BPF registers to lobby amidst consumer group funding concerns

A few months after the emergence of a proposal asking the CRTC to shift funding away from the Broadcast Participation Fund (BPF), the organization that helps bring consumer interests in front of the commission has filed its first registrations to lobby the regulator and the government. The fund opened three total registrations in October and November, two in the names of board members Robert Farmer and David McKendry and one in the name of fund secretary and Gowling WLG lawyer Scott Fletcher. McKendry, a former CRTC commissioner, filed the fund’s first communication with CRTC chairman Ian Scott last month. All three are registered to discuss the ongoing sustainability of the fund, a concern that emerged when Sirius XM Canada Holdings Inc. proposed a new funding allocation scheme wherein it would reduce the amount it gave to the fund and instead shift it toward another pool that supported musical and spoken-word artists. But advocacy groups urged the CRTC to reject the suggestion, citing a resulting loss of representation on behalf of consumer groups in front of the commission. The news comes as the Public Interest Advocacy Centre (PIAC) shoulders its own financial battles to represent consumers at CRTC hearings. PIAC noted in a reply to Sirius’ suggestion that the BPF cost awards were critical to its ability to participate in broadcast proceedings. PIAC executive director John Lawford said in an email Tuesday that if the BPF runs out of money, it will mean PIAC stops doing broadcasting work. It will also lead to a “greater likelihood of PIAC going broke,” he added. That’s because the BPF is the only fund that provides cost awards on broadcast proceedings, CRTC spokeswoman Patricia Valladao confirmed in an email. That’s in contrast to the powers the CRTC has under the Telecommunications Act, which gives it the ability to determine whether an applicant is eligible for costs, whether the costs claimed are appropriate and who should pay the costs in telecom proceedings. The BPF is an independent fund. The CRTC generally requires money be set aside from the purchaser in broadcast transactions, called tangible benefits. That’s where the BPF’s initial funding in 2011 — as a condition to approve a corporate reorganization at BCE Inc. — came from, when the CRTC allotted $3 million to it. The regulator said in a 2012 release that the fund would offset the costs of public interest groups in broadcast proceedings. The fund was also recommended by PIAC, which worked with Bell to set up the organization. Lawford said the CRTC has not put new money into the BPF since the $2 million it allocated to the fund as a result of Bell’s $3.38-billion acquisition of Astral Media Inc. in 2013, despite several mergers coming after that. In one of its annual reports, the BPF showed a decline in its net assets by the end of 2016 to just under $2 million, a $600,000 dip from the start of the year. Further, in a letter to stakeholders on its website, the BPF warned that it will run out of money early next year unless “significant additional funds” are injected into it. It urged costs awards applicants to take this into consideration when preparing interventions at CRTC broadcast proceedings, with the possibility that it may not be able to award costs in the new year. The last recorded claim on the BPF website went to PIAC, an approved amount of $15,887 from a licence renewal hearing in November 2016 that was claimed in January. As part of its discretionary tangible benefits proposal when it sought approval to go private in July, Sirius recommended putting $1 million into the BPF out of a $4.79 million pool, the rest of which would be directed at a new fund called the SiriusXM Amp’d Fund/Fond Survolté. Lawford said this new fund would just duplicate existing production funds. BPF’s costs officer and CEO André Auger, an advisor at accounting firm Welch LLP, did not respond to a request for comment. When it came to overall lobbying in the telecom and media sector, Telus Corp. led all telecom companies in lobbying efforts in October with 20 communications. The subject matter of the registrations, under CEO Darren Entwistle, include prospective amendments to the Broadcasting Act, the review of the Personal Information Protection and Electronic Documents Act (PIPEDA), and cybersecurity. Communications were made with Innovation Canada (ISED) officials including director generals Jennifer Miller and Pamela Miller, deputy minister John Knubley and associate deputy minister David McGovern, as well as with members of parliament and with Chris MacMillan, special assistant in the Prime Minister’s Office (PMO). Rogers Communications Inc. and Shaw Communications Inc. both made eight communications in the month. Under president and CEO Joe Natale, subject matter in Rogers’ registrations included provisions in the Copyright Modernization Act and the Creative Canada consultations. Communications were made with ISED Minister Navdeep Bains and officials including Knubley and McGovern, Canadian Heritage senior advisors Kelly Wilhelm and Soraya Martinez, members of parliament and deputy director of policy in the PMO Justin To. Under CEO Brad Shaw, Shaw registrations included topics such as cybersecurity and upcoming reviews of the Copyright, Broadcasting and Telecommunications Acts. Communications were made with CRTC chairman Ian Scott, ISED’s director of policy David McFarlane and Parvinder Sachdeva, Knubley and McGovern, members of parliament, as well as officials in Global Affairs and Public Safety. Bell made five communications reports, under CEO George Cope, including with CRTC secretary general Scott Hutton, ISED’s McFarlane, Sachdeva and chief of staff Gianluca Cairo, as well as with Heritage’s Martinez. Subject matter in the registrations relate to broadcasting and telecom, including prospective amendments to the aforementioned acts. Cogeco Inc. filed one communication under its president Louis Audet with minister of transport Marc Garneau. Matters on the registration include taxation, finance and telecommunications issues. Xplornet Communications Inc. also filed one communication under its president and CEO Allison Lenehan with ISED director general Susan Hart. Matters on his registration include telecommunications related to rural broadband funding. On the creative sector side, The Writers’ Union of Canada filed three communications under executive director John Degen with Heritage officials including Lara Taylor, director of copyright policy and legislation at Heritage, MP Julie Dabrusin and Senator David Tkachuk. Registrations include matters related to better defining the fair dealing provision for education in the Copyright Act. In consultations to amend the Copyright Board, the Association of Canadian Publishers said in a submission that since the enactment of fair dealing — which deals with use of content without permission — in the Act five years ago, royalty distributions to affiliates of Access Copyright declined by 80 per cent. Meanwhile the Writers Guild of Canada filed one communication under its president Jill Golick, with Heritage’s Wilhelm, whose registration includes funding for the CBC/Radio-Canada and Heritage’s strategies, including export, for Canadian content. Quebecor Inc. had two communications, one from the media division filed by its president and CEO Pierre Karl Péladeau with ISED’s Bains and Sachdeva. He’s registered to lobby on issues including copyright law and access to the Publications Assistance Program. The other came from consultant Andrew Steele, a new registrant for the company, who communicated with Heritage director of policy Caroline Seguin. He is registered to communicate on matters including funding from the Canada Media Fund (CMF) to support content development. Other new entrants in October include consultant Charlotte Webber for the Canadian Communications Systems Alliance (CCSA), who is registered to lobby on matters including the CRTC broadcast distribution regulations. Overall telecommunications reports jumped 48 per cent to 37 communications compared to September, while broadcast declined 25.9 per cent to 20 reports, following a month where that kind of communication increased more than 50 per cent, largely ahead of Heritage’s Creative Canada strategy reveal in late September. — With reporting by Ahmad Hathout at ahathout@thewirereport.ca and editing by Anja Karadeglija at akarad@thewirereport.ca

BPF registers to lobby amidst consumer group funding concerns

Broadcast | December 14, 2017

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BPF registers to lobby amidst consumer group funding concerns

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