Connect with us

Business

The CRTC said it would leave podcasts alone. Turns out that was a myth

Published

6 minute read

From the MacDonald-Laurier Institute

This article originally appeared in the Hub.

By Peter Menzies, October 4, 2023

It’s clear the regulator is about to draw podcasts into its warm embrace.

The CRTC has backtracked on its promise to leave podcasts alone.

On May 12, the federal regulator stated in its “Myths and Facts” release that concerns it would regulate content such as podcasts were a “myth” and the “fact” of the matter was that “a person who creates audio or video content or creates a podcast, is not a broadcaster under” the Online Streaming Act (Bill C-11).

That “fact” didn’t live long. It expired September 29 when, in its first decisions since being granted authority over the internet, the CRTC changed lanes.

While it was careful to state that podcasters themselves don’t have to register with the Commission, the web-based platforms that make podcasts available must do so. Indeed, podcasters may not be broadcasters, but very much as predicted by the legislation’s critics, the CRTC has found ways to bring them into scope anyway.

It decided that podcasts constitute “programs under the Broadcasting Act, given that they are comprised of sounds intended to inform, enlighten or entertain.”

The regulator’s decision further explains that while podcasters may not be broadcasters, the transmission of podcasts over the internet most definitely “constitutes broadcasting” which makes those entities that platform podcasts into cable companies.

So while the CRTC concedes that while “the Broadcasting Act does not give the Commission a mandate to regulate creators of programs” it nevertheless makes clear that its powers do cover “those services that are involved in the broadcasting of programs, which are referred to as broadcasting undertakings.”

Is your head spinning yet?

The legal contortions continue throughout the decision, but the clear takeaway, the bottom line, is that, while it keeps insisting it doesn’t intend to regulate the content of podcasts, it is very concerned about the content of podcasts and if it can’t legally regulate them, it’ll make sure someone else does it for them.

Paragraph 223 of its decision makes it clear the CRTC is about to draw podcasts into its warm embrace.

Without information about online undertakings that transmit or retransmit podcasts, it would be more difficult for the Commission to ensure the achievement of the objectives of … the Broadcasting Act, which relate to, among other things, providing a reasonable opportunity for the public to be exposed to the expression of differing views on matters of public concern, and (that) the programming provided by the Canadian broadcasting system should be varied and comprehensive, providing a balance of information, enlightenment and entertainment for people of all ages, interests and tastes.

In other words, what the CRTC denounced as “myth” in the spring has become a “fact” in the fall. It has kicked open the door to the regulation of online content, if not directly then by proxy through the platforms that deliver the work of podcasters to their audiences.

It is a bureaucratic master stroke.

Here’s what will follow.

The list of intervenors presenting at the CRTC’s public hearing coming up in late November indicates the panel of commissioners will hear from a number of groups that will explain the extent to which they are under-represented and funded. So, a possible outcome of this will be that services that carry podcasts will have to fund podcasters who, on their own, haven’t been able to find an audience.

Just as likely is that platforms will be regulated to ensure podcasts designated by the CRTC are given priority visibility/discoverability online over undesignated podcasts through the manipulation of algorithms. These are likely to be podcasts by Indigenous, BIPOC and LGBTQ2S creators.

As erstwhile CRTC Chair Ian Scott told the Senate committee studying Bill C-11 in 2022:

Instead of saying, and the Act precludes this, we will make changes to your algorithms as many European countries are contemplating doing, instead, we will say this is the outcome we want. We want Canadians to find Canadian music. How best to do it? How will you do it? I don’t want to manipulate your algorithm. I want you to manipulate it to produce a particular outcome. And then we will have hearings to decide what are the best ways and explore it.

This was reinforced in an exchange Scott had with Senator Pamela Wallin, who suggested proponents of the bill were parsing their words and that:

You won’t manipulate the algorithms; you will make the platforms do it. That is regulation by another name. You’re regulating either directly and explicitly or indirectly, but you are regulating content.

To which Mr. Scott replied: “you’re right.”

The CRTC has now confirmed what it denied mere months ago when it was parroting then-Heritage Minister Pablo Rodriguez’s talking points.

It will make sure podcasts and any other internet content it can capture is regulated.

Peter Menzies is a Senior Fellow with the Macdonald-Laurier Institute, a former newspaper executive, and past vice chair of the CRTC.

Todayville is a digital media and technology company. We profile unique stories and events in our community. Register and promote your community event for free.

Follow Author

Economy

Carbon tax costs Canadian economy billions

Published on

From the Canadian Taxpayers Federation

Author: Franco Terrazzano 

This tax costs Canadians big time at the gas pump, on home heating bills, on the farm and at the dinner table.

The Canadian Taxpayers Federation is calling on the federal government to scrap the carbon tax in light of newly released government data showing the tax will cost the Canadian economy about $25 billion in 2030.

“Once again, we see the government’s own data showing what hardworking Canadians already know: the carbon tax costs Canada big time,” said Franco Terrazzano, CTF Federal Director. “The carbon tax makes the necessities of life more expensive and it will cost our economy billions of dollars.

“Prime Minister Justin Trudeau must scrap his carbon tax now.”

The government of Canada released modelling showing the cost of the carbon tax on the Canadian economy Thursday.

“The country’s GDP is expected to be about $25 billion lower in 2030 due to carbon pricing than it would be otherwise,”  reports the Globe and Mail.

Canada contributes about 1.5 per cent of global emissions.

Government data shows emissions are going up in Canada. In 2022, the latest year of data, emissions in Canada were 708 megatonnes of CO2, an increase of 9.3 megatonnes from 2021.

The federal carbon tax currently costs 17 cents per litre of gasoline, 21 cents per litre of diesel and 15 cents per cubic metre of natural gas.

The carbon tax adds about $13 to the cost of filling up a minivan, about $20 to the cost of filling up a pickup truck and about $200 to the cost of filling up a big rig truck with diesel.

Farmers are charged the carbon tax for heating their barns and drying grains with natural gas and propane. The carbon tax will cost Canadian farmers $1 billion by 2030, according to the Parliamentary Budget Officer.

“No matter how many times this government tries to put lipstick on the carbon tax pig, the reality is clear,” said Kris Sims, CTF Alberta Director. “This tax costs Canadians big time at the gas pump, on home heating bills, on the farm and at the dinner table. Trudeau should make life more affordable and improve the Canadian economy by scrapping his carbon tax.”

Continue Reading

Business

New York and Vermont Seek to Impose a Retroactive Climate Tax

Published on

From Heartland Daily News

By Joshua Loucks for the Cato Institute.

Energy producers will be subject to retroactive taxes in New York if the state assembly passes Senate Bill S2129A, known as the “Climate Change Superfund Act.” The superfund legislation seeks to impose a retroactive tax on energy companies that have emitted greenhouse gases (GHGs) and operated within the state over the last seventy years.

If passed, the new law will impose $75 billion in repayment fees for “historical polluters,” who lawmakers assert are primarily responsible for climate change damages within the state. The state will “assign liability to and require compensation from companies commensurate with their emissions” over the last “70 years or more.” The bill would establish a standard of strict liability, stating that “companies are required to pay into the fund because the use of their products caused the pollution. No finding of wrongdoing is required.”

New York is not alone in this effort. Superfunds built on retroactive taxes on GHG emissions are becoming increasingly popular. Vermont recently enacted similar legislation, S.259 (Act 122), titled the “Climate Superfund Act,” in which the state also retroactively taxes energy producers for historic emissions. Similar bills have also been introduced in Maryland and Massachusetts.

Climate superfund legislation seems to have one purpose: to raise revenue by taxing a politically unpopular industry. Under the New York law, fossil fuel‐​producing energy companies would be taxed billions of dollars retroactively for engaging in legal and necessary behavior. For example, the seventy‐​year retroactive tax would conceivably apply to any company—going back to 1954—that used fossil fuels to generate electricity or produced fuel for New York drivers.

The typical “economic efficiency” arguments for taxing an externality go out the window with the New York and Vermont approach, for at least two reasons. First, the goal of a blackboard or textbook approach to a carbon tax is to internalize the GHG externality. To apply such a tax accurately, the government would need to calculate the social cost of carbon (SCC).

Unfortunately, estimating the SCC is methodologically complex and open to wide ranges of estimates. As a result, the SCC is theoretically very useful but practically impossible to calculate with any reasonable degree of precision.

Second, the retroactive nature of these climate superfunds undermines the very incentives a textbook tax on externalities  would promote. A carbon tax’s central feature is that it is intended to reduce externalities from current and future activity by changing incentives. However, by imposing retroactive taxes, the New York and Vermont legislation will not impact emitters’ future behavior in a way that mimics a textbook carbon tax or improves economic outcomes.

Arbitrary and retroactive taxes can, however, raise prices for consumers by increasing policy uncertainty, affecting firm profitability, and reducing investment (or causing investors to flee GHG‐​emitting industries in the state altogether). Residents in both New York and Vermont already pay over 30 percent more than the US average in residential electricity prices, and this legislation will not lower these costs to consumers.

Climate superfunds are not a serious attempt to solve environmental challenges but rather a way to raise government revenue while unfairly punishing an entire industry (one whose actions the New York legislation claims “have been unconscionable, closely reflecting the strategy of denial, deflection, and delay used by the tobacco industry”).

Fossil fuel companies enabled GHG emissions, of course, but they also empowered significant growth, mobility, and prosperity. The punitive nature of the policy is laid bare by the fact that neither New York nor Vermont used a generic SCC or an evidentiary proceeding to calculate precise damages.

Finally, establishing a standard in which “no finding of wrongdoing is required” to levy fines against historical actions that were (and still are) legally permitted sets a dangerous precedent for what governments can do, not only to businesses that have produced fossil fuels but also to individuals who have consumed them.

Cato research associate Joshua Loucks contributed to this post.

Originally published by the Cato Institute. Republished with permission under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Continue Reading

Trending

X