Thank you, Mr. Chairman.
Thank you for inviting me to speak at today's session.
I'll begin by stating that I'm here as an individual speaking in my capacity as a newspaper columnist. I'm not here as an official representative of Postmedia.
My comments today will focus on the sections in Bill C-97 that concern the new tax measures designed to support Canadian journalism. I will not be speaking about what I think is the ideal relationship between government and media—the answer is “none at all”—but on how to best move forward with what is already on the table.
This small section of the legislation, as you may have seen, has already caused controversy, coming from both regular Canadians and individuals within the media. Canadians are wary of the idea that their government would in some way favour, influence or direct the media. Not only are media professionals, so it seems, wary of this happening, they are also concerned by the mere perception that this is happening. These concerns are mostly valid and I share them.
Last November's fall economic update was not only when support for journalism was first announced, but also when the accelerated capital cost allowance for businesses was introduced. Later in the week after that came out, I wrote a column that this latter move was to be applauded, and then I faced accusations of only backing the capital cost allowance measure because that same day I had also been bought off by the current government.
As someone who does not typically face such an accusation, I concluded that if it can happen to me, it most certainly can and will happen to everyone else in my field. As such, I would like to make three recommendations about how to proceed with these tax measures in a way that minimizes both the perception and the reality of politicizing Canadian media.
These measures have become popularly known as the “media bailout”. The public is under the impression that the government is simply doling out $595 million to media outlets on a mere whim. They may not know that the main measure is in fact a 25% labour tax credit for news media employees.
My first recommendation is that a better job can be done in communicating what is going to happen. If the impression is left to linger that the government is forking over cash grants to their journalist buddies, trust in media will only plummet further.
There are many ways that can be done. As we've learned, even a simple tweet from the Prime Minister can have a great influence in informing public perception, but let's get more technical. There's the question of how to determine what organizations will be eligible for the tax credit.
The film industry has for decades had a similar tax credit. To be eligible for the federal film credit, you simply need to spend 75% of your costs in Canada and check off any six out of 10 eligibility boxes. There is no politician, board or panel that determines eligibility. It is an administrative exercise, whereas when it comes to the media credit, the government:
will establish an independent panel of experts from the Canadian journalism sector to assist the Government in implementing these measures, including recommending eligibility criteria.
I would much sooner be judged by 10 strangers than I would 10 journalists, and I imagine many other journalists feel the same way about me.
Additionally, I take issue with the notion of “an independent panel.” One of my favourite phrases in politics is fast becoming “There's nothing more partisan than an independent.”
Canadian arts grants at all levels of government are typically awarded by a jury of their peers. It is a fact that this process is considered both political and rife with petty personal drama. The administration of the film tax credit, by comparison—although they're both in the broader arts community—is a much less divisive approach.
Therefore, my second recommendation is to abandon this panel of journalism experts. Instead I recommend the government allow as many voices as possible to present their opinions and that a basic checklist of qualifications be determined out of that. This avoids creating a gatekeeper system dominated by a few and brings it more to be an administrative measure, rather than selecting criteria year by year.
My last recommendation is a technical point, but I believe if not addressed it can have troubling ramifications. The budget refers to an eligible recipient of the tax credit as “a qualified Canadian journalism organization.” This phrase has given the impression the government is determining what is and what isn't a legitimate news organization. This phrase ought to be abandoned. As with any tax credit, if you are eligible, you receive it; if you are not, you don't. There's no need for an official list and there's no need for that list to be posted online in any capacity.
Those are my three recommendations.
Thank you, and I welcome any questions you might have.