Thank you, Madam Chair and members of the committee.
Friends of Canadian Media is a non-partisan, public interest organization dedicated to ensuring that Canadians have access to strong, independent Canadian journalism and storytelling. We advocate for citizens, not for corporations, because a healthy media system is essential to a healthy democracy.
Let me begin plainly: The state of journalism in Canada is poor, and in most communities it is deteriorating further. Over the past decade and a half, hundreds of local news outlets have closed across the country. Millions of Canadians now live in communities with little or no local news coverage. Newsrooms have shrunk. Journalists have been laid off. Entire beats have disappeared.
This is not simply an industry transition; it's a democratic deficit. Local journalism scrutinizes municipal councils. It covers courts. It informs citizens about public health, education and emergencies. When journalism disappears, civic participation declines, polarization increases and misinformation fills the vacuum.
Governments have taken important steps, including with the journalism labour tax credit, the local journalism initiative, the Online News Act, the Online Streaming Act and support for CBC. These measures matter. They demonstrate recognition that journalism is not just another sector; it's democratic infrastructure. However, the structural disruption facing Canadian journalism remains profound. The economic model that sustained local news has been destabilized by global digital platforms that capture advertising revenue while investing minimally in Canadian news production.
That brings me to five areas where federal leadership is essential.
First, the Online News Act and the Online Streaming Act are critical to creating a sustainable funding framework for local news. These laws must not be weakened, traded away or hollowed out through exemptions or side deals. Regulatory certainty and enforcement are essential.
Second, eligibility for the journalism labour tax credit should be expanded to include broadcasters. Broadcast newsrooms, particularly in local television and radio, face financial pressures similar to those in print. They too are pillars of local accountability.
Third, Parliament should close the loophole in section 19 of the Income Tax Act that allows a full deductibility of advertising on foreign digital platforms. Canadian advertising dollars should not receive preferential tax treatment when they're directed to foreign platforms rather than Canadian outlets.
Fourth, the federal government should commit to directing at least 25% of its advertising budget to trusted domestic news organizations, both publishers and broadcasters big and small. This would strengthen local journalism while ensuring that Canadians receive critical public information through reliable channels.
Fifth, Canadian news creators must be protected from having their content used by artificial intelligence companies without permission or compensation. Copyright protections, licensing frameworks and transparency requirements must ensure that journalism is not harvested without value flowing back to those who produce it.
Finally, a vibrant CBC is part of a strong ecosystem alongside successful private and independent media. As the national public broadcaster, it plays a foundational role in connecting regions, serving official language minority communities and maintaining news capacity where commercial models are under strain.
I will now turn to my colleague Randy Kitt.