Thank you, Mr. Chair.
I'm very pleased to be here, and for a couple of reasons. One reason is that I feel right at home in this room, because this structure, this building we're in, used to be the Museum of Contemporary Photography. I remember touring it before it was officially opened.
The CMA is very pleased to be here to discuss division 47 of the bill, which includes the amendments for Canada's travelling exhibitions program.
But first, before I go into details on that, I'd like to take an opportunity to say how very pleased we are as a sector over this budget. In fact, we've seen three out of the four recommendations that we made being implemented in this legislation, so we as a sector are very pleased.
Let me just mention what the three recommendations are: first, no cuts to the national museums over a three-year period, and no cuts to support programs for museums or for most support programs that we're aware of; secondly, an increase in youth employment of $50 million, a small part of which we hope will come to the museum sector, as we are currently turning down 90% of all applications for internships each year; and finally, a significant increase in the indemnification program for large travelling exhibitions, which I'm here to discuss today.
Division 47 includes only three short but very important amendments that will have a major impact on all Canadians and their communities. These amendments will more than double the capacity of the indemnification program, giving Canadians rare opportunities to see exhibits that they would never normally be able to see, and resulting in a very positive economic impact on the host communities.
For example, Titanic, the artifact exhibition hosted by the Royal British Columbia Museum in 2007, was visited by more than 450,000 visitors in a six-month period, 26% of them from outside the region. The exhibition generated more than $30 million in economic activity and more than 742 full-time jobs in southern B.C., out on Vancouver Island.
This act has permitted the indemnification of major exhibitions for over 12 years in Canada, and it has been a complete success. There has never been a single claim against this program due to the high standards of museums. The program has minimal operating costs, and the economic activity generated by major exhibitions in fact results in a net gain of $15 million in tax revenues. In a phrase, this is a win-win scenario.
With the proposed increases from total coverage of $1.5 billion to $3 billion at any one time, which is a very important amendment that's included before you, and a new cap on the amount of coverage per exhibition, exhibitions such as the Art Gallery of Ontario's Picasso: Masterpieces, which is valued at $1.27 billion, can be viewed by a large number of Canadians and generate economic impact.
The proposed amendments, however, will not solve all of the issues facing exhibitions, and will not cover all exhibitions in Canada, but will more than double the impact from this program. Given the increases in the valuations of art and objects, this will lift an important roadblock that has prevented a number of exhibitions from being covered. We urge your speedy consideration of these amendments.
In addition, we would like suggest that a program review be undertaken of the effectiveness of this program in two years' time with a view to bringing this program in line with international standards. Most nations have unlimited indemnification programs in their nations that are based on the eligibility of the exhibit rather than the financial value. Such a measure would improve planning, increase the number of exhibitions presented, and have a positive economic, educational, and social impact for all Canadians.
Thank you.