Thank you, Chair.
It has often been said that democracy dies in the dark. Without reliable and accurate local news and information, people can simply not make informed decisions. This applies to all Canadians, and it's why the question you wrestle with today is so incredibly important.
The gutting of local news has been ongoing for many years, but has accelerated dramatically over the last decade, and the consequences are terrifying. A full one-third of U.S. citizens believe their election was stolen. Horse medication flies off global shelves as an antidote to COVID, because of one statement by an uninformed U.S. president; and a grand total of about a dozen accounts are responsible for more than 80% of the vaccine disinformation available on social media.
I have a great deal of experience in journalism—15 years with the CBC as well as chief of staff at Laurentian University and at the Assembly of First Nations. I am now executive director of the Community Radio Fund of Canada. What I can tell you is that while journalism is a keystone for a functional society, it is not profitable. The truth, while critical, is not nearly as attractive or intoxicating as questionable narratives that an algorithm has determined fit into a person's echo chamber. When access to local news and information is left in the hands of corporations focused on profit over public good, the outcome shouldn't be a surprise.
Corporate concentration in the media hurts Canadians' access to local news and information.
We have seen this play out with Bell recently closing entire newsrooms in Montreal and Toronto, firing hundreds of journalists as those funds are diverted to supporting streaming services. A few years earlier it was Citytv closing newsrooms and gutting Breakfast Television. According to the Local News Research Project, since 2008 a total of 451 news operations have closed in 324 communities across Canada.
I won't be taking a position today on whether or not this merger should proceed. Rather, I'm hear to say that if it does, the consequences will be damaging for local news and information, and this government has a responsibility to insist on remedies to ensure that Canadians get the news they need and deserve.
In a recent article in The Star some of the challenges were highlighted. Global News, whose newscasts are watched by 20% of the viewers in B.C. and Alberta, stands to lose $13 million out of its $138-million annual budget. That money will go to Citytv, which is owned by Rogers. This is because, according to a Rogers' vice-president, the company cannot “get our head around” the idea of funding a competitor. No concern for viewers. This is about profits. As a consequence, Global will likely be forced to seek a significant portion of the independent local news fund, which will further impact local news.
In one fell swoop this transaction will gut one station, and the funding set aside for independent news outlets will be cut by more than a half, and that's just the beginning.
A review of the tangible benefits associated with this transaction meant to support Canadian voices shows $8.5 million will be invested in the ILNF once. After that the fund is on its own, and a significant portion, as I mentioned, will be absorbed by Global. Of note, this fund was set up by funding that was originally intended for community television.
The rest of the benefits will go to the Canada Media Fund and an assortment of important film festivals, but there's next to nothing to support local news.
What does this committee do about it? I propose that it needs to ensure there are mechanisms to protect local news, not just corporate interests.
The Community Radio Fund of Canada provides funding to community campus and indigenous broadcasters to hire journalists in news deserts. Next year we will supply salaries for journalists to be hired in 39 community-based radio stations through, as Cathy mentioned, the local journalism initiative. This is a fraction of the need.
If this transaction is approved, the government must extend and expand the funding for the LJI, and it should be up to the corporations benefiting from the gutting of local news to pay for this.
This committee should also ensure that tangible benefits go to organizations such as—