Jan Pachul' Speech to the Heritage Committee: March 19, 2002

Good day, I m Jan Pachul from Toronto. I am honored to be able to share my thoughts with you on Broadcast regulation and community television. You may have read about me, I'm the guy that has been fighting the CRTC for years, over a low power community television station in Toronto called Star Ray TV.

The conclusion I have come to after years of involvement with the CRTC, is, that the CRTC must be disbanded. We cannot call ourselves a democracy when we have an unaccountable body like the CRTC micro-managing broadcasting and access to the airwaves. Freedom of speech should include equal access to broadcasting frequencies for everyone, not just for rich corporate insiders.

A broadcasting system where 5 corporations own a majority of broadcasting properties nationwide is the result of the CRTC's biased policies in favour of a handful of industry elites. The CRTC has faithfully followed the theory of regulatory capture. In brief, this theory describes various phases a regulatory body goes through until the body is "captured" by the industries its' suppose to regulate. In the CRTC's case this regulatory capture is evidenced by the CRTC's overwhelming bias against new entrants in broadcasting.

In the my case the majority commissioners fabricated reasons to turn down my application when industry heavyweights objected. Yes, they came up with reasons right out of thin air. I have extensive documentation that the same thing has happened to other new broadcasters trying to get access to the public's airwaves. To this day I have not been able to hold the CRTC accountable for their misrepresentations and misdeeds. Currently the CRTC has issued a mandatory order commanding me to cease and desist carrying on a broadcast undertaking at Toronto, or anywhere else in Canada.

The CRTC Commissioners are either incompetent or corrupt or both. Only one commissioner has any kind of broadcasting experience, the majority are lawyers or consultants yet these people are making value judgements on what stations and programming Canadians will watch. What qualifications does a lawyer have in broadcast management, sales, or television programming? Lawyers and consultants are the professions that are in the best position to profit from the insider information and connections obtained as CRTC commissioners. Most large broadcasters have staff lawyers to manage regulatory affairs with the CRTC, many of these lawyers are former CRTC employees. Why isn't an artist a CRTC commissioner? A couch potato that watches 40 hours of TV a week would be more qualified and preferable as a CRTC commissioner than a lawyer.

What accountability does the CRTC have? How do you remove a commissioner that is corrupt or incompetent? A CRTC decision to issue, amend or renew a license is not subject to judicial review, although the applicant can appeal to the governor-in-council. There are no appeals if you are denied a licence, the CRTC's decision is final. You could be denied a licence forever. In my case the CRTC won't even accept an application from me while they are studying low power broadcasting, a study that has been going on for almost 2 years. The public needs direct accountability from whatever body is regulating broadcasting. The Broadcasting Act needs a clear procedure to remove Commissioners that are not serving the public interest. Commissioners could be elected by region, at least they could be voted out if they don't serve the public.

Why is the CRTC dictating programming formats and protecting existing formats from competition? A station should be able to broadcast any material it likes if it meets minimum Canadian content requirements and is not breaking any laws. Broadcasting should be as competitive as any other industry. With a guaranteed licence to print money, station owners now have no incentive to excel. Excellence flows from competition. The Broadcasting industry needs some new players, so what if some dinosaurs go bankrupt. The most gifted and creative should be rewarded not the most hostile and aggressive.

Canada does have the talent to compete with the US in broadcasting, if the talented are given a chance. We hear about the great Canadian brain drain, it's true, gifted, talented Canadians are forced out of this country to earn a living and achieve recognition while the mediocre remain. Personally I now have an attractive opportunity to manage an existing US low power station and leave all my CRTC troubles behind. Every day I see talented creative Canadians frustrated by the fact they have no outlet for their art on their airwaves.

How would I reverse the damage caused by the CRTC?

I'd start by a moratorium on licences for the top ten owners of broadcast properties in Canada. No new licenses for existing players, although they could buy and sell their existing properties with no corporation controlling more than 10% of the licences. Give preference to local ownership of stations, a out of town owner should only be considered if there are no local applicants. Encourage cooperation by new entrants into broadcasting in a given geographical area. The spectrum space that one analog channel now occupies can support 4 digital channels.

Enforce one station per owner per market with no exceptions. Anyone that owns a station in a market should be disqualified from applying for any more licenses in that market. A recent CRTC call for applications for television licenses in southern Ontario had mostly applicants that had existing stations in those markets, these applicants should automatically be disqualified from tendering an application.

Simplify licence applications. A great barrier to new entrants is the license application process itself. Corporations now routinely spend one hundred thousand to one million dollars just on the application alone with no guarantee of ever receiving a license. The money wasted on CRTC applications is enough to put a low power community station on the air. A low power television application in the US is only two pages long. The programming content should be the public's and the station's business, not the CRTC's.

Most new applicants can't raise money unless they have a license in hand. For broadcasting applications do not require any financial information or projections, the only requirement should be that the applicant gets the station on the air within a year. Do not accept any interventions from existing broadcasters whining about the financial effects of new stations, if they can't compete they should go bankrupt like any other business in a free society. New broadcasters should be able to challenge licenses during renewals with competing applications, no automatic renewals allowed.

The job of the regulator should be reduced to spectrum management and enforcing technical standards, something Industry Canada Spectrum Management is already doing. Another task for the regulator would be the area of competition law something Industry Canada also is doing through the Competition Tribunal. This corrupt, wasteful, useless bureaucratic exercise called the CRTC must stop. Freedom of speech blooms when public gains control of the airwaves.

It's time to recognize the CRTC as a failure. Unemploy all those lawyers, lobbyists, and consultants, get the CRTC out of the way. Let the broadcast system reflect the great diversity of Canada. Allow Canadians the tools to become competitive with the United States in broadcasting. Have Americans watch Canadian produced programming. Reward creativity and talent, give somebody new a chance to be a broadcaster.


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