Heritage steps into fee battle

Ottawa says it wants final say over the contentious fee-for-carriage issue between conventional broadcasters and cable companies, which will play out in CRTC hearings now set for December.

In a rare move, the Department of Canadian Heritage issued a directive, or ‘order-in-council,’ requesting that the CRTC broaden its fee-for-carriage hearings to take into consideration consumer feedback, and report back to Ottawa. It is the first time that the government has stepped in on the fee debate, which so far has been guided by the TV watchdog.

In an interview with Playback, Heritage Minister James Moore indicated that the unusual move is necessary due to the large financial implications.

‘What we’re talking about here could potentially be a very large sum of money being taken from the consumer,’ he said, adding the CRTC will report back to Ottawa and will not impose fee-for-carriage ‘without the consent of the government.’

Broadcasters including Canwest Global, CBC and CTVglobemedia have been lobbying the CRTC to implement the fees – whereby the nets would charge distributors for their signals – as a way of ensuring the survival of conventional TV in a tumultuous economy. The CRTC has twice rejected the proposed fees, but chose to revisit the issue due to the economic crisis.

Cable and satellite distributors such as Rogers and Bell Canada have said that that such fees would be passed on to consumers as part of their subscriptions.

Moore declined to say where the government stands on the issue, noting that Ottawa will make its assessment ‘at the appropriate time.’