Thank you, Mr. Chair and members of the committee.
Thank you for inviting the Association of Cultural Industries to speak on behalf of the cultural community of Newfoundland and Labrador.
I am Amy House, the president of ACI. I am a member of the advocacy committee for PACT and artistic animateur for the Resource Centre for the Arts theatre company in St. John's.
The cancellation of the Trade Routes and PromArt programs announced last year left a significant gap in how Canadian cultural producers are able to export to foreign markets and tour their work to foreign audiences. Further, cultural agencies striving to bring foreign buyers and financial gatekeepers to Canada to view our products are also impacted.
These cuts create significant challenges for a broad range of artists and arts organizations, and they dampen the entire sector's ability to not only create and sustain financial opportunities in the new creative economy, but also to act as Canada's cultural ambassadors abroad.
In Canada, recognition of the cultural sector as an economic generator is new, yet it has made incredible contributions to the social and economic fabric of the nation for quite some time. In a report published in 2008, the Conference Board of Canada estimated that the real value-added output by culture sector industries totalled $46 billion in 2007, approximately 3.8% of total GDP.
The economic footprint of the culture sector is much larger when accounting for combined direct, indirect, and induced effects. The Conference Board calculates that this full contribution was valued at $84.6 billion, about 8% of the total GDP in 2007.
The culture sector in Newfoundland and Labrador contributes an estimated $400 million annually to the provincial economy. Being an island culture, Newfoundlanders and Labradoreans experience even more intensified challenges in export and touring. For every challenge an artist in the rest of Canada faces getting their work to the world, we experience the same to even reach the rest of the country. Transporting art, mounting interprovincial tours of bands and performance companies, shipping books or recordings, and shooting film on location all have costs that significantly increase as soon as airfare, freight, and lodging are taken into consideration.
Many of these costs are hidden or non-intuitive to non-creators. Take, for example, the cost to a visual artist of crating and shipping their work to either foreign or even domestic galleries. Support for these kinds of ever-increasing costs used to be applied for under the Trade Routes and PromArt programs. With this money gone and other avenues of funding not increased in the new budget, the burden is downloaded to artists and will result in less work reaching a national audience, or, in our case, even a domestic one.
Instead of investing in development of the arts and culture sector as part of the creative economy, the cuts mean a loss of economic activity, to single out the monetary aspect of the results only. Our provincial government has been forced to provide $250,000 in support to Newfoundland and Labrador artists and groups to account for these cuts to export programming.
You probably heard about the East Coast Music Awards this past weekend. In the past, the ECMA has tapped the PromArt and Trade Routes funding to bring foreign buyers to the east coast, where a networking and buying conference is set up annually to allow Canadian musicians, large and small, to sell their work to a hungry international market. With an investment of approximately $60,000 between the two export programs, the ECMA is able to bring in dozens of foreign buyers and generate many more thousands of dollars of investment and working hours for Newfoundland musicians, technical staff, promoters, retailers, etc.
The St. John's International Women's Film Festival has similarly brought in buyers under this plan. Both of these programs will end with the end of PromArt.
Theatre Newfoundland and Labrador has also used PromArt several times. A couple of years ago, TNL took an original production to Tasmania, where they not only developed important international contacts that have led to further business and sustainability through co-productions and cost-sharing with Tasmanian groups, but they have also directly impacted tourism in the province. The number of Tasmanians visiting Newfoundland and Labrador has doubled each year since.
Foreign ticket sales, provincial funding, and foreign investment constituted the bulk of the cost of this exchange, but the production would not have been able to go ahead without PromArt money to help offset costs.
The Province of Newfoundland and Labrador now has an exchange agreement with Tasmania. Without PromArt funding we will not be able to honour that agreement in the years to come.
Economic downturns in the arts and culture sector work much the same way as in other sectors, though the majority of primary businesses are individual cultural producers or small companies. Without funding to sustain and grow their practices, cultural producers and artists cannot feed the constellations of others--businesses, individuals, and organizations--that rely on their product to exist.
Musicians feed everything from management companies to recording studios, CD manufacturers, graphic artists, sound technicians, distribution companies, retail outlets, and performance venue owners. Authors have a stream of reliant others, including editors, publishers, designers, printers, distributors, and retail outlets. Furthermore, the interaction between the sectors cannot be underestimated. Film relies on the literary sector for stories, the music sector for sound, and the visual sector for design, etc.
A failure to recognize export as a basic need of doing business in a global culture is a failure to support the sector as a whole. If government believes the programs that were cut were inefficient, it has an obligation to either fix those programs or replace them with new options that are efficient. The money that made up these programs was essential to the process of doing business, and business cannot go on without it.
To wrap up, I'd just like to say, restore support for export, touring, and foreign networking for Canadian artists to levels at least commensurate with past budgets. Ensure that this money is administered through successful and transparent agencies, such as the Canada Council for the Arts, as suggested by so many other stakeholders.
Thank you.