Source: CBC News

CBC could be facing a cut of up to five per cent or $56 million from its parliamentary appropriation in the 2010-2011 fiscal year.

That reduction would come on top of a funding shortfall this year of $171 million as a result of a decline in ad revenue.

The federal government has set a target of cutting expenses by five per cent under its strategic review of government departments and Crown corporations.

CBC president Hubert Lacroix told CBC employees on Friday that CBC/Radio-Canada has been asked to participate in the spending review.

Lacroix is to chair a steering committee that will look at CBC expenditures and try to determine which are lowest priority in relation to the CBC's mandate.

The review, to be conducted over the next few weeks, will result in recommendations to the federal government for its 2010-11 budget.

"The strategic review process helps inform the annual budget planning process and in this context, results will not be known until the government's budget is released, usually early in the new year," Lacroix said in a note to employees.

"I'll tell you what I can when I can. Hang in there."

CBC is currently in the process of laying off up to 800 employees to save $171 million in 2009-10.

The Canadian Media Guild, one of the unions that represent CBC employees, plans to raise the issue of the review in its appearance before the parliamentary heritage committee on Monday.

"We found out late Friday that CBC is on the chopping block again and we know a further cut would be devastating to programming," Lise Lareau, president of the Canadian Media Guild, said in a news release.

"It is outrageous that the government would consider cutting funding at a time when Parliament is grappling with a major crisis in the media industry. It's also happening just as the CBC is trying to find ways to reinstate some local services affected by this spring's cut."

CMG plans to call on the government to restore CBC's budget, raise its parliamentary allocation and prevent cuts to jobs and services.

The lobby group Friends of Canadian Broadcasting also plans to raise the issue at the heritage committee.

Ian Morrison, spokesperson for the broadcast watchdog group, accused Heritage Minister James Moore of misleading the committee when he guaranteed there would be no cuts to the CBC budget.

Moore said in response to a question from Liberal MP Pablo Rodriguez on April 29 that the government would not be cutting the CBC.

"Friends was relieved to hear Minister Moore's promise to the MPs on April 29. Obviously we're disappointed that he misled the heritage committee," Morrison said.

© CBC

Related Documents:

May 11, 2009 — News Release:  New CBC cuts coming
CBC's budget is being reviewed to identify spending cuts of up to 5% or $56 million despite Heritage Minister James Moore's guarantee that the Harper government would not cut CBC's budget.

May 8, 2009 — CBC/Radio-Canada: Message to CBC employees from CBC President Hubert Lacroix
In a note to staff, Hubert Lacroix says the government has asked the public broadcaster to evaluate all program and spending activities and identify the lowest priorities in terms of carrying out CBC's mandate.