CBC chief asks for support, flexibility from government

OTTAWA — The CEO of CBC/Radio-Canada told a Senate committee Wednesday night that he has never asked for “one dollar more” of public money but that the public broadcaster needs government support. Hubert Lacroix told members of the Senate’s transport and communications committee, in a hearing dealing with challenges faced by the CBC, about some of the pitfalls the public broadcaster is facing, such as cuts to government funding and the loss of broadcasting rights to NHL hockey as of next season. Lacroix said that before the end of this calendar year, the broadcaster will produce a long-term plan on how to move forward beyond 2015. He did not have many details to offer on how this plan might look, only saying it will build on a strategy that emerged four years ago based on airing more Canadian content, creating deeper roots in communities across the country and strengthening the CBC’s web-based offerings. “We need to develop a long-term, sustainable financial model for public broadcasting in Canada,” he said. “That is a key part of our thinking as we presently develop a strategic plan, which we are calling right now ‘Beyond 2015.’ And we need government.” The CBC head, under questioning from senators, dismissed the notion that he’s seeking more money from the government. “I’ve been in this job for six years, as you’ve heard; I’ve never asked government for a dollar … for one dollar more than what we have,” he said. “What I’ve asked for, though, is predictability, multi-year funding … and I’ve asked for a credit line.” Lacroix said that because he has no room to borrow money, CBC is forced to cut operations or withhold investments in reaction to losses in funding. Conservative Senator Stephen Greene told Lacroix more funding from government is unlikely for political reasons. “Government investment in the public broadcaster has flatlined since 1990,” he said. “You know, government and politicians are funny people. If the public wanted, normally will invest in it. And this has been going on for better than two decades that it’s flatlined for a little more than $1 billion , and that’s all governments. So it strikes me that you have some real challenges here.” Lacroix said that in 2014-15, the CBC would be facing a loss of $45.5 million in government appropriations (part of reductions of $115 million over three years that started in 2012-13), $14 million from a freeze on inflation funding for salaries and $27 million from the loss of the CRTC’s Local Programming Improvement Fund. As well, there is the loss commercial revenue stemming from the expiration of CBC’s rights to NHL hockey following the $5.2-billion deal Rogers Communications Inc. secured with the league, starting next season. Lacroix said it will be more clear next year what this change means for CBC financially. Rogers is sub-licensing CBC to continue to show hockey games on Saturday nights and throughout the playoffs for at least the next four years. Rogers will receive the advertising dollars from those games, though CBC will not pay the NHL for broadcasting rights. He said Hockey Night in Canada was taking in between $125 million and $150 million in ad revenue. Lacroix said that money “was sort of a wash” given the amount CBC paid for the current seven-year contract with NHL set against the difficulties faced by the broadcaster including the recession of 2008-09 and the NHL players lockout last season. The Globe and Mail reported that contract was worth about $100 million per season, though the CBC has never publicly disclosed a figure. Beyond finances, Lacroix said there are other aspects to the loss of hockey rights that could affect the broadcaster. “This will have a ripple effect in our ability to package and sell advertising on our other television programming,” he said. At times, the subject matter of the committee meeting drifted away from the difficulties faced by CBC and toward an error that was made that saw Lacroix reimbursed for about $30,000 in expenses. Lacroix apologized and said the money was paid back in full in September following an audit in response to discovering the mistake in June. — With reporting by Derek Abma at dabma@thewirereport.ca and editing by Peter Henderson at phenderson@thewirereport.ca

CBC chief asks for support, flexibility from government

Broadcast | February 27, 2014

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CBC chief asks for support, flexibility from government

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