The House of Commons Industry and Technology committee met to study the CRTC's work and to begin a study on productivity. In the first hour, the committee heard from CRTC Chairperson and CEO Vicky Eatrides, Vice-President of Broadcasting Scott Shortliffe, and Vice-President of Consumer, Analytics and Strategy Scott Hutton. In the second hour, the committee heard from William Robson, President and CEO of the C.D. Howe Institute.
Vicky Eatrides said the CRTC is moving quickly to provide regulatory certainty, noting that its decision to require online streaming services to contribute to Canadian content is expected to inject roughly $200 million into the broadcasting system each year. On telecommunications, she said the CRTC has allowed competitors to use the networks of large telephone companies to offer more Internet and cellphone options, and that StatsCan data show cellphone service prices fell 16.7% between 2023 and 2024. She also highlighted the CRTC's broadband fund, which has allocated over $750 million to connect nearly 50,000 homes in over 290 communities.
Scott Shortliffe said that under the Online News Act, $100 million is flowing into the news system through a framework that the CRTC administers but did not design, and that an independent body, the Canadian Journalism Collective, decides which outlets receive funds. He noted that the CRTC will present a public report on the act's impact, but that it is too early to draw conclusions. He also said the CRTC is consulting on modernizing the Broadcasting Act to ease the regulatory load on broadcasters.
Scott Hutton said the CRTC has put in place an interim regime to prioritize emergency services during network outages and is now working on technical standards for network resiliency, including informing Canadians about outages and potential rebates. On scams, he said the CRTC works with a small team on civil spam enforcement, but that much scam activity is criminal in nature and beyond its mandate. He also said the CRTC is working with Statistics Canada to resume publishing data on telecommunications affordability by income quintile.
William Robson said Canada's productivity emergency is driven by a decade of weak business investment, with the stock of built capital per worker falling and the gap in machinery and equipment investment per worker between Canada and the United States widening dramatically. He recommended a temporary investment tax credit as a predictable and effective tool to boost investment, and said that lowering top corporate and personal income tax rates would help retain talent and capital. He also argued that reducing the size of government borrowing and spending would make room for more private investment, and that removing internal trade barriers, including in regulated professions and supply management, would improve productivity.
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