Lacroix calls for ‘discussion’ on whether new tax should fund CBC

CBC/Radio-Canada CEO Hubert Lacroix said Tuesday the public broadcaster is in a financially stable situation despite the loss of advertising revenue from NHL games, but that it must start a “conversation” about alternative funding models, which could include a levy on Internet service providers, or a household fee or tax. Speaking at the broadcaster’s annual meeting, held in Winnipeg and live-streamed online, Lacroix said the CBC would start a “conversation” about the its future, including the broadcaster’s funding. “We’re all going to have to decide how we fund this. ... Because without a robust and stable funding model, all the things that we’re trying to do at CBC/Radio-Canada, they will be hostage to the need to manage the financial emergency of the moment,” he said. “Canadians need to be part of that discussion.” During a question-and-answer session Tuesday, Lacroix elaborated in French that if the CBC has to find other sources of revenue to replace dropping advertising, other countries could offer potential models. “There’s all kinds of models, in France and Spain, where a part or percentage of the income from the Internet service providers is given elsewhere. There’s a tax imposed on people when they buy a TV set, like in England. Others, you have a household fee, a tax that depends on your environment or where you live,” he said, according to simultaneous translation. “There’s all kinds of funding levels. And we’ll try to have a conversation on how to fund it.” Lacroix said CBC’s annual report hasn’t been tabled in Parliament because it isn’t sitting during the election campaign. However, he said the broadcaster's most recent quarterly results show its financial situation has stabilized. He said the corporation has reduced expenses to compensate for the loss of revenue caused by the loss of NHL rights to Rogers Communications Inc. “However, we are keeping a close eye on our financial position given the decline in the advertising market,” he said. He noted that in 2015, CBC was able to “reinvest $23 million from our savings into Canadian programs, thanks to savings realized by our cost-reduction plan. It’s the first time since 2009 that we have been able to reinvest in our programs.” The quarterly report for the three months ended June 30 showed $118.5 million in revenues and $169.2 million in government funding, which put CBC $77.1 million short of covering its $364.8 million in expenses. Expenses were down $104.7 million in the quarter from a year earlier, compared to reductions of $74.1 million in revenue and a drop of $78.6 million in government funding. “So I guess I could say that we aren’t boiled to death just yet,” he said, in reference to comments he made recently at an international public broadcasters’ conference, when he said that public broadcasters, like “the proverbial frog put in cold water that is slowly heated, resisted telling people that we risk being boiled to death.” This summer, the Senate transport and communications standing committee issued a report recommending that CBC “explore alternative funding models and additional ways to generate revenue to minimize the Corporation’s dependence on government appropriations.” The study followed funding cuts by the Conservative government in 2012, which brought CBC funding down by $115 million implemented over three budget cycles, and ended a $60-million content creation subsidy that the CBC had been getting every year since 2001. Lacroix also addressed recent claims that the CBC is planning to sell off all its buildings. The broadcaster has denied those reports, stating that it had already announced last year that it would cut its excess space in half. “There’s no fire sale going on. And there’s no news about our strategy on real estate. It’s been open and very transparent since 2011,” Lacroix said Tuesday. Addressing the emergence of CBC funding as an election issue, Lacroix said that while parties have made promises about funding, the CBC isn’t making any demands because as a Crown corporation it can’t engage in advocacy during an election. Its role is to provide impartial election coverage, he said. The Liberals have promised $150 million in new annual funding, while the NDP has pledged to reverse the Conservatives’ $115 million cut. According to a Canadian Press article, Prime Minister Stephen Harper told CHOI Radio X in Quebec City in an interview broadcast Monday that the CBC's problems are not due to funding cuts, but because of poor ratings, and “a problem for the CBC to fix.” — With reporting by Anja Karadeglija at akarad@thewirereport.ca and editing by Derek Abma at dabma@thewirereport.ca

Lacroix calls for ‘discussion’ on whether new tax should fund CBC

Broadcast | September 29, 2015

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