The Conservative government is in favour of deregulation and the greater play of market forces in the regulation of the broadcasting industry, Heritage Minister Josée Verner said Tuesday in a speech to the Canadian Association of Broadcasters.

In the same speech, she warned cable company representatives that the Canadian Television Fund (CTF) is here to stay and said she expects the federal regulator to create conditions that result in the production of quality Canadian programming.

Josée Verner, shown Aug. 14, the day she was sworn in as heritage minister, told the broadcasting industry to expect change.
(Paul Chiasson/Canadian Press)

"The government expects the CRTC to continue to act in a manner that ensures the creation and presentation of Canadian programming — the foundation of a strong broadcasting system and a strong production sector," Verner said in her address to a conference of broadcasters in Ottawa.

Earlier this week, Canadian Radio-television and Telecommunications Commission's chair Konrad von Finckenstein laid out a schedule of hearings for next year that would examine the CTF and issues such as the policy framework for broadcasting.

Verner thanked the CRTC for its work and warned broadcasters to expect change.

However, she answered critics among a group of artists and cultural organizations who last week demanded the CRTC abandon what they called a drift toward deregulation.

Verner said the government prefers market-oriented solutions.

"You should not conclude that I am defending unnecessary complexity or less-than-adequate transparency in regulation," she said.

"We must make sure that the right conditions are in place to spur innovation and ensure a space for creativity and ingenuity."

Public hearing set for spring

Among von Finckenstein's announcements on Monday was a public hearing next spring into the CTF, which helps support production of Canadian programming.

Verner reiterated an earlier CRTC decision that the CTF is needed, but said "the government takes the need for change at the CTF seriously."

Two cable firms had threatened to abandon the CTF earlier this year saying the fund needs to change.

Verner also addressed the topic of fees-for-carriage for conventional TV, which the CRTC chair said would be considered at a hearing next spring.

The government would put the needs of consumers first in any decision about fees, she said.

Cable companies have said the consumer would pay more for service if they have to compensate networks such as CBC, CTV and Global for carrying their signals.

With files from the Canadian Press