Thank you, Mr. Chair, for the opportunity to appear before the committee today.
No matter what Statistics Canada indicator you look at, live performance industries are the furthest away from recovery. As a matter of fact, they haven’t even begun their recovery. According to the labour force survey, the broader arts, entertainment and recreation sector lost 37,000 jobs in October alone.
However, let’s zoom in and have a look at the performing arts, spectator sports and related industries.
As the charts in our reference document show, the performing arts and spectator sports subsector never recovered from the first wave of the pandemic. In October, employment in this subsector was even lower than in April. Compared to last year at the same period, employment is now 32% lower. That’s 48,000 live event workers.
Performing arts companies are the hardest hit among the hardest-hit industries. Data for this industry group is now getting so sparse that it must be interpreted with caution. However, if figures I was sent by Statistics Canada are accurate, then almost three in four performing arts workers lost their job in October, compared to last year at the same period.
Participation in the labour force is also declining, which suggests a migration of the workforce to other sectors. The labour force shrank by more than 20% in October. This subsector risks facing a major shortage of skilled workers when live performance activities resume.
GDP statistics are equally troubling. In spite of modest growth over summer months, the GDP of the arts, entertainment and recreation sector in August was 52% lower than a year ago. In comparison, the accommodation and food services sector was 33% lower than last year.
We’ve heard from restaurant owners how they need almost a full week to get their supply chain in motion after a shutdown order is lifted. In the live performance sector, it’s a matter of two to three months. The critical path for resuming a live performance series involves several activities: negotiating and signing contracts with performers, booking tech crew and front-of-house staff, promoting the event, selling tickets for at least four weeks and, finally, holding the event.
If the vaccination campaign goes well, some small-scale festivals may be allowed to take place during the summer months. However, the real recovery of the sector will only begin in September 2021, when theatres, concert halls and performing arts companies launch their fall and winter seasons. This is a long time without much earned revenues.
The recovery of the sector will be a slow one. Under normal circumstances, national and international tours are planned and booked 18 to 24 months in advance. The time frame for the recovery of the sector is the lifting of all restrictions on gatherings, plus at least 18 months.
Let's turn to gaps. Venues owned by municipalities and educational institutions are not eligible for the wage subsidy or the new rent subsidy. As a result, most have had to permanently lay off staff.
These publicly owned venues are a strategic part of the performing arts value chain. They serve as mid-points in touring circuits that also involve not-for-profit presenters in rural and more remote areas. Their participation in national tours makes the difference between a tour that is financially viable and one that doesn’t reach the break-even point.
I will now switch to French to talk about support measures.
Considering the event sector's current devastation, its revival or, rather, its rebuilding will require a holistic approach based on a range of measures. The government will have to ensure to support all the players in the event value chain. As long as the emergency phase lasts, the government will have to continue to provide emergency support measures targeting the hardest-hit industries.
In addition, measures specifically targeting event industries will have to be implemented before the recovery phase begins. Those measures could include funding for creative projects, touring and performance presentations, strategic support to help the sector adjust to the changes in cultural consumer behaviours following the pandemic, assistance for workforce training, as well as leverage funding for activities likely to generate own-source revenues or other types of revenues.
When it comes to existing programs, it should be noted that investments over two years earmarked by the federal government in budget 2019 will end on March 31, 2021. I am talking about the Canada arts presentation fund, the building community through arts and heritage program and the Canada music fund. That funding must be extended. The government should actually consider those programs as recovery tools and set aside additional money for them.
Finally, organizations that use performance halls will need investments in infrastructure, so as to bring their facilities up to date based on the risks associated with the COVID-19 pandemic and with other pandemics that will come sooner or later.
Thank you for your attention.