OTTAWA – The government of Canada and Canada’s broadcasters have decided to walk away from their Part II fee legal battle, Heritage Minister James Moore and the Canadian Association of Broadcasters announced today.
"I am pleased to announce that we have been able to reach an agreement regarding Part II Licence Fees received by the Canadian Radio-television and Telecommunications Commission (CRTC),” the minister said in a statement, which also noted that Canadian broadcasters contribute $20 billion a year to the Canadian economy.
“Under this settlement, our Government is recommending that the CRTC develop a new, forward-looking fee regime that would be capped at $100 million per year. The new fee regime is intended to provide stability and predictability for the industry and protect the interests of Canadians.”
So watch for a CRTC BNC on this in the coming weeks.
"In return, members of the broadcasting industry will discontinue court action against the Government of Canada regarding the legitimacy of Part II Licence Fees. The Government will not seek past amounts owing by the industry which amount to about $450 million. This agreement is an important step forward for the industry and proposes a predictable fee regime going forward,” added the Ministry’s release.
Part II fees were instituted by the government in 1997 and were ostensibly the rights paid to own a broadcast license. They are separate from the fees paid by the broadcasters to run the CRTC, for example.
The Canadian Association of Broadcasters has taken the lead in fighting the fees, having been to court a few times (winning) (and losing) on the file. The final appeal to the Supreme Court of Canada was to be heard this fall.
"The agreement represents a reasonable compromise for both sides. It resolves treatment of contested fees and reflects a fair fee regime going forward," said Charlotte Bell, chair of the CAB and head of regulatory at Canwest Global. "In addition, the government’s recommendation that the CRTC launch a process to revise the Part II Licence Fee and introduce a capped regime going forward is a positive approach. The industry’s objective is to move forward to a Part II Licence Fee regime that is more predictable."
