CHRC logo The Visible and Invisible Engine: The CBC/SRC – Canada’s largest cultural employer CHRC Submission to the House of Commons Standing Committee on Canadian Heritage 26 February 2007 Contents Executive Summary I Introduction - What is the CHRC? 1 II Cultural Employment and Canada's Film and Television Industry 2 III CBC/SRC as a Cultural Employer 3 A B 4 5 5 5 6 Historic CBC/SRC employment levels Impact of the CBC/SRC on the broad cultural sector 1. On-air employment 2. Off-air effects 3. Technology IV The Changing Broadcast Environment 7 V In Closing… 8 Executive Summary 1 Since 1995 the Cultural Human Resources Council (CHRC) has worked to strengthen Canada’s 500,000+ strong cultural work force. We appreciate the Standing Committee’s decision to review the mandate of the CBC/SRC and this opportunity to speak about the importance of that institution as an employer of Canadian artists and cultural workers. 2 Canada’s public broadcaster and the broader film and television industry merit the Committee’s attention due to their economic and employment effects. They are integral to the health and vitality of Canada’s whole cultural sector which accounted for 3.8% of Canada’s GDP in 2005. The audio-visual businesses of broadcasting, film, recording and music publishing make up a third of the cultural sector’s revenues. Film and television production alone provides employment to over one hundred thousand artists and cultural workers. 3 The CBC/SRC plays a vital role in the cultural sector, not only for its programming content, but for the direct, indirect, and long-term consequences of its status as the largest cultural employer in Canada. It employs 25% of those working in the regulated broadcasting sector and engages a multitude of independent contactors. 4 The CBC/SRC currently operates 111 programming services, with 7,387 permanent staff. By comparison, the BBC operates 64 programming services in the UK, with 25,377 staff. 5 The CBC/SRC’s short- and longer-term effects are audible and visible on air, but are equally important behind the scenes. The careers of Canadians such as Oscar Peterson, Wayne and Shuster, Lloyd Robertson, Margaret Atwood and William Shatner were all shaped in some important way by employment on CBC/SRC radio or television. 6 With less visibility, but as great an impact, the CBC/SRC has helped develop microwave networking, satellite programming distribution and delivery, broadcasting in the North, and digital broadcasting. Training and development opportunities made available by the Corporation affect not only its own staff and programming, but also the staff and programming of other broadcasters as CBC/SRC-trained staff take on diverse career challenges in the private sector. 7 If the CBC/SRC did not exist, the ripple effects would extend far beyond the loss of radio and television content about and for Canadians. Thousands of Canadians – actors, musicians, writers, composers, directors, producers, technical staff etc. would have to find new employment in an industry where, for example, direct and indirect television production employment has been declining for several years. Opportunities for cultural training and development would be dramatically reduced. 8 The CBC/SRC has been the engine driving this sector of our economy for decades, in visible and less visible ways. 9 We would be pleased to appear before the Committee, and to respond to any questions the Committee may have about our submission. 1 I Introduction – What is the CHRC? 1 Created in 1995 to strengthen the Canadian cultural workforce, the Cultural Human Resources Council (CHRC) is one of 30 sector councils supported by Human Resources and Social Development Canada. Our mandate is “to strengthen the Canadian cultural workforce by providing leadership and innovative solutions to human resource issues and to better the HR environment within the cultural sector”. CHRC’s diverse membership spans the country. 2 The CHRC welcomes the Standing Committee’s decision to review the mandate of the Canadian Broadcasting Corporation/Société Radio Canada (CBC/SRC) and appreciates the opportunity to present our views. 3 Our main interest in the context of this review is to provide empirical and analytical information about the critical impact of the CBC/SRC on cultural human resources employment and development. Canada’s national public broadcaster plays a vital role in this area. 4 Between 1996 and 2002, more than half a million people worked in Canada’s cultural sector.1 As the Members are aware, the cultural sector comprises literally hundreds of occupations broadly categorized in seven sub-sectors: a. b. c. d. e. f. g. live performing arts, writing and publishing, visuals arts and crafts, film, television radio new media, music and sound recording, and museums, libraries and heritage. 5 The financial importance of Canada’s cultural sector to our economy may not be generally known. To put it in perspective, we note that in 1995 Canada’s telecommunications sector generated 2% of the country’s Gross Domestic Product, and ten years later in 2005, 2.5%.2 Since 1995, Canada’s cultural sector has consistently accounted for almost four percent (3.8%) of the nation’s Gross Domestic Product. Almost a third (32%) of this is accounted for by broadcasting, film, advertising, sound recording, and music publishing.3 6 Artists and cultural workers not only perform a valuable role by enabling Canadians to see and hear themselves, their ideas, their stories and their values, they also generate economic growth through direct and indirect multiplier effects. In brief, culture – and Canada’s cultural workers – matter to our economy. Vik Singh, “The impact of the cultural sector on the Canadian economy” Focus on Culture Vol. 15, No. 1 (April 2005) Statistics Canada, at 1-2. 2 1995 data: CRTC, Report to the Governor in Council: Status of Competition in Canadian Telecommunications Markets – Deployment/Accessibility of Advanced Telecommunications Infrastructure and Services (September 2001) at 7. 2005 data: CRTC: Status of Competition in Canadian Telecommunications Markets – Deployment/Accessibility of Advanced Telecommunications Infrastructure and Services (July 2006) at I (total telecommunications service revenues of $34.5 billion in 2005); Statistics Canada, “Gross domestic product, expenditure-based” online: Statistics Canada <http://www40.statcan.ca/101/cst01/econ04.htm> (total GDP at market prices in 2005 of $1,371.4 billion) 3 Statistics Canada (Vik Singh), Economic Contribution of Culture in Canada, Culture, Tourism and the Centre for Educational Statistics: Research Papers (Minister of Industry: Ottawa, December 2004) Catalogue no. 81-595MIE2004023, at 3. Broadcasting – 13% of culture GDP 1996-2002, film – 9%, advertising – 7%, sound recording and publishing – 3%. 1 2 II Cultural Employment and Canada’s Film and Television Industry 7 Canada’s cultural community is large, dynamic, highly skilled and educated. The cultural labour force now includes more than 500,000 Canadians. Almost 70% hold a university degree. People in this sector are twice as likely as the general population to be selfemployed, and apart from being ‘creative’, are also are typically well motivated and entrepreneurial. The number of people working in the Canadian cultural sector has grown at more than twice the rate of the total workforce over the past 20 years. 8 A large part of Canada’s cultural work force works in film and television production. Over the last decade, employment in Canadian film and television has almost trebled, increasing by 180% from 42,526 direct and indirect jobs in 1993, to 119,500 jobs in 2005.4 Typically, each direct job in film and television production leads to the creation of another 1.6 jobs elsewhere. In 2005, for instance, the 45,000 direct, full-time equivalent jobs in this sector led to another 73,500 indirect full-time equivalent jobs.5 Film and television production, by province (average 1993-2005) PEI 167 Film and Television Production Employment Multiplier Direct Indirect Total effect 1993 16,356 26,170 42,526 1.600 1994 20,145 32,231 52,376 1.600 1995 24,125 38,600 62,725 1.600 1996 28,064 44,902 72,966 1.600 1997 36,300 58,100 94,400 1.601 1998 36,400 58,200 94,600 1.599 1999 46,900 75,100 122,000 1.601 2000 53,800 86,100 139,900 1.600 2001 54,000 86,500 140,500 1.602 2002 52,500 83,900 136,400 1.598 2003 54,500 87,200 141,700 1.600 2004 51,900 83,100 135,000 1.601 2005 46,000 73,500 119,500 1.598 1993181.2% 180.9% 181.0% 2005 Source: CFTPA, Profile (various years) NF 289 NB 544 SK 1,311 MA 1,889 AL 4,400 NS 3,322 BC 29,144 QU 34,533 ON 49,444 0 20,000 40,000 D ire c t a nd indire c t jo bs 4 60,000 9 The data published by the CFTPA suggest that every province in Canada benefits from this sectoral employment. 10 Parliament has clearly acknowledged the importance of employment in Canadian broadcasting. Subsection 3(1)(d)(iii) of the Broadcasting Act, 1991 establishes that employment opportunities in our broadcasting system should serve Canadians’ interests and needs: 3. (1) It is hereby declared as the broadcasting policy for Canada that … (d) the Canadian broadcasting system should … (iii) through its programming and the employment CFTPA, Profile 2006: An Economic Report on the Canadian Film and Television Production Industry (February 2006) at 13; CFTPA, The Canadian Film and Television Production Industry: Profile 2000 (February 2000) at 26. 5 Ibid., at 5. 3 opportunities arising out of its operations, serve the needs and interests, and reflect the circumstances and aspirations, of Canadian men, women and children, including equal rights, the linguistic duality and multicultural and multiracial nature of Canadian society and the special place of aboriginal peoples within that society …. 11 Indeed, Parliament specifically requires every broadcasting station or network to use Canadian creative resources, through section 3(1)(f) of the Act 3(1)(f) each broadcasting undertaking shall make maximum use, and in no case less than predominant use, of Canadian creative and other resources in the creation and presentation of programming, unless the nature of the service provided by the undertaking, such as specialized content or format or the use of languages other than French and English, renders that use impracticable, in which case the undertaking shall make the greatest practicable use of those resources …. 12 Canada’s national public broadcaster is a key lever available to Parliament and the government to enable Canadians to work, develop and succeed in this sector. III CBC/SRC as a Cultural Employer 13 The CBC/SRC as we now know it was created in 1936, following the 1929 Report of the Royal Commission on Broadcasting headed by Sir John Aird, president of the Canadian Bank of Commerce.6 Until the late 1940s, the CBC/SRC’s main function was to provide French- and English-language radio programs to Canadians across its network of ten radio stations and a larger pool of privately-owned radio affiliates. In 1949, however, Parliament lent the CBC/SRC $4.5 million to establish television stations in Montreal and Toronto.7 14 Since the 1950s, the number of services operated by the CBC/SRC has grown by a factor of ten. Apart from its work online and with affiliates, community rebroadcasters, the CBC/SRC now operates 111 programming services for Canadians: 8 French-language TV stations 16 English-language TV stations English-language TV network French-language TV network Le Réseau d’information (RDI) (1995) CBC Newsworld (1987) The Documentary Channel (2000) 27 TV services & 2 networks 28 French-language radio stations 50 English-language radio stations 2 English-language radio networks 2 French-language radio networks CBC Galaxie (pay audio) (1995) 79 radio services & 4 networks To produce, broadcast, transmit and deliver these services, across five time zones and in both official languages, the CBC/SRC currently employs, trains and develops just over 7,000 people itself, and also hires independent producers and others to provide services that result not just in the production of more radio and television programming, but in the development and financial compensation of many others in Canada’s audio-visual sector. 15 6 By way of perspective, the British Broadcasting Corporation currently operates 64 programming services across the United Kingdom, with a staff of 25,377.8 The Canadian Broadcasting Act, 1936 1. Edward VIII, c. 24. CBC, Annual Report, 1949-1950 at 40. 8 BBC, Annual Report and Accounts, 2005/2006, at 109. The BBC operates 8 TV channels, 10 radio networks and 46 national and local radio services. 7 4 A Historic CBC/SRC employment levels 16 Over the last fifty years, the CBC/SRC’s workforce has expanded and contracted. The size of the CBC/SRC’s staff has declined for two decades – from its highest point over twenty years ago of 12,334 staff, to its current level of 7,387.9 The CBC/SRC’s staff comprise 25% of staffing in our regulated broadcasting sector. 17 We understand that the majority of the CBC/SRC’s staff works in programming. Data from the mid-1990s indicate that 81%, or more than 9,000 of the CBC/SRC’s staff, worked in this area. The remaining 19% were divided among technical, sales and administrative positions. 18 Although we do not have firm numbers, we also understand that in part through the Canadian Television Fund, the CBC/SRC enters into contracts with many independent producers across Canada to provide programming in both French and English. Reaching beyond its own walls, the CBC/SRC stimulates employment throughout the cultural sector and across the country by licensing independent productions. As a result, the CBC/SRC’s impact extends well beyond its own doors, to many others working directly or indirectly outside the CBC/SRC. 19 We are aware that other broadcasters offer employment in Canada’s cultural sector. At the same time however, and although the CBC/SRC’s permanent employment levels have decreased for some time, the CBC/SRC remains Canada’s single largest, cultural employer, when compared with the entire private radio and television broadcasting sector. In 2005 the private sector employed 22,281 people – divided among more than 700 private radio, television, pay and specialty broadcasting stations and services. 9 Dominion Bureau of Statistics and Statistics Canada, Radio and television broadcasting (various years); CBC reports. 5 B Impact of the CBC/SRC on the broad cultural sector 20 The Committee’s Members have doubtless frequently heard anecdotes about the role and effects of the CBC/SRC. Anecdotes often take the place of empirical evidence, when quantitative data exists, but cannot easily be gathered. With that in mind, we would like to invite the Committee to consider the impact of the CBC/SRC first by reviewing some of these anecdotal accounts, and then by imagining what our audio-visual and cultural sector might look like, if the CBC/SRC did not exist at all. 1. On-air employment 21 Throughout its history the CBC/SRC has offered Canadians an entry point into the broadcasting industry. Many well-known Canadian journalists, actors and producers who have since worked with the private sector, worked with the CBC/SRC early in their careers. A few examples include Oscar Peterson, who won a national amateur contest with the CBC/SRC in 1939, at the age of 14, which led to a weekly radio show and work on the CBC/SRC’s The Happy Gang, Johnny Wayne and Frank Shuster, who began the Wayne and Shuster Show for CBC/SRC Radio in 1946, Monique Giroux, whose career as an SRC radio program host began in 1986, at 23. Lloyd Robertson, who began working in television in 1954 with the CBC/SRC, Christopher Plummer, whose first television performance in 1951 was in a CBC/SRC production of Othello and William Shatner, whose acting career began CBC/SRC radio in 1956. Margaret Atwood, who in 1967 at the age of 28 read her work on CBC Television's Extensions, a series dedicated to new Canadian poets Monique Giroux, Jacques Languirand, Bernard Derome, Céline Galipeau. 6 22 In our view, even this short list of examples demonstrates the important, longer-term influence the CBC/SRC has had on Canadian broadcasting, Canadian cultural workers and Canadians themselves, whether informally through employment opportunities, or through more formal training programs. We think this influence remains with those the CBC/SRC has employed, well after they leave the CBC/SRC’s doors. 23 The CBC/SRC’s training and development programs focus not only on programming content, but on technology. We understand that the Corporation offers its staff the opportunity to develop skills ranging from copy-writing for electronic media and live media integration techniques, to video editing, media composition and HDTV. 24 The CBC/SRC has also had a long-standing policy to ensure that Canada’s cultural diversity is reflected both on and off the air. The Corporation has given public voices and faces to Canadian diversity, ensuring that young Canadians from diverse backgrounds realize the breadth of employment opportunities available in this sector of the economy. 2. Off-air effects 25 The CBC/SRC has employment effects that extend beyond its own employees. The Corporation often takes the time, for instance, to mention local and regional cultural events, providing their audience with an opportunity to participate in such events and offering the performers and organizers the opportunity to strengthen their revenue base. 26 The influence of the CBC/SRC extends well beyond Canada’s urban centres. The CBC/SRC launched its Northern Service in 1958, carrying radio and television programming to the Canadian Arctic. 27 The CBC/SRC also used satellites to carry the proceedings of Parliament into Canadians’ homes. The CBC/SRC launched the Parliamentary channel in 1979, distributing the service by satellite to cable systems across the country in what it then thought would be temporary broadcasts of Parliament.10 Within three years, several applicants proposed new, satellitedelivered television programming services to the CRTC – among them, MuchMusic. 28 The CBC/SRC’s influence extends even farther today, than in the past. In 2004 the CBC/SRC created the Canadian Institute for Training in Public Broadcasting, to share its knowledge and experience with foreign broadcasters in television, radio, the Internet and multimedia. The CBC/SRC has provided training courses in digital archiving, interactive programming, parliamentary reporting to broadcasters from Algeria, Haiti, and Iraq, among other countries. The CBC/SRC has therefore been able to encourage the development of democracy around the world, by educating managers, journalists, technicians and other media professionals from emerging societies. 3. Technology 29 The CBC/SRC’s development and work in telecommunications have linked Canadians for decades. Consider that ‘bicycling’ radio and television tapes across the country was standard for almost fifty years in Canadian broadcasting. In 1958, however, the CBC/SRC used a first microwave network from British Columbia to Nova Scotia, to carry the country’s first coast-tocoast live TV broadcast. The CBC/SRC’s technical work laid the foundation for other television networks, such as CTV that the CRTC licensed in 1960. 10 CBC Annual Report, 1980-81, at 9. 7 30 And although we take it for granted today – attested to by the several hundred satellitedelivered pay and specialty services that the CRTC has licensed – using satellites to distribute television signals is only a quarter of a century old. The CBC/SRC was the first Canadian broadcaster to distribute its signals across the country by satellite, beginning in 1973 using Telesat Canada’s first satellite, the Anik A1. The system used a unique master control system designed and developed by CBC/SRC engineering. In 1999, the National Academy of Television Arts and Sciences awarded the CBC/SRC an Emmy for this ground-breaking achievement. 31 Over the last fifteen years, the CBC/SRC’s background in technological development enabled it to provide support and leadership in the development of digital broadcasting technology, for both radio and television. 32 The CBC/SRC’s engineering staff has won awards for its achievements. It used advanced video coding and modulation techniques to increase satellite transponder capacity for video signals by 40%, combining all of its English-language television network satellite distribution feeds onto a single Anik F1 C-band transponder. This satellite distribution system was the first of its kind in the world, and resulted in the CBC/SRC’s being awarded the 2001 Gemini Award for Outstanding Technical Achievement. 33 In brief, the CHRC believes that the CBC/SRC has functioned well as the engine powering Canada’s cultural sector: it has played a critical and fundamental role in cultural training and development, with respect to programming content and the distribution of content. Many CBC/SRC staff have moved on to work for other broadcasters or elsewhere in the cultural sector. The training and development opportunities available through experience at the CBC/SRC remain invaluable, and we hope that the CBC/SRC will be able to maintain its efforts in this area. IV The Changing Broadcast Environment 34 We realize that our communications sector is changing. Technology is transforming almost every job in the cultural sector – from the way companies are organized and the way they market their products, to the media through which works are created, produced, conserved and brought to the public. Change occurs steadily, however. Over the last century Canada’s broadcasting system and the CBC/SRC have been buffeted frequently by new technologies and their effects: from radio in 1906, to television (1952), and from there, on to cablevision (1952), micro-wave relays and computers (1953), pay television (1960 and 1982), satellite distribution (1973), personal computers (1981), direct-to-home satellite transmission (1982), specialty television (1987), the internet (~1995), webcasts (2003), and now, mobile television and podcasts (2006). 35 We believe that it is critical to stay abreast of new technological change which is now a fact of life, but our focus must first be on our human resources: we must maintain a focus on Canada’s short-, medium- and long-term objectives for cultural sector employment. 36 Rather than focussing on the effects of technological change on the CBC/SRC, we wonder what our cultural sector would look like if the Corporation no longer existed. 8 37 38 Without the CBC/SRC, the thousands of Canadians it now employs would have to find new employment, in an industry that would not be able to absorb all of them. CFTPA data show that the number of direct and indirect jobs in Canadian television production has been declining steadily for the last five years. TV production employment: 1997-2005 Indirect jobs 60,000 Direct jobs 50,000 40,000 30,000 20,000 10,000 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 To tal jo bs 38,000 35,300 56,200 56,900 53,300 50,200 50,100 44,700 44,700 Indirect jo bs 23,400 21,700 34,600 35,000 32,800 30,900 30,800 27,500 27,500 Direct jo bs 14,600 13,600 21,600 21,900 20,500 19,300 19,300 17,200 17,200 Data from the CRTC also establish that employment opportunities in Canada’s private radio, television and pay and specialty Private broadcasting employment: 1985-2005 television services have not been 12,000 growing, but have remained steady over the last decade after declining from 10,000 higher levels in the 1980s. Although pay and specialty television services offer a 8,000 new source of employment and 6,000 development opportunities, these Radio several hundred services altogether TV 4,000 employ fewer than five thousand people. Pay & specailty V In Closing… 40 We encourage the Standing Committee to consider the huge impact that the CBC/SRC has on employment in the cultural sector in Canada, as we have highlighted in this submission; and take that into account when assessing the future place of the Corporation in Canada’s broadcasting system – and its cultural sector. 41 We have greatly appreciated the opportunity to discuss the importance of the CBC as a cultural employer in Canada. 42 We would welcome the opportunity to appear before the Committee and present our views in person. Should the Committee have any questions about our submission, we would be pleased to respond. 20 05 20 03 20 01 19 99 19 97 19 95 19 93 19 91 19 89 19 87 The direct and indirect effects of the CBC/SRC and its employment, training and development opportunities – both measurable and more-difficult-tomeasure effects – would be virtually impossible to recreate from thin air. 19 85 39 2,000