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2009-10
Report on Plans and Priorities

Canadian Radio-television and Telecommunications Commission

Supplementary Information (Tables)

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Table of Contents

• Sources of Respendable and Non-respendable Revenue
• User Fees/External Fees

Table 9: Sources of Respendable and Non-Respendable Revenue

Respendable Revenue
($ millions)

Program Activity	Respendable revenue	Forecast Revenue 2008-09	Planned Revenue 2009-10	Planned Revenue 2010-11	Planned Revenue 2011-12
Canadian Broadcasting	Broadcasting Licence Fees– Part I	21.7	21.8	21.8	21.8
Canadian Telecommunications	Telecommunications Fees	18.7	18.8	18.8	18.8
Total Respendable Revenue (Note1)		40.4	40.6	40.6	40.6

 

Non-Respendable Revenue
($ millions)

Program Activity	Non-respendable revenue	Forecast Revenue 2008-09	Planned Revenue 2009-10	Planned Revenue 2010-11	Planned Revenue 2011-12
Canadian Broadcasting	Broadcasting Licence Fees – Part I (Note 2) Broadcasting Licence Fees – Part II	5.6 -	11.6 -	11.1 -	5.6 -
Canadian Broadcasting	Telecommunications Fees (Note 2)	8.8	11.1	5.8	5.8
Total Non-respendable Revenue (Note 3)		14.4	22.7	16.9	11.4
Total Respendable and Non-respendable Revenue		54.8	63.3	57.5	52.0

Note 1: The CRTC retains respendable (vote netted) revenue to fund its operating budget

Note 2:  In November 2007, Treasury Board approved a two-year increase to the Commission’s budget for fiscal years 2007-08 and 2008-09. The full cost of this resource request, will be recovered from CRTC fee payers, is $8.5M ($4.5M Broadcasting, $4.0M Telecommunications) and $10.4M ($5.5M Broadcasting, $4.9M Telecommunications) for the two fiscal years, respectively. Further details on the approved increase are noted in Broadcasting Circular CRTC 2007-9 http://www.crtc.gc.ca/eng/archive/2007/c2007-9.htm and Telecom Circular CRTC 2007-18 www.crtc.gc.ca/eng/archive/2007/ct2007-18.htmdated December 21, 2007 .
The Commission’s broadcasting and telecommunications fee regulations have a provision whereby the Commission is able to adjust the annual fees (Part I Broadcasting Licence Fees and Telecommunications Fees) to take into account the Commission’s actual expenditures on both Broadcasting and Telecommunications activities during the fiscal year. The adjustments represent the difference between the estimated costs initially billed in a previous fiscal year and the actual costs incurred. The Commission’s actual expenses associated with this resource increase will be recovered as part of the annual billing adjustments for the telecommunications industry in 2008-09 and 2009-10 and for broadcasting licence fee payers in 2009-10 and 2010-11.

Note 3: Non-respendable revenue for Part I broadcasting-licence fees and CRTC telecommunications fees recovers the costs incurred by other federal government departments for most services (excluding Industry Canada spectrum management) rendered without charge to the CRTC and the statutory costs of employee benefit plans. Part II broadcasting-licence fees are also considered to be non-respendable revenue

Table 12: User Fees

User Fees

Name of User Fee	Fee Type	Fee-setting Authority	Reason for Planned Introduction of or Amendment to Fee	Effective Date of Planned Change	Consultation and Review Process Planned (Note 2 & 3)
Telecom-munications Fees (Note 1)	Regulatory Service(R)	Telecommunications Act (Section 68) Telecommunications Fees Regulations, 1995	Part VII application to revise Telecom Fee Regulations (Note 4)	To be determined	Full public consultation. See "Explanation of Revenue" for further information. Telecom Decision CRTC 2006-71 and Telecom Public Notice CRTC 2008-13.
Broadcasting Licence Fees (Note 1)	Regulatory Service (R) Right and Privilege (R&P)	Part I licence fee Broadcasting Act (Section 11) Broadcasting Licence Fee Regulations, 1997 Part II licence fee Broadcasting Act (Section 11) Broadcasting Licence Fee Regulations, 1997	Note 5	Note 5	Note 5

Note 1 The Broadcasting Licence Fee Regulations, 1997 and the Telecommunications Fees Regulations, 1995 can be found on the CRTC website at: www.crtc.gc.ca/eng/LEGAL/LICENCE.HTM (broadcasting) and www.crtc.gc.ca/eng/LEGAL/TFEES.HTM (telecommunications)

Note 2 Full public consultations occur with each change to the Telecommunications Fee Regulations or the Broadcasting Licence Fee Regulations.

Note 3 The CRTC’s dispute-resolution process regarding the assessment of broadcasting licence fees and telecommunications fees is summarized as follows:

Note 4 Aliant Telecom Inc. and Bell Canada (8657-A53-200606692 ) filed an application dated May 26, 2006, pursuant to Part VII of the CRTC Telecommunications Rules of Procedure, requesting that the Commission revise the regulations regarding telecommunications fees and, in particular, the basis on which telecommunications fees are determined and levied. In Telecom Decision CRTC 2006-71 dated November 6, 2006, the Commission indicated that it would initiate changes to the Telecommunications Fees Regulations, 1995 so the telecommunications service providers, including those not required to file tariffs, would pay fees using the same approach that applies under the existing contribution regime. The Commission has initiated government inter-departmental deliberations and begun the process to draft wording changes to the fees regulations.

During the deliberations, the Commission received conflicting legal opinion with respect to the application of the User Fees Act to the proposed changes to the fee regulations. The Commission has reopened the proceeding and initiated a reference to the Federal Court of Appeal. Further details are available in the Telecom Public Notice CRTC 2008-13 dated October 15, 2008 (www.crtc.gc.ca/eng/archive/2008/pt2008-13.htm).

Note 5 A Federal Court Trial Division decision rendered on December 14, 2006, declared Part II licence fees to be a tax. On December 4 and 5, 2007, the Federal Court of Appeal heard appeals on this decision. On April 28, 2008, the Federal Court of Appeal overturned the earlier ruling of the Federal Court Trial Division and declared that the Part II licence fees are valid regulatory charges and not a tax. In June 2008, the plaintiffs filed applications for leave to appeal to the Supreme Court of Canada. On December 18, 2008, the Supreme Court of Canada granted the applications for leave to appeal.