Source: Toronto Star

Politicians grappling with the future of local television have decided to let the federal regulator deal with the stickiest problems, after being cajoled, wooed and even a bit bullied on the issue.

The Canadian Press has learned that a unanimous report by the House of Commons heritage committee, to be tabled tomorrow, makes no recommendation about whether broadcasters should be able to charge cable companies for carrying their signals, referred to as "fee for carriage."

That key request by the TV networks will instead be handled by the Canadian Radio-television and Telecommunications Commission, which has turned down the networks twice before.

Sources said committee members felt they should not wade into the sticky area of legislating a market value for signals. The Conservative government has apparently come to the same conclusion.

The networks had mounted an aggressive campaign to convince politicians this new revenue source is needed to keep local stations afloat. Ad revenues are in sharp decline with the recession and continuing fragmentation of audiences.

Cable and satellite companies launched a vigorous counterattack, arguing new fees charged to them would be passed on to consumers.

But the committee did throw a few bones to the broadcasters.

It will recommend a beefed-up local programming improvement fund, managed by the CRTC and paid for by cable and satellite firms, which now pay 1 per cent of gross revenues into the fund, or $60 million a year. Sources said the committee would like that raised to 2.5 per cent, with part set aside for CBC's English and French services.

 © Toronto Star