As it faces budget cuts, CBC/Radio-Canada is urging the CRTC to preserve the Local Programming Improvement Fund (LPIF).
In 2008, the CRTC created the fund to boost the amount, quality and diversity of local TV programming made by conventional stations outside of metropolitan markets.
At a public hearing on Tuesday, CBC/Radio-Canada executives said protecting and fortifying the fund is vitally important. It’s no surprise given the federal budget will cut roughly 10% of CBC’s overall government subsidy—$115 million—over the next three years.
Appearing before the commission, Steven Guiton, vice-president and chief regulatory officer at CBC/Radio-Canada, commended the CRTC for establishing the fund to support local programming and acknowledging, even in 2008, that the economies of the Canadian broadcasting system have changed in the last 10 years or more “so that BDUs [broadcast distribution units like Shaw, Rogers and Bell] are getting more and more of the revenues and profits, while the financial model for local television has become ever more difficult.”
In a release, Guiton credited the LPIF with helping stabilize local TV stations during the recession as well has helping CBC/Radio-Canada improve its local programming offering in smaller markets.
More specifically, added Kirstine Stewart, vice-president of English Services, the public broadcaster has used the funding to increase the local news in its LPIF-eligible markets by nearly 30%.
“Our supper hour news shows have been bumped up from one to one-and-a-half hours in seven of eight eligible markets,” she said. “And we’ve added new late-night newscasts in all eligible markets and enhanced statutory holiday newscasts in seven out of eight markets.”
Radio-Canada has also benefitted from the funding, said executive vice-president of French services, Louis Lalande. Local news programming has increased to seven days a week from five in most markets, he said, and supper hour news has increased by 30 minutes in three markets so that all of Radio-Canada’s stations now have a one-hour newscast.
CBC/Radio-Canada recommended that eligibility criteria for the fund be modified so that a local station must broadcast more local programming each week than is mandated by its conditions of licence.
And while the CBC wants to preserve and strengthen the LPIF, Shaw Communications told the same hearing on Monday that the LPIF should be eliminated altogether, according to the Montreal Gazette. Shaw said it is committed to improving local news coverage, but prefers online delivery rather than through conventional broadcasting.
“The more relevant our local brand can be, the more relevant the broader Shaw brand could be to customers,” said Troy Reeb, vice-president of news, according to the Gazette.
CBC/Radio-Canada’s appearance before the CRTC comes soon after the broadcaster announced major budget cuts to programming and jobs. Regional initiatives meant to enhance local programming could also be delayed.
In addition to the $115-million cut in funding from the federal budget, other financial pressures and severance costs for upcoming layoffs put the shortfall closer to $225 million, said CBC president Hubert Lacroix.
More than 650 people are expected to be laid off over the next three years; CBC-TV’s programming and news departments will be hit especially hard with a total of 256 positions to be eliminated from English services by 2015.
For more details on CBC/Radio-Canada’s involvement at the public CRTC hearings, click here.
