CRTC budget shortfall to affect delivery of services: von Finckenstein

The chair of the CRTC warns that a $9 million budgetary shortfall beginning April 1 will mean slower service and a reprioritizing of activities. Konrad von Finckenstein also ruled out increases in licence fees, and with the global economic crisis continuing, it’s doubtful the federal government will be loosening the purse strings anytime soon.The CRTC chair made the remarks last week in an address at the Canadian Association of Broadcasters annual meeting. The financial crunch will come next fiscal year, when a temporary increase of $9.94 million from Treasury Board for the 2008-09 fiscal year runs out. The regulator had hoped for a permanent $9.07 million increase to its annual base budget of $48.5 million. It collects about $54.5 million annually in licence fees from broadcasting and telecom companies.“Last year, you and I had a free and frank exchange about the increased fees that we sought from you. There will be no such exchange this year, because we have heard you loud and clear. You have no appetite for increased fees. And we are in the midst of financial turmoil. This is not a good time for the CRTC to be seeking more funds,” he said.At the same time, he added that “We cannot reasonably be expected to maintain our recent pace of operations with fewer resources.”During last year’s consultations with industry, the CAB had proposed a five-year increase to licence fees. At the time, the CRTC said it needed the money to reduce time spent on regulatory decisions, update its systems and infrastructure, research and address new media issues and implement the government’s policy direction. However, von Finckenstein did not spell out details on how the budgetary strains will affect services in tangible terms.Apart from budget strains on existing responsibilities, von Finckenstein also said new projects thrust on the CRTC without additional resources have added more challenges, such as the government’s request for a report on broadcasting services in French and English in minority settings.The temporary budget increase approved by the Treasury Board enabled the CRTC to publish its first converged Communications Monitoring Report, streamline service delivery through investments in IT, reduce time spent on assessing ownership transactions, and streamlined regulation on the telecom sector. The CRTC chair hinted that this work constitutes a small section of much bigger projects, and that more money is required to keep pace with the rapid technological advances in the industry.The comments on the budgetary shortfalls, made a week before the tabling of the Throne Speech (expected to be tabled on Nov. 12), can be interpreted as a call on the federal government to include the CRTC’s concerns in its agenda. Last year, the CRTC initiated discussions with stakeholders on raising fees to offset increased operating costs, but industry stakeholders rejected the move.The CRTC chair didn’t give a reason as to why the Treasury Board authorized a temporary budget for two years only. However, Robert Makichuk, chief of media relations at the board says such decisions come from cabinet committees and are considered confidential.

CRTC budget shortfall to affect delivery of services: von Finckenstein

Broadcast | November 10, 2008

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