Getting Your Money to the CBC Without You Knowing It

The CBC receives close to $ 1 billion annually in taxpayer money directly from Parliament. This subsidy is visible and relatively well know. Very few Canadians know that the CBC receives over an additional $215 million annually of their money via the actions of federal government bureaucrats.


My post of January 19, 2009 outlined how all cable and satellite TV subscribers (90 % of all Canadian households) are forced to pay for the CBC's Newsworld and RDI services. This generates approximately $120 million annually for the CBC.


In addition, the CBC is the major beneficiary of a 5% tax that is built into the bills of cable and satellite TV customers. Unlike the provincial and federal sales taxes, which are explicit line items on bills, the 5% tax is hidden in the various charges of the cable and satellite TV providers.


This tax was mandated by the Canadian Radio-television and Telecommunications Commission (CRTC) - the federal regulator of broadcasting and telecommunications - in 1995. The proceeds are used to fund Canadian programming, from cable community channels to programs on the major Canadian television networks.


The bulk of the proceeds from the 5% tax are handed over to the Canadian Television Fund (CTF). In recent years the CTF has also received $120 million annually in taxpayer money from the federal government.


In the fiscal year 2007-08 (ending March 31), the CTF dispensed $242 million for the production of Canadian programming. The CBC was the largest beneficiary by far of this $242 million, receiving $97 million or 40% of the total.

Adding the $97 million from the CTF to the $120 million in compulsory fees for Newsworld and RDI provides the CBC with $217 million in taxpayer money above and beyond the explicit $1 billion annual parliamentary appropriation. That is over 20% in additional taxpayer subsidies for the CBC that few Canadians know about.