Mixed reaction to budget viewed as long on potential, short on details

For all the focus on the digital economy, there was little in Wednesday’s budget for digital content creators, broadband infrastructure enthusiasts or fans of long-term planning, according to consultants and advocacy groups. “There’s a lot of potential there. But what is lacking right now is the policy and funding framework in the longer term,” Stuart Jack, a partner at Nordicity’s Ottawa office, said in phone interview. The government has included all of the key words, such as “innovation” and “affordability,” in the budget documents, Jack said, “but what’s lacking are the details of how they’re going to get there. So they’ve announced a destination and people are wondering ‘is this a hike? Are we taking an airplane?’” Budget 2017, tabled in the House of Commons Wednesday, included funding measures to help boost the development of cheap Internet packages for low-income households, improve digital literacy, and develop assistive technology Kristian Roberts, a partner at Nordicity’s Toronto office, noted in a phone interview that “there’s a lot of talk in this budget about the digital economy and about digital industries but very little of that directly speaks to digital content creation — things like video games or e-learning applications or mobile apps.” The major exception, Roberts said, was the announcement of government’s intention to “review and modernize” the Telecommunications and Broadcasting Acts down the road. “I’ve long pointed out that the world ‘Internet’ doesn’t appear in either act, so it would be helpful if it did, if it was related to the Internet in some way,” Roberts said. In a press release, Stephen Waddell, national executive director of the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA), highlighted the coming review, saying that “we have a chance to adapt the government policies that have built our success and ensure that creative talent is able to earn a secure living. The alternative is a de-regulated industry where foreign multinationals like Netflix can haul millions out of the country every year while being exempted from any responsibility to contribute to our country’s culture.” ACTRA also expressed enthusiasm for the government’s announcement to develop a new intellectual property strategy “over the coming year.” According to budget documents, the “strategy will help ensure that Canada’s intellectual property regime is modern and robust and supports Canadian innovations in the 21st century.” “In recognition of the importance of a well-functioning intellectual property regime, Budget 2017 announces the Government will develop a new intellectual property strategy over the coming year. The strategy will help ensure that Canada’s intellectual property regime is modern and robust and supports Canadian innovations in the 21st century.” “For performers whose precarious careers are filled with uncertain work opportunities and equally fluctuating paycheques, recognition of their rights and compensation for their work is vitally important,” Ferne Downey, ACTRA national president, said in the release. The Canadian Media Producers Association (CMPA) highlighted in its press release the coming legislation review as a potential “opportunity to update Canada’s regulatory system to support creators and help bring the amazing content produced by Canadians to audiences at home and around the world.” CMPA president Reynolds Mastin said in the release that modernizing the acts “must ensure that Internet Service Providers, wireless services, and Over-The-Top platforms contribute to the growth and success of the Canadian production sector from which they benefit.” Advocacy groups were less effusive in their praise for Wednesday’s announced measures. OpenMedia noted in a press release that there was “no new funding for Internet infrastructure, instead merely repeating last year’s commitment to bring high-speed Internet to rural and remote communities — itself largely a reiteration of a funding promise originally made by previous Conservative Industry Minister James Moore.” The Affordable Access program, with $13.2 million over five years for a government-operated income validation tool and refurbished computers, is “a drop in the bucket of what is needed,” the release said, pointing to the estimate the Affordable Access Coalition presented to the CRTC during last year’s basic telecom services proceeding of a minimum of $70 million annually to give low-income households a monthly subsidy for telecom services. “It’s a real letdown to see the government discuss innovation without any new funding commitment for Internet infrastructure, despite the CRTC’s historic ruling in December that every Canadian should have affordable, reliable Internet access,” David Christopher, OpenMedia spokesperson, said in the release. The Public Interest Advocacy Centre went a step further, with executive director John Lawford calling the budget “a cruel joke for low-income Canadians struggling to afford broadband internet for education, health, employment and other key services” in a press release. “Acknowledging such a fundamental problem with a token amount and having the gall to call it an ‘Affordable Access program’ is insulting.” Rogers Communications Inc. and Telus Corp., which both already offer $10 Internet packages for low-income households, expressed optimism about the government’s measure. “We’re pleased to see the government investing in digital skills and helping more Canadians get online. We’ve recently expanded our $9.99/month Connected for Success internet access program, making it available to over 150,000 Canadians with low-incomes, and look forward to reviewing the details of the government’s new initiatives when they become available,” Rogers spokesman Andrew Garas said in an email statement. Telus spokeswoman Liz Sauvé echoed Rogers in her own email statement, saying: “We believe that everyone deserves the advantages that the Internet offers, and ensuring more families have access is a goal we have pursued for many years. In working with our partners in B.C. and Alberta to determine the best way to pilot an initiative offering low-cost Internet, single-parent families receiving income or disability assistance from the provincial governments was identified as the right place to start.” She added: “We are looking at the new program announced by the federal government in yesterday’s budget to determine how we might work together to offer Internet services to even more vulnerable families. It is too early for us to get into any specifics.” Something specific that could have been included in Wednesday’s budget “without a whole lot of fuss” is a move to subject all foreign companies operating in Canada to sales tax, like the government said it will do to ride-sharing services, Roberts said. According to a statement from Ian Black, Uber Canada’s regional general manager, the federal government would have better served taxi drivers by exempting them from collecting sales tax. “This new tax on innovation would hurt over a million Canadians who use ridesharing to earn income and get around their cities,” Black said in the statement. There’s a possible precedent with the tax on Uber, Jack said. “If it works with Uber then maybe it would work with Netflix.” — With reporting by Charelle Evelyn at cevelyn@thewirereport.ca and editing by Anja Karadeglija at akarad@thewirereport.ca

Mixed reaction to budget viewed as long on potential, short on details

Broadcast | March 23, 2017

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Mixed reaction to budget viewed as long on potential, short on details

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