What to expect with the return of the House in Ottawa?

CCA Bulletin 01/12

January 27, 2012
When considering the budget, the mood is pessimistic. No one knows or wants to let anyone know where and how big the damage will be. One thing is for certain however: It’s going to hurt. According to Minister Flaherty, it’s possible that the budget will be pushed back until later in March, reflecting complex policy decisions and most likely causing more anxiety and rumours in the national capital.

When considering legislation, there are few surprises on the horizon. The topic of interest for the cultural sector is still Bill C-11 on copyright that has yet to be adopted in second reading and therefore has yet to go to committee to be examined article by article. For various reasons the government would like to pass the legislation sooner rather than later but it’s too soon to say whether or not that means using the guillotine. We still don’t know how many new witnesses will be invited to appear before the legislative committee, but we expect the number will be limited. The committee will then proceed to the article by article study of C-11 which is a process the government party can expedite if they deem it be of benefit to the public.

Since the tabling of Bill C-11 this past fall, which is practically an exact copy of the previous Bill C-32, the CCA and a team of its members have gone to work. It was with much pride that we recently submitted a list of amendments to Ministers Moore and Paradis as well as the members of the legislative committee. This list was endorsed by 71 associations from the majority of the arts sectors affected by the copyright law. It represents a consensus without precedent for our sector, especially around such a complicated and divisive topic as this one. The associations that have not signed the document for one reason or another have all indicated to us that they approve of the majority of the content and in some cases have asked permission to borrow the proposed language, which we encourage them to do as much as possible.

It would take much space to thank the dozens of organizations that dedicated time, money, and infinite patience to the phrasing, in legal terms and in both official languages, of a score of amendments aimed at reducing the unintended negative impacts of this legislation on arts and culture. We must also add that there is a great deal of volunteer work and goodwill that went into this collective project. Everyone is a colleague that we have learned to regard in the highest esteem, not only for his or her intelligence but also for his or her determination to reach the largest consensus possible. The CCA is proud of its contribution to the solidarity that went into this search for common objectives.

Other files on the CCA’s radar: the consultations at the Standing Committee on Finance concerning the tax incentives for charitable organizations. Announced just before the holidays, the last day for submission was the 17^th of January, a very short time frame, it must be said. Some of our members, including CAPACOA, presented submissions and have requested to appear before the committee. The public consultations are expected to take place in the beginning of March and the CCA will be examining the submissions and following the debates.

Also on the CCA menu is Revenue Canada consultation’s on their new guidelines for arts organizations and charitable registration under the income tax act. Launched without fanfare on the agency’s website near the beginning of November, the consultation officially ended on the January 13th. The CCA has since obtained assurances from Revenue Canada that any submissions received by the end of February will be accepted. Although the guide does not change the current laws and regulations nor the case law, the simple fact of codifying the guidelines raises some legitimate concerns for arts organizations who currently have charitable status and possibly even more so for organizations that may wish to seek charitable status in the future if it suits their business model. In consultation with its members, the CCA is preparing a submission that will be circulated for use by other arts organizations in the preparation of their own submissions.

When considering the CRTC

For the first time since 2006 the CRTC will look at simplifying the eligibility criteria of Canadian content development projects for commercial radio all with a great admission of powerlessness on the part of the regulatory body.

The audit of annual reports to ensure compliance with the CRTC’s requirements has in fact proved more difficult than expected. In many cases, stations fail to give details, fail to submit proof of payment or have incomplete reports, thereby making analysis impossible.

The Commission is seeking suggestions concerning administrative changes that would reduce or eliminate the difficulties described above in relation to assessing the eligibility of CCD initiatives and on matters related to the filing of annual returns, while ensuring that broadcasters’ CCD contributions meet the spirit and letter of the Commercial Radio Policy.  You have until February 21, 2012 to send your submissions. The CCA will monitor the process and will keep you posted.

 Are you assaulted by powerful sound of commercials on television? You can’t hear yourself think? The CRTC heard you and has announced that you have until February 13, 2012 to participate in the proceedings that will look at putting in place measures that will control the intensity of advertising. See the public notice here.

After three years of operating the local programming fund, the CRTC will examine its performance according to the objectives of the LIPF and the performance of stations that benefit.  The Commission will also examine the relevance of conserving, modifying or abandoning LIPF.

When the CRTC established the LIPF in 2008 by requiring broadcast distributors to inject 1.5% of their income in the financing tool of local programming, CCA believed that this could be beneficial for local artists and cultural organizations. We haven’t studied the local broadcasters’ reports, but it is clear that there is little diversity in the type of programming supported by the LIPF. The local news has definitely taken the lion’s share of the fund.

In Public Notice CRTC 2011-788, the Commission made the following preliminary findings:

• Much of the funding was devoted to news and local events;
• Some 40% of stations that filed a report has increased the hours of local news;
•  Approximately 30% of beneficiaries used the LPIF funding to hire new journalists, especially sports journalists and meteorologists.

You have until February 15, 2012 to submit your comments. Hearings will be held on April 16 in Gatineau and the CCA will monitor the submissions and the hearing. In the meantime, share your thoughts on this bulletin and the topics it covers by leaving a reply in the box below.