OTTAWA-GATINEAU — Calling the distributors the ‘top of the food chain,’ producers on Wednesday called on the CRTC to require BDUs to contribute more to Canadian priority programming.

Appearing at the three-week-long hearings into broadcast distribution, the CFTPA suggested raising distributor contribution levels to 6% of revenues from the current 5%, and refusing to allow cablecos to allocate part of their contributions to their community channels.

The community channels are ‘competitive assets that do not merit regulated subsidy,’ CFTPA’s national EVP and counsel John Barrack told the commission.

The two initiatives would result in the distributors’ funding of Canadian programming doubling to $300 million.

The CFTPA contends that financial data demonstrate that the distributors are in the best position to increase their Canadian content support, since their revenues from their TV services have increased by 9% to $6.1 billion in 2007 from 2006, and distributor revenues from all their services rose 15% to $8.8 billion.

‘The notion that BDUs face imminent technology, consumer, or economic threats that warrant fundamental regulatory change is false,’ noted CFTPA president and CEO Guy Mayson.

The CFTPA also criticized the private over-the-air broadcasters for paying more for U.S. programming, while lowering their support for Canadian drama.

Regulations supporting Canadian content are needed, stated the CFTPA, or these negative trends will continue. The organization recommended that profitable Category 2 digital channels affiliated with large broadcasting groups or a distributor should have their Canadian content levels raised.

The organization remained neutral on fee for carriage, but in response to questioning by the CRTC chair Konrad von Finckenstein, Mayson said if it were granted the additional broadcaster revenues should be linked back to programming.

New pay-TV operator Allarco Entertainment on Wednesday also took a swipe at the distributors, complaining that many were refusing to carry its Super Channel despite being granted mandatory carriage by the CRTC.

Six months after launching, Super Channel is still not available on Star Choice, Shaw Cable, Videotron, EastLink, Telus, MTS and a number of Class 1 cablecos who are members of the Canadian Cable Systems Alliance. The delays have cost the pay-TV channel over $12 million in the start up year alone, Allarco chair Chuck Allard told the CRTC.

Super Channel reached an agreement with Shaw after the pay-TV operator turned to the CRTC for dispute resolution.

Allarco execs recommended that the CRTC ask the government for more powers, including the ability to fine and award compensation to the aggrieved party.

Meanwhile, Bell Canada presented the CRTC with its ‘Freesat’ proposal to provide a limited package of channels for free to anyone who buys a Bell ExpressVu receiver equipment after analog is switched off in 2011.

This would mean private broadcasters such as CTV and Global would not have to erect costly digital over-the-air transmission towers across the country.

But Bell Video Group president Gary Smith said Freesat would be taken off the table if fee for carriage were granted. In any case, the plan is receiving little support from within the industry.

CTVglobemedia, which is also owned by BCE, is among the large broadcasters pushing for fee for carriage.