Thank you, Mr. Chairman. Good morning to committee members. I would like to thank you for giving me the opportunity to appear today.
The Canadian Conference of the Arts, or CCA, is the oldest and biggest forum of reflection, analysis and intervention on federal policies that affect Canadian culture. The CCA has contributed greatly to the public debate among artists, creators, cultural institutions and industries, public servants and parliamentarians, concerning policies to promote the development and diffusion of culture to the benefit of all Canadians.
For over 20 years now, the CCA has participated in pre-budget consultations, and gives priority to ideas and recommendations which aim to promote effective cooperation between the government and the arts and culture sector.
Despite stereotypes Canada's arts and culture sector is not a rarefied or disconnected element of society. In 2001 the cultural industries were responsible for directly employing 611,000 Canadians, as much as agriculture, forestry, mining, and oil and gas combined.
In 2002 the cultural industries contributed $40 billion to Canada's GDP, more than mining and oil and gas extraction and twice as much as agriculture and forestry.
Artists, creators, and arts professionals are regarded as living indicators of the quality of life within cities, towns, and villages. The arts play a critical role in economic renewal in communities, particularly in the urban centres, but this phenomenon can also be seen in smaller communities. This is clearly demonstrated by places like Stratford, Ontario; Chemainus, British Columbia; Caraquet, New Brunswick; and Banff, Alberta--just to name a few.
The recommendations which the CCA is making this year reflect the fundamental changes that are currently taking place in Canada's labour market. It is time to review many labour policies and regulations. The current reality is that there are more and more self-employed workers in every sector of the Canadian economy, including in the cultural sector.
The federal government must treat self-employed workers fairly. These people are entrepreneurs and creators. In its brief, the CCA describes economic and social changes which characterize every sector of activity in the country at the start of the 20th century.
However, the CCA is encouraged by certain measures announced in the last budget. Based on these commitments, the CCA is asking the federal government to maintain and increase its support for arts and culture, and it is asking the government to show leadership and responsibility to promote the vitality of our national culture.
It is for this reason that the CCA must voice its disappointment with the September 25 announcement of the results of the government's expenditure reallocation exercise. We are dismayed, because the specifics in this decision run counter to the nine recommendations that we are presenting to you today, particularly with respect to the need for increased fiscal and policy support for Canada's museums and civil non-profit society as a whole.
The CCA is also disappointed by the government's cancellation of the federal Commercial Heritage Properties Incentive Fund as a wasteful program. CCA considers that the early end of this program is only acceptable if it is replaced immediately with a tax incentive that encourages preservation of heritage buildings, an approach that has proved extremely successful in the U.S.
Finally, we think the way the budget cuts are planned and executed runs counter to the government's own priority, a commitment to an accountability and transparency it demands of organizations like ours. We also strongly encourage the Government of Canada to not use the full revenue surplus to pay down the national debt, but instead to apply some of its money to a substantial balanced investment in key aspects of our economy and society, including, of course, the arts and the cultural sector.
To conclude, I would like to quickly list nine recommendations which are included in our brief. First, we recommend that the $500 tax credit for children's sports activities also apply to children involved in artistic activities. The CCA believes this is a logical extension of the policy supporting families espoused by the government.
Second, the CCA recommends that the Standing Committee on Finance support measures—