IN 2003, WHEN THE HOUSE of Commons Heritage Committee issued the “Our Cultural Sovereignty” report (better known as the Lincoln Report) it recommended that “the existing foreign ownership limits for broadcasting and telecommunications be maintained a current levels.”
At that time, the then Canadian Alliance Party, whose leader was Stephen Harper, put out the following dissenting opinion: “The Canadian Alliance disagrees with (this recommendation). The Canadian Alliance supports relaxing foreign ownership rules on Canadian industry, including telecommunications and broadcast distribution. We suggest conducting an immediate review to determine whether to reduce or completely remove these rules.” Those very same words morphed into a briefing note circulated by the new Conservative Party of Canada to its 308 candidates during the 2004 election campaign.
Since the 2006 election, the Conservative minority government has been coy on this topic. Former Industry Minister Maxime Bernier made noises about relaxing the rules. But just two weeks ago, the current Heritage Minister, Josée Verner told the Commons Heritage Committee: “Our government has no intention of changing anything with respect to foreign ownership.”
However, last month the government also appointed a committee to provide it with advice about competitiveness, including reviewing restrictions on foreign ownership – including media and telecommunications.
The push for allowing foreign ownership of broadcasting comes mainly from four family-controlled cable monopolies: Vidéotron, Cogeco, Rogers and Shaw. Why are they pushing so hard? Within Canada, there are not many potential buyers of their controlling positions. Opening up broadcasting to foreign control would vastly increase the number of potential bidders for their controlling shares. This would drive up the value of their shares. So raising foreign ownership levels would ultimately mean a major payday for those families.
Here is what Gordon Pitts, a Globe and Mail reporter and author of “Kings of Convergence” has written about the Shaws: “Industry speculation is that if the rules are changed to allow higher foreign ownership of cable companies, an opportunistic U.S. player, perhaps John Malone, would take a much bigger stake in Shaw Communications, and possibly buy out the Shaws entirely. That suspicion is reinforced by the sense that JR, Jim and Heather Shaw are above all pragmatists. They love the business, but they aren’t married to it. In the long run, the Shaws will likely be sellers, and they will do very well for themselves.”
The point is that one effect of any relaxation of foreign ownership rules in this regulated industry would be to put billions of dollars into the pockets of the members of four families – at the stroke of Her Excellency’s pen.
Well before his attempt to effect foreign ownership through the back door on the Alliance Atlantis transaction, Leonard Asper said he was "bitterly opposed to opening it up for cable, satellite and telecom without opening it up for broadcasting."
Last week in Calgary, Friends of Canadian Broadcasting joined forces with ACTRA and the Communications, Energy & Paperworkers Union (CEP) to launch the “Keep It Canadian” campaign by releasing results from a public opinion poll commissioned from Harris Decima.
ACTRA represents Canada’s actors, the CEP is Canada’s largest union representing media workers and journalists while Friends is a watchdog for Canadian content and a voice for listeners and viewers. So when we hold hands, we can speak strongly for Canadian stories and cultural sovereignty.
ACTRA, CEP and Friends have launched the Keep It Canadian campaign because we are aware of credible threats to Canada’s cultural sovereignty for the benefit of the few billionaires who control Canada’s cable television monopolies and some media companies.
Through the Keep It Canadian campaign, we are sending a message to the Canadian government that Canadians care about Canadian ownership and control of media and communications.
The message Canadians are sending to their government through the Harris Decima poll is loud and clear: “Keep media and communications in Canadian hands”. A few highlights:
• 82% of Canadians think it is important for the Canadian government to work to maintain and build a culture and identity distinct from the United States.
• 61% of Canadians are opposed to foreign control of telephone, cable and media companies.
• 62% of Canadians are more likely to vote for a candidate who opposes foreign companies owning more of Canadian broadcasting and telephone companies. Only 19% are more likely to vote for a candidate favouring foreign control.
When politicians read a poll like this, they are particularly interested in the views of those Canadians who support them, and those who might support them. Conservative supporters, in common with other Canadians, strongly support Canadian control of media and communications.
Even more important, those Canadians who say that voting Conservative would be their second choice, feel even more strongly than other voters about Keeping It Canadian. And these are the folks the Conservative government would need to attract in order to attain a majority in the forthcoming election.
(Details on the Harris Decima poll are available at www.friends.ca)
Ian Morrison is the spokesperson for Friends of Canadian Broadcasting.
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