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CCA Bulletin 16/10
June 22, 2010
The House of Commons is off for the summer
Just the Facts
Last week, members of the House of Commons left the Hill for the summer, with MPs returning to their ridings to mull over the work ahead in the fall. Meanwhile, the Senate is still trying to deal with the massive omnibus budget bill, C-9. Members of its Finance Committee are saying that they will stay as long as it takes to get through the 904 page document.
So, from the arts and culture perspective, what has been accomplished in the 65 days that the House has been sitting since the infamous prorogation that was granted by the Governor General last December? Notably, since the opening of the third session of the 40th Parliament on March 3, there has been more policy making with regards to our sector in comparison to the two preceding sessions. Several important pieces of legislation are now on the table for the House of Commons and Senate, making the fall session a likely platform for lively debates. The only deterrent would be another federal election, a scenario currently deemed unlikely by most observers! In this bulletin, the Canadian Conference of the Arts (CCA) looks at the state of affairs on Parliament’s Order Paper and reviews current consultations which may affect the arts, culture and heritage sector.
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1. The Omnibus Budget & Foreign Ownership
The 2010 Federal Budget moved through its three House readings at great speed, especially given its size and the fact that the government chose to load it with substantial changes to several Acts. This curtailed Parliamentary and public debates by daring the Opposition to defeat the bill and provoke an unwanted general election. Bill C-9 was debated for only seven days in the House during the second reading. It was then sent to the Finance Committee where it received five days of hearings. The 2,208 clauses in the bill were studied in only one day and the Committee reported back to the House on May 13 without any amendments!
Yet, many critics including Progressive Conservative Senator Lowell Murray and Liberal Joseph Day, have pointed out that the bill includes measures that will bring important changes to environmental assessments, nuclear policies, pension rules and Canada Post. Of more direct relevance to the cultural sector, Bill C-9 modifies the Telecommunications Act, allowing foreign ownership and control of satellite companies.
Last week, Conservative Senators banded together to defeat a motion by Senator Murray that would have split up the bill so that different Senate committees could study the areas of the bill that specifically pertained to them. The Senate Finance Committee is expected to sit through most of July while it deals with the mammoth bill and its most ardent critics try to amend it.
The Budget contains the second portion of the government’s two year Canadian Economic Action Plan. The CCA’s main concern with the budget bill is that it may spark the beginning of the unravelling of the long standing policy which stipulates that cultural industries should be owned and effectively controlled by Canadians. In the Throne Speech, the government declared its intention to open up the telecommunications sector to foreign investment. This matter has been the subject of public hearings by the House of Commons’ Standing Committee on Industry, Science and Technology. Critics have stated that the Committee’s June 16 report “covers hardly any new ground, takes no bold positions and sheds very little light on the topic despite hearing from dozens of people in March, April and May.” After hearing witnesses from across the spectrum of telecom, cable, satellite, broadcasting, production, regulation and cultural communities, the Committee’s thin report makes only two recommendations:
a) That the notion of the “control in fact” test be clarified.
b) That foreign ownership restrictions on Canadian satellite companies be removed, something the government is in effect doing through Section 2184 of the Budget Act.
While some maintain that changing the ownership rules for the telecoms industry won’t affect the Canadian government’s capacity to regulate broadcasting and content, the CCA argues that the government is treading on a slippery slope. With overlapping roles and concentrated ownership in the production and distribution businesses, the broadcasting sector can no longer be separated from the telecommunications and cable industries. This view is supported by the Chair of the CRTC. The CCA’s concerns were also echoed in the supplementary opinions filed by the Liberal Party, the NDP and the Bloc Québécois (whose opinion piece is titled “Selling its Sovereignty to the Highest Bidder”).
A week before the Committee’s report was made public, the Minister of Industry, the Hon. Tony Clement, announced a public consultation on foreign investment restrictions in telecommunications. Canadians have until July 30 to make their opinions known.
In the coming weeks, after it has reviewed the recently published Supplementary Estimates and received answers to a series of questions raised with government officials, the CCA will publish its annual analysis of the Federal Budget,
2. Copyright Bill C-32
On June 2, 2010, in a breach with tradition, the Minister of Industry tabled Bill C-32, a Copyright Modernization Act on its own. C-32 is the third attempt since 2005 to modernize the Copyright Act and makes for mandatory revisions every five years. Rumours had circulated that the government wanted to fast-track the second reading of the bill by having a special legislative committee made up of members of the Industry and Heritage Standing Committees hold hearings during the summer. If those rumours had any substance, they were definitely disproved when the House adjourned a week early last Thursday.
The second reading will therefore take place at the government’s discretion some time next fall, after the House reconvenes on September 20. This will be followed by public hearings by a special legislative committee. There will no doubt be a very lively debate, as criticisms of Bill C-32 from the arts and cultural sector are becoming more prominent. During the summer, the CCA will publish a thorough analysis of where all the key stakeholders stand on the proposed legislation.
Also on the table is Bill C-499, the private member’s bill introduced by NDP member Charlie Angus. The bill includes a proposal to amend the Copyright Act. Bill C-499 had its first reading in the House of Commons in March 2010. This bill would adapt the successful private copying levy regime to the current generation of copying devices such as MP3 players. The Bloc Québécois was also successful in having the House of Commons adopt a non-binding motion extending the regime to all digital recording devices. With the exception of compact discs, Bill C-32 does not currently extend a private copying regime to new technological platforms because the government, spearheaded by Heritage Minister James Moore, considers the private copying levy to be an unjustified tax on consumers.
At the same time, Angus introduced a motion on fair dealing which, according to him, “would protect the reasonable use of copyrighted materials for innovation, research, and study." While C-499 has been well received by many individuals in the cultural sector, Angus’s proposal to include an American-style fair use notion has been strongly denounced by most right holders. In any case, it is not expected that the Bill will go much beyond the first reading.
3. Bill C-470 Cap on Charity Salaries
Bill C-470 is now on its third reading in the House of Commons. Introduced by the Hon. Albina Guarnieri, MP for Mississauga East – Cooksville, this bill’s purpose is to revoke the registration of charitable organizations and public or private foundations if the annual compensation of any single executive or employee exceeds $250,000. Compensation refers to salaries, wages, commissions, bonuses, fees and honoraria, plus the value of taxable and non-taxable benefits.
The private bill seeks to enhance the transparency of the charitable sector by requiring registered charities to provide the name, job title and annual compensation of the five most highly compensated executives or employees. Under the proposed bill, the Minister of National Revenue would have the discretion to deregister any charity, private foundation or public foundation that exceeds the annual limit of $250,000 in total compensation.
Imagine Canada has prepared a thorough brief outlining its main concerns with the bill. The essential problem with this piece of legislation is that it fails to recognize the complexity of charitable organizations within Canada. Non-profit arts organizations registered as charities may operate on small budgets, meaning their management will not receive large payment packages. However, there are a number of foundations and arts organizations which operate on large budgets with complex and competitive operating models. For example, a symphony may need to attract a top-rated conductor and artistic director. These organizations must be allowed to attract strong and creative managerial talent using appealing compensation packages. As it stands, C-470 would impose yet another administrative roadblock within the arts sector.
4. Digital Economy
The government is in the process of forming a national digital economy strategy. The government has asked Canadians to participate in an online public consultation, stating, “Digital technologies are critical to every aspect of our economy and society. That is why a strategy for the digital economy is needed to ensure that Canada is positioned to benefit from the opportunities that it presents. All Canadians have a role to play in helping shape Canada’s digital future. Your perspectives, suggestions, ideas and submissions will be important inputs in the creation of our digital strategy.” Submissions are due online by July 9, 2010.
There are five main idea forums, each a main component of the consultation paper:
Innovation Using Digital Technologies
Digital Infrastructure
Growing the ICT Industry
Canada’s Digital Content
Building Digital Skills
At the end of these consultations, the government will review the submissions and input provided by Canadians. All of this information will be carefully considered by the government and is supposed to help in the development of Canada’s digital economy strategy.
5. Pre-Budget Submission
For the past twenty years, the CCA has participated in the federal pre-budget consultation process. The Standing Committee on Finance invites interested organizations and individuals to put forward recommendations for potential inclusion in the next federal budget. At the end of the consultative process, the Standing Committee releases a report to the Minister of Finance and Parliament outlining its recommendations based on the submissions and presentations made by Canadians.
This year, interested individuals and groups should submit a written brief not exceeding five pages, in either English or French, to the Committee Clerk no later than August 13, 2010.These briefs will be translated and distributed to Finance Committee members. Briefs can be submitted electronically to FINA@parl.gc.ca or mailed to:
Jean-François Pagé, Clerk
Standing Committee on Finance
6-14 131 Queen Street
House of Commons Ottawa, Ontario
K1A 0A6
Beginning in September, the Committee will hold hearings in Ottawa and in designated Canadian cities. For these hearings, an invitation will be extended by the Committee Clerk, on behalf of Committee members, to selected individuals and groups. Those invited to make a presentation to the Committee will be contacted by the Committee Clerk no later than the last week of September.
The Committee anticipates the following schedule:
– Surrey, British Columbia: September 27, 2010
– Kamloops, British Columbia: September 28, 2010
– Saskatoon, Saskatchewan: September 29 and 30, 2010
– London, Ontario: October 18 and 19, 2010
– Lebel-sur-Quévillon, Québec: October 20, 2010
– Saint John's, Newfoundland: October 21, 2010
As usual, the CCA will submit a brief after consulting with its members and main stakeholders. Please send your priorities for the 2011 Federal Budget to: Jessica.Litwin@ccarts.ca .
What can I do?
Take part in the various consultations identified in this bulletin. Furthermore, take advantage of your MP being back in your riding. Bring up the issues pertaining to foreign ownership and copyright, and reinforce the importance of maintaining and increasing investments in the cultural sector, as it is a vital component of the creative economy.
What are your thoughts on this bulletin?
Join the discussion and comment on our blog.
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