CHPC Committee Report

As we mentioned in the preceding section, the Office of the Auditor General (OAG) conducts a special examination of CBC/Radio-Canada every five years, pursuant to Part III of the Broadcasting Act. The exercise involves ensuring that the Corporation maintains adequate management systems and practices for its financial, human and material resources. The Auditor General's most recent examination was conducted between April 2004 and April 2005. Overall, the OAG concluded that progress had been made since the previous examination in 2000, particularly in terms of transparency and accountability.[305]

The report examined the way in which the Corporation measured its performance and communicated the results within the framework of its current mandate. The OAG noted that, in order to demonstrate its degree of efficiency and the extent to which it was attaining its objectives and fulfilling its mandate, CBC/Radio-Canada had to develop and implement a comprehensive performance management framework, communicate better information on the costs of its programming and activities, and improve its internal and external reporting. The weaknesses in these areas led the OAG to conclude that CBC/Radio-Canada's internal and external accountability practices should be improved.

More specifically, the OAG noted that although the Corporation had developed a number of quantitative and qualitative corporate performance indicators, they were incomplete. Those developed mainly addressed programming and not the other five strategic areas and priorities identified in the CBC's Corporate Plan: efficiency, creative human resources, strategic partnerships, collaboration, and relationships with stakeholders. The Auditor General observed that the CBC/Radio-Canada annual reports contained a great deal of information on results. However, they should be much more specific about expectations, that is, they should explain the gaps between the expected results and what was achieved.[306] Performance indicators are used not only to produce an annual report, but also to improve management.

The Auditor General also pointed out in her evidence that it was extremely difficult to make comparisons between the French-language Radio-Canada and the English-language CBC because there are enormous differences in the way that costs are accumulated. The OAG would have liked to compare the French-language and English-language networks across several activities, but since the accounting and financial information is calculated differently, comparative analyses were not possible.[307]

The OAG discussed all the observations with the Corporation's executives and Board of Directors during the presentation of the report in 2005. They accepted them and gave the OAG an assurance that they would take measures to follow up on its recommendations. CBC/Radio-Canada told the OAG that better data on targets and results would be available in the future. The OAG encouraged the Standing Committee on Canadian Heritage to ask CBC/Radio-Canada to talk to it about measures taken and progress made in this area.

The 2005 examination report also reported on the amount of unused programming. During the audit, the OAG noted that many programs that the Corporation had acquired or ordered were still available for broadcast. The two networks each had about 6,000 hours of unused programming. The OAG did not render a judgement on the number of hours, that is, whether it was excessive or inappropriate. The OAG did, however, recommend in its report that the management of available programming be improved.

The CAB considers that CBC/Radio-Canada should be obliged to release detailed information to the public every year on its radio and television networks as well as its online services. The current report is merely "broadly aggregated information."[308] The association contends that every broadcaster of a specialty channel established in Canada must produce an annual report presenting its revenues and expenses in much greater detail than the information published by CBC/Radio-Canada. 

The CAB proposes that CBC/Radio-Canada base itself on the accountability requirements of public broadcasters in other countries and the way they carry out their public mandate. The CAB also welcomes the fact that CBC/Radio-Canada is now subject to the Access to Information Act.

The BBC has been identified as a leading model for a public broadcaster, and we also find a lot of value in this example, especially when reviewing how it has defined its role and structured its organisation to fit that role. For example, the BBC recognises the impact that its activities can have on private broadcasters. Because of this, it is governed by a set of fair-trading guidelines that ensure that it does not use its public funds to compete unfairly with commercial companies, and that any commercial activity it undertakes supplements and supports its public purposes.

Canadian Association of Broadcasters, March 22, 2007, 1015.

The Committee heard from Wilf White, Chief Advisor, Public Policy and Daniel Wilson, Deputy, Public Policy, both of the BBC, via video conference.  Mr. Wilson explained that two of the key measurements of the BBC's public value are audience reach and level of usage.[309] Audience reach, defined as the proportion of people who use the BBC's services, has become a chief indicator of success for the BBC, in comparison with the more traditional audience share and volume, which the BBC continues to use as measures of programme or service impact, but only as two among several.[310] This type of more progressive measurement framework also accounts for changes in audience behaviour, where services and content are now being accessed across multiple platforms.

The BBC has implemented a new performance measurement framework, in conjunction with its new Charter and Agreement, based around four main criteria: reach, quality, impact, and value for money. The framework considers the public value delivered in relation to each of the BBC's public purposes, as set out in its Royal Charter.

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Committee's Position

The values of transparency and accountability must be central to CBC/Radio-Canada's operations. It is not enough to blindly fill the Corporation's coffers without at the same time ensuring that the current parliamentary appropriations are administered diligently and effectively. The general call from witnesses for greater transparency and accountability reflect this perspective.

Transparency and accountability are central issues within the framework of the study we conducted. Is it necessary to point out that CBC/Radio-Canada is supported financially by the entire population of Canada? In a sense, its shareholders are the citizens of Canada. It is essential that an organisation that receives over a billion dollars in public funds annually be governed in such a way that it has the confidence of the public and the industry in general, and that public funds are well spent.

Canadians are entitled to accountable and transparent reporting of publicly administered funds and activities.

Canadian Association of Broadcasters, March 27, 2007, (1010)

In terms of accountability, CBC/Radio-Canada must develop additional performance indicators, such as reach, that is the proportion of people the CBC reaches across all of its services. The methodology must be consistent from year to year, so that comparisons are possible. The Committee deplores the fact that it is still difficult to compare the costs of French and English television, and yet such data would allow parliamentarians to establish bases of comparison, including on the costs of regional broadcasting.

The Committee also welcomes the fact that CBC/Radio-Canada is now subject to the Access to Information Act. That is significant progress on transparency.

The most recent examination that the Office of the Auditor General conducted in 2005 found that, overall, management of CBC/Radio-Canada had improved since 2000. Nevertheless, improvements are needed in important areas such as strategic and organisational planning, performance measurement and results reporting.

It is our understanding that the information contained in the CBC/Radio-Canada annual reports does not always adequately meet the needs of parliamentarians and observers interested in the work of the Corporation. If the annual reports do not provide all the information that Parliament feels is necessary to properly exercise the responsibilities and duties conferred on it by the Act, we recommend that the annual report be modified accordingly.

RECOMMENDATION 6.1

The Standing Committee on Canadian Heritage recommends that CBC/Radio-Canada develop qualitative and quantitative performance indicators and clear targets for all six priorities and strategic areas identified in its Corporate Plan.

RECOMMENDATION 6.2

The Standing Committee on Canadian Heritage recommends that all financial and accounting information be reported in the same way by both the French and English language networks, to render comparisons between the two entities possible.

RECOMMENDATION 6.3

The Standing Committee on Canadian Heritage recommends that CBC/Radio-Canada take inspiration from the British Broadcasting Corporation's accountability model, rooted in results-based management. It would include the publication of an annual report and financial statement reporting details, both qualitative and quantitative, on all activities of public interest and its budgeting plans. In these documents, CBC/Radio-Canada would provide a comprehensive report on its programming and financial information for each of its individual services. This would facilitate objective, rigorous and transparent evaluations.

RECOMMENDATION 6.4

The Standing Committee on Canadian Heritage recommends that all reports produced by the CBC/Radio-Canada, particularly those prepared for Parliament and especially the chapters about its operations, should be a comprehensive source of information, transparent, relevant and informative. This reporting should not, however, go so far as to compromise proprietary information that would put the Corporation at a competitive disadvantage.

RECOMMENDATION 6.5

The Standing Committee on Canadian Heritage recommends that the CBC/Radio-Canada report to the Committee, at its earliest convenience, on its progress pursuant to the recommendations made in the 2005 Special Examination Report carried out by the Office of the Auditor General.