Honourable Chair and esteemed members of the committee, thank you for inviting us to participate today.
The Canadian Crafts Federation represents a broad sector of artisans and makers from a wide variety of disciplines. Craft is a vibrant and active component of the larger cultural sector in Canada, and a significant contributor to the cultural economy. The culture satellite account showed that the craft sector contributed $2.8 billion to the cultural GDP in 2010. That's more than the performing arts, at $1.7 billion; architecture, at $1.2 billion; books, at $1.1 billion; and photography, at $1 billion.
Our recommendations will impact the sector's work to increase homegrown, sustainable jobs for Canadians. Rather than ask for extensive financial investment, we are largely asking for clarity and the reduction of impediments to growth for the craft sector.
First, we recommend that the government implement fair taxation regarding grant income. For years, artists have faced unclear guidelines and confusion regarding this income. This difficulty was brought to the public eye earlier this year when sculptor Steve Higgins received a $14,000 tax bill after receiving only $20,000 in grants for a specific project. This funding was then recategorized as a personal endeavour rather than a source of business income and deemed ineligible for related expenses. This is one example of wasted productivity, for Canada Revenue Agency staff and for the artists who face these audits. These could be rectified with only slight shifts in policy and training at the CRA.
The CCF also recommends that the government recommit to, and finalize, the budgetary increases already slated for the Canada Council for the Arts through to 2021. Since 2017, the CCF has directly benefited from this increase, as have many of our partner organizations and individual members across the country. We know this funding has increased employment numbers and artist fees paid out across the sector. We have seen first-hand the impact that this increased funding has already had in its first stage of implementation, and we are grateful for this long-needed injection of funding to further support our sector.
Funding for mentorship and apprenticeship programs and increased access to the federal financial incentive and tax credit programs through the Red Seal trades system could greatly assist craft artists looking to transition from training to professional practice. In August 2017, a Canadian Crafts Federation study identified 36 colleges offering 84 craft programs. The demand exists to open Red Seal opportunities to the craft sector. By encouraging Employment and Social Development Canada and the Canadian Council of Directors of Apprenticeship, the federal government can play a role in opening this door.
In order to create a new taxable income for artists in Canada, the government could amend the Canadian Copyright Act to include an artist resale right. This copyright royalty would increase income for craft artists whose work is resold, often at a higher price point as their career advances. This would come at no cost to the federal government. This type of program currently exists in 93 other countries worldwide. As average artists' incomes are below the poverty line, this amendment to the Canadian Copyright Act would have a direct impact.
Finally, the Canadian Crafts Federation recommends that the government modernize the national museum policy and identify new financial support for programming to advance indigenous reconciliation, inclusion and diversity; digitization; and infrastructure. Much like the recent review and transformation of the Canada Council for the Arts' model, Canadian museums need to be supported in their endeavours to renew and refresh their structures, content and relationship with the modern Canadian and international audience.
Craft is a sector that touches every single region in Canada, from community spaces like the Eptek Art and Culture Centre in P.E.I., the Shadbolt Centre for the Arts in Burnaby, and the Woodland Cultural Centre in Brantford, to excellent craft training programs such as the Alberta College of Art and Design in Calgary and the renowned collections in public and private galleries like Hull's Canadian Museum of History, the Jonathon Bancroft-Snell Gallery in London, and the McMichael Canadian Art Collection. Craft and culture are alive and well.
I highlight these specific cultural institutions not just because you are familiar with them, but because they are excellent examples of diverse cultural industries. They are employers, community developers, keepers of our history and place-makers of our modern time. All these organizations would benefit directly from the recommendations presented today.
Government support of artists and the cultural sector is a hand up, not a handout. Supporting the creative industries in this country creates jobs, supports small businesses, and provides opportunities for children, youth, seniors and everyone in between, regardless of their backgrounds. Statistics Canada confirmed the cultural sector generated approximately $25 billion in taxes for all levels of government in 2007, more than three times higher than the $7.9 billion that was spent on culture by all levels of government that same year.
Cultural investment has an excellent return.
Thank you very much.