Thank you very much.
By now, you've been informed by several people that the health of many news organizations in Canada is poor. The situation is that if the mounting requests for subsidies are anything to go by, it is even more dire than it was in 2018, when publishers first convinced the government to get involved. That might indicate that while current solutions have provided hospice care for several companies, most journalists are now reliant on the corridors of power they are expected to patrol on the public's behalf.
Unless significant changes are made, that dependence is only going to grow stronger as the list of organizations asking for more money grows and grows. As it does, the playing field for the news industry will continue to be unstable and its content viewed with increasing suspicion. That, in turn, will suppress investment by innovators looking to create new, independent and sustainable 21st-century-appropriate platforms.
That has been the pattern since 2019, when the “temporary” five-year journalism labour tax credit for newspapers was introduced. Enhanced in 2023, it is now in its eighth year.
The local journalism initiative, which was initially announced as a five-year, $50-million plan in 2019, also continues, enhanced.
The CRTC, meanwhile, is working on more financial support for broadcast-based news, while the CBC, the nation's largest employer of journalists, has received an additional $150 million. Then there's the $100-million Google fund, which partially offsets the loss of revenue created when Facebook was lost as a delivery platform. Of course, there is also the Canada periodical fund.
It adds up to a lot of money, but sooner or later news media will run out of other people's money to spend, so this is a good time to pause and reflect upon whether current approaches are achieving the desired public good outcomes, what those are, and what those who are experiencing success are doing differently.
If the public good is to sustain companies with broken business models, it must be accepted that this tilts the industrial playing field to the disadvantage of those trying to create sustainable, independent and trusted models. If, on the other hand, the public good the government is trying to support is a nation of well-informed citizens, an entirely fresh approach is needed. That begins with policy-makers developing an industry-wide policy platform focused on the 21st-century reality that all news media are converging on the Internet.
Surveys also indicate that a large plurality of Canadians worry that media dependence on government negatively impacts objectivity. Since 2018, trust in news in Canada has been in decline. Correlation is not always causation, of course, but this coincides with government funding of news organizations.
Alternative positive suggestions can be found in a Macdonald-Laurier Institute policy paper I co-authored, entitled “...and now, the news.” It details an alternative path forward to achieve a sustainable, trusted, innovative and independent news industry. I ask that you read it.
In the meantime, I propose the following steps to promote a sustainable, independent and trusted news industry. First, create a national news industry policy that views journalism organizations as a single sector. This would necessitate the industry forming a new all-encompassing association that could, instead of a government-appointed panel, determine what constitutes a qualified Canadian journalism organization.
Next, phase out direct subsidies and implement policies that not only encourage the production of news and employment of journalists but also ensure that what news is produced is actually consumed. Subsidizing consumers through enhanced subscription tax credits and/or tax deductions is agnostic, while encouraging news consumption, choice and competition. Portugal, for instance, pays for two-year digital news subscriptions for 15- to 18-year-olds.
Next, demand that companies benefiting from funding or government contracts are publicly accountable and prominently post details of these relationships; limit access to production-based benefits to not-for-profit organizations; insist that all recipients of direct taxpayer support provide space for rebuttal commentary, particularly as it applies to discussions of public policies impacting news organizations; and enhance copyright protections for news subscriptions.
The path the industry and the government are currently on is only going to produce increased demands for more golden handcuffs.
Thank you very much.