Canadian Radio-television and Telecommunications Commission
Symbol of the Government of Canada

Speech

Notes for an address

by Candice J. Molnar

Regional Commissioner for Manitoba and Saskatchewan
Canadian Radio-television and Telecommunications Commission

 

to the Broadcasters Association of Manitoba

 

Winnipeg, Manitoba
March 19, 2009

(This speech may have been altered during delivery)


Thank you for your warm welcome.

As many of you will remember, I spoke at this event last year, just weeks after being appointed to the Canadian Radio-television and Telecommunications Commission. It has been a very full year.

On a personal level, it has been a year of learning – about processes and priorities within the Commission, the industries we regulate, and the companies and people who make up those industries.

Over the past year, I have had the pleasure to meet with many of you, visit some of your broadcasting centres and learn about some of the issues affecting your business.

This is my sixth visit to the Winnipeg area since being appointed and I have met new stakeholders on each trip. I have been impressed by the knowledge, experience, and commitment to community and to the industry that has been demonstrated by those I’ve met.

And without exception, I have been impressed with your hospitality. The term “Friendly Manitoba” is well earned.

Over the past year, I’ve also had the privilege of meeting and working with a number of new Commissioners, including Commissioners Lamarre and Poirier, who are here with me today. I would like to thank them for taking the time to visit our region and learn first-hand the issues affecting Manitoba’s broadcasters.

The year in review

For my fellow Commissioners and me, the past year was certainly eventful. It was one that featured more than a few key decisions.

In June, for instance, a public hearing was conducted in Winnipeg. Following the hearing, we granted two new radio licences for the Winnipeg market to:

  • NCI, for a new English- and Aboriginal-language FM station, and
  • Evanov Communications, for a new commercial FM station, on the condition that the applicant could find a suitable frequency.

Another key decision last year was the BDU [broadcasting distribution undertaking] policy review, which announced new policies for broadcasting distribution companies, pay and specialty services, and conventional television broadcasters.

I would like to highlight one particular element of our decision – the Local Programming Improvement Fund.

Local media play a critical role in informing Canadians about their communities, as well as national and international events. Canadians have made it clear that they value quality local programming that is interesting and informative.

But even before the global economy went into a tailspin, local television stations in smaller markets were having difficulty maintaining their investments in this type of programming.

We created a Local Programming Improvement Fund to address this situation. Our goal with this fund is to ensure that Canadians in markets with a population of less than one million continue to receive a diversity of local television programming – and especially news. Broadcasting distribution companies will provide the funding, which must be used by stations to increase their expenditures on local programming.

There are still details that need to be ironed out. At the top of the list are the terms for the fund’s administration and the method that will be used to calculate incremental spending. These questions will be considered during the upcoming hearings to renew the licences of the private conventional broadcasting groups.

You will have an opportunity to share your views, and I hope you will take the time to do so. Local stations and viewers in Manitoba stand to benefit from this fund.

On the topic of local television, I know that CTV’s recent announcement regarding CKX-TV Brandon is concerning to many of you. The Commission is equally concerned, as our preference is obviously not to see a reduction in the services Canadians enjoy. The closing of a local station should be viewed as a last resort after all other options have been exhausted.

The year ahead

Issues regarding conventional television will be one of the Commission’s priorities in the months ahead, beginning with the licence renewal hearings for the private conventional broadcasting groups, which are set to begin next month. As you know, our normal practice is to renew the licences for a period of seven years. However, given the state of the global economy, we are leaning towards renewing the licences for one year only.

Through these same renewal hearings, we will also be addressing issues related to the Local Programming Improvement Fund that I mentioned earlier, and addressing issues related to digital transition – a very important issue both for the industry and the public.

The Commission will also address a number of other issues in the months ahead:

  • In July, we will be looking at the traffic management practices used by Internet service providers operating in Canada. Our main objective is to determine whether and to what extent such practices are appropriate under the Telecommunications Act.
  • In the fall, we will hold hearings to renew the licences of the CBC’s English- and French-language conventional, specialty and radio services.
  • Also in the fall, we will review our policies for community television services, as well as community and campus radio services.

In addition, the Commission will be issuing its determinations regarding New Media. As you know, the Commission recently completed the oral phase of its public hearing regarding broadcasting in New Media.  More than 50 parties appeared before the panel, including cultural groups, broadcasters, broadcasting distribution companies and Internet service providers.

Three key topics were discussed:

  • What impact is this having on traditional broadcasters?
  • Are measures needed to support the promotion and visibility of Canadian broadcasting content in New Media?
  • Is the Commission’s hands-off approach still appropriate?

I am sure that you, as well as Canadians across the country, will be very interested in the results from this proceeding.

Conclusion

Finally, I would be remiss if I did not comment on the current economic situation.

There is no denying that the Canadian economy is under severe strain from the global recession. The impact of this upheaval is being felt across all industries even as the government takes measures to spark a recovery. Broadcasters, relying as they do on advertising, are especially vulnerable to the effects of such a sharp downturn.

That being said, we must not lose sight of the fact that, sooner or later, the global markets will rebound. The Canadian economy will shift back into a period of growth. And new opportunities will arise, both as a result of this renewed economic activity and the new technologies for broadcasting content. 

But particularly here in the Prairies, and particularly for radio broadcasters who rely more heavily on local advertising, opportunities also exist today. I am aware of two applications for new radio licences in the province. While I cannot speak about the applications that are currently before us, I do believe they are an indication of the vibrant nature of radio in Manitoba, and a comparatively strong provincial economy.

I was struck by the words of one of the radio broadcasters in this room, who stated – and I am paraphrasing – that he “will not be participating in the current economic recession.”

Weather aside, it is good to be from the Prairies.

Thank you very much.

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