on dit: Intéressons- 3 les à l'investissement dès le départ. 4 1852 Alors c'est un modèle de financement 5 différent puisque le produit est différent, son coût de 6 production de base est très différent; alors créons un 7 partenariat un peu différent. Et aussi ses modes 8 d'exploitation sont différents. Créons du 9 télédiffuseur un partenaire à son exploitation en 10 salles, à son exploitation vidéo, à son exploitation 11 peut-être auprès de d'autres diffuseurs. 12 1853 Mme BAILLARGEON: Il y a aussi le fait 13 que, lorsqu'on parle d'investissements pour les 14 émissions de télévision on parle toujours en-deçà d'un 15 minimum de licence. En long métrage, on ne demande pas 16 de minimum de licence, et les licences ne correspondent 17 pas à 20 pour cent du devis en long métrage, bien sûr. 18 1854 Alors ces investissements-là, on 19 n'exige pas d'avoir de licence minimum pour pouvoir 20 investir dans du long métrage. 21 1855 CONSEILLÈRE PENNEFATHER: Alors, si 22 je comprends, la mesure proposée vise à encourager le 23 financement de longs métrages pour salles, mais 24 j'aimerais savoir en quoi une telle mesure 25 contribuerait à augmenter le niveau de longs métrages StenoTran 440 1 diffusés à la télévision. Pratiquement, comment ça va 2 marcher? 3 1856 M. PICARD: Bien, c'est 4 qu'aujourd'hui tout ce qui est admissible, c'est le 5 montant de la licence, des droits de diffusion. Là, on 6 se dit: pouvons-nous créer pour le long métrage une 7 catégorie particulière? 8 1857 On a un modèle qui ne fonctionne pas. 9 Que ce soit pour les téléfilms, les mini-séries, les 10 grandes séries dramatiques, tous les autres formats 11 d'émissions dramatiques, on a modèle. On le critique, 12 on le commente, on veut qu'il s'améliore, mais il 13 fonctionne dans son ensemble en télévision. Pour le 14 long métrage, ça ne fonctionne pas. 15 1858 On se dit que si la contribution du 16 diffuseur est limitée à une licence, disons le long 17 métrage qui, au minimum, coûte 2 à 3 millions dollars 18 et la licence est de 200 000 à 300 000. C'est un 19 financement qui n'est pas suffisant pour créer le long 20 métrage. 21 1859 Est-ce qu'on peut inciter les 22 diffuseurs à mettre un autre apport, à devenir 23 partenaires? Un des bénéfices qu'ils ont, c'est 24 l'investissement, qui peut rapporter ou non; c'est 25 risqué. Ils auront leurs droits de diffusion dont ils StenoTran 441 1 profiteront en vendant leur temps d'antenne 2 publicitaire, mais en plus ils peuvent créditer ça à 3 leur contenu canadien pour atteindre leurs objectifs de 4 performance. 5 1860 CONSEILLÈRE PENNEFATHER: Alors le 6 long métrage dans lequel un radiodiffuseur a investi 7 sera nécessairement diffusé par le même radiodiffuseur. 8 C'est ça, l'idée? 9 1861 M. PICARD: Oui. Oui, et peut-être 10 par d'autres spécialisés dans une chaîne 11 d'exploitation. 12 1862 CONSEILLÈRE PENNEFATHER: En parlant 13 des longs métrages, vous suggérez au Conseil de veiller 14 à ce que la SRC alloue au moins 5 millions de dollars 15 par année à l'acquisition de droits de télédiffusion 16 des longs métrages cinématographiques canadiens et 17 consacre plus d'efforts à leur promotion. Cette mesure 18 s'appliquerait-elle également en télédiffusion 19 conventionnelle privée, et sinon, pourquoi pas? 20 1863 M. PICARD: On a choisi, pour un 21 secteur qui a quand même un impact culturel important, 22 de privilégier... je ne sais pas si Radio-Canada va 23 voir ça de la même façon, mais de privilégier Radio- 24 Canada pour, comme ils l'ont souvent fait, exercer leur 25 leadership dans un secteur. On est passés par le biais StenoTran 442 1 de l'accès aux crédits d'impôt; donc c'est un autre 2 moyen, avec la SODEC, pour les diffuseurs 3 conventionnels privés. La même mesure pourrait 4 s'appliquer, ou ça pourrait être une responsabilité 5 partagée. 6 1864 Quant à moi, c'est un secteur d'une 7 telle importance qu'il devrait y avoir une certaine 8 concertation entre diffuseurs conventionnels privés et 9 publics dans l'idéal. 10 1865 CONSEILLÈRE PENNEFATHER: Louise. 11 1866 Mme BAILLARGEON: Il y a aussi que 12 Radio-Canada est une télévision publique qui a un 13 mandat culturel plus important que celui des diffuseurs 14 privés, qui ne sont que des entreprises privées. 15 1867 CONSEILLÈRE PENNEFATHER: On a parlé 16 beaucoup avec la CFTPA tantôt de la promotion, et vous 17 mentionnez ici l'aspect de la promotion. Vous pensez à 18 quel type de promotion et est-ce que vous avez des 19 suggestions précises à nous donner de comment supporter 20 la promotion des longs métrages par la SRC et peut-être 21 par le secteur privé aussi? 22 1868 Mme BAILLARGEON: Ce qui pourrait se 23 faire, c'est que toute publicité entourant les longs 24 métrages à la télévision, que ce soit sur les ondes de 25 Radio-Canada ou des diffuseurs privés, ne soit pas StenoTran 443 1 comptabilisée dans les minutes publicitaires du 2 diffuseurs. Ça inciterait les diffuseurs à faire plus 3 de promotion, j'en suis certaine. 4 1869 CONSEILLÈRE PENNEFATHER: Je 5 comprends. C'est un autre aspect de comment distinguer 6 les marchés anglais et français parce qu'il y a 7 certainement un système à l'intérieur des marchés 8 francophones qui supporte le cinéma; on parle souvent 9 de star system sur le côté français, et je veux savoir 10 est-ce qu'on peut aller plus loin avec la promotion. 11 1870 M. PICARD: Je pense que Louise vient 12 de le mentionner, si on veut véritablement se doter 13 d'une structure stable pour une cinématographie 14 nationale, il faut que ce soit un effort concerté qui 15 comprend un très grand nombre de mesures, et il va 16 falloir examiner le résultat sur quelques années, 17 premièrement parce que le long métrage auquel on 18 réfléchit aujourd'hui sera peut-être en salles dans 19 trois ans et, c'est comme tout, il faut en faire 20 plusieurs pour avoir quelques grands succès et avoir 21 des succès moyens et se permettre aussi de se tromper à 22 l'occasion. 23 1871 Une mesure concrète -- je me répète 24 peut-être -- c'est, dès la sortie en salles, la sortie 25 en vidéo, la sortie à la télévision payante, que même StenoTran 444 1 la télévision conventionnelle soit un partenaire. On a 2 vu nos télévisions nationales; elles se sont assouplies 3 plus récemment, mais des fois elles étaient hésitantes 4 à exploiter d'autres chaînes de titres en général. 5 Même si c'est certain que, comme producteurs, ça sert 6 nos intérêts, plus on en parle, mieux c'est. Plus on a 7 un succès, que ce soit dans n'importe quel média, pour 8 certains genres de produits culturels dont les produits 9 de télévision et surtout les longs métrages, plus 10 l'auditoire éventuel... on le sait avec nos enfants 11 avec des produits de cinéma, ils regardent des 12 cassettes sans arrêt. Mais nous, comme adultes, on est 13 souvent pas très différents pour nos films préférés. 14 1872 Alors que le partenariat avec la 15 télévision commence lors des bandes annonces qui 16 publicisent la sortie en salles et que, selon toute la 17 chaîne d'exploitation, que la télévision 18 conventionnelle, qui est premièrement le médium le plus 19 accessible à tous, fasse partie de cette chaîne, pas 20 seulement d'exploitation mais de publicité et 21 promotion. Et ça, ça commence par les bandes annonces 22 au départ; là, on peut mentionner plus pratiquement par 23 des concours comme il y a eu lieu pour des grandes 24 séries dramatiques de promotion croisée avec des 25 journaux, des carreaux, des radios et des télévisions. StenoTran 445 1 1873 CONSEILLÈRE PENNEFATHER: Ça, ça me 2 ramène aussi au point que vous avez mentionné; ça veut 3 dire que le CFTPA tient à ce que la SRC profite des 4 avantages que lui confère l'accès à deux sources de 5 financement publiques pour négocier pour le même 6 montant des droits supplémentaires en sus des droits de 7 diffusion qu'ils obtiennent. On dit que la Société 8 exigerait, par exemple, d'obtenir des droits 9 supplémentaires tels les droits de distribution sur 10 l'Internet, le droit de négocier sur une base 11 prioritaire avec les services de satellites américains, 12 et caetera. 13 1874 Vos membres vivent-ils la même 14 situation que leurs homologues de langue anglaise avec 15 la SRC? 16 1875 M. PICARD: Je ne crois pas. Si oui, 17 je pense... parce que les négociations sont des 18 questions privées. Ça n'a pas été soulevé au niveau de 19 l'association, donc je pense que c'est très limité. 20 S'il y a eu discussion, je crois que c'est sur un 21 principe raisonnable, c'est d'un premier droit de 22 refus. 23 1876 Je pense qu'il serait raisonnable... 24 l'association ne peut pas imposer à ses membres des 25 conditions contractuelles, mais il a été évoqué qu'on StenoTran 446 1 accorde en principe, ou que l'association favorise que 2 ses membres discutent et négocient un premier droit de 3 refus à Radio-Canada. Puisque leur licence a permis la 4 création d'un programme, pour nous, c'est quelque chose 5 qui est recommandable et qui est peut-être même 6 souhaitable, qui fait partie des bonnes pratiques 7 commerciales. 8 1877 CONSEILLÈRE PENNEFATHER: Maintenant, 9 vous avez mentionné la programmation pour les jeunes, 10 et je ne voulait pas ne pas le mentionner et souligner 11 l'importance de cette aspect de votre mémoire. 12 1878 Vous nous recommandez que le Conseil 13 doit inciter les télédiffuseurs conventionnels privés à 14 inclure dans leur offre de programmes canadiens à 15 l'intention des enfants une plus grande proportion de 16 productions canadiennes originales. Tantôt, est-ce que 17 j'ai bien compris que vous avez suggéré qu'ils sortent 18 complètement de ce secteur? Vous pouvez peut-être le 19 clarifier pour moi. 20 1879 M. BLAIN: Je pense que 21 traditionnellement, historiquement, les diffuseurs 22 privés ont rempli leurs obligations de diffuser des 23 émissions pour enfants en achetant des reprises qui 24 étaient déjà des reprises des reprises. 25 1880 On a fait faire une étude StenoTran 447 1 récemment -- je n'en dévoilerai pas les grandes lignes 2 maintenant parce que ce n'est peut-être pas pertinent 3 et ce n'est pas l'occasion -- et on pense, dans 4 l'absolu, que peut-être que la diffusion des émissions 5 pour enfants devraient être réservées à des canaux 6 spécialisés ou au secteur public qui, de toute façon, 7 se sent investi de ce mandat-là. Quand aux 8 spécialisés, ils en ont fait une spécialisation, et 9 quant au public, ils ont le mandat de faire de la 10 télévision pour enfants. 11 1881 C'est que, tant qu'à diffuser des 12 émissions pour enfants qui ne sont que des reprises, ça 13 ne donne peut-être rien, ça n'avance peut-être à rien 14 du tout. 15 1882 C'est la réflexion dans laquelle on 16 est maintenant. On n'est pas arrivés à une conclusion 17 mais on s'en va vers cette conclusion-là. 18 1883 CONSEILLÈRE PENNEFATHER: Oui. C'est 19 un constat qui m'inquiète un peu parce que c'est un peu 20 la même chose. Quand on parle de la diversité dans le 21 système de radiodiffusion canadien, est-ce qu'on doit 22 simplement laisser aux services spécialisés de 23 représenter les besoins de tous les secteurs de notre 24 société, et à la télévision conventionnelle de faire 25 n'importe quoi qui ne représente pas vraiment la StenoTran 448 1 diversité de notre société? 2 1884 Je pense que ce serait intéressant, 3 dans les réflexions qu'on fait tous, de faire le point; 4 et peut-être que vous avez un commentaire. 5 1885 J'ai vu dans le sondage CROP qu'on a 6 mis sur la table -- et je fais une traduction très vite 7 de l'anglais -- que les résultats disent que les 8 Québécois sont assez satisfaits avec le cadre 9 réglementaire courant. Mais la popularité des services 10 américains et productions, surtout parmi les jeunes 11 francophones, devrait être une cause of concern. 12 1886 Est-ce que vous voyez ce même 13 phénomène que... et c'est très important, alors que les 14 producteurs indépendants francophones ne sortent pas de 15 programmation pour enfants; et peut-être que la 16 télévision conventionnelle continue à avoir un devoir 17 là-dedans, surtout si on voit que les jeunes 18 francophones vont vers la programmation anglaise de 19 plus en plus, ou américaine, disons. 20 1887 Est-ce que ça entre dans vos 21 réflexions, cet aspect-là? 22 1888 M. BLAIN: C'est qu'actuellement les 23 obligations qui sont imposées aux diffuseurs 24 conventionnels de diffuser de la programmation pour 25 enfants sont trop facilement... pas contournables,mais StenoTran 449 1 elles sont facilement remplissables en diffusant des 2 émissions que les enfants connaissent déjà. Donc les 3 stations privées ne sont pas fréquentées par les 4 enfants parce que les émissions auxquelles on pense ont 5 déjà été vues... et vous savez comme moi que la 6 programmation pour enfants a un taux de répétition très 7 élevé. Qui n'a pas vu "Passe-Partout", qui a été 8 diffusée -- j'exagère -- 150 fois chaque émission. On 9 l'a tous vue. 10 1889 Vous dites "oui", vous. Vous l'avez 11 vue, vous aussi? 12 1890 LA PRÉSIDENTE: Oui. Les enfants ont 13 la même allure d'année en année. 14 1891 M. BLAIN: Oui, c'est ça. 15 1892 Donc -- et je produis beaucoup de 16 séries pour enfants -- si on veut vraiment faire des 17 séries innovatrices, autant concentrer l'argent pour 18 faire de bonnes séries pour enfants plutôt que de le 19 saupoudrer un peu partout. 20 1893 Les créneaux de diffusion pour les 21 enfants ont fondu comme peau de chagrin depuis quelques 22 années; il y en a de moins en moins. Ça se concentre 23 dans les chaînes autant privées que publiques; ça se 24 concentre les samedis matins, un peu l'après-midi, mais 25 toutes les heures qui sont commercialisables, c'est-à- StenoTran 450 1 dire à partir de 5 h 00 le soir, sont des heures que 2 les diffuseurs réservent à de la programmation pour 3 adultes parce qu'on peut y mettre de la publicité, de 4 la publicité destinée aux adultes. On ne fait pas de 5 cadeau aux enfants. 6 1894 Donc les chaînes spécialisées sont un 7 palliatif qui s'est avéré très utile. Heureusement 8 qu'il y a eu les chaînes spécialisées pour enfants, 9 sinon il n'y aurait pas eu, à longueur de journée, de 10 programmation pour enfants. 11 1895 M. PICARD: Si je peux me permettre, 12 pour moi, c'est une question fondamentale: il est 13 essentiel que les télévisions conventionnelles 14 continuent à remplir les besoins du public au niveau de 15 plusieurs créneaux de programmation, sans ça la 16 télévision conventionnelle est condamnée, à plus ou 17 moins long terme, à devenir une autre télévision 18 spécialisée. 19 1896 Je crois qu'éventuellement -- et 20 c'est peut-être seulement par après qu'on s'en 21 apercevrait -- ça, ce n'est pas rendre service au 22 public, ni comme individus, ni comme collectivité, 23 surtout quand on pense à une question comme la survie 24 de la langue française... et je ne pense pas que le mot 25 "survie" soit trop fort; on regarde à travers le monde, StenoTran 451 1 et je pense qu'il y a presque autant de langues qui 2 disparaissent par jour qu'il y a d'espèces animales. 3 1897 C'est la programmation généraliste 4 qui s'adresse à des auditoires particuliers qui souvent 5 a les moyens de faire des émissions, d'innover, d'aller 6 de l'avant et de prendre des risques que des 7 télévisions spécialisées n'auront pas la chance. Et 8 ça, vous pouvez regarder à peu près chaque catégorie 9 d'émissions sous-représentées, et chacun des genres est 10 fait souvent par des télévisions spécialisées, et des 11 fois très bien fait, et eux-même innovent; mais il y a 12 quand même des budgets moyens et des besoins de 13 répétition, parce que la télévision, ce n'est pas 14 seulement de la saucisse, ça ne doit pas toujours être 15 la même chose chaque jour et chaque semaine. C'est 16 essentiel que les télévisions généralistes conservent 17 des mandats, que ce soit pour les jeunes... les jeunes 18 qu'on perd aujourd'hui, ce sont les adultes qu'on 19 n'aura pas demain. 20 1898 CONSEILLÈRE PENNEFATHER: Surtout 21 quand on pense au taux de câble ou au nombre de 22 Québécois qui le reçoivent par le câble, c'est 23 important qu'on tienne notre oeil sur le système 24 conventionnel. 25 1899 Une autre question d'ordre général... StenoTran 452 1 et j'ai une couple de questions seulement qui me 2 restent. J'aimerais aussi vous demander est-ce que le 3 numérique entre dans vos réflexions? Quel impact ce 4 phénomène aura sur la production française, non 5 seulement en termes de la production mais en termes de 6 diffusion? 7 1900 C'est une grande question, mais si 8 vous pouviez nous laisser quelques points de réflexion 9 là-dessus... 10 1901 M. PICARD: Parmi nos membres, au 11 niveau de la diffusion, je pense qu'on doit être 12 honnêtes, on n'a pas une très grande expertise; on 13 écoute nos collaborateurs diffuseurs et leurs 14 réflexions, qui est un autre aspect de la convergence 15 et de la compétition internationale, la qualité de 16 l'image, qui est importante. 17 1902 Pour nous, c'est une adaptation au 18 niveau des moyens de production. Il y a des premières 19 émissions qui commencent à être produites chez nous en 20 vidéo digital, en montage numérique. La Société Radio- 21 Canada, en dramatiques, demande à plusieurs producteurs 22 d'innover dans ce secteur-là et ils sont partenaires de 23 cette innovation. La même chose est vraie, je pense, 24 de TVA. 25 1903 Il y a un certain souci, sans vouloir StenoTran 453 1 prêcher par excès de prudence, où le vidéo, qui va de 2 pair avec le numérique et l'augmentation de la qualité 3 de l'image... de dire: Va-t-on abandonner le film? Ce 4 système analogue va-t-il passer par le biais des 33 5 tours et être remplacé complètement par le CD? 6 1904 Il y a quelque chose de palpable dans 7 l'analogue pour lequel on a un souci, une inquiétude, 8 et c'est lié à notre commentaire sur les dramatiques 9 lourdes. Il y a un engouement en ce moment au Québec, 10 et c'est une bonne chose parce que c'est une nouvelle 11 formule, des téléromans plus, ou des super téléromans, 12 dont "Diva" a été le premier exemple, et il y a des 13 exemples maintenant à l'antenne de Radio-Canada et de 14 TVA. On ne voudrait pas que ce soit fait au sacrifice 15 d'un genre qui a eu un très grand succès auprès du 16 public au Canada français et à travers le monde. 17 1905 CONSEILLÈRE PENNEFATHER: Il y a 18 certainement une question de coût ici et il y a 19 certainement une question de contenu francophone. Même 20 si ça arrive dans cinq ans, on sait tous que, comme 21 Conseiller McKendry l'a mentionné ce matin, ça s'en 22 vient dans le sens que non seulement on aura accès à 23 beaucoup plus de services télévision, mais aussi il y a 24 un manque de contenus prêts pour ce système, sauf que 25 peut-être si on a les bibliothèques de films 35 StenoTran 454 1 millimètres, ça, ça peut peut-être aider. Mais ça 2 devrait être un point inquiétant pour notre but d'avoir 3 non seulement le rendement, non seulement la qualité, 4 mais aussi assez de programmation à l'avenir. 5 1906 Mme BAILLARGEON: J'aimerais également 6 parler... à l'instar de nos collègues anglophones, nous 7 nous préoccupons de la formation et nous travaillons 8 conjointement avec les syndicats de techniciens et 9 l'Institut national de l'image et du son, notre école 10 de cinéma au Québec, pour établir un programme de 11 formation pour la future télévision numérique. 12 1907 CONSEILLÈRE PENNEFATHER: Un autre 13 point important, je pense, est: Est-ce que la 14 programmation régionale est une préoccupation pour 15 votre association? Ça veut dire la diversité, en 16 effet, de la programmation française. Est-ce que 17 vraiment on est prêts à dire qu'il y a une diversité, 18 qu'il y a la possibilité d'avoir accès à l'expression 19 française qui vient de partout au Canada? 20 1908 M. PICARD: Il y a certains de nos 21 membres qui travaillent pour TFO en Ontario. À ma 22 connaissance, ça se limite à cette exploitation-là. 23 1909 Louise, as-tu... 24 1910 Mme BAILLARGEON: À l'échelle du 25 Canada, nous sommes une association régionale puisque StenoTran 455 1 nous représentons les producteurs du Québec. Par 2 ailleurs, cette année nous venons de créer une nouvelle 3 section à l'association qu'on appelle "Les producteurs 4 régionaux", section dans laquelle actuellement il n'y a 5 que des producteurs régionaux du Québec, mais si jamais 6 des producteurs régionaux de langue française à 7 l'extérieur du Québec voulaient se joindre, je pense 8 qu'ils seraient très bien accueillis chez nous. 9 1911 CONSEILLÈRE PENNEFATHER: La dernière 10 question est: En page 40 de votre mémoire vous 11 recommandez que le Conseil s'assure que les 12 câblodistributeurs desservant les marchés francophones 13 respectent intégralement, pour le niveau de volet 14 identifié, le tarif mensuel à l'abonné qui figure, dans 15 les demandes de licence de services spécialisés, qu'il 16 a choisi d'adopter et autoriser. 17 1912 Avez-vous constaté beaucoup de 18 situations où les câblodistributeurs négociaient les 19 tarifs à la base? 20 1913 Mme BAILLARGEON: C'est ce que 21 certains canaux spécialisés nous ont laissé entendre 22 chez nous, oui. 23 1914 CONSEILLÈRE PENNEFATHER: 24 Souhaiteriez-vous, par votre proposition, que le 25 Conseil réglemente d'une façon ou d'une autre le tarif StenoTran 456 1 de gros sur les volets à l'étage? 2 1915 Mme BAILLARGEON: Oui. 3 1916 CONSEILLÈRE PENNEFATHER: Merci. 4 1917 Merci, Madame la Présidente. 5 1918 LA PRÉSIDENTE: Merci. 6 1919 Mes collègues n'ont pas de questions, 7 je crois. Moi, j'en ai une. 8 1920 Vous avez mentionné à la page 17 de 9 votre mémoire que le CRTC devrait inciter les 10 télédiffuseurs conventionnels privés à inclure dans 11 leur offre de programmation canadienne à l'intention 12 des enfants une plus grande proportion de productions 13 canadiennes originales, et je crois que je vous ai 14 entendu dire il y a quelques minutes que Radio-Canada 15 devrait jouer un rôle à cause des limites évidentes 16 pour les télédiffuseurs privés. 17 1921 De fait Radio-Canada, dans son 18 mémoire, à la partie 4 sur les catégories d'émissions 19 sous-représentées dit que: 20 1922 "Les restrictions commerciales 21 proscrivent pratiquement aux 22 radiodiffuseurs privés canadiens 23 de produire ou d'acquérir et 24 d'inscrire régulièrement à 25 l'horaire des émissions StenoTran 457 1 canadiennes pour enfants. La 2 production canadienne est 3 désormais généralement l'affaire 4 des organismes d'éducation 5 provinciaux et Radio-Canada." 6 (Tel que lu) 7 1923 Je ne sais pas si ce commentaire- 8 là -- je vais le demander -- s'adresse à tout le Canada 9 ou si ces proscriptions commerciales là sont plutôt 10 typiquement un problème plus aigu au Québec. 11 1924 Ma question est: Est-ce que ce 12 dossier-là progresse au Québec? J'avais cru 13 comprendre, quand vous avez comparu devant nous, TVA, 14 qu'il y avait espoir qu'on ait peut-être un système 15 moins limitant à ce niveau-là. 16 1925 Mme BAILLARGEON: Il est vrai que 17 c'est un problème essentiellement québécois, c'est un 18 règlement québécois concernant la publicité destinée 19 aux enfants. Par ailleurs, depuis cette audience, nous 20 avons commandé une étude à des chercheurs de 21 l'Université de Montréal -- nous nous ferons un plaisir 22 de vous la déposer et de vous l'envoyer -- qui conclut 23 que, dans leur formulation actuelle, les règlements 24 n'empêchent pas véritablement de la publicité inscrite 25 à l'horaire au moment des émissions pour enfants en StenoTran 458 1 autant qu'elle ne s'adresse pas, sauf à certaines 2 conditions très précises, par exemple, à annoncer des 3 jouets dont les héros font l'objet de l'émission de 4 télévision, et caetera. 5 1926 On a démontré que plusieurs 6 émissions, même à l'antenne de diffuseurs publics tels 7 que Télé-Québec, ont utilisé de la publicité de 8 céréales ou de bonbons dans des émissions destinées aux 9 enfants. Alors on vous enverra l'étude en question. 10 1927 M. BLAIN: Pour compléter un peu, 11 nous aussi, on a été sidérés de voir les résultats de 12 l'étude. Il semble que ce soit un faux problème parce 13 que la publicité qui a été mise en ondes -- et Télé- 14 Québec là-dedans a été très agressif -- était 15 étonnante, et la publicité a été acceptée par l'Office 16 de protection du consommateur. 17 1928 Dans le fond, le problème, c'est un 18 peu ce qu'on disait tantôt, c'est que de diffuser des 19 émissions pour enfants, ça n'a jamais été payant. Donc 20 nous, on dit: Puisque ce sont les télévisions 21 publiques qui ont ce type de mandat, mon Dieu, qu'ils 22 le fassent autant que possible, et il y a quand même, 23 avec les règlements actuels, des possibilités. C'est 24 que même chez les publics qui sont effectivement moins 25 riches qu'ils l'ont déjà été, il semble que personne ne StenoTran 459 1 veuille consacrer beaucoup de créneaux à la 2 programmation pour enfants parce que ce sont, publicité 3 ou non, des créneaux moins payants. 4 1929 LA PRÉSIDENTE: Oui, mais je crois 5 que nous avons entendu TVA nous dire qu'ils allaient 6 améliorer leur participation dans ce domaine, et votre 7 recommandation est quand même que nous devrions essayer 8 de pousser les télédiffuseurs privés, si je crois bien, 9 conventionnels privés, à inclure de la programmation 10 qui vise les enfants. 11 1930 M. BLAIN: Mais originale; de la 12 programmation originale. 13 1931 LA PRÉSIDENTE: Originale, mais même 14 la programmation pour enfants, les enfants ne changent 15 pas si rapidement. C'est pour ça que je vous disais 16 tout à l'heure qu'on peut avoir des enfants et des 17 petits-enfants et ils s'amusent aux mêmes programmes. 18 1932 M. BLAIN: Oui, c'est une clientèle 19 qui se renouvelle, effectivement. 20 1933 LA PRÉSIDENTE: Oui, qui se 21 renouvelle, parce qu'il y a toujours des changements, 22 évidemment, et c'est bien d'avoir de la nouvelle 23 programmation. 24 1934 Ce dossier-là, à votre avis, quand 25 vous dites que c'est une fausse inquiétude, vous voulez StenoTran 460 1 dire qu'on ne démontre pas que c'est nocif 2 nécessairement si c'est contrôlé. 3 1935 M. BLAIN: Non, pas du tout, et ce 4 que Télé-Québec avait fait à l'époque était très 5 "agressif"; on a été étonnés... 6 1936 LA PRÉSIDENTE: Ah, oui, en 7 utilisant... ah, c'est ça. Je me souviens pendant 8 l'audience TVA qu'il avait été question que Télé-Québec 9 n'avait pas observé la loi à la lettre. 10 1937 M. BLAIN: Non, ils l'ont observée. 11 Leur publicité a toujours été acceptée... 12 1938 LA PRÉSIDENTE: Ça va peut-être vous 13 avoir aidés lorsque quelqu'un triche et démontre qu'il 14 n'y a pas de problème. 15 1939 Mais vous savez qu'au Canada anglais 16 il y a des limitations aussi; il y a quand même des 17 balises. Il faut que la publicité pour enfants suive 18 certaines... 19 1940 M. PICARD: C'est autoréglementé au 20 Canada, ce qui n'a pas été le cas au Canada français. 21 1941 LA PRÉSIDENTE: C'est ça, mais il y a 22 quand même des exigences, oui. 23 1942 Mme BAILLARGEON: Je ne pense pas que 24 Télé-Québec ait triché. Je pense que la publicité 25 avait été adoptée par l'Office de protection du StenoTran 461 1 consommateur à l'époque. 2 1943 M. BLAIN: Oui, et il y a peut-être 3 un autre commentaire aussi. Radio-Canada, je pense que 4 c'est une règle interne; c'est une règle interne dont 5 ils se sont dotés de ne faire aucune publicité pendant 6 les émissions pour enfants. Donc ça n'a rien à voir 7 avec les règlements québécois. 8 1944 LA PRÉSIDENTE: Non, mais ça a 9 quelque chose à voir avec la recommandation que les 10 télédiffuseurs privés soient encouragés à améliorer 11 leur offre de programmation pour enfants, et la 12 conversation que nous avons eue avec TVA à cet effet 13 aussi la dernière fois. C'est à ce moment-là que la 14 question des restrictions a été soulevée, et j'étais 15 curieuse de voir ce qui se passait à ce niveau-là. 16 1945 Je vous remercie. 17 1946 Monsieur le Conseiller juridique. 18 1947 Me BLAIS: Oui. Justement, à propos 19 de l'étude, si je comprends bien, vous ne l'avez pas 20 encore en main. 21 1948 Mme BAILLARGEON: Nous l'avons en 22 main, mais je ne l'ai pas ici. Je vous l'enverrai. 23 1949 Me BLAIS: D'accord. Donc avant le 24 15 octobre ce serait possible de la déposer au dossier 25 public. StenoTran 462 1 1950 Mme BAILLARGEON: Ça peut vous être 2 adressé demain, si vous voulez. 3 1951 Me BLAIS: Je vous remercie. 4 D'ailleurs, pour compléter le dossier public, Mme la 5 Conseillère Pennefather vous a posé quatre questions 6 concernant l'investissement. Est-ce que ce serait 7 possible aussi de nous fournir des réponses d'ici le 15 8 octobre? 9 1952 Mme BAILLARGEON: Nous prendrons 10 jusqu'au 15 octobre pour ces réponses. 11 1953 Me BLAIS: Merci. Tout comme pour 12 vos collègues anglophones, il se peut qu'on ait à vous 13 poser quelques questions supplémentaires par écrit pour 14 compléter le dossier, mais on verra en temps et lieu. 15 J'ai par contre deux questions. 16 1954 Dans vos soumissions, vous faites 17 référence à la notion de dramatiques lourdes. Est-ce 18 que vous avez une définition à nous proposer qui serait 19 gérable dans un cadre réglementaire? 20 1955 M. PICARD: Oui. Quant à moi, 21 l'expression est un peu malheureuse, mais elle est 22 utilisée, c'est rendu un terme de l'emploi. Si on 23 pouvait vous la fournir dans le même cadre que nos 24 réponses pour qu'elle soit exacte, on s'en est doté... 25 je ne peux pas vous la citer, je ne l'ai pas sous les StenoTran 463 1 yeux, mais ça réfère au traitement cinématographique, 2 donc un style de tournage, et aussi à une organisation 3 du tournage qui ne se réfère pas nécessairement au 4 support film. 5 1956 Me BLAIS: C'est très bien. D'ici le 6 15 octobre aussi, ce serait parfait. 7 1957 M. PICARD: D'accord. 8 1958 M. BLAIN: Monsieur Blais, vous savez 9 par contre que c'est un peu mouvant actuellement, qu'il 10 y a des téléromans qui sont des téléromans plus et il y 11 a des séries semi-lourdes. En tout cas, l'industrie 12 est mouvante. 13 1959 M. PICARD: C'est comme la boxe; il y 14 a des mi-moyens, des mi-lourds, des poids plume. 15 1960 Me BLAIS: Il faut garder à l'esprit 16 que, si on veut l'insérer dans un cadre réglementaire, 17 il doit y avoir certains objectifs qu'on peut évaluer 18 sans trop de difficultés. Donc, dans cet esprit-là, si 19 vous pouviez nous fournir des éléments qui pourraient 20 supporter votre proposition, on aimerait bien. 21 1961 La dernière question traite de votre 22 proposition de traiter, en ce qui a trait aux 23 coproductions -- j'imagine que ce sont des 24 coproductions officielles -- qu'une coproduction qui 25 est majoritairement canadienne obtiendrait un crédit de StenoTran 464 1 150 pour cent. C'est une proposition qui est un peu 2 surprenante dans le sens que le système des traités de 3 coproduction se voit souvent dans un ensemble, c'est-à- 4 dire qu'il y a un retour d'ascenseur pour avoir un 5 équilibre entre, admettons, la France et le Canada, 6 qu'il faut voir un jumelage presque à long terme entre 7 une coproduction majoritairement canadienne avec une 8 coproduction majoritairement française. 9 1962 D'ailleurs, il y a quelques années, 10 quand on proposait dans le quota européen d'exclure les 11 coproductions minoritaires canadiennes, je pense qu'il 12 y a certains coproducteurs qui sont montés aux 13 barricades pour dire que c'était aller à l'encontre du 14 système. 15 1963 Donc je me demande pourquoi vous 16 voulez avoir un traitement spécial pour les 17 coproductions majoritairement canadiennes et 18 possiblement au détriment du partenaire de la 19 production jumelée qui serait minoritaire. 20 1964 Mme BAILLARGEON: Si on demande 150 21 pour cent pour les coproductions majoritaires, ça ne 22 veut pas dire qu'on ne veut pas accorder 100 pour cent 23 de la citoyenneté canadienne, si vous voulez, à la 24 coproduction minoritaire telle que décrite dans les 25 accords. La raison pour laquelle on demande 150 pour StenoTran 465 1 cent, c'est qu'il y a très peu de volonté de la part de 2 nos diffuseurs à programmer des coproductions, et c'est 3 un incitatif pour les diffuseurs à programmer des 4 coproductions et on a demandé 150 pour cent pour les 5 coproductions majoritaires canadiennes pour servir 6 d'incitatif. 7 1965 Ça ne veut pas dire que, si la 8 coproduction majoritaire canadienne est programmée -- 9 et on parle en heures de grande écoute, bien sûr -- le 10 150 pour cent s'appliquerait seulement si la 11 coproduction est programmée en heures de grande écoute 12 ici. Ça ne veut pas dire que les coproductions 13 minoritaires ne seront pas programmées, peut-être pas 14 nécessairement en heures de grande écoute, comme ça se 15 passe pour nos coproductions majoritaires canadiennes 16 en Europe parfois. 17 1966 Me BLAIS: Madame, messieurs, merci. 18 Ce sont mes questions. 19 1967 LA PRÉSIDENTE: Une autre question. 20 1968 Dans le sommaire exécutif de votre 21 soumission vous dites que d'entrée de jeu vous tenez à 22 souligne que, sans pour autant exclure la télévision de 23 langue anglaise, l'essentiel de votre intervention 24 traitera des enjeux de la révision des politiques 25 relatives à la télévision pour le système de langue StenoTran 466 1 française. 2 1969 Est-ce que ça, ça s'applique à tous 3 les commentaires que vous faites? Par exemple, vous 4 avez proposé, si j'ai bien compris, que les étages 5 offerts par les câblodistributeurs soient réglementés 6 au niveau des tarifs. Ça, s'applique au Québec ou 7 partout? 8 1970 Mme BAILLARGEON: On parle de la 9 télévision en langue française. 10 1971 LA PRÉSIDENTE: Seulement. Et quand 11 vous recommandez aussi que le Conseil s'en tienne à sa 12 politique de longue date de limiter les permis de 13 télévision dans la même langue à un seul titulaire ou 14 une seule compagnie, ça aussi, ça s'applique au Canada 15 français? 16 1972 M. PICARD: Oui. 17 1973 LA PRÉSIDENTE: Alors vous ne faites 18 pas de commentaire à ce moment-là du côté Canada 19 anglais. 20 1974 M. PICARD: Non. 21 1975 LA PRÉSIDENTE: Merci. Est-ce qu'il 22 y a aucun endroit, sauf lorsque vous faites des 23 commentaires philosophiques, où il y a des choses qui 24 s'appliquent aux deux, ou si en général vous parlez du 25 Canada français? StenoTran 467 1 1976 Mme BAILLARGEON: En général, nous 2 parlons du Canada français. Nous appuyons, par 3 ailleurs, le mémoire de CFTPA. 4 1977 M. PICARD: Oui. C'était pour des 5 fins... 6 1978 LA PRÉSIDENTE: Oui, je comprends. 7 1979 M. PICARD: C'est parce que dans les 8 auditions il y a une période de temps limitée. Nos 9 confrères anglophones sont moins habilités à commenter 10 des situations sur la production de langue française au 11 Québec. On a beaucoup à dire sur la production de 12 langue anglaise, mais, bon, la limitation de temps... 13 1980 LA PRÉSIDENTE: Oui. Vous êtes 14 raisonnablement satisfaits qu'il n'y a pas de 15 contradiction entre les deux. 16 1981 M. PICARD: oui. 17 1982 LA PRÉSIDENTE: Alors vous pouvez 18 endosser généralement leurs propositions, mais vous 19 avez les vôtres pour le Canada français. 20 1983 M. PICARD: Oui. 21 1984 LA PRÉSIDENTE: Nous vous remercions. 22 1985 Mme BAILLARGEON: Merci. 23 1986 LA PRÉSIDENTE: Nous allons prendre 24 une pause de quelques minutes seulement, peut-être cinq 25 minutes, pour changer de panel... pas le nôtre, StenoTran 468 1 évidemment. 2 1987 We will take a five-minute break to 3 allow a change in the panel. 4 --- Short recess at / Courte suspension à 1445 5 --- Upon resuming at / Reprise à 1450 6 1988 THE CHAIRPERSON: Madam Secretary, 7 would you please introduce the next panel. 8 1989 MS BÉNARD: Thank you, Madam Chair. 9 1990 The next presentation will be the 10 Canadian Broadcasting Corporation. I would invite the 11 Hon. Perrin Beatty to introduce his colleagues. 12 1991 THE CHAIRPERSON: Good afternoon. 13 1992 M. PERRY: Merci beaucoup, Madame la 14 Présidente. Thank you very much. 15 1993 Madame la Présidente, j'ai 16 aujourd'hui à mes côtés M. Jim McCoubrey, vice- 17 président, directeur et chef de l'exploitation; 18 Mme Michèle Fortin, vice-présidente de la Télévision 19 française, et M. Jim Byrd, vice-président de la 20 Télévision anglaise. 21 1994 Madame la Présidente, hier le Conseil 22 a entrepris un processus qui durera plusieurs jours, où 23 seront présentés des douzaines de mémoires et qui aura 24 produit des centaines de milliers de mots avant d'être 25 terminé. Vous entendrez de nombreux intervenants qui StenoTran 469 1 vous diront croire fermement au contenu canadien. Très 2 peu diront qu'ils n'y croient pas, mais vous en 3 entendrez aussi beaucoup affirmer qu'ils ne peuvent 4 faire mieux à moins de recevoir plus d'argent ou 5 d'obtenir des privilèges spéciaux. 6 1995 Commissioners, we stand before you as 7 the country's single largest provider of Canadian 8 content, in French and in English. We hope that you 9 will find our presentation straightforward and 10 constructive. I can summarize it very simply in three 11 points: 12 1996 First, our mission is to tell 13 Canadian stories. Canadians have a right to see 14 themselves on their own television screens. Helping 15 them do so is our very reason for existence. 16 1997 Second, despite all the financial and 17 competitive challenges of the last three years, we are 18 today more Canadian than ever before. This fall, CBC's 19 English television schedule is 91 per cent Canadian in 20 the 7 to 11 period, while French TV's schedule is 21 almost 100 per cent Canadian. 22 1998 Third, we are proud of what we have 23 achieved, but we believe that we can also do more. We 24 do not ask that others be held back. We ask only to be 25 permitted to change along with the changes that are StenoTran 470 1 taking place in the marketplace. 2 1999 Let me first tell you bout the 3 distinctive role that the CBC plays. CBC is a central 4 component of a broadcasting system that was designed to 5 be a balance of public and private elements. Both need 6 to be healthy and to grow if Canadians are to be well 7 served. 8 2000 Like the private broadcasters, our 9 primary responsibility is to provide a good return to 10 our shareholders. CBC's shareholders are the people of 11 Canada themselves. We have the duty to provide them 12 with the best possible Canadian programs, efficiently 13 and cost-effectively. That's our bottom line. 14 2001 We are Canada's standard bearer of 15 Canadian broadcasting. We take risks that others shy 16 away from. We develop new talent. And most 17 importantly, we reach significant Canadian audiences. 18 2002 In fact, the Crop study released 19 yesterday by the CRTC shows that 78 per cent of 20 respondents have a favourable opinion of how the CBC 21 discharges its mandate to promote and give priority to 22 Canadian programs. 23 2003 The CBC provides the highest level of 24 Canadian programming in prime time of any conventional 25 broadcasters -- distinctively, and across a diversity StenoTran 471 1 of program categories. Commissioners, we have included 2 a chart that colour codes the networks' schedules. If 3 you take a look at them -- just look at the colour red 4 for Canadian content, you can see that the colour red 5 in CBC's schedules in English and French is indeed 6 telling. 7 2004 But volume of Canadian programming is 8 not the only issue. Programming quality and viewership 9 are two key measurements of CBC's success. Let's look 10 at the facts. 11 2005 CBC is an incubator for Canadian 12 talent on and off screen. CBC alumni are everywhere. 13 Of course there are the famous ones who migrate south 14 of the boarder, but I can also think of others. Just 15 look around the room over the course of the next 16 several days. From on-air personalities, to broadcast 17 executives, to the ever increasing number of talented 18 independent producers who are now successfully putting 19 Canada on the screen. 20 2006 There is no denying that the quality 21 of our programs today is the result, in large part, of 22 the creativity and the drive of a thriving independent 23 production sector. We are proud of the contribution 24 that we have made in the past and that we continue to 25 make to developing talent, and providing audiences for StenoTran 472 1 its work. 2 2007 CBC takes risks that others can't or 3 won't. We are at our worst when we are simply a copy 4 of someone else. We are at our best when we are doing 5 something that is fresh and new. 6 2008 The evidence of the creativity and 7 ingenuity on CBC schedules is legion. Consider the 8 success and the craziness of "This Hour has 11 Minutes" 9 or "The Newsroom". Nowhere else in the system will you 10 find the quality and commitment to taking risks -- just 11 think of "Sous le signe du lion," the breakthrough "Un 12 gars, une fille," or the madness of "La Petite Vie," 13 which pulled in 2.9 million viewers when it began its 14 new season this fall on French television. 15 2009 CBC delivers significant audiences 16 for Canadian programs. By presenting a mix of 17 programming, CBC is able to remain responsive and 18 relevant to Canadian audiences. In fact, in 1996-97, 19 French television captured 41 per cent of prime time 20 viewing of Canadian programs between 7 and 11 at night, 21 while English television garnered 42 per cent of the 22 viewing of all Canadian programs in that same period. 23 2010 Last season, English TV broadcast 24 eight of the top 10 English Canadian drama series with 25 a Canadian theme. Our French network aired four of the StenoTran 473 1 top five Canadian drama series in French. 2 2011 Now, as just one example of how we 3 help bring Canadian content to Canadian viewers, 4 Canadian feature films broadcast by the CBC's English 5 television draw a larger audience that theatrical, pay 6 television and home distribution combined. 7 2012 CBC is recognized for its programming 8 quality. Next Sunday we will know how many of our 185 9 Gémeaux nominations we will have won, and the moment of 10 truth for our 178 Gemini nominations will come the 11 following weekend. Just a few days ago, we learned 12 that the case of "The Royal Canadian Air Farce" won a 13 prestigious Governor General's Award for the Performing 14 Arts. In making the announcement, His Excellency 15 underlined that their careers have been a part of 16 Canada's emergence as a major cultural force. 17 2013 But we can't play our part without 18 substantial stable funding. CBC's ability to produce 19 innovative, entertaining and informative programming in 20 a broad range of categories is made possible today to a 21 large extent by the guaranteed access to 50 per cent of 22 the Canadian Television Fund's Equity Investment 23 Program. The return to the system is indisputable. 24 2014 Based on the 1996-97 production year, 25 on the English side this 50 per cent investment StenoTran 474 1 translates into 65 per cent of all viewing to drama 2 funded by the Canadian Television Fund. That 3 investment is a very efficient way of generating 4 Canadian viewership. And without that commitment we 5 could not sustain our Canadianized schedule. 6 2015 Now, let's take a moment to consider 7 the key challenges that the Canadian broadcasting 8 system faces, and to offer some solutions. 9 2016 First, we have to attract more 10 viewers to Canadian programming -- particularly English 11 television. 12 2017 Second, we need to increase the 13 availability of "underrepresented" categories in prime 14 time. 15 2018 And, third, we need to maintain and 16 refocus the resources directed to such programming. 17 2019 The realities are simple. It costs 18 at least five times as much to produce a Canadian 19 program as to import a foreign one. The growth in 20 Canadian content available is very real, but it is 21 diluted by the range of viewing choices. Of all the 22 English programs targeted to, and watched by, our 23 children, over 70 per cent are American. 24 2020 And if you look at the system as a 25 whole, the situation for drama is every more sobering, StenoTran 475 1 where the figure rises to nearly 93 per cent. 2 2021 The CBC has challenged the industry 3 to increase Canadian content and viewership for drama, 4 documentaries and children's programming. 5 2022 Let me reiterate, though, that 6 producing Canadian content is not enough. That content 7 must appeal to Canadians, it must tell Canadian 8 stories, and it must be marketed effectively to 9 Canadian audiences. 10 2023 Now, part of the answer to Canada's 11 television challenges may lie in focusing the Canadian 12 content rules for underrepresented categories. 13 2024 But that is only part of the 14 solution. Looking for more money from governments is a 15 non-starter and squabbling over the allocation of 16 current funds simply serves to divert efforts that 17 could be put to much better use. 18 2025 What really matters is what we do 19 with the funds, what we program, how evocatively it 20 speaks to Canadians, and where we schedule it. 21 2026 The need to take a bold approach is 22 very clear: Canadians have changed the way in which 23 they use television and we must change with them. If 24 we live in the past, we will be consigned to the past. 25 We will change or we will die. StenoTran 476 1 2027 In addition, we must recognize the 2 mammoth television changes in play around the world and 3 work those changes to our advantage here in Canada. We 4 need to adapt our competitors' approaches to economic 5 structures, marketing strategies and new ventures so 6 that we can better serve this country's needs. 7 2028 The world is changing. The industry 8 is evolving. The industry is slowly clustering 9 globally around what we call constellations. These are 10 complex webs of distribution, production and 11 programming that account for an ever-growing amount of 12 TV programs worldwide. 13 2029 The largest constellations are known 14 by everybody in this room. Disney, Time Warner, Fox. 15 The constellation model also works in the public sector 16 for the BBC and for the Australian Broadcasting 17 Corporation. In Canada we only have to look at Global, 18 CTV and Shaw, to see the same pattern emerging. 19 2030 Il est plus simple d'évoquer les 20 problèmes de la télévision canadienne que de les 21 résoudre. Voici néanmoins quelques suggestions. 22 2031 Considérant l'avenir de la 23 télévision, nous vous incitons fortement à élaborer une 24 politique qui accroît le nombre de productions 25 canadiennes dans des catégories d'émissions sous- StenoTran 477 1 représentées dans l'ensemble du système de 2 radiodiffusion canadien, qui crée de nouveaux débouchés 3 pour ces émissions et qui procure aux radiodiffuseurs 4 privés et publics la souplesse et les outils 5 nécessaires pour s'acquitter de leur tâche. 6 2032 Pour cette raison, nous saluons la 7 récente décision prise par les instances du Fonds de 8 télévision canadienne de revoir les critères d'accès 9 relatifs aux émissions de qualité dans des catégories 10 sous-représentées aux heures de grande écoute. Nous 11 demandons en outre au Conseil d'entrevoir la 12 possibilité de libéraliser les règlements concernant la 13 promotion croisée afin de maximiser les auditoires aux 14 émissions canadiennes. 15 2033 La possibilité de convertir les 16 heures de nouvelles productions en heures d'écoute 17 dépendra de la structure de l'industrie en place. 18 L'industrie canadienne de la radiodiffusion doit 19 compter davantage sur ses propres moyens et ne peut 20 exiger du gouvernement et de ses agences qu'ils règlent 21 le problème de la production dans son ensemble par 22 l'injection de capitaux additionnels dans les fonds de 23 production. 24 2034 Compte tenu du courant mondial en 25 faveur des constellations d'entreprises et des StenoTran 478 1 avantages que les Canadiens peuvent en tirer, nous 2 recommandons que ces entreprises soient considérées 3 comme un tout. Lorsque le conseil évaluera le 4 rendement de celles-ci ou lorsqu'il attribuera des 5 nouvelles licences, il devrait tenir compte de 6 l'ensemble des services de radiodiffusion impliqués. 7 2035 Commissioners, CBC should be allowed 8 to keep pace with the rest of the industry by being 9 given the freedom to evolve into an efficient 10 constellation model. Allowing CBC to transform 11 naturally through the licensing of new services will 12 increase shelf space for its productions. This will 13 permit the CBC to evolve and develop as the 14 broadcasters are evolving, converging, and 15 consolidating. For our part, we will commit to using 16 these new tools to substantially increase both the 17 availability and the viewership of Canadian programs. 18 2036 The CBC has grown along with Canada 19 itself. We are proud to have had the privilege of 20 bringing Canadians together to share their stories for 21 the past six decades. We are convinced that, given the 22 opportunity, we can make an even greater contribution 23 in the future. 24 2037 We would be pleased to receive your 25 questions. StenoTran 479 1 2038 LA PRÉSIDENTE: Bonjour, Madame 2 Fortin. Good afternoon, gentlemen. 3 2039 The Public Notice that announced this 4 hearing did have a section on the role of the national 5 public broadcaster and two particular questions, 6 strategies -- what would be the strategies that would 7 be most effective in encouraging private and public 8 broadcasters to co-operate more effectively, and how 9 can the CBC best work with and complement the role of 10 private broadcasters. So those will be the areas that 11 we will focus on. 12 2040 We obviously, as mentioned in my 13 opening remarks will see you shortly for renewal, so we 14 are not -- I am going to have some questions about 15 other proposals, but the focus will be on these 16 questions and on the proposals that have been made by 17 other parties in which they expect or the system will 18 be such as to have you be part of them, to see what 19 your comments are about that, but it has to be clear 20 that we are not examining your performance per se at 21 this stage. 22 2041 The CAB, which would be of course the 23 representative association of the private broadcasters 24 in Canada, have put forward a proposal which could be 25 novel, depending on how one would implement it and it StenoTran 480 1 would be interesting to get your comments as to the 2 usefulness of such a goal of audience goals. My 3 understanding is that all participants in the industry 4 would co-operate in establishing and driving towards 5 these goals. What are your comments about the 6 potential CBC participation in such a model? 7 2042 MR. BEATTY: Madam Chair, I 8 highlighted in my remarks that we are certainly 9 committed to doing everything that we can to boost 10 viewership for Canadian programs. I felt that you in 11 questioning the CAB yesterday put it very well, when 12 you asked whether this sole criterion which we should 13 be judged as broadcasters was on audiences or whether 14 there are other criteria, looking at quality, looking 15 at volume and so on which were important as well. 16 2043 We would certainly participate in any 17 initiative that was undertaken to try to boost 18 viewership, but we believe that in measuring our 19 performance as broadcasters we have to look at a range 20 of criterion, including viewership, quality, quantity 21 of programming we put on and a range of others. 22 2044 THE CHAIRPERSON: Considering that 23 the CAB, unlike you, is not coming up for renewal, feel 24 quite free to endorse or criticize this as a model. 25 2045 MR. BEATTY: Let me just set a StenoTran 481 1 context for it, if I may first, Madam Chair, and that's 2 to say that what we have attempted to do in our brief 3 was not to tell others what to do, but to try in a 4 broad sense to talk about the system as a whole and 5 what contribution we could make. 6 2046 THE CHAIRPERSON: But if you don't 7 criticize what others want to do you may end up being 8 part of it if you don't believe that it's useful. 9 2047 MR. BEATTY: Madam Chair, I am trying 10 to be on my best behaviour where the CAB is concerned. 11 I did sit through the brief yesterday and, yes, there 12 are substantive areas in which we disagree in our 13 approach. 14 2048 One of them is on the issue of 15 whether or not the key criterion is simply the question 16 of viewership. Viewership is essential. We are not 17 doing our job as broadcasters if we are not attracting 18 audiences to Canadian content. It's as plain and 19 simple as that. 20 2049 If you look at the Crop survey that 21 you released yesterday, one of the things that is most 22 disconcerting was when Crop asked the respondents, "Do 23 you watch Canadian stations or American stations?" 24 Disproportionately -- disproportionate to actual 25 viewership, respondents felt that they were watching StenoTran 482 1 American stations, which says something about the 2 perception that there is that even Canadian stations in 3 Canada have become so Americanized it's hard to 4 distinguish between the two. 5 2050 We need to attract audiences to 6 Canadian content, no question about that. It's a 7 priority goal, but I believe that the role of the 8 Commission needs to be to look not simply at the issue 9 of viewership to a particular program, but what is the 10 nature of the program. Is it something which is an 11 underrepresented category? Is it something which by 12 its very nature may not draw a large audience, but 13 deserves to be represented on Canadian airwaves. So, I 14 think we have to be much more nuanced than perhaps was 15 suggested earlier. 16 2051 THE CHAIRPERSON: Conversely, you 17 would -- I gather from your submission you would be of 18 the view that the airing of underrepresented categories 19 in peak time is crucial because if I understand your 20 submission you propose that for the whole system, I am 21 not clear if it is for both you and the private sector, 22 that we could deregulate daytime? 23 2052 MR. BEATTY: In our case it wouldn't 24 have a great deal of impact, in that we are 25 Canadianizing all the way through daytime and StenoTran 483 1 nighttime, but our priority clearly is to generate the 2 largest audiences for Canadian programs when the 3 largest number of people are watching TV. 4 2053 If we are serious about wanting to 5 attract Canadian eyes to Canadian content, then we have 6 to be there when the viewers are there. 7 2054 THE CHAIRPERSON: I thought I saw Mr. 8 McCoubrey's eyebrows moving. Did you have something? 9 Did you have some comments on this issue of that? If 10 it doesn't make any difference for you, presumably the 11 deregulation of daytime parts in the private sector 12 would indicate that you believe -- I think you do say 13 in your brief that sports and news and information 14 Canadian programming would be aired in any event. 15 2055 MR. McCOUBREY: That's correct. 16 2056 I would like to reinforce what Mr. 17 Beatty was saying. We believe wholeheartedly that 18 there are good reasons why a number of Canadian 19 programs are on during the day and we would hope that 20 they would continue to be aired then, but if your 21 objective is to contribute to increased viewership to 22 quality Canadian content, perhaps the only way to 23 address it head on is to see that it is available i 24 peak viewing hours. 25 1515 StenoTran 484 1 2057 THE CHAIRPERSON: Now my eyebrows are 2 moving because we have had a number of comments which 3 we discussed before from the public of the fear that if 4 we shift our focus, which is very much the core of your 5 recommendations for the system, to peak time and you go 6 further and say deregulate Canadian content in prime 7 time, there is a possibility, especially if it's 8 coupled with spending, that some type of programming 9 may indeed disappear from the system. There is a 10 problem of that occurring even for the CBC. 11 2058 MR. McCOUBREY: Well, I don't think 12 it's likely that we would take advantage of that 13 opportunity to change our drive to be as close to 100 14 per cent Canadian as possible and to continue to be 15 diverse. 16 2059 THE CHAIRPERSON: What are your 17 comments about the need to regulate in the daytime 18 parts since an obvious recommendation which strikes one 19 is that for the private sector, you think it would be 20 quite possible in this drive towards more proud and 21 better quality and profitability, but serving the 22 public eventually obviously, that in the private sector 23 we could deregulate daytime. 24 2060 MR. McCOUBREY: I think our intention 25 was to attempt to arrive at something that would be StenoTran 485 1 balanced in its approach. We understand that if we 2 have to improve the system in one area, we have to give 3 people freedom and resources to do that. By relieving 4 them of some obligations and imposing others, we might 5 arrive at that balance it was our point of view. 6 2061 We believe that quality Canadian 7 programming deserves to be seen. We do our very best 8 on our own to do that. It's not that we would welcome 9 having competition head to head with us. We enjoy our 10 position of having predominance in supply Canadian 11 programming in peak hours, but we think the system 12 would be better if people were relieved of some other 13 burdens and perhaps invited to contribute to increasing 14 the supply of quality Canadian programming in peak 15 hours. 16 2062 We offer that simply as a suggestion. 17 I know that some of this is a test to see if my 18 conversion has yet been completed and I know that I 19 choke sometimes under the threat of the onion being 20 peeled like this. 21 2063 THE CHAIRPERSON: If you suggest 22 deregulating entire day parts, you must have some 23 friends left in the industry. 24 2064 MR. McCOUBREY: Not many. 25 2065 THE CHAIRPERSON: Do I hear a StenoTran 486 1 suggestion that that wouldn't be so problematic if 2 resources were shifted to peak time on certain 3 under-represented categories even at the expense of 4 local and regional programming in daytime? 5 2066 MR. McCOUBREY: We thought it was a 6 salutary step because we do believe if you look at the 7 situation that we are faced with, we have had a 8 tremendous increase in the supply of television 9 available to Canadians. The number of hours that are 10 programmed and available to them has increased 11 dramatically, and yet for 30 years television has been 12 viewed at 22 to 24 hours per week. 13 2067 When we look as best we can and 14 researched it over the years, for a number of reasons 15 the viewing to Canadian content in English Canada has 16 remained pretty well stable as well. We think that 17 some of that might be the fault of those of us who are 18 in the television business. We think some of it may 19 well be also the result of some of the ways in which 20 television is distributed. 21 2068 For example, when a new Canadian 22 specialty service is licensed and put on, an American 23 service is also put on. Since the Canadian service 24 doesn't run 100 per cent Canadian content but the 25 American service does run 100 per cent U.S. content, StenoTran 487 1 the effect of this has been to increase the 2 availability of American programming versus Canadian 3 rather than achieving perhaps what was desired. 4 2069 There are a lot of things in the 5 system that maybe if we are serious about increasing 6 the viewership to Canadian programming that need to be 7 looked at from top to bottom and every participant in 8 the system, we think, has a responsibility to offer 9 their suggestions in that regard. 10 2070 We felt and yesterday there was a 11 solid line of questioning about the wisdom of putting 12 our eggs in the viewership basket, but we do believe 13 that viewing of Canadian content is what we are 14 striving for. The fact that it may be produced and not 15 aired does not interest us, that it may be produced and 16 aired in times when there isn't much audience for it 17 interests us little. We are anxious to see the system 18 benefit by peak viewing to more Canadian content. 19 2071 THE CHAIRPERSON: Constellations. 20 First, I must thank you for all these charts with all 21 the coloured circles. They really appeal to my simple 22 mind. 23 2072 You say at page 5 of your submission 24 that: 25 2073 "CBC believes that the TV StenoTran 488 1 universe of tomorrow will be 2 structured and driven by the 3 economics of constellations." 4 2074 This morning in the French part of 5 Mr. Beatty's opening remarks: 6 2075 "Compte tenu du courant mondial 7 en faveur des constellations 8 d'entreprises et des avantages 9 que les Canadiens peuvent en 10 tirer, nous recommandons que ces 11 entreprises soient considérées 12 comme un tout et que le Conseil 13 évaluera le rendement de celles- 14 ci." 15 2076 What I would like to discuss with you 16 is whether this idea of constellations and what the 17 regulator should do faces them. Are you saying that 18 these constellations are occurring and, therefore, it's 19 a phenomenon that is driven by economic imperatives and 20 perhaps they ought to be banished considering the 21 French paragraph I read or should they be encouraged by 22 the regulator? 23 2077 Is it simply that they are happening 24 in any event through a number of forces and, therefore, 25 we should make the most of them? Should we encourage StenoTran 489 1 them? Third, of course, which may be not a popular 2 questions, but is it because the broadcasting 3 corporation would like to have more circles on the 4 chart, that you think constellations are a good idea? 5 2078 MR. BEATTY: Thank you for those 6 questions, Madam Chair. 7 2079 It is happening. Very little that we 8 can do here in Canada will prevent the development of 9 constellations internationally. Much of the 10 competition that we are facing is coming from 11 constellations, whether it's Fox, Disney, Time-Warner, 12 a whole range of others. 13 2080 Our starting point is let's recognize 14 what in fact is taking place internationally and 15 increasingly in Canada. 16 2081 Two, does this potentially bring 17 advantages to Canada? Yes, I believe it does. You 18 asked should we encourage it. Yes, we should where 19 there are advantages to Canadians in doing so. 20 2082 The most important criterion is does 21 this allow us to be more successful in terms of making 22 Canadian content available to Canadians in ways in 23 which they want to consume it. 24 2083 The third question, is our motivation 25 underlying this the fact that we have applied to you StenoTran 490 1 for specialty services. Our motivation in applying for 2 specialty services is to recognize the way in which the 3 world has changed and to recognize the fact that our 4 audiences that we are trying to serve are using the 5 media in a fundamentally different way from the way in 6 which they have used it in the past. 7 2084 If we lock ourselves into the past 8 into an old model, we will die. If we as a 9 broadcasting system lock ourselves into the old way of 10 doing things, we will increasingly lose share in Canada 11 and we will lose the battle to ensure that Canadians 12 are exposed to Canadian content. 13 2085 I think essentially what we are doing 14 when we say take a look at the constellation as a whole 15 is if you are presented with a Swiss army knife, it's 16 good to concentrate on more than just the corkscrew to 17 realize there are an awful lot more tools there that 18 you can use to put into effect what it is you are 19 trying to do. 20 2086 The constellation model gives us a 21 range of devices which will allow us to promote 22 Canadian content much more effectively. We are not 23 arguing for special privileges for ourselves in that. 24 We are simply saying that the Canadian industry needs 25 to evolve as others do. Both elements need to, both StenoTran 491 1 private and public. 2 2087 MR. McCOUBREY: If I may, without 3 moving my eyebrows. 4 2088 THE CHAIRPERSON: I thought you would 5 be proud of how attentive I was. 6 2089 MR. McCOUBREY: Frightened, actually. 7 2090 A lot depends on how one views the 8 balance between public broadcasting and private 9 broadcasting in this country. Yesterday we heard a 10 great deal which would suggest that the public 11 broadcasting role in Canada should be perhaps minimized 12 at its maximum what the public broadcasting role in the 13 United States is. 14 2091 We hold a different view. We think 15 Canada is a better country for having protected a 16 public broadcaster and a private broadcasting system. 17 I think it allows both parties to do different things 18 that complement each other. This we will get back to 19 in ultimately a line of questioning you might wish to 20 pursue. 21 2092 If we look at the place that public 22 broadcasting once held in the country and look at its 23 relative role today, there has been a tremendous 24 diminishment due to fragmentation. The constellation 25 model is a fact. It's one of the facts that has StenoTran 492 1 allowed private broadcasters not to suffer the decline 2 in over the air networks' share of broadcasting and to 3 begin to hold more of the ground for themselves. 4 2093 It's a model that we see as being 5 essential to allowing public broadcasting to do the 6 same thing. Yes, selfishly and for the benefit of our 7 shareholders, we see advantages in pursuing a 8 constellation model that would have more dots out there 9 away from the core of the over the air network. 10 2094 THE CHAIRPERSON: You mentioned 11 audience fragmentation, so you would see that as a way 12 to shore up the loss of audiences by repatriating them 13 -- not repatriating them but taking them with you to 14 another of the circles. 15 2095 MR. BEATTY: Yes. When the 16 independent producers were before you this morning, 17 they mentioned, for example, the experience with "This 18 Hour has 22 Minutes" where we found even on the main 19 network that as we did a repeat, we could generate an 20 audience as high in repeat as the original. 21 2096 What this is saying to us is that 22 already in Canada we have audiences that are so 23 fragmented that at any one time when you show a 24 program, you are fishing in only part of the pond. 25 There are a lot of people there who would like to have StenoTran 493 1 a chance to see the program and may not at the time at 2 which you show it. 3 2097 It's important for broadcasters then 4 to not simply show the program the one time and then 5 put it aside, but rather to make it available in a 6 number of different ways. 7 2098 There are a number of other 8 advantages as well that you get from constellations, 9 including the ability to cross-promote between services 10 and they also give you the capacity to deepen and 11 strengthen your expertise and the quality of your 12 program in specific areas. 13 2099 Our experience with "Newsworld" and 14 "RDE" has been that our total journalistic resources in 15 the corporation have been strengthened as a result of 16 our ability to have those two specialty channels. 17 Similarly then when you look at the arts, or if you 18 look at history or economics, the impact it would have 19 on your main service can be considerable in terms of 20 strengthening and deepening the resources that you 21 have. 22 2100 THE CHAIRPERSON: I thought that the 23 fate of "Air Farce" was much more simple than that. 24 Maybe more Canadians are more like me. I find it much 25 easier to laugh on Friday night than on Monday. StenoTran 494 1 2101 Madame Fortin, au Canada français les 2 constellations, est-ce que ça a des problèmes 3 particuliers? Nous venons d'entendre, par exemple, le 4 CFTPA qui nous disait justement que nous devrions être 5 plus prudents en donnant des permis ou des licences où 6 il y a de la propriété croisée ou deux stations 7 contrôlées par plus d'une personne. 8 2102 Mme FORTIN: En fait, il y a deux 9 éléments, je pense, qui font que la situation au Canada 10 français est très différente. "La Petite Vie" a fait 3 11 millions hier, elle va peut-être faire 2 millions en 12 reprise, mais on ne fait pas que ça. 13 2103 Je pense que ce qu'on voit, c'est 14 qu'on est à peu près 15 ans en arrière sur le modèle de 15 la télévision anglaise et on ne voudrait pas se 16 retrouver ici dans 15 ans à faire les débats que vous 17 avez faits hier avec le CAB et que vous allez 18 probablement faire du côté de la télévision anglaise. 19 2104 On a réussi à conserver avec les 20 télévisions conventionnelles généralistes un bloc de 21 public très, très important -- on pourra discuter 22 comment on a fait ça si vous le désirez -- mais on sent 23 une érosion, et l'érosion se fait de deux côtés. Elle 24 se fait du côté des chaînes spécialisées et elle se 25 fait beaucoup du côté aussi de la télévision anglaise StenoTran 495 1 et américaine. 2 2105 Les gens oublient que la population 3 francophone a à peu près entre 16 et 20 pour cent de 4 leur écoute consacrée à des émissions à la télévision 5 anglaise ou américaine. Ça, c'est la part de marché de 6 Radio-Canada. Il y a autant de francophones qui 7 regardent la télévision en anglais qu'il y en a qui 8 regardent Radio-Canada. Ça, c'est une réalité qu'on 9 oublie. Et on a remarqué qu'à chaque fois qu'on 10 augmente le service spécialisé en français on rapatrie 11 une partie de cette clientèle-là. 12 2106 L'objectif, je pense, de tout le 13 milieu francophone, que ce soit les télédiffuseurs 14 privés, publics, les producteurs, c'est de protéger la 15 télévision en français, c'est de pouvoir développer 16 culturellement des produits francophones, maintenir la 17 solidarité parce qu'on travaille malgré tout pour une 18 minorité linguistique dans le continent nord-américain. 19 2107 Donc c'est la question. Chaîne 20 spécialisée ou non, s'il n'y en a pas, les auditoires 21 dérivent du côté de la télévision anglaise, et disons 22 que nos auditoires davantage parce qu'ils sont en 23 général plus éduqués, plus bilingues, et caetera. 24 2108 Sur le plan de est-ce que ces 25 chaînes-là doivent être attachées ou non à des StenoTran 496 1 broadcasters conventionnels, un des éléments qui est 2 difficile et qu'il faut bien, bien examiner, c'est que 3 compte tenu de la toute petite population avec laquelle 4 on travaille, plus les auditoires se fractionnent, plus 5 il est difficile de maintenir des ressources 6 concentrées pour faire des émissions de prestige, que 7 ce soit des séries lourdes, que ce soit des émissions 8 prestigieuses dans le domaine des arts, de la musique, 9 de la jeunesse, et caetera. Donc il y a un avantage 10 évident à se fractionner soi-même et maintenir à 11 l'intérieur de la population des groupes assez forts 12 pour pouvoir générer des émissions d'un niveau de 13 qualité équivalent à la télévision étrangère. 14 2109 Il ne faudrait pas arriver dans le 15 milieu francophone où les émissions de grande qualité, 16 les séries lourdes, les émissions d'écoute viennent de 17 l'étranger, et nous, on fait de la télévision régionale 18 à bon marché. Donc on a besoin de maintenir des masses 19 critiques. 20 2110 Mais, comme disait l'APFTQ, on est 21 tout à fait d'accord, ce sont des choses dont on 22 discute régulièrement, on a besoin de règles distinctes 23 compte tenu qu'on est deux télédiffuseurs privés, deux 24 gros télédiffuseurs qui font de la série lourde et que, 25 ans le fond, bien sûr on veut être partenaires avec le StenoTran 497 1 secteur privé, mais la qualité de la télévision privée 2 fait qu'on est en compétition féroce case par case, 3 jour par jour, émission par émission. 4 2111 LA PRÉSIDENTE: Alors les 5 constellations, c'est avantageux pour Radio-Canada, 6 mais à votre avis c'est acceptable aussi pour le 7 secteur privé à cause des mêmes impératifs. 8 2112 Mme FORTIN: Je pense que oui et, à ce 9 moment-là, il faut définir comment on protège la 10 relation avec le milieu de la production indépendante, 11 comment on protège la façon dont ces constellations-là 12 vont être structurées. 13 2113 Nous, on a demandé des produits -- et 14 on va avoir des audiences là-dessus -- dans des 15 secteurs qui sont très, très directement reliés à notre 16 mandat. Les autres partenaires, que ce soit des 17 partenaires indépendants ou TVA, ont demandé des 18 projets de télévision dans des secteurs différents. 19 2114 La question à se poser, je pense que 20 c'est l'essentiel du mémoire, c'est: Si un 21 télédiffuseur conventionnel a des chaînes spécialisées, 22 sa contribution doit être lus grande, et pour avoir des 23 chaînes spécialisées il faut que sa contribution puisse 24 démontrer qu'il la mérite. 25 2115 L'importance de l'évolution du StenoTran 498 1 système -- et on a encore le choix en français de le 2 faire différemment -- c'est de mesurer l'octroi des 3 licences à la hauteur et à l'importance de la 4 contribution. Je pense que c'est comme ça qu'on va 5 maintenir un niveau de production élevé en télévision 6 françophone et de la production de qualité. 7 2116 THE CHAIRPERSON: Since we are looking 8 today at the system as a whole, I would like your 9 comments on the advantages that can flow from these 10 constellations. 11 2117 You mentioned a little earlier that 12 if you have a Swiss knife you should look at all its 13 parts. Well, presumably the corkscrew gets us to the 14 good wine. How do you get the good wine as a result of 15 constellations? I hear you say that you should 16 encourage them, it's happening in any event, harness 17 this system to advantage. 18 2118 At page 33 you do raise this and say 19 at 6.0.4 of your submission that "a key element of the 20 Commission's new Canadian content policy could 21 incorporate the notion that for emerging Canadian 22 constellations, a commitment to produce, distribute and 23 export high quality Canadian programs will be an 24 essential factor in CRTC decisions to grant a 25 constellation grouping any further program service StenoTran 499 1 licences". 2 2119 Would you also include in this 3 concentration horizontally as well as vertical 4 integration through specialty licences? Constellations 5 would include restructuring, consolidation, 6 concentration, that creates a more powerful grouping. 7 2120 Is this comment saying to the CRTC we 8 are for that but make it generate wine because there 9 are more instruments to open the bottle? 10 1530 11 2121 MR. McCOUBREY: Yes, Madam Chair. 12 Yes, we believe that rather than -- well, we think it's 13 an opportunity for the Commission if you recognize the 14 existence of constellations and perhaps not only ours 15 but other people's plans to expand what are embryonic 16 constellations. It gives you the opportunity to look 17 at the totality of the enterprise's activity and its 18 contribution to the Broadcasting Act. 19 2122 People who are making commitments and 20 honouring them might well be granted licences over 21 those who make commitments and don't honour them in 22 totality or people whose programming seems -- I think 23 that, in simple terms, people who make commitments and 24 keep them would, not just in the service that's making 25 the application but over their entire portfolio, be StenoTran 500 1 favoured over others. 2 2123 THE CHAIRPERSON: Would you go as far 3 as saying that more should be asked of a conventional 4 broadcaster, for example, who also has proliferation of 5 specialty licences? 6 2124 MR. McCOUBREY: Yes, that would be 7 our position, that a licence is a privileged position 8 and that with an increasing number of licences come 9 increasing obligations. 10 2125 THE CHAIRPERSON: And that would be 11 based on the fact that it's more likely to generate 12 efficiencies, et cetera? 13 2126 MR. McCOUBREY: Well, I think people 14 who apply for licences generally have ambitions for 15 their share price as a consequence of having the 16 licence. There is certainly a history of licences, 17 less so in specialty television. It's not yet 18 demonstrated, but certainly in radio and over-the-air 19 television licences have value even when they are not 20 making money. I think that people who -- 21 2127 THE CHAIRPERSON: You realize that's 22 completely illegal, what you just said? 23 2128 MR. McCOUBREY: No, but I am sure 24 someone will tell me later this evening. 25 2129 I do believe that looking at things StenoTran 501 1 in totality and commitments to the system would have 2 some beneficial results. We are simply trying 3 throughout this to see if we can identify ways that 4 would benefit the system. 5 2130 MR. BEATTY: Basically, Madam Chair, 6 if there are synergies that benefit the corporation in 7 having a constellation, why shouldn't the public 8 benefit from those synergies as well. Is it not 9 legitimate for the Commission, when it's looking at 10 licensing, to say: Okay, if there is an advantage to 11 having you doing this and giving you more than one 12 outlet, how does the public share in that advantage? 13 What we can do to use the new mechanism to leverage 14 more benefit for the public and to get more Canadian 15 content in the system? 16 2131 THE CHAIRPERSON: Obviously, 17 legitimacy is in the eye of the beholder because we 18 have heard from the CAB that multi-station licensees 19 should not -- no more should be requested of them 20 simply because stations are under common ownership, but 21 what you are saying is encourage it but harness it for 22 the generation of better quality programming and a 23 stronger Canadian system by asking more of those who 24 get more. 25 2132 MR. McCOUBREY: That's correct, but, StenoTran 502 1 additionally, one of the distinctions might be that we 2 are not talking necessarily about licences which would 3 cover small geographies, but many of the constellations 4 are national licences. 5 2133 MR. BEATTY: Madam Chair, I think in 6 many ways you have two very different visions of the 7 system and where we go from there. There is agreement, 8 I think, on all of our parts that we want to see more 9 Canadian content, better Canadian content, we want it 10 to connect better with audiences. The question is how 11 we do it. One approach is to look upon the system as 12 being a closed system that either the government has to 13 write a cheque and throw more money at it or the 14 players themselves have to make a fast grab in the till 15 and try to take away from somebody else to benefit 16 yourself. 17 2134 The other vision is that we can grow 18 the system, that we can put in place a structure that 19 enables us to attract more viewing of Canadian content, 20 to attract better advertising revenues, to use our 21 resources much more efficiently and effectively than we 22 do today. I believe that turning to government and 23 asking government to simply throw more money at the 24 problem is a non-starter. We have been through a very 25 painful period at the CBC where we have had to make StenoTran 503 1 very serious reductions as a result of the fact the 2 government was trying to get its books in order. It 3 would be unrealistic for us to expect that suddenly the 4 cheques are going to start flowing into the system. 5 2135 I think it is unrealistic for us to 6 say simply that it's a zero sum game and that my win is 7 your loss. I think we as a system, as a Canadian 8 broadcasting system, have to look at ways of using our 9 resources more effectively to benefit Canadian viewers, 10 Canadian listeners and Canadian content. 11 2136 THE CHAIRPERSON: Do you see any need 12 for safeguards? If we do hear from any parties that 13 concentration, cross-ownership, vertical integration, 14 especially vertical integration with production, should 15 be the source of concern, do you see any need for 16 safeguards to negate or at least alleviate the concerns 17 that can flow from concentration? 18 2137 MR. BEATTY: Yes, Madam Chair, and 19 that's why the Commission is there and why I think it's 20 entirely appropriate for the Commission in looking at 21 our performance, both the commitments we make at the 22 front end and our performance at the back end, to say, 23 "Have you delivered in the public interest at the end 24 of the day the Canadian broadcasting system that's 25 designed to serve the public interest?" All of us StenoTran 504 1 should be held to that test. 2 2138 THE CHAIRPERSON: But think for a 3 moment of the private sector, of the production sector. 4 Do you see any need for particular safeguards to 5 alleviate the problems of some of the parties you have 6 heard -- 7 2139 MR. BEATTY: Sure. 8 2140 THE CHAIRPERSON: -- or that you may 9 yourself see or that there are many submissions who 10 even criticized the CBC's use of its clout to the 11 disadvantage that is perceived by some of other 12 parties? You must be aware of what other parties are 13 concerned about generally or philosophically and with 14 regard to the CBC, in particular. 15 2141 MR. BEATTY: I do and we also have 16 concerns. I would be very concerned if, as a result of 17 integration, you found that gatekeepers were benefiting 18 their services to the detriment of others. The whole 19 issue of access is absolutely critical in our system 20 and you need an honest broker outside of the -- you 21 know, a third party like the CRTC to be able to be 22 there, to make sure that all players are on a playing 23 field which is level, where the goalposts aren't moved 24 as they are going along the field. 25 2142 There is a range of issues, there is StenoTran 505 1 no question about that, and as you get concentration, 2 new issues arise, you need to have somebody looking in 3 from above the system to make sure that the public 4 interest continues to be served, and we have no 5 difficulty with that at all. We would encourage it. 6 2143 Mme FORTIN: Si vous permettez, du 7 côté français, une des choses qu'il faut protéger 8 absolument, c'est l'équilibre du système entre les 9 télédiffuseurs et la production indépendante. Je pense 10 que c'est très facile de réaliser ça. Il y a un 11 certain nombre de règles; certaines dépendent du CRTC, 12 certaines peuvent dépendre de Téléfilm ou des fonds de 13 production. 14 2144 Par ailleurs, il y a des règles de 15 protection, des règles positives où nous faisons 16 régulièrement des engagements en fonction de la 17 production indépendante, ce que nous avons toujours 18 défendu par ailleurs. C'est que nous faisons aussi de 19 la production interne, mais c'est pour ajouter au 20 système. Et ce que nous remplaçons avec notre 21 production interne, ce sont des acquisitions 22 étrangères. 23 2145 Je pense qu'il serait très facile 24 pour nous de s'asseoir avec les producteurs 25 indépendants -- d'ailleurs, ce n'est pas la première StenoTran 506 1 conversation -- et de définir un système de règles qui 2 permettrait de protéger je dirais les trois ou quatre 3 piliers essentiels dans le milieu francophone, c'est-à- 4 dire la télévision publique conventionnelle, la 5 télévision privée, les services spécialisés et la 6 production indépendante. C'est un système fragile et 7 délicat, mais nous avons l'habitude de travailler 8 ensemble, et je pense qu'il faut éviter un déséquilibre 9 qui ferait qu'un de ces éléments-là pourrait risquer 10 d'être considérablement diminué ou disparaître parce 11 qu'à ce moment-là on n'atteindrait pas le bien du 12 public. 13 2146 LA PRÉSIDENTE: Madame Fortin, dans 14 la soumission de langue française vous parlez de la 15 nécessité au Canada français de mettre en place à 16 l'échelle nationale des moyens d'élargir la base de la 17 production francophone d'une manière qui non seulement 18 sauvegarde les solides assises actuelles au Québec mais 19 aussi qui développe et étend la base de production 20 indépendante à l'échelle du pays. 21 2147 Mme FORTIN: Ce qu'on fait 22 présentement, c'est qu'on s'est donné un certain nombre 23 de priorités en ce qui concerne la production en 24 région. La première des priorités, je sais que c'est 25 un sujet qui vous intéresse probablement moins ici, StenoTran 507 1 mais nous, on a un mandat d'information nationale 2 particulièrement important; donc d'avoir des émissions 3 d'information et une couverture pan-canadienne sur 4 l'ensemble du réseau, c'est une priorité, de la même 5 façon que de fournir pour les marchés francophones des 6 nouvelles locales pour les communautés francophones 7 hors Québec, ce sont deux priorités, c'est-à-dire les 8 premières. 9 2148 Deuxièmement, nous avons développé de 10 concert avec notre radio un certain nombre d'activités 11 et de programmes pour venir en aide directement aux 12 besoins des communautés des francophones hors Québec et 13 qui sont différentes je dirais des objectifs du réseau. 14 2149 Nous sommes aussi en train de 15 développer -- et ça va assez bien, je suis assez 16 contente -- du travail pour mettre sur pied 17 progressivement un réseau de producteurs indépendants 18 francophones dans les régions, et en particulier dans 19 des régions hors Québec. Nous avons beaucoup de 20 rencontres, nous faisons beaucoup de développement. 21 C'est du travail à long terme. Nous avons déjà toute 22 une liste de projets, et je pourrais vous les envoyer, 23 qui vont probablement arriver et qui vont aller au 24 réseau. Nous avons depuis plusieurs années des 25 ententes avec l'Office national du film pour exploiter StenoTran 508 1 au maximum les ressources de ces populations-là qui 2 sont petites et dispersées. 3 2150 Dans les projets de chaînes 4 spécialisées que nous avons déposés, nous avons été 5 aussi très, très soucieux de s'assurer de renforcer les 6 présences régionales et de pouvoir permettre à toutes 7 les communautés d'être reflétées à l'ensemble du pays. 8 2151 Ça, c'est en production. 9 2152 En distribution, on a fait des 10 ententes et on travaille très étroitement, en 11 particulier avec Bell Satellite, pour assurer... parce 12 qu'on ne se fait pas d'illusions, la câblodistribution 13 à l'échelle du pays, pour plusieurs chaînes 14 francophones, c'est un problème qui n'est pas résolu, 15 et on essaie de travailler avec les nouvelles méthodes 16 de distribution pour faire à la fois de la distribution 17 en direct, du téléchargement par exemple, dans les 18 écoles et les centres communautaires, de la plupart des 19 émissions qui pourraient être désirées par ces 20 populations-là, et nous avons une entente que toutes 21 nos chaînes spécialisées seraient distribuées par 22 satellite à l'échelle du pays. 23 2153 Le troisième élément qui nous touche 24 aussi, c'est qu'on veut distribuer du contenu 25 francophone à l'étranger parce que la place des StenoTran 509 1 francophones dans les nouveaux médias et à l'étranger, 2 c'est une peau de chagrin, et je pense que là-dessus on 3 est tous solidaires, les francophones, privés, publics, 4 Télé-Québec, Canada, il faut absolument produire, 5 produire du contenu nouveau, le rendre accessible à la 6 population d'ici, le distribuer à l'étranger. C'est 7 une condition de survie pour nous. 8 2154 LA PRÉSIDENTE: On a discuté déjà 9 avec certaines parties de l'importance de la facilité 10 d'exporter la production. À la page 20 de votre 11 document, 3.4.8, vous dites: 12 2155 "Du côté de la télévision 13 française, il n'est plus adéquat 14 de tabler sur les succès 15 remportés. Avec la concurrence 16 accrue... [et caetera], [il faut 17 avoir de] nouvelles situations 18 et mettre sur pied des 19 industries qui sont en mesure de 20 soutenir la concurrence et de 21 mener adroitement leurs 22 activités d'exportations. 23 2156 Mais, par ailleurs, à la page 35, 24 votre huitième, je suppose, recommandation, vous dites 25 que le Canada ne doit pas se trouver un lieu où tourner StenoTran 510 1 des émissions génériques et purgées de tout repère 2 canadien. Donc il y a une certaine contradiction entre 3 ce désir de produire des produits exportables mais 4 quand même de ne pas se laisser prendre au piège de ne 5 pas avoir des émissions vraiment canadiennes, ce qui 6 attire évidemment vos auditoires. Et vous parlez là de 7 resserrer les normes d'admissibilité au financement 8 destiné à la production d'émissions canadiennes. Dans 9 le contexte du commentaire, la capacité d'exporter une 10 émission ne doit pas déterminer la décision de financer 11 ou non. 12 2157 Est-ce que vous pouvez me donner vos 13 commentaires -- je vois que vous avez bien hâte de le 14 faire -- sur cette contradiction ou cette apparente 15 contradiction et qu'est-ce que vous voulez dire par 16 "resserrer les normes d'admissibilité au financement" 17 dans ce contexte? 18 2158 Mme FORTIN: Je pense qu'il faut 19 prendre en compte... et une partie de la réponse devra 20 être donnée par Jim Byrd, mon collègue de la télévision 21 anglaise, parce qu'il est très rare en télévision 22 francophone qu'on déguise les productions pour que ça 23 ressemble aux États-Unis. Ce n'est pas ça, notre 24 problème. Notre problème, c'est plus la langue 25 française et le fait que, pour exporter, les compagnies StenoTran 511 1 francophones recourent de plus en plus à l'anglais. Ce 2 n'est pas un secret, si le Réseau TVA a ouvert un 3 bureau à Vancouver pour faire des films de langue 4 anglaise pour exporter aux États-Unis, ce n'est pas ce 5 dont on parle en français quand, comme télévision 6 publique, on parle d'exportation de produits 7 francophones. 8 2159 Par contre, une partie de ce 9 paragraphe-là fait référence à la production de langue 10 anglaise qui est conçue prioritairement pour 11 l'exportation et qui trouve sa place sur nos antennes. 12 Je pense que les problèmes de l'exportation et notre 13 relation avec soit les États-Unis, soit la France, est 14 complètement différente selon qu'on est en milieu 15 francophone ou en milieu anglophone. 16 2160 Je pense que le chant des sirènes 17 américaines est très, très fort du côté anglais. Nos 18 sirènes françaises sont moins séductrices pour nous. 19 2161 LA PRÉSIDENTE: J'invite M. Byrd à 20 faire ses commentaires, mais ce que je vous lisais au 21 départ, c'était bien du côté de la télévision 22 française. 23 2162 Mme FORTIN: Oui. Du côté de la 24 télévision française... 25 2163 LA PRÉSIDENTE: ... qu'on doit StenoTran 512 1 s'adapter aux nouvelles situations, mettre sur pied des 2 industries qui sont en mesure de soutenir la 3 concurrence et de mener adroitement leurs activités 4 d'exportation. 5 2164 Alors vous voyez là un contexte 6 différent à cause de la langue. 7 2165 Mme FORTIN: Je fais référence à ce 8 que l'Association des producteurs disait, de maintenir 9 la production de séries de haut niveau. On pense que 10 dans le secteur de la télévision pour enfants et du 11 documentaire on a des possibilités de succès 12 particulièrement importantes. 13 2166 Je pense que d'ici quatre ou cinq ans 14 la distribution de nos signaux, si on peut résoudre les 15 problèmes des droits de diffusion, va être probablement 16 plus intéressante que la distribution des émissions 17 émission par émission, et l'utilisation des nouveaux 18 médias pour nous est un moyen d'avoir accès aux marchés 19 internationaux. 20 2167 Évidemment, il faut redéfinir 21 complètement les question de droits, les questions de 22 paiement des droits de diffusion, les fenêtres, et 23 caetera, mais c'est la voie de l'avenir, et il faut 24 qu'on s'y mette. 25 2168 THE CHAIRPERSON: Mr. Byrd? StenoTran 513 1 2169 MR. BYRD: I think the whole issue of 2 export is one that we are very interested in. We are 3 very successful at it. We have exported in the last 4 six to seven years somewhere between $80 and $90 5 million worth of our programming. Our programming is 6 seen in virtually every country in the world. The 7 issue of the criteria that was raised is a fundamental 8 one and it's one where there is always tension between 9 the different parties. 10 2170 The fund board itself is studying the 11 issue. They have a sub-committee that's looking at 12 that and we are active in that. Obviously, we do have 13 a point of view. We believe in distinctive Canadian, 14 but we also believe distinctive Canadian can sell. We 15 have been successful at it and we think others can be 16 successful at it. 17 2171 THE CHAIRPERSON: Promotion now. At 18 page 42 you advocate more vigorous promotion of 19 Canadian programs, but at page 43 you also express a 20 concern that you don't want any funds diverted from 21 programming. You do advocate, however, that promotion 22 of broadcasters' programs without penalty should be 23 allowed by simple regulatory amendment. 24 2172 Does that refer to an amendment of 25 the meaning of "advertising", to remove from it the StenoTran 514 1 promotion and cross-promotion of Canadian programs? Is 2 that the simple regulatory amendment that you envisage, 3 that it would be exempted or removed from the 4 definition of advertising and that would mean that 5 there would be no penalty then? 6 2173 MR. McCOUBREY: For Canadian 7 programming, yes. 8 2174 THE CHAIRPERSON: You say promotion 9 of their programs without penalty and I gather the 10 cross-promotion as well. So, you wouldn't see here the 11 promotion where it remains in the interest of the 12 broadcaster, which is not impossible, of other programs 13 as well, that all promotion of Canadian programs should 14 be removed from advertising? 15 2175 MR. McCOUBREY: Yes. 16 2176 THE CHAIRPERSON: You say no 17 diversion of funds from programs. I haven't asked you 18 whether you endorse the plan that would have both 19 exhibition requirements for peak time and spending 20 requirements when you look at the private sector. Do 21 you have any comment? Especially Mr. McCoubrey, he has 22 told us he is not completely converted yet, he still 23 looks at the bottom line. 24 1555 25 2177 MR. BEATTY: That was a very nasty StenoTran 515 1 dig, Madam Chairman. 2 2178 MS FORTIN: We do too, Madam. 3 2179 THE CHAIRPERSON: It's getting late. 4 Indulge me. 5 2180 MR. McCOUBREY: I think as best I 6 can, we really felt that above all else we should be 7 concentrating our creativity on how to get people to 8 watch more Canadian programming and above all in peak 9 time because we felt that was the best way to 10 accomplish all the objectives of producing more quality 11 Canadian programming, exposing it to more Canadians, 12 having it accepted, become popular and strengthening 13 the production industry. We are not as concerned about 14 spending and we are not as concerned about quantity. 15 We are mostly concerned about trying to find ways to 16 improve the audience for Canadian programming. 17 2181 MR. BEATTY: Madam Chair, what that 18 doesn't include is treating Canadian infomercials as 19 Canadian content. 20 2182 THE CHAIRPERSON: It does not? 21 2183 MR. BEATTY: It does not. 22 2184 THE CHAIRPERSON: I like 23 infomercials. 24 2185 MR. BEATTY: I am prepared to revise 25 our position then, Madam Chair. StenoTran 516 1 2186 THE CHAIRPERSON: Now, one of the 2 questions obviously that surfaces when we talk about 3 the CBC is the complementarity that exists between the 4 public broadcaster and the private broadcasters. Of 5 course, we have often raised how can this 6 complementarity be accomplish. Various people have 7 various views on it. What is the role that the 8 regulator can play to encourage that complementarity 9 and to encourage more joint venturings, more co- 10 operative efforts, or is that to be left to negotiation 11 or development between the private and public sector? 12 2187 Following that, which may be -- well, 13 you are not here for renewal, but both from Madam 14 Fortin and the CBC, Mr. Beatty probably, there have 15 been very pointed criticisms made by various 16 intervenors in this particular process about the lack 17 of co-operation between the two. I may raise some to 18 see if you have any comments, but again I leave that to 19 you since you are not here on renewal. 20 2188 So, complementarity and what can the 21 regulator do to encourage more co-operation, as well as 22 complementarity in both the French sector and the 23 English sector? 24 2189 MR. BEATTY: Madam Chair, inevitably 25 this is an issue that will come up as we come before StenoTran 517 1 you for licensing, for example, for specialties and as 2 we look at our renewals you, inevitably, will be asking 3 us what are you doing in terms of looking for 4 participation with others? How do you work with them? 5 How do you build synergies between public and private? 6 2190 But it is also in our interest that 7 we build synergies ourselves. We are partnering to a 8 level unheard of in the history of the CBC and there 9 are a number of reasons for that. 10 2191 The first is that we are simply not 11 so large and so wealthy that we can afford to go it 12 alone. It is an expensive world out there and if we 13 are going to be successful in terms of serving our 14 audiences, particularly with reduced resources, we need 15 to look for ways in which we can find other partners, 16 whether other broadcasters, as was the case for our 17 English network when we worked together with Global and 18 also with Atlantis with "Traders." We have done so 19 with WIC as well with "Emily of New Moon" as another 20 example of that. 21 2192 On the French side we are partnering 22 with TVA -- 23 2193 THE CHAIRPERSON: I thought you were 24 going to say with Madam Fortin. 25 2194 MR. BEATTY: We are indeed. StenoTran 518 1 2195 MS FORTIN: We do too. 2 2196 MR. BEATTY: We are. 3 2197 THE CHAIRPERSON: Or with Radio- 4 Canada. 5 2198 MR. BEATTY: With Madam Fortin's 6 enthusiastic encouragement we have a joint application 7 with TVA for Télé classique, but we are also developing 8 partnerships in many, many other ways, by drawing on 9 independent producers more than ever before, by looking 10 in new media for how we would partner with others, by 11 looking in radio at how we can build partnerships with 12 others, not necessarily other broadcasters, but in some 13 cases yes. Working with community radio in French is 14 another example of that. 15 2199 We are with all of the specialty 16 applications that we have before you, we will be 17 looking at how we can build partnerships with others 18 that will leverage the strengths that we bring and 19 allow others to bring them to the table as well. So, 20 it is in our interest to do it. It makes good business 21 sense for us to do it. We can serve our audiences 22 better and, inevitably, this is an issue which you will 23 be pursuing with us as we bring any proposals before 24 you. 25 2200 MR. McCOUBREY: I might just add we StenoTran 519 1 have a 10-year going forward partnership with a private 2 broadcaster to do the Olympics in both English and 3 French as well for the first time. 4 2201 MR. BEATTY: And without that 5 partnership we could not have successfully won the 6 Olympics. That's a partnership that we value and one 7 that strengthens both broadcasters, and which is a win- 8 win situation for our audiences. 9 2202 Another important partnership to us 10 is the one with Power Corporation, where we have a 11 partnership with them to export Canadian signals from 12 this country into the U.S. and potentially around the 13 world. That's a very, very important partnership that 14 allows us to serve Canadians in a way that we probably 15 couldn't do if we were simply acting alone. 16 2203 THE CHAIRPERSON: Just so that we 17 leave you with some food for thought, let me ask your 18 comments about some of the concerns that have been 19 raised by other intervenors and the suggestions that 20 have been made you know that the CFPTA has asked or has 21 recommended that the Corporation institute an ombudsman 22 for independent production, in order to alleviate or 23 improve -- alleviate problems that are perceived to 24 exist by the private television sector and to improve 25 relationships to the advantage of the system. StenoTran 520 1 2204 MR. BEATTY: Yes, Madam Chair. 2 2205 THE CHAIRPERSON: Won't you be 3 surprised if I am not on the renewal panel? 4 2206 MR. BEATTY: I gather you would like 5 me to elaborate somewhat on that answer? 6 2207 THE CHAIRPERSON: No, but you seem so 7 anxious to please and it may be all for naught. 8 2208 MR. BEATTY: I am very keen on doing 9 this. These are our partners. We could not have the 10 Gemini and Gémeaux nominations that we have over the 11 next two weekends without the partnership that we have 12 built with them. 13 2209 The folks who are in front of you 14 today are suppliers to us and have helped to build a 15 very strong relationship. It's a relationship which we 16 consider very important for the future. 17 2210 Inevitably, particularly in a period 18 when money is being taken out of the system there are 19 strains. Our goal is very straightforward. We see 20 these people as our allies and as our friends and as 21 our partners. We want to work closely with them and we 22 want to ensure that we are able to air Canadian 23 programs and that we get higher viewership for them. 24 2211 Now, does the idea of an ombudsman 25 make sense? I don't know. We are prepared to look at StenoTran 521 1 any proposal that comes forward, but let's make it 2 clear what our goal is. Our goal is to work together 3 well and to ensure that it's a win-win situation, both 4 for independent producers and for the CBC. 5 2212 THE CHAIRPERSON: Presumably, whether 6 the ombudsman is the answer or not, the need is to look 7 at what are the concerns expressed? 8 2213 MR. BEATTY: Exactly. 9 2214 THE CHAIRPERSON: Presumably, they 10 will be re-expressed and how does one make them 11 disappear or how does one alleviate them? 12 2215 MR. BEATTY: Exactly. 13 2216 THE CHAIRPERSON: Another suggestion 14 is one of Telefilm, which suggested that the CBC should 15 co-operate with private broadcasters by sublicensing 16 their licensed programs to the private sector, when in 17 a shorter period than it is prepared to do that is a 18 two to three year time period. All of which I would 19 expect in the context of this particular hearing would 20 go to improving the number of hours of quality Canadian 21 programming available to the viewing public. So, it's 22 in that context that I am asking for your comment. 23 2217 MR. BEATTY: Perhaps I could ask Jim 24 and Michèle to comment on that. 25 2218 MR. BYRD: I can go first if you StenoTran 522 1 want. I think that issue is one we need to look at on 2 a case-by-case basis. A lot depends on our own 3 circumstances at the time. 4 2219 Clearly, we have a mandate to ensure 5 that the television schedule that we bring to the 6 public using tax dollars is the best possible schedule 7 we can get there with the resources that we have got. 8 That entails us making decisions about when we release 9 our programs, how often we repeat them and where we 10 repeat them. 11 2220 So, it's not an easy question to give 12 a one-phrase answer to. I think it is something we 13 look at all the time. A lot of our programming does go 14 to the specialty channels. You will find all kinds of 15 examples of it, but I think the decision about when we 16 release it is partly a creative decision about what our 17 schedule needs and when it needs it and it is partly a 18 business decision about when we think the value of that 19 program to us as the public broadcaster has lapsed to 20 the extent that we can release it to others. 21 2221 I think we are not opposed to that in 22 principle. We wish we had more channels of our own so 23 we didn't have to do it. We are not sitting on this 24 motherlode of programming without any reference to the 25 Canadian public wanting to see it. It's something we StenoTran 523 1 have to decide on a case-by-case basis. 2 2222 As I said, I think our first priority 3 and the first thing that should be expected of us is 4 that we look after making sure that the schedule we get 5 to the public is the best possible one we can get 6 there. 7 2223 THE CHAIRPERSON: Since we are 8 getting along so well, I might as well raise WIC's 9 concern as well, which is that the Commission should 10 encourage the CBC to work more co-operatively with the 11 pay television industry. I understand their concern is 12 that the CBC imposes a condition with regard to 13 Canadian features, that they won't air them if they 14 have been previously broadcast by pay, and that that 15 pay service, the one owned by WIC, is arguing that 16 their viewership is so low that that condition is 17 unnecessary and should not be an impediment. 18 2224 MR. BEATTY: Again, Madam Chair, I 19 think it is not a blanket situation. I think we have 20 to evaluate that as the cases come up. 21 2225 Clearly, given the licence fees that 22 the CBC is paying and again, given that it is public 23 money and given that we have a mandate to bring the 24 best possible schedule to the public, we have to look 25 after that first. That is our responsibility. StenoTran 524 1 2226 Does that mean that in general we 2 would never do that? No. But we do have to look at it 3 on a case-by-case basis and we do. 4 2227 THE CHAIRPERSON: I mentioned joint 5 ventures earlier. Do you think that the Commission 6 should get involved in encouraging more joint ventures, 7 that there are some ways in which joint venturing could 8 be improved by some regulatory involvement? 9 2228 MR. BEATTY: There is something of a 10 silence here in response to that. 11 2229 Let me take a crack at it, if I may, 12 Madam Chair, and then any of my colleagues might want 13 to add. 14 2230 THE CHAIRPERSON: I am wondering 15 whether that is because it wasn't a very clear 16 question, a very intelligent question or one which you 17 don't want to answer. 18 2231 MR. BEATTY: It was because it was 19 clear and intelligent, Madam Chairman, that there was 20 the pause. 21 2232 I believe that the driving factor in 22 developing any partnership should be what makes sense, 23 what makes good business sense. Do both parties bring 24 something to the table that strengthens the enterprise? 25 2233 We believe the joint venture we have StenoTran 525 1 with Power Corporation, something where both parties 2 bring something to the table that is valuable. 3 2234 Our partners that we have in our 4 specialty applications bring elements to the table that 5 make us stronger than if we were just there by 6 ourselves. 7 2235 Now, I believe that's better than a 8 forced marriage which may defy the laws of logic or of 9 economics. I think it is clear that the message that 10 all of us get from the Commission is look for ways to 11 partner with others, look for ways to leverage your 12 strength, look for ways of getting benefits for the 13 system as a whole. We have to do that and within those 14 broad guidelines what we want to do is define partners 15 who complement our strengths, who can shore up our 16 weaknesses and with whom we can work well. 17 2236 LA PRÉSIDENTE: Madame Fortin, 18 l'APFTQ, une de ses recommandations -- je pense que 19 c'était à la page 19 de leur mémoire, et ils l'ont 20 répétée ce matin -- est que Radio-Canada devrait 21 allouer au moins 5 millions par année à l'acquisition 22 de droits de télédiffusion de longs métrages canadiens 23 et consacrer plus d'efforts à la promotion du cinéma 24 canadien, de ses créateurs et de ses artistes et 25 interprètes. StenoTran 526 1 2237 Vous avez un commentaire? 2 2238 Mme FORTIN: Je pense qu'on devrait 3 faire davantage pour le cinéma canadien. Je trouve que 4 5 millions, c'est beaucoup d'argent, d'autant plus 5 qu'on a des engagements très importants qu'on essaie de 6 réaliser, surtout depuis les compressions, à restaurer 7 la programmation pour enfants et du documentaire. Nous 8 avons aussi une priorité qui est importante et qui est 9 complémentaire au cinéma canadien, qui est celle 10 d'amener en ondes des performances sur les arts de la 11 scène. Je pense que ces priorités-là doivent être 12 mises en regard les unes des autres. 13 2239 Oui, je pense qu'on doit faire 14 davantage de choses, mais dans le fond, ce qu'on nous 15 demande, c'est une subvention au cinéma canadien, et il 16 faut se demander, dans l'économie du système, est-ce 17 que c'est la meilleure façon de contribuer au 18 développement du contenu canadien ou si on ne doit pas 19 balancer ça davantage entre les enfants, le 20 documentaire, les arts de la scène et le cinéma. 21 2240 Moi, j'aime mieux une solution 22 balancée, mais c'est quelque chose que je n'ai pas 23 discuté avec l'APFTQ jusqu'à présent. 24 2241 LA PRÉSIDENTE: Maintenant, ma 25 dernière question. TQS suggère que le secteur privé StenoTran 527 1 ait priorité en essayant d'obtenir des droits en 2 programmation. 3 2242 Mme FORTIN: Écoutez, on est très peu 4 sur le marché des droits. Si vous regardez notre 5 grille en général, on achète relativement peu de longs 6 métrages, on ne diffuse pas de séries américaines, on 7 achète à l'occasion un spécial ou une mini-série pour 8 la période des Fêtes ou pour l'été. On n'est vraiment 9 pas le joueur qu'ils devraient craindre sur le marché 10 des acquisitions. Je pense qu'ils devraient davantage 11 regarder dans la cour de l'autre télédiffuseur public, 12 parce que leur concurrence vient vraiment de là, pas de 13 chez nous. 14 2243 THE CHAIRPERSON: My colleagues have 15 some questions, but perhaps it would suit better if we 16 continued even though it is past 4:00, so that you 17 could be relieved. 18 2244 Before I close, I want to remind you 19 that your renewal will start at 9:00 in the morning. 20 We may not be in such a good mood at that hour. 21 2245 Commissioner Wilson. 22 2246 COMMISSIONER WILSON: I just have a 23 couple of quick questions. The first one, in your 24 opening remarks, Mr. Beatty, you said the Canadian 25 industry needs to look more towards its own devices and StenoTran 528 1 cannot call on the government and its agencies to solve 2 the entire production problem through contributions to 3 production funding. 4 2247 Considering that you are largely 5 funded through taxpayers' dollars and have access to up 6 to half of the fund, some might say, well, that's easy 7 for you to say. 8 2248 I am just wondering what you mean by 9 its own devices when you talk about that? 10 2249 MR. BEATTY: When we talk about our 11 own devices we are talking of the whole industry and 12 say, "Okay, we have a broad range of tools available to 13 us. How do we most effectively use those tools?" 14 2250 The easy thing to do and, 15 Commissioner, I saw it years and years when I was in 16 politics, is simply to call upon the government to 17 write a cheque and solve your problem for you. It is 18 time that those of us in the broadcasting industry 19 looked to ourselves and said, "With all of the 20 resources we have available to us, how can we use them 21 more effectively?" 22 2251 Now, with partnership with the 23 regulator and with others to gain greater benefits for 24 Canadians. Now, I accept the point that you make, we 25 are the largest single beneficiary because we are a StenoTran 529 1 public sector corporation of the government's 2 commitment to Canadian broadcasting, but we are not 3 asking for any special privileges here. 4 2252 The only thing that we are asking, 5 particularly as it relates to the fund, is that the 6 goalposts don't get move now that we are on to the 7 field, that the rules under which we entered on to the 8 field be maintained throughout the game. 9 2253 Throughout this we are not asking 10 that others be held back. We are not asking that 11 others not be given the opportunity to evolve into 12 constellations. We are not asking that others not be 13 allowed to compete. We are not asking that anybody's 14 hands be tied behind his back. We are simply saying 15 let us function by the same rules as everybody else and 16 let us as an industry look to ourselves instead of 17 simply turning to government to say, "What can we do 18 that will serve Canadians more?" 19 2254 I think the Commission -- I think 20 these hearings are serious hearings and the issues you 21 are dealing with in Canadian culture and Canadian 22 content are fundamental to who we are as Canadians. I 23 think you have a right to expect of any of us who come 24 before you that we come with solutions and not simply 25 with an attempt to get somebody else to solve the StenoTran 530 1 problem for us. That we look ourselves within 2 ourselves to find ways of ensuring that there is more 3 Canadian content and it is more effectively watched by 4 Canadians. 5 2255 COMMISSIONER WILSON: Further to 6 that, would you consider the idea of sort of doing 7 contra, cross-promotion, like you would do promotion 8 for Global and they would do promotion for you, so that 9 you are targeting different audience segments. Have 10 you explored that idea? 11 2256 MR. BEATTY: I think we can certainly 12 look at what we would do. Today we take paid 13 advertising from other broadcasters. If you watch CBC 14 television you will find paid ads for other radio 15 broadcasters on a regular basis and that is certainly 16 acceptable to us. 17 2257 COMMISSIONER WILSON: You are talking 18 about some sort of co-operating as a whole. 19 2258 MR. BEATTY: Yes. 20 2259 COMMISSIONER WILSON: Maybe that's 21 asking for too much co-operation. 22 2260 MR. BEATTY: We ourselves buy time 23 elsewhere as well, buy space elsewhere. I will leave 24 it to Michèle and Jim to comment on your specific 25 proposal, but in principle it does not offend me. StenoTran 531 1 1615 2 2261 MR. BYRD: I think and we do buy pay 3 time on private radio stations and we do accept paid 4 advertising from private radio stations from pay 5 television operations. 6 2262 The issue of promoting one of our 7 competitors is a tougher one. I think Perrin is 8 probably more onside with that one than I would be, but 9 I only say that because -- 10 2263 COMMISSIONER WILSON: I realize it is 11 a very sort of high level co-operation kind of 12 structure. 13 2264 MR. BYRD: No. The only reason I say 14 that is for the benefit of the system. 15 2265 Just to go back to the Chair's 16 question about promotion, I think next to getting a 17 good quality program together, the next most important 18 point is getting the program promoted. In this day and 19 age where in most markets of this country now there are 20 60 or 70 choices on your cable, getting the message out 21 about when the program is on and where it is and what 22 the content is for that night or that day is the most 23 critical challenge we face. 24 2266 I think all of us, whether we are 25 somebody from CTV sitting here or Global, I think they StenoTran 532 1 would say to you "None of us have enough money to do 2 that in this market. There is such an overwhelming 3 rollover from the American market from all that 4 American programming that the challenge of 5 promoting --" 6 2267 COMMISSIONER WILSON: That's 7 something I understand very personally, having run a 8 channel myself -- 9 2268 MR. BYRD: It's tough. It really is 10 tough. 11 2269 COMMISSIONER WILSON: -- with limited 12 dollars trying to get the programming. 13 2270 MR. BYRD: You face that juggernaut 14 every day. I think all of us faced with the question 15 you just asked me would say "We don't have enough time 16 or money to promote our own now". We fight for every 30 17 seconds of promo time that we can get on our own 18 schedule to get the story about our programs on the 19 air. 20 2271 I bet the other broadcasters would 21 say the same thing. We don't have enough for our own 22 and we will solve that first, thank you. 23 2272 COMMISSIONER WILSON: Okay. I guess 24 the second thing that I wanted to ask about goes back 25 to a question that Commissioner Wylie just asked about StenoTran 533 1 co-operation with the independent producers and what 2 they said in their opening remarks yesterday afternoon. 3 2273 They said "We are concerned that the 4 CBC does not always understand the independent producer 5 and that they are often asked for us to seek rights 6 well beyond broadcast rights to get a licence fee". 7 2274 I am sure that this is something that 8 you will want to discuss with them off-line, but 9 considering that you are the largest broadcaster of 10 Canadian content in the country and you are working 11 with this group of people, why would you, just out of 12 curiosity, be asking for them to seek rights beyond 13 traditional broadcast rights in order to get a licence 14 fee? 15 2275 MR. BYRD: You are right, we will 16 have that discussion off-line and we always do. It's 17 always one of the issues of tension between us. 18 2276 Again I go back to the President's 19 point that we have a public mandate to fulfil. There's 20 an expectation on us that we spend every public dollar 21 properly and that we maximize the benefit of that 22 dollar and that we leverage it as far as we can for the 23 benefit of what goes on the screen. I think it would 24 be irresponsible of us not to bargain as hard as we 25 can. StenoTran 534 1 2277 I think the major issue between us is 2 the issue of the right to match. We tend to insist on 3 that in most if not all of our contracts. It's an 4 issue that is critical to us. We spend a lot of money 5 developing projects. Some of them take years to get to 6 the screen. As soon as it gets to be a hit, we don't 7 want to see it leave our screens. 8 2278 That's always an issue between us. 9 It's not one that the private producers like. They 10 would like to have the freedom to just take their 11 projects and shop them everywhere. We feel that as 12 somebody who has put a lot of public money into those 13 projects, we have a right to defend that investment. 14 That's always a piece of tension between us. 15 2279 We are always examining it. It's 16 something that we are now looking at with the fund 17 because it's an issue in connection with the fund 18 projects as well. I suspect we will have a good lively 19 debate about it for the next few months. We will come 20 to some resolution, I'm sure. 21 2280 COMMISSIONER WILSON: Great. 22 2281 MR. McCOUBREY: I would like to add 23 to that by saying that Linda and Elizabeth have both 24 spoken to me about this. We are going to be meeting 25 again within a matter of days about this. I think StenoTran 535 1 these issues are certainly easily resolved once people 2 start talking. We look forward to that opportunity. 3 2282 COMMISSIONER WILSON: Thank you very 4 much. 5 2283 Thank you, Madam Chair. 6 2284 THE CHAIRPERSON: Commissioner 7 Cardozo. 8 2285 COMMISSIONER CARDOZO: Thanks, Madam 9 Chair. 10 2286 A couple of questions. I just wanted 11 to ask first about local programming. Perhaps you can 12 sync a bit more in a cross-sectoral respect if not just 13 the public sector but any national network. 14 2287 What is the role -- how do you 15 balance local programming with the national programming 16 that you do as a national network and what should be 17 your role and that of any other network? 18 2288 MR. BEATTY: Sorry? 19 2289 COMMISSIONER CARDOZO: What should be 20 your role in terms of local programming and that of any 21 other network? 22 2290 MR. BEATTY: I think that all of us 23 have a role in local programming. I don't think it's 24 exclusively the role of the private sector or the role 25 of the public sector. StenoTran 536 1 2291 We have, as you know, over the course 2 of the last years agonized about how to deal with that 3 $400 million monster we are confronting. We asked 4 ourselves what our role is. What is the balance 5 between local and national? Should we be an entirely 6 national network, get out of the local business 7 entirely or do we need to be balanced? 8 2292 After doing a great deal of soul 9 searching, we came to the conclusion that you can't do 10 your job nationally unless you are well rooted in the 11 regions themselves, unless you give a genuine 12 reflection of the country and that the view of Canada 13 can't simply be the view from the CN Tower or the view 14 from Maison Radio-Canada without the ability to be on 15 the ground, be part of the community, be serving the 16 community where people live, you cannot do the job 17 nationally as effectively. 18 2293 We also believe that our presence in 19 local broadcasting helps to ensure that the quality of 20 effort made by private sector broadcasters is greater. 21 Some of the greatest supporters that we have for the 22 presence of the CBC in English and in French and in 23 local markets and news is private sector journalists 24 who say that the presence of the CBC there ensures that 25 our private sector colleagues continue to invest in StenoTran 537 1 local news and providing a high quality of service. 2 It's something where I think we have an important role 3 to play. 4 2294 The only other point I would make is 5 our own experience over the course of the last two or 6 three years. In Manitoba with the flood, in Quebec 7 with the flooding, in the giant freeze that took place 8 here in central Canada and eastern Canada in January 9 and with the crash of SwissAir. 10 2295 It was the fact that we had those 11 local roots there on the ground that enabled us both to 12 put on in some cases life line services for people, but 13 secondly to serve communities and to serve our national 14 audiences much more effectively than we would 15 otherwise. 16 2296 I think it's instructive that when 17 the SwissAir crash took place most recently, that 18 tragedy -- I was watching our national news in English 19 at the time -- a story broke in the middle of the 20 national newscast. The person who was delivering the 21 news was our anchor from the Vancouver Supper Hour who 22 was filling in that evening. 23 2297 She went to live reports from the 24 scene from our local reporters in Nova Scotia. It 25 speaks volumes to me about the depth of talent that you StenoTran 538 1 have first of all and also the value of that 2 infrastructure in terms of your ability to serve the 3 whole of the country because you are well rooted in the 4 regions as well. 5 2298 I don't know whether colleagues would 6 like to add to that. 7 2299 MR. BYRD: I think that's absolutely 8 right. The only other thing I would add, 9 Commissioners, we are rooted in terms of getting the 10 news out of each of the regions of this country out to 11 the country as a whole. That's important. But we are 12 also rooted in the sense of how we develop talent. 13 That's the other critical element that we can't lose 14 sight of in this. 15 2300 I think one of the best examples of 16 that is "This Hour Has 22 minutes" which started 22 17 years ago in Newfoundland, 23 years ago in 18 Newfoundland, as a program called "Wonderful Grand 19 Bank". That got developed there by the CBC on a local 20 station basis. 21 2301 It got moved up to a regional 22 program. It became "Codco". "Codco" eventually landed 23 on the network. Coincident with that Salter Street 24 Productions became a partner with us in that show. 25 From that point on Salter Street expanded, the cast and StenoTran 539 1 crew of "Codco" grew. They turned into "22 Minutes". 2 Each of the stars on "22 Minutes" have in turn spawned 3 their own either specials or their own six part series. 4 In the next couple of weeks you will see Rick Mercer's 5 latest piece which arose out of that. 6 2302 It all started from that local piece 7 of rootedness many years ago in a small local station. 8 We are very worried about that. As we have had to do 9 the cuts that we have had to do, we have been working 10 with our regional people to ensure that we are able to 11 keep going some momentum in that area so fresh talent 12 is continuously coming along the pipeline. It's a 13 priority for us to build that back as fast as we can. 14 2303 COMMISSIONER CARDOZO: You are aware 15 that some of the criticisms of the past few years have 16 been that when there have been cuts, the regions always 17 got the cuts first is the perception. I draw you to a 18 couple of comments. I hope I'm not scooping people who 19 will be speaking later on, but this is on the public 20 record. 21 2304 The B.C. Government notes that they 22 have 17 per cent of the population and 5 per cent of 23 your budget. The Saskatchewan Communications Network 24 has asked that your portion of the CTCPF or the CTF 25 equity investment program, that 20 per cent of that be StenoTran 540 1 spent on regional programming. Clearly they are not 2 satisfied with what you are doing in the regions. 3 2305 You have mentioned the cuts. Is that 4 all behind you and it is all going to be better from 5 here on? This is a question that has been addressed to 6 us in the town hall meetings that we have had over the 7 past few months. 8 2306 MR. BEATTY: Perhaps I can start on 9 that and then ask Jim to comment. 10 2307 First of all, you raise the question 11 of whether or not we cut first in the regions, then at 12 the centre. It was exactly, Commissioner, the other 13 way round in our case. 14 2308 You recall that we dealt essentially 15 in two tranches. We hoped initially to be able to hold 16 the reductions down to a lower level. We started first 17 at the centre and at the top. I cut substantially the 18 number of Vice-Presidents that I had. I cut my head 19 office by 60 per cent. I sold the building and we 20 consolidated into Lanark Avenue in the production 21 facility. 22 2309 We took this proportionately out of 23 the centre to try to protect our resources, which is 24 quite different perhaps from what was done back in 1991 25 where I think 11 stations across the country were StenoTran 541 1 closed at that time. We didn't close any station. 2 2310 Indeed, Commissioner, you will be 3 pleased to hear that on the weekend I will be 4 travelling to Victoria where finally we are going to 5 make good on a longstanding promise to open a radio 6 station in Victoria. Instead of closing stations, we 7 are actually opening stations up and adding bureaus and 8 trying to do a better reflection of the country. 9 2311 Are the cuts over? I hope so. We 10 believe that it's important for us to have healthy 11 roots. 12 2312 Jim can in particular comment about 13 the allocation by region of budget. What I can say to 14 you is all of the programs on Canadian television of 15 the new programs on English Canadian television, the 16 one that creates the greatest buzz and excitement is 17 one called "DaVinci's Inquest" shot in Vancouver. 18 2313 You had before you today on the other 19 side of the country a representative of Salter Street 20 Studios. Our top rated program "This Hour Has 22 21 Minutes" comes out of Halifax, so there is no prejudice 22 that we have that says that you have to centralize 23 around Front Street in Toronto to get on the air. Our 24 goal is to go wherever we can to generate high quality 25 Canadian content. StenoTran 542 1 2314 The other thing that we did 2 deliberately at a time when we knew that we had to make 3 reductions in the regions was to regionalize our 4 national schedules to an extent unheard of in the 5 history of this corporation. 6 2315 If you take a look at our national 7 schedules, you will find that we have made a 8 conscientious effort to reflect all of the regions of 9 Canada, both to themselves and to the nation as a whole 10 on our national schedules, everything from "Black 11 Harbour" to "North of 60" to "DaVinci's Inquest" to 12 "Dooley Gardens". All of this is designed to give a 13 better reflection of the country as a whole so it is a 14 conscious, deliberate policy on our part to regionalize 15 our schedules and to try to ensure that Canadians have 16 the opportunity to see their country in all of its 17 diversity. 18 2316 Jim? 19 2317 THE CHAIRPERSON: We must not make 20 this a rehearsal for renewal. 21 2318 MR. BYRD: The only thing I would 22 add, Commissioner, is three points. One is when they 23 were before you yesterday, you heard the CFTPA refer 24 to the 300 companies that they represent. 25 2319 The CBC is never going to satisfy 300 StenoTran 543 1 companies in any given year. We are working with about 2 75 right now. That means there are 225 mad with us 3 before we even start the season. We don't enjoy that 4 and no other broadcaster does. We try to improve on 5 that performance all the time. 6 2320 The truth is there is limited money, 7 limited hours in the schedule and we try to maximize 8 that. As the President said, we had ensured that as we 9 had to do the cuts in the regions, we have maximized 10 the regional content on the schedule. It has never 11 been as regional as it is now. It's better than 50 per 12 cent and what comes through are the programs produced 13 for the local regions, programs or segments produced 14 for network shows or whole network shows produced out 15 of the regions. 16 2321 The last point that I would make is 17 that thanks to the fund, we are now active and have 18 reflection on the year from all 10 provinces and the 19 territories in this current broadcast season. That's 20 new for us. I mean that's a major step forward. 21 Around five or six provinces would have been 22 represented this year. Virtually all of them are 23 represented in our schedule at some point in time. 24 That's a major step forward. 25 2322 It's never satisfactory for somebody StenoTran 544 1 who gets shut out of the contest. I can tell you in 2 Saskatchewan the biggest blockbuster mini series that 3 we have in our schedule this year is coming our of 4 Saskatchewan, "Big Bear". I worked in the drama 5 department 15, 16 years ago. That project was alive 6 then and trying to put a financing deal and a creative 7 deal together to make that happen has been the dream of 8 many people at the CBC. It has come true this year. 9 It will be on our screens this year and that's out of 10 Saskatchewan. 11 2323 I understand the feeling and I 12 understand the disappointment when a project doesn't 13 get there, but we do our best. 14 2324 COMMISSIONER CARDOZO: One last quick 15 question. I want you to keep the Chair's point in mind 16 about not making this a rehearsal for your renewal. 17 One of the questions we are dealing with in this 18 proceeding is your role, the role of the CBC versus the 19 role of the private sector. What do you do that the 20 private sector cannot or does not do? In a sentence, 21 if you can. 22 2325 THE CHAIRPERSON: I think 23 Commissioner Cardozo is not following the rules. 24 2326 MR. BEATTY: It would take a book as 25 opposed to a sentence to describe it all. StenoTran 545 1 2327 I think we take risks. If you take a 2 look at a program like "The Newsroom", I'm not sure 3 that would have come from anywhere else other than the 4 CBC. I think we are a nurturer of talent. If you look 5 in the industry, in the private sector today both in 6 the production sector and other broadcasters, a 7 tremendous number of the people there today who are 8 fused throughout the industry are people who got their 9 start from the CBC. 10 2328 We deliver audiences to Canadian 11 content way beyond our share of the Canadian 12 broadcasting system. I would be pleased as well at 13 some point to correct some of the data that was 14 presented to you in the CAB brief on the subject of 15 viewing of all Canadian programming by the broadcast 16 sector. 17 2329 It's the percentage of total TV 18 viewing where in the figures that they presented to 19 you, what they did is they took CBC shows like "The 20 National" or "La Petite Vie" or "Air Farce" and where 21 they were shown over an affiliate attributed that to 22 the private sector instead of attributing it to the CBC 23 as the CBC's contribution. 24 2330 You find suddenly the figures all 25 shift if you say that CBC shows are CBC shows. So we StenoTran 546 1 delivered disproportionately audiences to Canadian 2 programs. 3 2331 Most importantly, our very raison 4 d'etre is Canadian programs. This is why we exist. It 5 is our mission. It is something we don't pay lip 6 service to. It's something that we live on a day to day 7 basis. 8 2332 We also as a public broadcaster see 9 our audiences in a unique way. We see them in their 10 role not simply as eyes and ears to be sold to 11 advertisers, but rather as citizens to be served. Our 12 primary responsibility is to see people in their 13 capacity as citizens of Canada, not simply as 14 consumers. 15 2333 MR. BYRD: Can I just add one point, 16 Commissioner? 17 2334 One other piece that I would add to 18 what the President just said is our role in children's 19 in which we play a leading role. We broadcast five 20 hours a day. We will launch next week this season of 21 commercial-free children's, non-violent children's 22 programming. 23 2335 We are working with outside agencies 24 to bring to the screen a program that supports parents 25 and caregivers. It's a brand new initiative. It's a StenoTran 547 1 cross-media initiative. It is going to be amazingly 2 successful. It's doing wondrous things for the 3 children and for education. We are very proud of that. 4 I think that's something that stands the CBC apart. I 5 would love to table the whole document with you. 6 2336 COMMISSIONER CARDOZO: That takes 7 care of my questions, Madam Chair. 8 2337 THE CHAIRPERSON: Commissioner 9 McKendry. 10 2338 COMMISSIONER McKENDRY: Thank you, 11 Madam Chair. 12 2339 I would like to ask you a question 13 about your schedule, the CBC, the home of Canadian 14 content. I take it you want us to take some other 15 message out of that as well because your only message 16 was the home of Canadian content. It seems to me you 17 would have included your schedule which is essentially 18 all red. The unstated heading on this schedule that I 19 assume you want us to take away is CTV and Global, the 20 home of U.S. content. 21 2340 My question to you is how many more 22 in this proceeding we can ink a few more red boxes for 23 CTV and Global and other broadcasters in the private 24 sector. What specifically do you want us to ink in for 25 CTV and Global on the schedule and where do you suggest StenoTran 548 1 the resources come from to do that, from their profits, 2 for example? 3 2341 MR. BYRD: Commissioner, that's a 4 very fair question. In our presentation we have 5 deliberately tried not to be prescriptive for others 6 and say precisely how many hours precisely they would 7 have to put into prime time and so on. 8 2342 What we have certainly said is let's 9 make our priority filling in boxes in prime time where 10 the largest audiences are. Let's also look at ways in 11 which we can use the structure of the system itself to 12 generate more revenues for Canadian content and higher 13 viewership. 14 1635 15 2343 Do I think it's fair that those of us 16 who are licensed and who generate benefits from the 17 marketplace should also be re-investing into Canadian 18 content? Yes, I do. Exactly what should that level 19 be? It's a matter of discussion with yourselves, us, 20 with the private sector. We have deliberately -- and I 21 want to be very frank about this -- we have been very 22 deliberate in the presentation we made to you to talk 23 about directions rather than trying to write a 24 prescription for our private sector colleagues and say 25 that it's up to us to tell them precisely what they StenoTran 549 1 should be doing when. 2 2344 COMMISSIONER McKENDRY: You have 3 drawn a very stark comparison with your private sector 4 colleagues and put that in front of us. You don't feel 5 that you are under any obligation to tell us how you 6 should specifically think that problem that you have 7 identified should be addressed? 8 2345 MR. BEATTY: We have talked about the 9 system as a whole and we see ourselves as an integral 10 part of the system. We have set targets for the system 11 as a whole in terms of viewership to under-represented 12 categories and in terms of volumes there as well. All 13 of us have to contribute to that. It's not simply the 14 responsibility of the private sector. As you can see, 15 we don't have ourselves many more boxes that we can 16 fill in with the current structure that we have today. 17 2346 Moving to a constellation model, we 18 do have the ability to significantly add to the volume 19 of Canadian content. We believe our colleagues in the 20 private sector, both with what they have today and 21 using a constellation model, can inject more content 22 into the system and more viewership into the system. 23 2347 MR. McCOUBREY: If I may, we weren't 24 endeavouring to make a comparison that would make 25 anyone else look unfavourable. Rather, we were trying StenoTran 550 1 to point out how far we have come and also to put a 2 backdrop there for what we hope will be a favourable 3 environment for what we are trying to do going forward. 4 2348 MR. BEATTY: Commissioner, if you 5 will indulge me, let me show you what we have done. 6 When we sold our head office, we had to move out of the 7 old building. As we were rummaging around in there to 8 move what we had, we came across a tumbler that has 9 printed on it our schedule from Centennial Year, from 10 1966/1967, for English television. We mark on this the 11 programs that are in colour, the ones that are in black 12 and white. That was the great distinction we were 13 making in those days. 14 2349 It's interesting to look at the 15 schedule and see what pops up in there: "Ed Sullivan", 16 "Bonanza", "The Saint", "Red Skelton", "Bob Hope 17 Theatre", "The Man from U.N.C.L.E.", "Hogan's Heroes", 18 "Rat Patrol", "Get Smart", "The Beverly Hillbillies". 19 That is where we have come, from there to there, in the 20 course of those years, because we believed that it was 21 our obligation, that the reason why we existed was 22 Canadian content. 23 2350 We do not expect that our private 24 sector colleagues will be able to go as far as we have 25 come on that and it would be unfair to expect that. StenoTran 551 1 Parliament gives us an appropriation which puts special 2 responsibilities on us, but we do believe that the 3 Broadcasting Act mandates a responsibility for all 4 elements of the system, public and private alike, to 5 serve Canadians with Canadian content. 6 2351 What we have tried to do in our brief 7 is to make suggestions of ways in which all of us in 8 the system can leverage the system better to do our 9 jobs better, and that includes us. We do not excuse 10 ourselves from the responsibility of providing more and 11 better programming. We will do it, too. 12 2352 COMMISSIONER McKENDRY: My question 13 wasn't to suggest that you haven't done a good job, my 14 question was to probe about your suggestion that your 15 competitors aren't doing a good job. I will leave it 16 at that, thanks. 17 2353 THE CHAIRPERSON: Would it be fair to 18 say that in those days you had to put wine in the glass 19 to make it red? 20 2354 I understand that legal counsel is 21 keeping his questions for your renewal. Thank you very 22 much, Madam Fortin, gentlemen. 23 2355 MR. BEATTY: Thank you for having us, 24 Madam Chair. 25 2356 THE CHAIRPERSON: We will take a 10- StenoTran 552 1 minute break and we will hear next the Province of 2 British Columbia -- no, excuse me, ATEC, Association 3 for Tele-Education in Canada, TVOntario and then the 4 Province of British Columbia. We will then resume at 5 9:00 o'clock tomorrow morning with SCN and the schedule 6 as is indicated in the agenda. 7 2357 Thank you. 8 --- Short recess at / Courte pause à 1639 9 --- Upon resuming at / Reprise à 1650 10 2358 THE CHAIRPERSON: Welcome back. 11 2359 Madam Secretary, would you please 12 invite the next participant? 13 2360 MS BÉNARD: Thank you, Madam Chair. 14 The next presentation will be by the Association for 15 Tele-Education in Canada and I would invite Mr. James 16 Benning to introduce his colleagues. 17 PRESENTATION / PRÉSENTATION 18 2361 MR. BENNING: Madam Chairperson, 19 Commissioners, this script says my name is Peter 20 Herrndorf. That's obviously not true. I am James 21 Benning. I am the President and Chief Executive 22 Officer of Saskatchewan Communications Network. Today 23 I am addressing you as the Vice-President of ATEC, the 24 Association of Tele-Education in Canada. ATEC includes 25 as its members ACCESS, the Open Learning Agency, SCN, StenoTran 553 1 Télé-Québec, Television Northern Canada and TVOntario. 2 2362 My colleague Peter Herrndorf was here 3 earlier today. Unfortunately, he had an international 4 flight to catch this afternoon, so I am forced to fill 5 in for him. I regret it greatly, Madam Chair. I have 6 neither the voice nor the elegance that Peter has, so 7 you will have to bear with me. 8 2363 I have with me this afternoon Jacques 9 Lagacé, le directeur des Affaires institutionnelles for 10 Télé-Québec; Ross Mayot, the Vice-President for 11 Development for ACCESS; Bohdan Zajcew, the General 12 Manager for Knowledge Network; and Marnie de Kerckhove, 13 the Secretary to the Board of ATEC. 14 2364 We would like to thank you for the 15 opportunity to appear at this important hearing and we 16 also want to congratulate the CRTC on the honour of 17 receiving the Carl Bertelsmann Prize. Our presentation 18 today will reaffirm the role of educational 19 broadcasting in the current broadcasting environment, 20 look into the role that Canadian educational 21 broadcasting could play over the next 10 years and make 22 recommendations with respect to the programming genres 23 that are the core of our broadcast schedules, 24 programming for lifelong learning, children's 25 programming, long-form documentaries and arts StenoTran 554 1 programming. 2 2365 Let me begin by pointing out that the 3 Broadcasting Act recognizes that "education 4 programming, particularly where provided through the 5 facilities of an independent educational authority, is 6 an integral part of the Canadian broadcasting system". 7 Canadian broadcasters have a mandate to distribute 8 programming that is educational and cultural in nature, 9 programming described in 1985 by an Order-in-Council as 10 "designed to be presented in such a context as to 11 provide a continuity of learning opportunity aimed at 12 the acquisition or improvement of knowledge..." 13 2366 The former President of the European 14 Commission, Jacques Delors, in "Learning, the Treasure 15 Within", the UNESCO report on education for the 21st 16 century, wrote that the "concept of learning throughout 17 life ... emerges as one of the keys to the twenty-first 18 century". He goes on to say that although this is not 19 a new insight, the need is becoming more pressing and 20 that "the only way of satisfying it is for each 21 individual to learn how to learn". 22 2367 If we are to place learning at the 23 heart of our society, it must be a significant part of 24 the television landscape, the most influential cultural 25 medium of our time. What can we expect the Canadian StenoTran 555 1 television network to look like in 10 years from now? 2 2368 In terms of the amount of time people 3 will be spending with television, it could be very 4 similar to today. According to Barry Kiefl, the CBC's 5 Director of Research, "In the period that audience 6 ratings data have been systematically collected, from 7 the late 1960s to present, the reported number of 8 weekly hours watching TV has been in the range of 21-23 9 hours per week." Thus, despite the proliferation of 10 programming services over that 30-year period, the 11 number of viewing hours did not increase. Instead, 12 audience share became increasingly fragmented. 13 2369 Looking into the future based on this 14 model, Mr. Kiefl writes that, "TV, or its equivalent, 15 will almost certainly continue to occupy a substantial 16 amount of our time, given that viewing levels have 17 remained stable for three decades or longer and our 18 population is aging." He points out that even the 19 newest communications technology, the computer on line 20 to the Internet, is unlikely to have a significant 21 impact on television, because it fulfils a different 22 need. To displace television, he concludes, the 23 Internet would have to offer the same kind of content, 24 "it would need to become another form of TV". 25 2370 If the role of television is unlikely StenoTran 556 1 to change significantly in the foreseeable future, its 2 potential as a source of learning becomes more critical 3 than ever before. For nearly three decades, 4 educational broadcasters have introduced a range of 5 programming genres into the Canadian broadcasting 6 system, grouped into formal and informal educational 7 programming, as well as a wide range of cultural 8 programming. 9 2371 The formal educational programming 10 supports specific curriculum-based courses through 11 primary and secondary levels to post-secondary and 12 lifelong education. The informal programming, often in 13 after-school and prime-time parts of the schedule, 14 includes programming for children, documentaries, 15 cultural programming and public affairs with a regional 16 focus. 17 2372 All this programming has one thing in 18 common. It stimulates learning and, therefore, it's 19 about learning how to learn. It is also challenging. 20 Watching educational television is not a passive 21 experience. By its nature, it leads to new ideas and 22 new ways of thinking. It helps students with their 23 studies, it helps people earn college and university 24 credits and upgrades their job skills and it promotes a 25 "learning culture". StenoTran 557 1 2373 In our presentations later this week, 2 individual members of ATEC will focus on issues of 3 special concern to us in relation to children's 4 programming, long-form documentaries, arts programming 5 and public affairs with a regional focus. These 6 programming categories, under-represented elsewhere, 7 constitute the central part of our schedules and are 8 essential elements of television designed for life-long 9 learning. 10 2374 We would like to make several 11 recommendations with respect to the funding of 12 programming distributed by educational broadcasters. 13 As defined in "Direction to the CRTC (Ineligibility to 14 Hold Broadcasting Licences)", partially quoted above 15 and clearly demonstrated on our airwaves, our 16 programming philosophy is "distinctly different" from 17 any other licence holder in the Canadian system. As a 18 result, we believe that the funding guidelines of the 19 Canadian Television Fund should recognize the presence 20 of educational broadcasting as an entity in its own 21 right, in addition to private broadcasting and the CBC. 22 2375 To be as helpful to this process and 23 to the goals of the Broadcasting Act, we would like to 24 make four specific recommendations that will support 25 the efforts of educational broadcasters to serve the StenoTran 558 1 learning needs of Canadians of all ages, stimulate 2 independent production throughout Canada, particularly 3 for regional, long-form documentaries, the performing 4 arts and children's programming, and assist the CRTC in 5 developing equitable and effective programming policies 6 for the Canadian broadcasting system for the new 7 millennium. 8 2376 Number one, we recommend that 9 distinctively Canadian long-form documentary programs 10 that achieve 10 out of 10 points with respect to 11 Canadian content and that are broadcast in prime time 12 be entitled to a 150 per cent Canadian content credit, 13 equal to that of dramatic programming. 14 2377 Two, the portion of the Canadian 15 Television Fund allocated to documentary, performing 16 arts and variety programming should be increased from 17 20 per cent to between 25 and 30 per cent and a 18 specific amount of the Fund should be set aside for 19 children's programming. 20 2378 Three, the broadcast licence for 21 regional broadcasters should be lowered to 15 per cent 22 for children's programming and to 10 per cent for 23 documentaries and performing arts programming when we 24 are licensing programming for only a portion of the 25 country. StenoTran 559 1 2379 Four, the current split of the equity 2 investment program allocating 50 per cent to CBC and 50 3 per cent to all other broadcasters should be 4 reconfigured to create a separate envelope of money 5 dedicated to educational broadcasters, an envelope 6 equalling 15 per cent created in one of the following 7 ways: allocate the amount to educational broadcasters 8 equally from part of the Fund dedicated to the CBC and 9 from part of the Fund dedicated to commercial 10 broadcasters or allocate that amount to educational 11 broadcasters from the part of the Fund dedicated 12 exclusively to CBC or allocate to the educational 13 broadcasters from the part of the Fund dedicated to the 14 commercial broadcasters. 15 2380 Madam Chair, that concludes our 16 opening remarks. We would be pleased to discuss our 17 recommendations in more detail. Several of them are 18 developed more fully in our individual presentations. 19 2381 THE CHAIRPERSON: Thank you, Mr. 20 Benning, and good afternoon, Madam and gentlemen. 21 2382 We thank you for your congratulations 22 on receiving the Bertelsmann Prize and we will ensure 23 that your congratulations are passed on to our staff. 24 The prize is in large part for them and their 25 participation in making the CRTC's success recognized StenoTran 560 1 by the foundation. 2 2383 Commissioner McKendry. 3 2384 COMMISSIONER McKENDRY: Thank you, 4 Madam Chair. 5 2385 Thank you for coming to appear before 6 us today. Some of you travelled a great distance and 7 we appreciate that. Just let me begin by asking you a 8 couple of questions about your comments that you just 9 provided to us. You say one of the objectives of your 10 presentation is to reaffirm the role of educational 11 broadcasting in the current broadcasting system. Do 12 you feel that this role is at risk today? 13 2386 MR. BENNING: No, I don't think it is 14 at risk, but I think that there is much more that can 15 be done under the broadcasting system to further 16 educational broadcasting and to strengthen the 17 educational broadcasters that are represented here 18 today. 19 2387 MR. MAYOT: Excuse me, Commissioner. 20 I would offer a slight amendment to that. I think 21 there is some of the not only ongoing and traditional 22 challenges to educational broadcasters, but I think one 23 of the reasons that we felt compelled to be here is 24 that the emphasis that's placed on certain funding 25 mechanisms and changes in the programming policies are StenoTran 561 1 biased in favour of the kind of programming that we 2 don't do a lot of, most dramatic programming. In that 3 sense, I think there is a concern amongst some of us 4 that there is a marginalization of educational 5 television. 6 2388 COMMISSIONER McKENDRY: I take it -- 7 this is going a bit to the end of your submission -- 8 that you would favour more funding being made available 9 to the type of programming you do at the expense of, 10 let's say, drama. Is that fair? 11 2389 MR. MAYOT: From our point of view -- 12 and I am here contributing from ACCESS and we hope to 13 speak to this more tomorrow -- we think there is a bias 14 towards drama and we think that it is very difficult to 15 finance the kinds of non-dramatic, non-fiction projects 16 that most of us at this table specialize in and do most 17 of and have mandates to do, and that's a real concern. 18 The whole purpose of our recommendations and the 19 concern is that there has to be not taking anything 20 away other than to the extent that it re-balances the 21 way funding and programming is leaning at the moment. 22 2390 COMMISSIONER McKENDRY: Thank you. 23 2391 Let me just go to page 3 on your 24 opening comments to us today. You made a reference to 25 -- well, you actually quoted an individual with respect StenoTran 562 1 to the potential changing role of TV in light of the 2 emergence of the Internet and so on. The last quote 3 there is that the Internet would need to become another 4 form of TV. 5 2392 I don't know whether or not you had 6 an opportunity to listen to the appearance of the 7 Canadian Association of Broadcasters, but we had a 8 discussion about digital television and it seemed that 9 certainly the broadcasters believe that in fact that's 10 what's going to happen, that TV and the Internet will 11 converge or emerge. So, I wanted to get your thoughts 12 on that, but I also wanted to tie that to paragraph 5 13 in your written submission to us earlier where you do 14 make a statement that the Association's capabilities 15 are increasingly extended by non-broadcast 16 technologies, which I took to be the Internet. 17 2393 My question to you is: To what 18 extent is traditional educational broadcasting going to 19 be directly impacted by the emergence of the Internet 20 as an educational tool and, if CAB is right, digital TV 21 will cause a convergence. 22 2394 MR. ZAJCEW: I think we have to speak 23 of it in the terms not in future of how is it going to 24 be impacted and put it into the presence tense in terms 25 of how it has been impacted. In the case of StenoTran 563 1 educational broadcasting, we recognize that our core 2 business is education in the first instance. 3 Broadcasting is the means by which we execute our 4 business and, increasingly so, it has become one of the 5 means that we use to do that. 6 2395 Certainly we lead through television, 7 but much of the value-added component of the learning 8 activities that does occur now does occur through on- 9 line accompaniment to the television programming that 10 appears on our respective stations. Most of the 11 members of ATEC have developed very robust websites 12 that allow for the addition of a variety of value-added 13 learning activities to be included, that range from the 14 development of supplemental reading lists that 15 accompany individual programs that appear on our 16 respective stations, it includes things like hot links 17 to the respective sites that are associated with 18 different programs. 19 2396 Our children's programming will very 20 often contain on-line learning activities that allow 21 kids to go on line to collectively write stories that 22 then become scripts for programs that are broadcast on 23 the air as part of the programming component of the 24 services proper. So, it's very much in the present 25 tense on the Internet and other digital technologies StenoTran 564 1 are increasingly becoming a part of the lives of 2 educational broadcasters on a day-by-day basis. 3 2397 COMMISSIONER McKENDRY: Thank you for 4 that. So, I take it as the Commission considers in 5 this policy review the role of educational 6 broadcasting, we are going to have to take into account 7 or we should take into account these emerging new 8 delivery technologies for the kind of programming that 9 you do. 10 2398 MR. ZAJCEW: Absolutely. 11 1710 12 2399 COMMISSIONER McKENDRY: Thank you. 13 2400 In paragraph 9 in the written 14 submission to us you refer to increasing demands being 15 made of your members who are here by audiences for 16 regional programming. 17 2401 I was wondering how you measured that 18 demand and what data or other information you can 19 provide us to help us understand the nature and scope 20 of that demand that is being placed upon you? 21 2402 MR. ZAJCEW: I think that one of the 22 key areas where we find that demand being reflected now 23 is in the ongoing feedback that we collect from our 24 viewers. Speaking specifically in the case of 25 Knowledge Network in British Columbia, there is a very StenoTran 565 1 clearly articulated need that has been expressed by our 2 viewers on an ongoing basis to seeing themselves 3 reflected in the content that is carried on our 4 television service. Increasingly we find ourselves in 5 the position of needing to and wanting to respond to 6 those particular needs in light of the kind of concerns 7 that we hear voiced. 8 2403 Ultimately, the final determinant on 9 that goes to the numbers of viewers who tune into those 10 kinds of regional programs that increasingly have 11 become part of our respective broadcast schedules. In 12 the case of Knowledge Network, we reflect that in the 13 context of our community education programming, which 14 is programs that helps British Columbians become 15 literate about the geography and climate of British 16 Columbia, as well as the social, political and cultural 17 and economic histories issues and concerns that are 18 relevant to British Columbians and that they don't see 19 reflected in other television media, and increasingly 20 turn to us to find that kind of reflection. 21 2404 The same, I would assume, holds true 22 for my colleagues across the country at other 23 provincial educational broadcast services. 24 2405 COMMISSIONER McKENDRY: Would anybody 25 else like to comment on that? StenoTran 566 1 2406 M. LAGACÉ: J'aimerais aussi rajouter 2 là-dessus qu'il y a beaucoup de genres de télévision, 3 de styles de programmes qui ne pourraient pas exister 4 si les télévisions éducatives et culturelles de notre 5 sorte n'existaient pas. Par exemple, on a constaté à 6 Télé-Québec que la chanson francophone, par exemple, 7 avait disparu de nos ondes pendant les cinq ou six 8 dernières années, ce qui fait que nous avons dû 9 inventer un show de variétés pour mettre en lumière la 10 chanson francophone et qui a commencé sur nos ondes 11 cette année. Il y a toute une série aussi de 12 documentaires, de courts documentaires et de moyens 13 documentaires, qui n'ont pas de place sur les ondes des 14 autres télévisions et qui trouvent des places seulement 15 sur les télévisions publiques et culturelles de notre 16 genre. 17 2407 On pourrait là-dessus additionner un 18 certain nombre d'autres éléments. Je pense entre 19 autres au cinéma québécois, qui a besoin d'être aidé et 20 d'être supporté, particulièrement avec la capacité des 21 télédiffuseurs d'offrir des licences. 22 2408 Alors je veux souligner qu'il y a 23 toute une partie de la culture et de l'éducation à 24 l'intérieur de nos différentes régions qui ne pourrait 25 pas être mise en ondes si les télévisions culturelles StenoTran 567 1 et éducatives n'existaient pas. 2 2409 MR. MAYOT: If I could just add, I 3 think the other dimension that comes into play in that, 4 I can't quantify it, but it is the relations we have 5 with the regional independent producers, whose needs 6 and views and stories and all of that kind of 7 expression are the complement to the feedback from the 8 audiences in our regions. 9 2410 COMMISSIONER McKENDRY: That leads me 10 to a question I wanted to ask you. It is on page 5 of 11 your opening comments about reducing the licence 12 trigger for regional broadcasters. Will that put more 13 pressure on producers in terms of being able to fund 14 their productions if the trigger is lowered and will 15 that be a problem for these regional producers that you 16 just referred to? 17 2411 MR. MAYOT: I think in the case of 18 Alberta it would be a big help. Collectively, we 19 contribute a fair amount in terms of dollars and 20 programming, but the truth is many of us are still 21 pretty small in terms of the amount of monies that we 22 have to put into development, to put into new projects 23 to trigger funds. 24 2412 Frequently, or I should say, only 25 speaking for ACCESS, there is simply not enough money StenoTran 568 1 to be triggering any kind of fund. We have to take the 2 second and third windows. That's not a horribly bad 3 thing for us because often we find that the first 4 broadcasts are publicity and advertising and promotion 5 and awareness building for when it comes to our turn. 6 2413 But in terms of being able to trigger 7 funds, we simply can't come up with the kind of licence 8 fees that are needed to get the project off the ground. 9 We contribute down the road, but lowering the licence 10 fees, allowing us to trigger with lower licence fees 11 that would be parallel to these as can be triggered by 12 regional broadcasters now I think would be a big help 13 for all of us. 14 2414 COMMISSIONER McKENDRY: Thank you. 15 2415 Can I ask you a question about 16 paragraph 16 of your written submission. I will just 17 read the first sentence in paragraph 16: 18 2416 "ATEC also recommends that 19 programming for lifelong 20 learning and skills training be 21 added to the underrepresented 22 program categories. This genre 23 should be defined so that only 24 high quality programming would 25 be funded." StenoTran 569 1 2417 It was actually two sentences. 2 2418 I want to ask you about high quality. 3 You ask us to define programming in a way so that only 4 high-quality programming would be funded. Can you give 5 us a definition of high quality, keeping in mind that 6 funding administrators need an objective definition and 7 they need a definition that they can apply consistently 8 and fairly to all parties. 9 2419 MR. MAYOT: Well I -- no, I couldn't. 10 Does anybody else care to, but I certainly couldn't 11 offer a definition of high quality. 12 2420 I think in our own right we all feel 13 as though we produce and get involved in projects that 14 are inherently of qualitative educational value and 15 production value. We are not in the business of 16 grinding out sausages just for air time. But in terms 17 of quality, I would leave that to the others. 18 2421 The major point here though is, as 19 you know, the distinct business that we are in of 20 education and the distinct formal programming that is a 21 big part of our respective mandates and in ACCESS' case 22 it is a condition of licence requirement is excluded 23 from being involved in triggering funds. You can't do 24 it. 25 2422 When we talked earlier about being StenoTran 570 1 marginalized, that is a classic example of why we think 2 we are very much marginalized in this framework, that 3 the core of what we try to do, the value of that to the 4 Broadcasting Act is simply not recognized in terms of 5 the major funding apparatus in this country for new 6 programming. 7 2423 MR. ZAJCEW: I might add to that that 8 I am hearing here between the lines a possible 9 reference back to the CAB submission and the proposal 10 around using audience as a measurement of quality. 11 2424 Certainly we would accept audience as 12 one of the key performance indicators around that as a 13 possible measure of quality, but I don't think that 14 anybody would want to be locked into a single key 15 performance indicator, such as an audience. 16 2425 Within our shop we use a model that 17 is called the four Bs, which is bums, bucks, bumph and 18 biz, in terms of going to those issues of quality. 19 Bums, of course, referring to bums in seats or 20 audiences that your program is capable of attracting. 21 Bucks going to that entire question about capacity of 22 the program to attract sponsorship dollars, either 23 through co-venture partners on a specific project, 24 through its fit with the mandate and how it goes to the 25 issue of being able to use government allocations StenoTran 571 1 towards doing that kind of programming. So, that's 2 certainly one dimension of it. 3 2426 The biz part of it is how it speaks 4 to the entire notion of the mandate and how it helps us 5 execute our respective educational mandates, what the 6 potential resale value on programs is in terms of 7 export opportunities and the like. 8 2427 The bumph is the critical acclaim 9 that the program is liable to generate, whether it is 10 in the form of national, local, international and 11 national recognition and awards and also again through 12 resale potential and the like as it is reflected in 13 that. 14 2428 So, to make a short story long, 15 essentially it is that notion of having a variety of 16 performance indicators, as opposed to being locked into 17 a single one. 18 2429 COMMISSIONER McKENDRY: Thank you for 19 putting that on the record because in fact those were 20 the kinds of indicators that I was trying to elicit and 21 see how we could wrestle with that high-quality issue 22 which, as you know, is a vague and elusive one if left 23 just at high quality. 24 2430 Those are my questions for you today. 25 Thank you very much. I know your members will be StenoTran 572 1 appearing individually and I am sure we will come back 2 to some of these issues again. 3 2431 Thank you, Madam Chair. 4 2432 THE CHAIRPERSON: Thank you very 5 much. 6 2433 I don't know what I am to make of 7 this. We have gone from eyeballs to bums. I hope it 8 doesn't have anything to do with the programming. 9 2434 MR. ZAJCEW: It's the end of the day. 10 2435 THE CHAIRPERSON: Thank you very 11 much, madam and gentlemen and Commissioner McKendry. 12 2436 Does anyone have any questions? No. 13 2437 Madam Secretary, would you call the 14 next presenter, please. 15 2438 MS BÉNARD: Thank you, Madam Chair. 16 2439 The next presentation will be 17 TVOntario and I would invite Marnie de Kerckhove to 18 introduce her colleagues. 19 PRESENTATION / PRÉSENTATION 20 2440 THE CHAIRPERSON: Good afternoon. Go 21 ahead when you are ready. 22 2441 MS de KERCKHOVE: Good afternoon, 23 Madam Chair, Commissioners, ladies and gentlemen, 24 mesdames et messieurs. My name is Marnie de Kerckhove 25 and I am Manager of Broadcast Policy at TVOntario. I StenoTran 573 1 also am filling in for Peter Herrndorf, our Chairman 2 and Chief Executive Officer, who had an overseas 3 commitment. 4 2442 With me today are Jacques Bensimon, 5 the Managing Director of our French language network, 6 TFO; and Rudy Buttignol, the Creative Head, 7 Documentaries, Independent Production and Science of 8 our English language network, TVO. 9 2443 I would like to thank the Commission 10 for giving TVOntario this opportunity to appear before 11 you. 12 2444 I would like to go back to March 1993 13 and the Structural Hearing. We said then that "we 14 believe that the most fundamental questions before this 15 hearing have to do with Canadian programming: Is our 16 current system generating a sufficient volume and range 17 of quality programming? And, if not, how can that goal 18 be achieved in the next decade?" 19 2445 Well, that "next decade" is more than 20 half over and there has been a great deal of change 21 and, with it, some considerable progress. Our 22 fundamental question, however, remains the same: Is 23 our current system generating a sufficient volume and 24 range of quality programming? 25 2446 We believe the answer to this StenoTran 574 1 question requires a focus on strengthening two 2 programming genres of special importance to TVOntario: 3 programming for children and long-form documentaries. 4 Both are critical genres to television designed for 5 lifelong learning, and this is where I would like to 6 direct my remarks today. 7 2447 In 1993, it was clear that despite 8 the successes achieved by the Canadian broadcasting 9 system, more high-quality Canadian programming was 10 needed in the underrepresented categories, especially 11 drama, long-form documentaries, children's programming 12 and the performing arts. And, because the Canadian 13 television market cannot support the creation of high- 14 quality programming in these areas on its own, it was - 15 - and will be for the foreseeable future -- critical to 16 find substantial additional sources of funding. 17 2448 At the Structural Hearing, TVOntario 18 recommended that the Commission accept the cable 19 industry's offer to make a significant investment in 20 Canadian programming. We suggested that the proposed 21 production fund represent a firm commitment from the 22 cable industry, be administered by a third party and 23 that the funding offered from the industry be doubled 24 from $20 million to $40 million a year. 25 2449 When the Canada Television and Cable StenoTran 575 1 Production Fund was established in September 1996, the 2 Government added $100 million a year to the financing 3 of the two existing organizations -- the Cable 4 Production Fund and Telefilm Canada -- thus creating an 5 annual fund totalling some $200 million. 6 2450 This fund, recently renamed the 7 Canadian Television Fund, is now the most important 8 single financing source for independently produced 9 Canadian television. A unique public/private 10 partnership, its continuing growth and development will 11 be critical to the future of Canadian television 12 programming. However, since its resources are limited 13 and since the Canadian independent production industry 14 has become strong enough to finance so-called 15 "industrial" programming on its own, the Fund can now 16 be targeted to support only programming that is 17 distinctively Canadian. 18 2451 One of the strengths of the Fund is 19 its recognition that although drama is by far the most 20 important genre in terms of the amount of time 21 audiences spend watching it, and the amount of money it 22 costs to produce it, long-form documentaries, 23 children's programming, and the performing arts are 24 also critically important genres, enabling Canadians to 25 learn about themselves and each other. StenoTran 576 1 2452 Canadian documentary film-making is 2 currently experiencing a remarkable renaissance. 3 Talented independent producers like Barry Greenwald, 4 Paul Carrière, Alanis Obomsawin, Linda Lee Tracey, 5 Kevin McMahon, Simcha Jacobovic, John Walker and 6 Shelley Saywell are creating a new Canadian documentary 7 tradition. This is all the more exciting in that 8 Canada has played such a seminal role in the history of 9 the non-fiction film. Shaped by the likes of John 10 Grierson, Donald Brittain, Jacques Godbout and Allan 11 King, documentaries are Canada's indigenous story- 12 telling form. They embody our cultural values as they 13 tell our own stories. 14 2453 In many respects, the long-form 15 documentary is Canada's signature genre and at 16 TVOntario we make it a focus of our prime-time 17 schedules. Together, TVO and TFO air over 13 hours a 18 week of documentaries between 7:00 p.m and 11:00 p.m. 19 It's a form of television programming that Canadians 20 make particularly well, and it's our experience in 21 Ontario that Canadians want to watch documentaries that 22 are scheduled in prime time. TVO, for example, has a 23 higher prime time audience share than any specialty 24 service in our market with the exception of A&E. And 25 23 per cent of TVO's prime time viewing is documentary StenoTran 577 1 programming. 2 2454 This is the first point we would like 3 to stress today: Documentaries are as important a form 4 of Canadian expression as drama. And long-form, point 5 of view documentaries are the genre's underrepresented 6 category. As a result, we believe that the CRTC should 7 recognize them as a critical component of Canadian 8 culture and encourage broadcasters to air them in prime 9 time. 10 2455 This could be accomplished by making 11 changes in two key areas: One, distinctively Canadian, 12 long-form documentaries broadcast in prime time should 13 be awarded a 150 per cent time credit; or, if this 14 category is too broad, it could be limited to the long 15 form current affairs documentaries that are the essence 16 of Canadian documentary film making. 17 2456 Secondly, while the current criteria 18 for determining Canadian content are well suited for 19 Canadian drama, we believe that the criteria should be 20 modified to deal effectively with Canadian 21 documentaries in a number of ways that we have spelled 22 out in our second written submission. 23 2457 Children's programming is another key 24 underrepresented area of special concern to TVOntario. 25 TFO and TVO combined broadcast more than 120 hours a StenoTran 578 1 week of non-commercial children's and youth 2 programming, providing children with a safe haven that 3 their parents greatly appreciate. TVO's after school 4 programming block, "TVO Kids," is by far and away the 5 most popular programming in Ontario with children aged 6 2 to 11. And, in a recent survey of Ontario 7 francophones, TFO was named by the viewers as the 8 French-language network in Ontario with the best 9 children's programming. 10 2458 Research in Canada and the U.S. shows 11 that quality educational programs have dramatically 12 positive effects on the social, intellectual and 13 educational development of young children. 14 2459 For example, in a recently released 15 major study of the impact of educational television 16 since the advent of "Sesame Street" and "The Children's 17 Television Workshop," two teams of researchers, led by 18 Daniel Anderson, Aletha Huston and John wright, found 19 that adolescents who were known to have watched 20 educational programs as preschoolers had higher high 21 school grades in core curriculum subjects like English, 22 math and science. 23 2460 As we discussed in the ATEC 24 presentation, the children of the 21st century will 25 have to develop an early appetite and aptitude for StenoTran 579 1 learning in order to survive in the knowledge-based 2 economy. The availability of educational programming 3 that children want to watch has never been more 4 important. We are delighted that much of the 5 children's programming currently being produced in 6 Canada receives public funding from the Canadian 7 Television Fund. The Fund contributed $33.9 million to 8 children's projects in 1997-98, resulting in 517 new 9 hours of children's programming. 10 2461 This leads to our second point today: 11 High quality children's and documentary programming are 12 expensive, and the more culturally specific they are, 13 the less potential they have for financial recoupment. 14 Yet relative to our presence in the broadcasting 15 community, TVOntario is not able to appropriately 16 access the Canadian Television Fund. In one instance, 17 ironically, TVOntario is grouped with the private 18 broadcasters -- and it forces us as a non-commercial 19 broadcaster to compete for funding with the country's 20 most intensely commercial broadcasters. On the other 21 hand, to complete the double jeopardy, we are grouped 22 with the CBC, unable to access the fund for programs 23 produced by a broadcaster-affiliated company. 24 2462 We submit that a specific funding 25 envelope should be reserved for educational StenoTran 580 1 broadcasters. It could be taken either from the part 2 of the fund dedicated to the CBC or from the part of 3 the fund dedicated to private broadcasters or it could 4 be taken from both. Reserving a specific funding 5 envelope for educational broadcasters should result in 6 significantly more children's programming and long-form 7 documentaries being produced with assistance from the 8 Fund. 9 2463 Thank you very much for your 10 attention. We would be pleased to respond to any 11 questions that you may have. 12 2464 THE CHAIRPERSON: Thank you. 13 2465 Commissioner Wilson. 14 2466 COMMISSIONER WILSON: It's your lucky 15 day, Marnie. 16 2467 I want to make a couple of comments 17 before I start. First of all, I would just like to put 18 it on the record that I am a member of TVO, so I hope 19 that doesn't present any real conflict in asking you 20 questions. 21 2468 Second, in the absence of your 22 fearless leader, I guess you and I are both in the same 23 position. This is your first hearing leading the team 24 and this is my first hearing, so we have something in 25 common as we go through this. StenoTran 581 1 2469 What I would like to do is just ask 2 you some specific questions, sort of following the 3 order of your presentation and then I would just ask 4 you a couple of questions with respect to the ATEC 5 presentation just to clarify a couple of things for 6 myself. 7 2470 At paragraph 69 of your submission 8 you recommend that documentaries be included in the 9 Commission's definition of underrepresented programs. 10 You also -- I don't really need to ask you anything 11 more about that, that's quite understandable. 12 1730 13 2471 In addition to that recommendation, 14 you suggest that a 150 per cent time credit currently 15 awarded to Canadian drama broadcast in prime time 16 should be extended to documentaries exhibited during 17 the same time period. I'm just curious about how this 18 will affect you as an educational broadcaster. 19 2472 What this means in my mind is that 20 other channels will be carrying. It's an incentive for 21 other broadcasters to exhibit documentaries. You seem 22 to have a niche for programming in that area, so what's 23 in it for you? 24 2473 MS de KERCKHOVE: One of the things 25 that we wanted to bring forward today was the whole StenoTran 582 1 concept of the long form documentary -- I will ask 2 Rudy to tell a little bit more about that -- as opposed 3 to other kinds of documentaries. 4 2474 That's why we put forward the notion 5 that if there was going to be 150 per cent time credit, 6 you might want to consider narrowing it down for long 7 form documentaries which are quite a specific and 8 identifiable form of Canadian documentary. 9 2475 MR. BUTTIGNOL: I guess I will pick 10 it up from here. 11 2476 I think that the long form 12 documentary has suffered from an identity crisis in the 13 sense that we have now grouped a lot of non-fiction 14 programming, a lot of factual programming, all under 15 the name of documentary. Yet we haven't made a 16 specific -- we haven't found the right name, and this 17 is a global problem actually, for what a dramatic 18 narrative in non-fiction form is. 19 2477 That is a film maker driven 20 documentary, a film maker driven story, a tour 21 documentary, a point of view documentary. These are 22 the kind of films that are an indigenous story telling 23 form. They are often very tough to make. They are 24 usually the product of individual passion, film makers 25 from one person, two person, three person companies. StenoTran 583 1 2478 These are films that even in today's 2 dynamic environment, film makers still struggle to make 3 these documentaries. They are still not that easy 4 either because the outcome is unpredictable. When you 5 take a gamble on a film maker, a film maker's passion, 6 it's hard to predict the outcome. They become 7 difficult to fund. 8 2479 Usually the subject matter that film 9 makers are dealing with is tough and so commercial 10 broadcasters tend to shy away from them if they feel 11 there is going to be a conflict. 12 2480 I am not as concerned that by giving 13 150 per cent time credit that all the commercial 14 broadcasters are going to jump on board. I think that 15 this is a genre that needs support. It is a specific 16 genre separate from factual programming. 17 2481 We at TVO also have a Canadian 18 content requirement. I think this would help make the 19 case for more production of documentaries, of this kind 20 of documentary, because again this is the kind of genre 21 that does need support. It needs active support. 22 2482 COMMISSIONER WILSON: I think I just 23 got the answer to my question in the middle of all of 24 that, your Canadian content requirement. 25 2483 M. BENSIMON: Si vous permettez, je StenoTran 584 1 vais juste compléter avec une partie, c'est-à-dire que 2 je pense que nous avons créé ou nous avons aidé à 3 stimuler, si vous voulez, la naissance d'un type de 4 documentaire qui n'existait pas au préalable d'un point 5 de vue d'une minorité francophone, c'est-à-dire qu'en 6 tant que Franco-Ontariens, on a pu donner naissance à 7 un nouveau type de documentaire qu'on ne voyait pas 8 avant. Ça a permis d'entraîner et de former un certain 9 nombre de jeunes cinéastes qui n'auraient pas eu la 10 chance d'être vus et qui aujourd'hui sont devenus des 11 cinéastes qui ont quand même une réputation de type 12 international. On a cité une personne dans la personne 13 de Paul Carrière. 14 2484 Qui plus est, si vous voulez, ce 15 qu'on a permis de faire, c'est de faire une jonction 16 avec d'autres minorités au Canada français, c'est-à- 17 dire que, depuis l'exportation du signal, par exemple, 18 au Nouveau-Brunswick, on travaille de plus en plus avec 19 des compagnies acadiennes qui donnent, si vous voulez, 20 une nouvelle mouvance sur le plan industriel qu'on ne 21 voyait pas auparavant, c'est-à-dire le lien entre 22 minorités francophones qui arrivent à produire un type 23 de documentaire qui ne se voyait pas jusqu'à présent. 24 2485 Alors c'est évident que, si on 25 arrivait à encourager ce type de choses, je pense que StenoTran 585 1 le 150 pour cent serait utile pour nous; je ne pense 2 pas que l'industrie privée se précipiterait pour suivre 3 nécessairement... ou les diffuseurs privés se 4 précipiteraient pour nous suivre sur nos pas. 5 2486 COMMISSIONER WILSON: I appreciate 6 the fact that you are so honest, that the 150 per cent 7 time credit is mainly useful for you. I am quite aware 8 of the reputation that TVO and TFO have for documentary 9 programming. 10 2487 I think you are right, that it is a 11 signature genre for Canada and we have a lot to be 12 proud of in that way. I just thought that in this sort 13 of emerging world of fragmented audience that you would 14 really want to hang on to that niche for yourself. It 15 just struck me. 16 2488 I mean it has been said in fact that 17 the 150 per cent time credit really provides an 18 incentive to broadcasters to exhibit, but it's actually 19 a disincentive for production because they can produce 20 less and get more credit for it. 21 2489 I noticed in your appendices that you 22 have a very active and healthy relationship with 23 independent producers in all different parts of the 24 country. I was just curious about that. 25 2490 Thank you. That answers my question. StenoTran 586 1 2491 At paragraphs 73 and 74 of your 2 submission, you recommend that the CRTC establish or 3 designate a forum for dealing with international 4 programming issues in a proactive manner to establish 5 reciprocal treatment for Canadian programming services 6 in countries which are exporting their services to 7 Canada. 8 2492 I'm just wondering if you could 9 elaborate a little bit on how you see a form like this 10 being constituted and how it might achieve this 11 objective. What kinds of activities would it 12 undertake? 13 2493 MS de KERCKHOVE: Jacques, would you 14 like to take that? 15 2494 M. BENSIMON: Il y a deux 16 composantes, si vous voulez, à la proposition telle 17 qu'elle est formulée. La première, c'est que je pense 18 qu'on encourage fortement... et j'ai vu depuis le début 19 de la journée aujourd'hui énormément de présentations 20 qui ont été faites parlant de l'exportation ou de la 21 vente de nos programmes sur le plan international. Par 22 contre, si on veut arriver véritablement à réussir sur 23 ce plan-là, il va falloir qu'on trouve des moyens 24 d'encourager, si vous voulez, le fait de libérer les 25 droits pour ces programmes; je pense en particulier à StenoTran 587 1 tous les ayants droit, à tous les syndicats. 2 2495 On sait pertinemment que des chaînes 3 américaines aujourd'hui, quand elles achètent les 4 droits à un programme, elles les achètent pour le 5 monde. Donc s'il n'y a pas chez nous un moyen de 6 libérer les droits pour un programme sur le plan 7 international, ce programme va sans doute rester sur 8 les étagères et ne dépassera pas nos propres 9 frontières. Ça, c'est la première composante sur 10 laquelle, à mon avis, il y a une réflexion à avoir. 11 2496 La deuxième, c'est simplement du fait 12 que si jamais le CRTC permettait la venue de chaînes 13 autres que des chaînes américaines sur notre 14 territoire, ce qui a été peut-être le cas avec RFO 15 quand on a commencé à parler de l'option RFO, c'est-à- 16 dire la rentrée d'un signal étranger sur notre 17 territoire, nous disons, nous, en contrepartie, que 18 plutôt que de vendre des programmes à un certain 19 moment -- et j'ai vu que Mme Fortin y a fait 20 allusion -- on va peut-être vendre nos signaux à 21 l'étranger. 22 2497 Et, si on va vendre nos signaux à 23 l'étranger, je pense qu'il serait extrêmement utile de 24 s'asseoir avec nos partenaires à travers le monde pour 25 essayer de voir quel genre de modus operandi pourrait StenoTran 588 1 être développé à ce niveau-là, et on incite fortement à 2 ce qu'il y ait une réflexion qui soit amorcée là-dessus 3 plutôt qu'une anarchie qui soit faite dans une guerre 4 de type commercial, parce que dans une situation comme 5 celle-là c'est toujours, je pense, les télévisions 6 publiques qui vont souffrir le plus de ne pas avoir été 7 partie prenante de cette réflexion. 8 2498 Donc une espèce de forum 9 international qui serait l'assemblée, si vous voulez, 10 de l'équivalent de votre organisme avec vos 11 contreparties qui s'assoiraient pour essayer de pouvoir 12 trouver des moyens de travailler ensemble. C'est ce 13 qu'on fait. C'est simplement que dans le contexte de 14 la réflexion que vous poussez, il nous a semblé utile 15 de ramener cet élément-là et de faire en sorte de vous 16 encourager à le développer. 17 2499 COMMISSIONER WILSON: Thank you. 18 2500 I am still getting used to this 19 microphone thing. Protection of Canadian programming 20 rights and simultaneous substitution is the next area 21 that I want to look at. 22 2501 At paragraph 77 of your submission 23 you state that absent the protection that commercial 24 broadcasters receive through simultaneous substitution, 25 there needs to be some way to protect non-commercial StenoTran 589 1 broadcasters from the effects of border spillover and 2 you cite the case of Buffalo PBS station WNED which you 3 say has sort of stepped up its direct competition with 4 TVO through scheduling and programming changes since 5 several years ago, or I guess that's more recently. 6 2502 I am just wondering if you could 7 explain to me in a little bit more detail. When I am 8 in Toronto doing my new CRTC job, I don't have a lot of 9 time to watch television. 10 2503 MS de KERCKHOVE: I think really what 11 we wanted to draw your attention to is the whole 12 question of our problem dealing with the situation 13 that's dealt with by commercial broadcasters using 14 simultaneous substitution. 15 2504 In our case, with programming that's 16 purchased by WNED as a border station, that doesn't 17 include Canadian rights. If we have rights to the same 18 programming, we can't resolve that through the use of 19 simultaneous substitution. 20 2505 I have been following with interest 21 the Commission's approach to other ways of dealing with 22 simultaneous substitution and non-simultaneous 23 substitution. One of the things we just wanted to draw 24 to your attention is that we have a problem with this 25 too. StenoTran 590 1 2506 We have really tried several 2 different ways of dealing with it in negotiations with 3 WNED, but we really haven't managed to resolve it. 4 2507 COMMISSIONER WILSON: Do you have any 5 suggestions about how it might be dealt with? 6 2508 MS de KERCKHOVE: What we tried to do 7 is come to some kind of agreement, but it never came to 8 any kind of fulfilment. 9 2509 COMMISSIONER WILSON: Do any of the 10 other educational broadcasters have the same problem or 11 is this uniquely a TVO situation? 12 2510 MS de KERCKHOVE: I don't want to 13 speak for the other ones, but it might be a good 14 question to ask them. It has certainly been something 15 that we have focused a lot of attention on I think 16 since the mid eighties. 17 2511 Rudy, would you like to say anything 18 about that? 19 2512 MR. BUTTIGNOL: Well, it has been a 20 constant problem in terms of documentaries, in 21 particular where we acquire rights, Canadian rights, 22 and yet with no kind of border protection on the PBS 23 station. 24 2513 We find deals being killed, deals 25 that could make a lot of sense for the film makers if StenoTran 591 1 the rights were separated, but it has been a constant 2 problem and its the producers that are often in the 3 middle and end up really short. 4 2514 COMMISSIONER WILSON: With respect to 5 the CBC, you talk about the ability you have had to 6 co-operate with the CBC in airing programming. I guess 7 it was in response to our question about the 8 complementary role of the CBC and how they can work 9 with commercial broadcasters -- well, non-commercial 10 broadcasters. 11 2515 You go on to say that complementary 12 programming between regional and national public 13 broadcasters provides diversity of Canadian television 14 and it should be recognized and encouraged. Are you 15 aware of whether or not other provincial educational 16 broadcasters are co-operating with the CBC? I guess 17 that's the first part of my question. 18 2516 Are there any measures that the 19 Commission could introduce that would foster this 20 co-operation? 21 2517 MR. BUTTIGNOL: The point or one of 22 the points of including this is to establish before the 23 Commission the fact that educational broadcasting and 24 TV Ontario are in fact complementary, that the regional 25 nature of TV Ontario as a public service educational StenoTran 592 1 broadcaster has a complementary role to play. It's 2 important for the Commission to keep that in mind. 3 2518 In terms of specifics, I'm not sure I 4 have much to add to that. 5 2519 MS de KERCKHOVE: One of the things 6 we pointed out which I think is very interesting is 7 often we are able to bring more of a focus on a program 8 that just part of it might have been aired on the CBC 9 nationally, but we would be able to air the whole 10 series, for example. 11 2520 We are able to spend more time with a 12 subject of a program that would receive less time on a 13 national scale. 14 2521 M. BENSIMON: Je pourrais vous 15 encourager simplement peut-être à poser la question 16 quand nos collègues de Télé-Québec vont se présenter 17 parce qu'il y a eu des formes de collaboration quand 18 même à un certain moment assez étroites avec eux comme 19 chaîne éducative régionale. 20 2522 Il y a eu, si vous voulez, au moment 21 du lancement de RDI, des collaborations assez étroites 22 qui ont été faites, mais depuis je ne peux pas dire que 23 ces collaborations ont été en augmentant. 24 2523 COMMISSIONER WILSON: Thank you. 25 2524 The role of Canadian pay and StenoTran 593 1 specialty services. On the question of the impact of 2 pay and specialty services on conventional 3 broadcasters, specifically the licensing of new French 4 language specialty services, you raised the point in 5 paragraph 102 of your submission, and I will quote 6 here: 7 2525 "Before new services are 8 licensed for national 9 distribution, there should be a 10 review of existing services 11 taking into account their 12 unrealized potential. Services 13 that have invested in Canadian 14 rights for their programming but 15 that are not yet distributed 16 throughout the country should be 17 given a chance to establish 18 themselves before new services 19 are introduced." 20 2526 I assume that you are talking about 21 plans or aspirations for TFO, but I wonder if you could 22 just expand a little bit more because it's a slightly 23 vague comment. 24 2527 M. BENSIMON: Écoutez, pour nous, 25 c'est très simple, et je pense que ça a été formulé StenoTran 594 1 aussi d'une façon différente par Radio-Canada un peu 2 avant nous. 3 2528 Il y a dans ce pays des grandes 4 richesses qui, malheureusement, ne sont pas partagées 5 avec le reste de la population. Pour nous, en toute 6 humilité, TFO fait partie de cette réalité; c'est-à- 7 dire qu'à un certain moment il a fallu prendre le 8 mandat qui nous a été alloué, celui d'une chaîne 9 régionale, et d'essayer au fur et à mesure, avec le 10 temps, de se trouver dans une situation finalement de 11 représenter très souvent les réalités des francophones 12 hors Québec. Et, suite à des études qui ont été faites 13 aussi un peu partout, incluant au Québec, on a vu 14 jusqu'à quel point il y avait des demandes pour cette 15 chaîne de télévision de façon à ce qu'elle soit 16 accessible. 17 2529 Or, si j'entends bien le discours qui 18 a été dit justement par Mme Fortin, il faut qu'on 19 puisse voir le maximum de chaînes francophones qui sont 20 disponibles dans ce pays avant de donner la priorité, 21 par exemple, à des chaînes américaines ou à des chaînes 22 étrangères. Or, dans le cas de TFO, c'est la seule 23 chaîne francophone hors Québec, donc qui est financée, 24 qui a sa ligne éditoriale, si vous voulez, qui émane à 25 partir de là... et depuis son succès au Nouveau- StenoTran 595 1 Brunswick et son entrée au Nouveau-Brunswick, on a 2 senti qu'il y avait là quelque chose de très important 3 qui se passait, et sur le plan culturel, et sur le plan 4 industriel, et sur le plan économique. 5 2530 Ce qu'on dit, c'est qu'avant de 6 passer à une course effrénée vers de nouvelles chaînes, 7 vers de nouveaux concepts, vers de nouvelles idées, 8 pourquoi ne pas maximiser ce que vous-mêmes ici au CRTC 9 et d'autres ont fait à travers nos gouvernements 10 respectifs, c'est-à-dire d'avoir donné naissance à des 11 mouvances culturelles qui ont été très importantes et 12 qui représentent et qui remplissent leur mandat. 13 2531 Alors c'était surtout: maximisons 14 les ressources qu'on a avant de passer à l'idée de 15 partir sur, encore une fois, de la multiplicité de 16 chaînes ad vitam aeternam; c'était cette réflexion 17 qu'on avait. 18 2532 COMMISSIONER WILSON: Thank you. 19 That's great. 20 2533 I just want to turn to the cable 21 production fund or the Canadian television fund or 22 whatever it is being called that has evolved over the 23 years. I will just ask these really quickly because I 24 know that we need to move on. I will try and wrap up 25 the day. It has been a long one for all of us. StenoTran 596 1 2534 I just wanted to ask a couple of 2 questions. ATEC was quite a bit more specific in its 3 recommendations with respect to the fund than you were 4 in yours. I'm just wondering, is there any reason for 5 that? Are you supporting that position? Why doesn't 6 that specificity show up in your recommendations with 7 respect to the fund? 8 2535 MS de KERCKHOVE: We definitely 9 support the recommendations that were made by ATEC. I 10 think that perhaps it's chronological that as we 11 developed our thinking about the fund, the ATEC 12 submission was being the last one written. 13 2536 Certainly we support those proposals 14 and we would really like in fact to expand them 15 somewhat if we could at some point. 16 2537 THE CHAIRPERSON: Okay. I guess the 17 final thing that I wanted to ask you about which is 18 something that was not covered in the ATEC presentation 19 is your recommendation that the fund should level the 20 playing field for all distributors, whether they are 21 private or public sector. 22 2538 This is a recurring theme throughout 23 many of the broadcasters' submissions to this review of 24 television policy. I wonder if you would explain to me 25 what this means specifically for educational or StenoTran 597 1 regional public broadcasters. Do you see it as another 2 revenue stream for replacing diminishing public 3 funding? Where is this coming from? 4 2539 MS de KERCKHOVE: We certainly see it 5 as a potential revenue stream. Actually, Jacques, 6 would you like to speak to that? 7 2540 MR. BENSIMON: Not at the moment. 8 2541 MS de KERCKHOVE: What our specific 9 situation is is that we feel that we have expertise in 10 marketing the two genres that we have been discussing, 11 especially the documentary and children's, that we 12 would like to be able to expand our catalogue and a 13 number of the kind of programs that we would like to 14 represent abroad. 15 2542 We have been very successful at 16 selling abroad, I think in over 130 countries now. We 17 would very much like to be able to expand our catalogue 18 with that kind of programming, but at the moment we 19 can't because of the restriction that is placed on it 20 by the fund. 21 2543 We are calling attention to that to 22 say that we would really like to see that looked at and 23 a level playing field created so that we can do the 24 same as other people do in that area. 25 1750 StenoTran 598 1 2544 COMMISSIONER WILSON: Thank you. 2 2545 That concludes my questions, Madam 3 Chair. 4 2546 Thank you for your presentation and 5 your answers. 6 2547 THE CHAIRPERSON: Legal counsel? 7 2548 MR. BLAIS: No questions. 8 2549 THE CHAIRPERSON: Thank you very 9 much, Madam, gentlemen. 10 2550 Madam Secretary, would you invite the 11 next participant, please? 12 2551 MS BÉNARD: Thank you, Madam Chair. 13 2552 The next presentation will be by the 14 Province of British Columbia, the Honourable Ian 15 Waddell. 16 2553 THE CHAIRPERSON: Good evening, Mr. 17 Waddell. 18 PRESENTATION / PRÉSENTATION 19 2554 MR. WADDELL: Good evening. Thank 20 you very much. 21 2555 THE CHAIRPERSON: We did try to 22 accommodate you. It's a little late, but it will still 23 be today. 24 2556 MR. WADDELL: Thank you, Madam Chair. 25 I am Ian Waddell. I am the Minister of Culture for the StenoTran 599 1 Province of British Columbia and I appreciate you 2 hearing me. I will try and accommodate you and I won't 3 read my brief. 4 2557 MR. BLAIS: I'm sorry, could you 5 press your button. 6 2558 MR. WADDELL: I have to press this? 7 2559 MR. BLAIS: Yes, thank you. 8 2560 MR. WADDELL: I'm sorry, let me start 9 again. 10 2561 THE CHAIRPERSON: Take the time it 11 takes. 12 2562 MR. WADDELL: My name is Ian Waddell, 13 I am the Minister of Culture for the Province of 14 British Columbia and I appreciate you hearing me, 15 especially at this late hour. I won't read my brief, I 16 think I will just speak to it and make the points and 17 be open to some questions. I will try to be fairly 18 brief. 19 2563 I am pleased to be here on behalf of 20 the government of British Columbia to participate in 21 this hearing to review television regulation. Since 22 the last major review, the availability and quality of 23 Canadian programs on our television screens has 24 increased significantly. You heard Perrin Beatty, the 25 President of the CBC, showing his mug earlier about the StenoTran 600 1 programs in 1996/67. We have made great progress and a 2 lot of that has to do with the CRTC and the 3 regulations. 4 2564 Canadians are getting more Canadian 5 content. Canadians are watching more Canadian news and 6 entertainment. This is a good trend and, as I said, 7 the CRTC should take some credit. We all should. But 8 on a regional level -- that's the good news. The bad 9 news for B.C. is that on a regional level the system is 10 not working for us. 11 2565 Canadians have limited opportunities 12 to view B.C.-produced Canadian programs. While public 13 and private broadcasters are licensed to serve the 14 communities where they are located, program decisions 15 continue to be made elsewhere, mostly outside of 16 British Columbia, in Central Canada, Toronto and 17 Montreal. As well, there is a funding imbalance that 18 has developed between the western provinces and central 19 Canada, particularly as illustrated by the Canadian 20 television and cable production fund. 21 2566 In 1997, the two central provinces 22 were given close to three-quarters of the annual $200 23 million fund, while Canada's eight other provinces were 24 left to split the remaining quarter. So, if you look 25 at it on a per capita basis, that's $4.00 for each StenoTran 601 1 person in British Columbia, $8.00 for each person in 2 central Canada. That's a bad imbalance. Yet, 3 strangely enough -- not strangely, but I will explain 4 why in a minute -- yet B.C. film production and 5 television production is booming. 6 2567 I want to say this slowly. B.C. is 7 the largest producer of television now in North America 8 outside of Los Angeles, yet B.C. has little access to 9 prime time program schedules of Canadian broadcasting. 10 So, here is this huge production. We have gone from 11 $230 million to $630 million. Film production is 12 booming in B.C., but the problem, Madam Chair, is that 13 we are Hollywood North. We are producing for the world 14 and we are producing for American television and 15 American films and this unsustainable. 16 2568 We have the talent, we have the 17 infrastructures. We produced 35 per cent last year of 18 the 78,000 new jobs created in film in Canada. It's 19 impressive, but what happens if the Canadian dollar 20 goes up, what happens if not one "X-Files" but three 21 "X-Files" leave British Columbia. We could be in 22 trouble. 23 2569 As well, I should say that we don't 24 have creative control. It's still American control. 25 We are not telling our stories, we are not using StenoTran 602 1 Canadian writers and directors as much as we could be. 2 We are developing a great technical structure and great 3 expertise. Don't get me wrong, we appreciate it. It's 4 booming in our province, the film industry, but it 5 won't be sustainable, in my view, unless we get our 6 fair share of Canadian content and get access to the 7 Canadian networks and produce for Canadians, and we are 8 not getting that. 9 2570 The Commission can help create 10 policies that help direct funding to the regions, which 11 not only represents their fair share, but also ideally 12 their capacity to use it. B.C. supports Telefilm's 13 recommendation that requires broadcasters as a 14 condition of licence to trigger an appropriate amount 15 of production from each region. This recommendation 16 complements the move to a corporate approach to 17 licensing. 18 2571 The Commission would then be able to 19 ensure that large station groups contribute to the 20 development of cultural production industries in all 21 regions they serve. It's not like licensing CHEK-TV in 22 Victoria. You focus on who owns CHEK-TV and you 23 license them and you require them to have appropriate 24 levels of regional Canadian content. 25 2572 The province believes that the StenoTran 603 1 proposed corporate approach to licensing will not only 2 be an effective means to reviewing local and national 3 commitments of broadcasters, but regional commitments 4 as well. We would, however, like to add to Telefilm's 5 proposal. The province believes that the CBC should 6 also be required to trigger an appropriate amount of 7 production from each region. 8 2573 B.C. is concerned about the 9 significant cutbacks in local programming that has 10 occurred in recent years. Much of this can be 11 attributed to greater industry concentration as large 12 station groups centralize their decision-making and 13 share programming resources. We must balance the need 14 to create strong, financially viable broadcasters 15 because we have to do that to compete in the world and 16 to have viable business institutions, but at the same 17 time we have to balance that with the needs of local 18 communities, including B.C. communities. 19 2574 We also recommend that broadcasters 20 be required to show minimum amounts of original local 21 news and public affairs programming. This is 22 incorporated in any corporate approach to licensing. 23 Finally, regarding the CBC, we realize that the 24 national broadcaster must remain central to the 25 Canadian broadcasting system providing a wide range of StenoTran 604 1 programming needed by Canadians. 2 2575 The B.C. government is a friend of 3 the CBC. However, we believe the CBC must do a better 4 job of reflecting British Columbians to national and 5 regional audiences as entrusted to it by the Act. 6 That's their mandate. They have to reflect the regions 7 to the rest of Canada and that creates Canadian unity. 8 That's what the CBC was created for and that's what the 9 Act says is their plan and their mandate, and they are 10 not doing that. 11 2576 Mr. Beatty is bringing a CBC radio 12 station to Victoria on Monday. I am pleased about 13 that, long overdue. It would be nice to have a TV 14 station, too. We don't. We are the only provincial 15 capital without one. Do you think that would be 16 acceptable in Quebec City? I doubt it, but we have 17 lived with that for a long time. But we are coming 18 back and we are saying we want our fair share, we want 19 the CBC to respect regional programming. 20 2577 The Corporation has cancelled local 21 programming and it has allocated less than five per 22 cent of its total budget to the B.C. region. We have 23 13.5 per cent of the Canadian population. That's 24 insufficient to carry out its mandate. It talks about 25 being a production centre in Vancouver. It's not true, StenoTran 605 1 it isn't. I have been on the set of "DaVinci's 2 Inquest". It's starting, but it still needs to do a 3 lot more to give us our fair share. 4 2578 So, let me conclude, Madam Chair. 5 Regional programming in British Columbia is weak. 6 British Columbians are unable to view programs that 7 reflect their realities. Broadcasters must be made to 8 commit to increased regional production. We have the 9 talent base, we have the technical base and we want 10 access. We want into Canadian production. How can you 11 do it? Broadcasters should be required as a condition 12 of licence to trigger an appropriate amount of 13 production from each region and the CBC should be 14 placed under the same regime. That's the formula and 15 that's, with respect, I think the job of the CRTC. 16 2579 B.C. also supports a move towards a 17 corporate approach to licensing, but it must be used to 18 not only ensure local and national commitments, but 19 regional production as well. B.C. is a firm supporter 20 of the CBC, but we believe that the national 21 broadcaster must do a better job of supporting the 22 regional production of Canadian programming. We want 23 our fair share of the cable fund. We are getting 7.5 24 per cent and we have 13.5 per cent of the population. 25 We want our fair share of Telefilm monies. We are not StenoTran 606 1 getting it. 2 2580 As Minister of Culture for British 3 Columbia, my job is to advocate for the artists and the 4 performers and the people who are producing and capable 5 of producing great television in British Columbia. We 6 want into national broadcasting Canadian content. We 7 are not getting our fair share and we ask you to 8 regulate so that we do get our fair share. 9 2581 Thank you very much. 10 2582 THE CHAIRPERSON: Thank you, Mr. 11 Minister. I hope you are enjoying your trip back to 12 Ottawa. 13 2583 MR. WADDELL: I saw Nelson Mandela 14 today. That was really something. 15 2584 THE CHAIRPERSON: I hope you are 16 impressed by us, too. 17 2585 MR. WADDELL: And the CRTC. I don't 18 know, Madam Chair, whether a B.C. Culture Minister has 19 appeared before the CRTC. So, it may be a bit of a 20 first and I am pleased to do that. 21 2586 THE CHAIRPERSON: We are happy to see 22 you. 23 2587 Commissioner Cardozo? 24 2588 COMMISSIONER CARDOZO: Thank you, 25 Madam Chair. StenoTran 607 1 2589 Thank you, Mr. Waddell. Yes, it's 2 nice to see you back in Ottawa. I guess it goes to the 3 old adage that Ottawa is like gourmet ice cream. Once 4 you have tasted it, you can't stay away from it. 5 2590 MR. WADDELL: Five years, Mr. 6 Cardozo. 7 2591 COMMISSIONER CARDOZO: There are 8 allusions I can make to U.S. politics, but I won't. 9 2592 THE CHAIRPERSON: Not a wise thing to 10 say to a British Columbian! 11 2593 COMMISSIONER CARDOZO: It's always 12 nice when they come back to Ottawa, if you were a 13 resident of Ottawa. 14 2594 I hear your message quite clearly in 15 terms of your concerns about how much money and funds 16 are flowing to the B.C. production industry. You have 17 outlined a couple of things. One is that you would 18 like to see us in our licensing go the route of group 19 licensing, of corporate licensing. 20 2595 MR. WADDELL: Yes. 21 2596 COMMISSIONER CARDOZO: You think that 22 is better than doing local licensing? The regions 23 wouldn't get lost in that or is it our job just to make 24 sure they don't? 25 2597 MR. WADDELL: The best advice I can StenoTran 608 1 get, Mr. Cardozo, is that that would be better for us. 2 I can't give you all the details, but I am informed 3 that that would be better. 4 2598 COMMISSIONER CARDOZO: In a group 5 licence, they would -- 6 2599 MR. WADDELL: Yes, because then you 7 could look at -- because you are licensing the people 8 who are really making the decisions. It's not the 9 little local CHEK-TV in Victoria that makes the 10 decisions, it's those big production companies that get 11 funding and basically based in Toronto who are making 12 the decisions about where to make their programming. 13 2600 COMMISSIONER CARDOZO: Any thoughts 14 about what the broadcasters themselves should be doing 15 beyond the role of the CRTC? 16 2601 MR. WADDELL: I think the 17 broadcasters have an obligation. I don't think the 18 broadcasters go out and say, "We are going to exclude 19 British Columbia" or "We are going to exclude 20 Manitoba", or something. I think it's just where they 21 are located, what they think, and so on. I think they 22 have to be encouraged by you and they have to think 23 about trying to reflect the regions when they make 24 their decisions. 25 2602 I am not coming here just harping, if StenoTran 609 1 you like. In my brief I have actually got statistics 2 and figures to back up what I'm saying. So, I think 3 that it's a combination. I think regulation and I 4 think getting the message out there, just awareness. 5 Just let them look at the statistics, at the figures of 6 what their regional production is in Canadian 7 programming in British Columbia. 8 2603 COMMISSIONER CARDOZO: You have 9 indicated the percentage of the CTCPF at 7.5 per cent 10 that has been going to B.C. The Saskatchewan 11 Communications Network has suggested that the fund 12 allocate 20 per cent to regional programming, but by 13 the figure you gave us at the beginning where you said 14 25 per cent is going to regional, they are doing better 15 than the SCN's recommendation. We don't run the CTCPF, 16 of course, but sometimes we make recommendations. 17 Would you want us to make a recommendation of that 18 kind, where an allotment be made for regional 19 programming? 20 2604 MR. WADDELL: It's a good question. 21 You used to run the fund. I recognize that you don't 22 directly run the fund and that, therefore, it's 23 difficult to make any regulations of a fund that you 24 don't run, but I did bring it up here because it fits 25 into the whole scheme of getting fairness in regional StenoTran 610 1 programming. My answer would be to make comment on it, 2 to recognize what our brief said in terms of the 3 unfairness in allocation and you could suggest a 4 number, any number. I would just like to see something 5 that reflects generally our population base. 6 2605 COMMISSIONER CARDOZO: In your 7 written brief you talked about Film Incentive B.C. 8 2606 MR. WADDELL: Yes. 9 2607 COMMISSIONER CARDOZO: It sounds like 10 quite an interesting operation. Can you tell us a 11 little bit about that? Were you the Minister when that 12 was -- 13 2608 MR. WADDELL: Yes, I brought it in in 14 April. I brought in two incentives, one for local 15 production. Film Incentive B.C. is basically a package 16 of tax credits for local filmmakers. It includes B.C.- 17 based production, then it includes a regional incentive 18 that tops it up to get it out of the Vancouver area, 19 get it out of the lower mainland, and, finally, an 20 incentive for training. Then I introduced that in 21 April. We, as a government, introduced that in April 22 and then in June, I think it was, we introduced a tax 23 incentive program, the Production Services Tax Credit. 24 We matched Ontario, 11 per cent. 25 2609 The result is the preliminary figures StenoTran 611 1 show that they have had a booming effect in British 2 Columbia. There isn't an unemployed film technician in 3 the lower mainland. If you compare that to the primary 4 industry, the resource industry -- we have two 5 economies going in B.C. We have the old economy and we 6 have the new economy, in which film is much a part of 7 it. We believe our tax credits have really helped, but 8 a lot of that is still, especially in the second one, 9 American production. 10 2610 So, we brought in a lot more American 11 production, Hollywood North. They are hiring local 12 people. That's great, but what happens if it goes? I 13 find it extraordinary that here is one of the top 14 production centres. Our figures show we are 15 approaching second to Los Angeles and we are not 16 getting into Canadian production. 17 2611 So, my job, as I see it, is to try to 18 work to a sustainable industry and a sustainable 19 industry means when Hollywood is gone or if I can bring 20 Hollywood up here, I get some more studio space and I 21 get some big production companies actually operating in 22 B.C., I can sustain it. Another way we could sustain 23 it is to get in the Canadian production and get our 24 fair share, and that's what I am asking the CRTC to 25 help us with. StenoTran 612 1 2612 COMMISSIONER CARDOZO: That's 2 interesting because what occurred to me as I was going 3 through your material and listening to you today is we 4 are not necessarily talking about, say, a large degree 5 of unemployment or unutilization of the production 6 industry of technicians and so forth, but you are 7 concerned more about the fact that they are employed by 8 American companies who are just here for the short 9 haul. 10 2613 MR. WADDELL: We are hoping they will 11 be here for the long haul. You are absolutely right, 12 Mr. Cardozo. I am saying thank you for those companies 13 coming in. We even gave a big help to you to come in 14 with our tax incentives. I am saying we are fully 15 employed in that -- almost fully employed in that. Our 16 industry is growing 10 per cent -- I have a report on 17 my desk showing 10 per cent a year for the next decade 18 we are going to grow. However, what happens if the 19 dollar goes up, what happens if their other "X-Files", 20 their other production decisions made in Los Angeles 21 are that they should go back to Los Angeles? Where are 22 we? 23 2614 So, I have to look to a sustainable 24 industry and one of the ways is to build up the 25 Canadian access. I look at Canadian networks. Look at StenoTran 613 1 Global. Are they producing shows from British 2 Columbia, no. Where are the productions? We should be 3 on Canadian television reflecting B.C. to Canadians. 4 2615 COMMISSIONER CARDOZO: In terms of 5 how the province has provided incentives for production 6 in the province, you have indicated that there is a 7 fair amount of American companies coming into the 8 province and doing their work there. 9 2616 MR. WADDELL: Yes. 10 2617 COMMISSIONER CARDOZO: We are looking 11 at part of this whole exercise as really long term. We 12 have been trying to look 10, 20 years down the road and 13 one of the things that occurs to me when we talk about 14 British Columbia is its connection to Asia, the Asia- 15 Pacific connection. Is there any sense that there is 16 the possibility, given the population of Chinese 17 Canadians and Indo-Canadians where there is a lot of 18 film watching, an enormous amount of filmmaking, that 19 there are synergies or production that can take place 20 within the province that would be of interest to people 21 in countries, in Asia, just as the Americans are coming 22 here? 23 2618 MR. WADDELL: This is a very 24 perceptive question, Mr. Cardozo. We have a very huge 25 and dynamic population, especially of Chinese Canadians StenoTran 614 1 in the Vancouver area especially, and Indo-Canadians. 2 We have made efforts. We have had film crews from 3 Bombay into B.C. and we have made efforts to help them. 4 1810 5 2619 The Chinese -- we are talking with 6 China about film production. The Premier and one of 7 our Trade Minister will be going there in a month and 8 talking about trade. We are pursuing all kinds of new 9 trade that we can and that would include film. 10 2620 My feeling is it's somewhere down the 11 line though. It's not on the immediate horizon and 12 maybe a little on the far horizon. It's something to 13 pursue. It is using our attributes that we have in the 14 province, as you have pointed out, but I think it is a 15 little bit down the line. 16 2621 Right now, 85 to 90 per cent of our 17 production is from the United States. It's too high. 18 It has got to be balanced. 19 2622 COMMISSIONER CARDOZO: I wonder how 20 far down the road it is because I look at Deepa Metha, 21 for example, who is a Canadian producer. There was 22 another movie done on one of the Barbara Hinton mystery 23 books which is about to be released, produced in Canada 24 and I think Bombay. So there are certain things that 25 are happening and I guess that's one of the things that StenoTran 615 1 we maybe wanted to look at. 2 2623 Can I ask you what your relationship 3 is as Minister with B.C. Film? 4 2624 MR. WADDELL: B.C. Film is under me. 5 There is a film -- if I can find this brief and if you 6 will just give me a second here to get -- 7 2625 COMMISSIONER CARDOZO: They had sent 8 us a brief too and, unfortunately, they are not 9 appearing. They were going to be appearing this week, 10 but they are not. 11 2626 MR. WADDELL: Well, B.C. Film is -- I 12 am trying to find their brief because it outlines it in 13 their brief. It's in your file somewhere. 14 2627 B.C. Film -- I believe Rob Egan sent 15 a brief there, who is the CEO of that. We fund them 16 out of my ministry, but they are a bit of arm's length. 17 2628 There is a second group in which is 18 called the Film Commission. The Film Commission is 19 directly under my ministry. Pete Mitchell is the 20 Director there and what they do is scout for American 21 productions, very successfully. That's under my 22 ministry. I think their budget is about $800,000. The 23 other one is a budget of about -- I think about $4 24 million. I stand corrected, I should know, but they 25 are more at arm's length and their job is really to StenoTran 616 1 work with B.C. film-makers and Canadian film-makers. 2 They have been acting a bit of a bank really recently 3 with this new Film Incentive British Columbia to help 4 local production. 5 2629 COMMISSIONER CARDOZO: The next time 6 you see Rob Egan tell him we were looking forward to 7 seeing him and in honour of his brief that he sent us 8 but didn't show I will ask you a question I was going 9 to ask him. 10 2630 MR. WADDELL: I am trying to look for 11 his brief. I know I have it somewhere. 12 2631 COMMISSIONER CARDOZO: Let me just 13 read you a paragraph. It is fairly generic or general. 14 It is on a similar theme that I just asked you. He 15 noted that: 16 2632 "Canadian broadcasters should 17 ensure that programming reflects 18 the diversity of Canada, and 19 acquire or license productions 20 from producers of diverse 21 cultural and ethnic backgrounds. 22 Further, the stations must 23 reflect the nature of the 24 community that they serve 25 through stronger representation StenoTran 617 1 of individuals from all cultural 2 and ethnic backgrounds in the 3 on-air production departments as 4 well as at the management 5 levels." 6 2633 Generally, I guess, he is saying that 7 there ought to be more diversity both from what we see 8 on-air and off-air. I wonder if you have any general 9 thoughts? 10 2634 MR. WADDELL: Yes, I do actually. It 11 is his brief and this is really off the topic of my 12 brief, but we are a multicultural society in British 13 Columbia. We tend to put, if I might put it, too much 14 of a white face on our productions and we are not 15 really reflecting some of the other parts of our 16 people. 17 2635 I think their brief is indicating 18 that. I imagine -- I don't watch TVOntario, so I don't 19 know if it is reflecting a multicultural community 20 that's around it, especially in southern Ontario. 21 2636 We have that and we are not seeing it 22 reflected as much as we can. We are seeing a lot of 23 now, thank goodness, aboriginal people being reflected 24 in the films, but that's not multicultural. It is not 25 reflecting the new -- StenoTran 618 1 2637 COMMISSIONER CARDOZO: On the 2 question of aboriginal people, through these funding 3 mechanisms are you able to fund productions that are 4 aboriginal that explore aboriginal themes? 5 2638 MR. WADDELL: We are trying to. 6 That's one of the priorities to reflect that. As you 7 know, while we are fighting out land claims in British 8 Columbia in various ways and we are going to bring in 9 the historic Niska agreement, there is a renaissance. 10 I am Minister of Tourism too and Culture and there is a 11 renaissance in aboriginal cultural. There is a 12 renaissance in writing and performing and theatre and 13 art. There is an incredible renaissance in British 14 Columbia. 15 2639 I am hoping -- it is just beginning I 16 think to get into the film genre. I am hoping it will 17 be reflected in television. 18 2640 COMMISSIONER CARDOZO: There 19 certainly is a very rapid, a very high rate of growth 20 in the average population of young people. 21 2641 MR. WADDELL: Of young people, 50 per 22 cent are under 15 I think. I see that in the future. 23 2642 COMMISSIONER CARDOZO: A couple more 24 questions. You talked about your concerns regarding 25 drama and comedy. I wonder if you had any suggestions StenoTran 619 1 about mechanism that you would propose so that drama 2 and comedy programming better meet the needs and 3 interests of Canadian viewers. 4 2643 MR. WADDELL: The problem is that we 5 don't produce enough drama and comedy and it's the one 6 thing that is a little down on the Canadian content. 7 You can produce 26 gardening shows and that's Canadian 8 content and not produce any new drama and comedy. 9 2644 You might want to have a look in 10 terms of your definition of Canadian content about 11 that. You might want to have a look at it in terms of 12 asking questions or recommendations or regulations as 13 to the different kinds of Canadian production. 14 2645 So, I flagged that as one area where 15 -- you know, we have had not many networks and private 16 networks are not producing Canadian drama. They prefer 17 to buy cheap American sitcoms. You have to get them 18 dragging and screaming into doing some of that. When 19 they finally do it, they actually get awards and 20 actually like it and they produce good programs. You 21 have just got to convince them to do it, including 22 Global. 23 2646 COMMISSIONER CARDOZO: Lastly, on 24 news, we touched on it and you have talked about it in 25 various parts of your presentation. What is your sense StenoTran 620 1 about how much regional news the average citizen of 2 British Columbia is able to watch on their newscasts 3 and how much regional news do you get of other regions? 4 2647 MR. WADDELL: This is my own personal 5 opinion. We don't get a lot of regional news of other 6 regions. Ontario seems to me to be a big kind of block 7 out there. Does anything happen in there? I used to 8 live there. I am sure things happen. 9 2648 COMMISSIONER CARDOZO: Believe me 10 they do. 11 2649 MR. WADDELL: I am sure they do. 12 They must. But we don't get much of that. 13 2650 We get very good regional news I 14 think by and large in British Columbia and, of course, 15 you know how Canadian content works. The private 16 networks especially have put the money into news, the 17 6:00 to 11:00 or whatever the period is. They put the 18 money into news and that's their Canadian content and 19 they buy cheap American sitcoms on Global, and they buy 20 expensive American productions, but they make lots of 21 money and they don't pour it back into Canadian 22 production. 23 2651 If you look at my brief you will see 24 that we showed how much money the networks were making, 25 their profits. They increased their profits by I think StenoTran 621 1 50 per cent and they have increased their production of 2 drama and programs by 7 per cent. So you have got to 3 require them to produce more, especially drama, and on 4 the news I think there is enough news, but people like 5 -- I think it is well produced and they like it. 6 2652 I can't say much more because I 7 anticipate some shake-ups in the industry in British 8 Columbia with the end of WIC -- you know with WIC being 9 Western. 10 2653 COMMISSIONER CARDOZO: We are well 11 aware of WIC. 12 2654 MR. WADDELL: And that will mean some 13 shake-up in the programming and in ownership and so on. 14 That may mean in the end perhaps less news, local news, 15 but we are well served by local news right now in 16 British Columbia. When I read it sometimes, their 17 views of the present government, I sometimes think we 18 are too well served. 19 2655 COMMISSIONER CARDOZO: That covers my 20 questions. Thank you very much, Mr. Waddell. 21 2656 Thank you, Madam Chair. 22 2657 THE CHAIRPERSON: Thank you very much 23 and we appreciate your patience in staying so late. 24 2658 MR. WADDELL: Can I thank you again 25 for your patience for having me. It means a lot. I StenoTran 622 1 have to get back to British Columbia early tomorrow. 2 2659 THE CHAIRPERSON: I hope you have a 3 good trip back. 4 2660 MR. WADDELL: Merci. 5 2661 THE CHAIRPERSON: That will conclude 6 the business for today. We will adjourn now and resume 7 at 9:00 tomorrow morning with WIC, SCN, followed by 8 ACCESS , Télé-Québec and then we will start the Friday 9 with Friends. Thank you. 10 2662 Good night and have a good evening. 11 --- Whereupon the hearing adjourned at 1820, 12 to resume on Friday, September 25, 1998 13 at 0900 / L'audience est ajournée à 1820, 14 pour reprendre le vendredi 25 septembre 1998 15 à 0900 16 17 18 19 20 21 22 23 24 25 StenoTran
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