Keep It Canadian!

Issues:

Our Media is Our Message - Keep it Canadian

Many of Canada’s biggest media players - companies like Rogers and Shaw cable - are lobbying Ottawa for permission to sell corporate control to

Federal laws that prevent foreigners from acquiring control of Canadian media and telecommunications companies are currently under review.  The Harper government has appointed a panel to provide advice about economic competitiveness.  The panel will review restrictions on foreign ownership – including in the media and telecommunications sectors.

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."

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."

Canadian foreign ownership restrictions are under pressure from other sources too.

Recently, CanWest Communications bought specialty TV broadcaster Alliance Atlantis. Sixty-four percent of money came from the US investment banker Goldman Sachs.  The CRTC approved the deal on December 21. We believe this is a breech of Canada’s foreign ownership rules through the back door.

ACTRA, CEP and Friends have launched the Keep It Canadian campaign because our country faces credible threats to Canada's cultural sovereignty for the benefit of a 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:

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.