Home page

Text size

E-mail this page

SOMBA K'E/YELLOWKNIFE
A controversial decision by Canada's broadcast regulator to scrap a fund used to support local programming may cut costs for consumers, but it has local television providers, including CBC North, worried about the future.

The Canadian Radio-television and Telecommunications Commission (CRTC) announced Wednesday that it will be phasing out the Local Programming Improvement Fund by 2014. The $100-million fund is financed by cable and satellite companies' profits, with most organizations passing the fee onto their subscribers as a line on their monthly bill.

But, that will change as company contributions are gradually reduced starting in September and the fund is eventually discontinued.

For Bell Fibe and satellite TV subscribers this means a savings of 1.5 per cent on their monthly bill, according to Scott Henderson, Bell's vice-president of communications.

"For example, a subscriber taking Bell Satellite's Good package pays 67 cents on a monthly charge of $45.10," Henderson stated in an e-mail.

NorthwesTel customers, however, will not feel the affect because an improvement fund charge was never tacked onto their bill, said company spokesperson Emily Younker.

Cable and satellite companies have until September 17 to remove the fee from customers' bills. The CRTC is asking the companies to submit a report detailing those measures or provide evidence that the cost was never passed down to the consumer.

The improvement fund was created by the CRTC in 2008 to support local programming outside of metropolitan areas as television stations struggled to handle not only the effects of the recession but also the financial cost of transitioning to digital television.

In 2011, 80 stations, including CBC North, received money from the fund.

"We have decided that the fund is to be phased out as the economic situation has improved in the local stations," said Patricia Valladao, CRTC media relations officer. "There was some recovery in the advertising sector and the transition to digital was very successful. We would believe that they (broadcasters) would be fine without the fund."

However, president and CEO of CBC/Radio-Canada, Hubert Lacroix stated in a news release that he is gravely concerned about the effect this decision will have on rural television stations.

"This decision is sure to reverse many of the local programming improvements that the fund achieved, because the rationale that led to the improvement find's creation still exists today: the financial model for local television continues to be challenged," stated Lacroix. "Two years from now, when the fund disappears, we'll be back to where we started when the CRTC decided to create the fund."

CBC/Radio-Canada received more than $40 million annually from the improvement fund. Last year, CBC North was able to use some of that money to improve coverage of live events and breaking news, such as the First Air crash at Resolute Bay, as well as enhance its election coverage.

"There's no question that this will negatively impact local television programming in smaller markets. For us, it will mean adjustments in terms of level of service, how we deliver service and the territory that our journalists can cover," Lacroix stated.

"Improving local service is one of the Corporation's top priorities. This decision doesn't change that, but it does present a major challenge that could limit our local television activities and our presence in those communities."

We welcome your opinions. Click here to e-mail a letter to the editor.