Broadcasting Licence Fees Waived for 2020–2021

Summary#

The government issued the Order to Remit Part I License Fees Paid or Payable by all Broadcasting Licensees: SI/2020-37 to waive the Part I broadcasting licence fees for the 2020–2021 fiscal year. The move lets broadcasters keep about $32,340,337 that they would otherwise have paid. The order was made on May 18, 2020 and published in the Canada Gazette on June 10, 2020.

What it does#

• Cancels (waives) the Part I licence fees that would have been paid under the Broadcasting Licence Fee Regulations, 1997 for the 2020–2021 fiscal year.
• The fees affected are those payable by licensees under paragraph 3(a) of those regulations.
• About 107 broadcasters were expected to pay a total of $32,340,337 in licence fees for 2020–2021.
• The government announced on March 30, 2020 that the Canadian Radio-television and Telecommunications Commission (CRTC) would not send payment requests for these fees, and that the government would transfer funds to the CRTC to support its operations.

Who's affected#

• Broadcasters who hold licences covered by paragraph 3(a) of the Broadcasting Licence Fee Regulations, 1997 — roughly 107 organizations (the Canada Gazette notice does not list them individually).
• The CRTC, because it will not collect these Part I fees and will be supported by government funding instead.
• The federal government and taxpayers, since government funds are being used to support CRTC operations in place of fee revenue.

Why it matters#

• It gives quick financial relief to broadcasters facing sharp drops in advertising revenue during the COVID-19 emergency. That can help them keep staff and continue news and information services.
• It shifts the immediate funding source for CRTC operations from broadcaster fees to government transfers, which has budget and taxpayer implications.
• No public consultation was done for this order because it was framed as an urgent relief measure.