Mr. Chair, members of the committee and distinguished guests, thank you for receiving these remarks this afternoon and for dedicating time to this important topic.
In our race to act, have we fully taken into account the significance of the moment that we're in? History will judge us, judge us on this period and what comes next, judge us on how we either stoke the flames of our culture through this crucible or how we let them falter.
The Prime Minister recently noted that the arts allow us to dream. More than that, the arts ignite innovation and drive positive change. We must all decide today how history will judge us while under threat. We cannot shrink from this responsibility. We have an opportunity to lead the world and grow and bolster national pride in a transformative way for future generations.
I am a proud Canadian. I am a former combat systems engineering officer, having spent nine years across Canada with the Canadian navy. I am now a real estate executive at Dream Unlimited Corp. in Toronto. I'm also board chair of the Museum of Contemporary Art, and more recently—and the reason for my appearance today—a co-founder and chair of a new effort, One Voice for Arts and Culture.
Currently representing nearly 100 organizations across eight provinces and three territories, OVAC aims to understand and advocate for the arts and culture sector, most broadly defined. I acknowledge here my co-founders, Brady Wood and Paul Bain, and a small group of volunteers helping to organize our work.
The arts and culture sector is a major contributor to the economy, with some $58 billion in output and directly employing 640,000 people, but the not-for-profit funding model is broken. Most organizations are in a precarious situation at the best of times. There is a drive to maximize programming with the funds available, and this drive for output has all but eliminated resiliency. The current crisis has exposed these weaknesses very clearly. We need to investigate these root causes and repair the model.
The initial federal emergency programs for both individuals and organizations have been positive first steps, but we do need to do more. Ways to improve this would include reducing the time between program announcement and details; clarifying how to apply; finding a way to provide liquidity to this sector; ensuring sector and government collaboration; finding ways to encourage more private and philanthropic giving; seeing culture as infrastructure, not just the occupied buildings but the larger ecosystem the sector strengthens; strengthening Canada's cultural diplomacy strategy; and using this period to lay the groundwork for the national museum policy.
As an example, the $500 million announcement for the arts, culture and sports sectors was made three weeks ago. We're not sure yet how these funds will be distributed in terms of amounts, criteria, mechanism or timing. We look forward to reviewing the details when they are released.
Even with the government's aid packages to date, our work has only just begun. After extensive research in April, the Canada Council for the Arts determined that up to 40% of Canadian arts and culture organizations would not survive without immediate emergency funding.
How the aid packages impact this outcome, as one example, will require deep research and dialogue. For example, one OVAC member is projecting a $10.6 million decrease in revenues. The wage subsidy that has been announced will provide about $700,000 in relief, so there's a very large gap. Depending on how the $500 million is distributed, our organizations may not survive without further funding.
The next challenge will be how we reopen. How do organizations that rely on crowds and gatherings plot a course to confidently re-establish our common experiences? This is a prime example of how the sector will need multiple approaches. An art museum has a very different traffic patterns than a theatre with densely packed seats and a set curtain time. Of course, these organizations cannot do it alone. Being open does not necessarily mean that people will visit if they don't feel safe in crowds.
An important observation that should drive all of our efforts is the need to ensure that there aren't winners and losers in our industry. Help must be equitable, and that will require better data, as opposed to stronger voices winning the day. We cannot forget the smaller organizations and efforts that represent smaller subsets and diverse cultures in Canada.
Instead of an either-or, we should strive for a “both and more” strategy where all organizations have a path to survival. We would like to enter into a formal process with Canadian Heritage and other partners so that the sector may better understand and exert more agency in how support is meted out. We want to be active partners in navigating towards a shared vision of the future, not simply recipients of aid.
We are at a strategic inflection point in our history. We need to seize the opportunity before it passes and we revert to our old habits. Arts and culture are vitally important to Canada. Despite the tragic dimensions, today represents a rare opportunity for us to remind Canadians of our proud identities and heritage, in particular the tenaciousness and optimism that unite us all. The arts will amplify every industry and boost national pride. The arts tell our stories, and emerging from this crisis we need to be uplifted, inspired and given hope. This is exactly what the country is crying out for. With so much fear, uncertainty and disconnection, we need trust, reunion and hope.
I thank you again for the opportunity to make these comments. I invite your questions.