Evidence of meeting #33 for Canadian Heritage in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was journalism.

A recording is available from Parliament.

On the agenda

Members speaking

Before the committee

Bouchard  President and Chief Executive Officer, CBC/Radio-Canada
Millar  President, Channel Zero, Local Independent Television Stations
Schween  President, Pattison Media, Local Independent Television Stations
Frame  President, Torstar Corporation
Griffiths  Publisher, The Hub

10:15 a.m.

President, Channel Zero, Local Independent Television Stations

Calvin Millar

If I could, I'd direct it to talking about probably the biggest economic driver—and I'm not going to call it a silver bullet—that could really make an impact for all of us around this table by increasing the amount of Canadian advertising directed to Canadian media. That's a very simple message in a report that came out in 2016, and it has been updated repeatedly.

In the Income Tax Act, to solve this problem when it first occurred close to 40 years ago, there was a restriction on the deductibility of Canadian advertising by Canadian companies when they advertised on foreign media. Thirty years ago, in 1996, we decided to exempt the Internet, as it was simply known, from that requirement because there was almost no advertising on it. Today, three dollars out of every four dollars, three-quarters of the entire advertising market—home radio, newsprint, television, online—goes to the online intermediaries Google and Meta.

If this simple tax exclusion were removed from digital media in section 19 of the Income Tax Act, it would repatriate slowly and at the choice of Canadian businesses, but it would repatriate billions of dollars into the ecosystem. That needs to be taken care of. This would provide the funding to look at all the things we've talked about: increased local journalism, investigative journalism and new media outlets, such as that of Mr. Griffiths.

10:20 a.m.

President, Pattison Media, Local Independent Television Stations

Rod Schween

I'll tag this to Cal's comment. One of our suggestions was to have the federal government commit to directing at least 25% of its advertising budget to trusted domestic news organizations.

While waiting to attend the hearing this morning, I was thinking. We operate 51 radio stations in Canada, and we're expected to play 35% Canadian content on our radio stations. It doesn't make sense. If that's expected of us, and if we've asked for only 25%, should we ask the government to spend at least 35% of its funds on Canadian media?

If it's fair for the goose, it should be fair for the gander.

Fares Al Soud Liberal Mississauga Centre, ON

Thank you both.

The Chair Liberal Lisa Hepfner

That's fair enough.

Thank you very much, to all of our witnesses, for your excellent testimony today. It's very much appreciated.

I believe you've already sent in your opening statements, but if there's any further information, if something occurs to you later or if you feel that you didn't have time to fully explain something, please send it to our committee via our clerk. We can take that into consideration for our final report on this study.

Thank you again. The meeting is adjourned.