Thank you, Mr. Chair. Good morning, members of the committee.
My name is Jean-François Bernier. I work at the Department of Canadian Heritage and I am the Director General of policy and programs for cultural industries. As was mentioned today, I am here with Scott Shortliffe, who is the Director of publishing and programs for one of the four cultural industries, the periodical industry.
We are here today to present a technical briefing on the support that the Government of Canada provides for Canadian periodicals. The information relates generally and specifically to periodicals in official language minority communities.
I want to leave a lot of time for questions. I see we have already used 11 minutes of the time we are allowed. I have a brief presentation to put on the table about these issues and I will assume that you have that presentation in front of you to prepare for the discussion we will have in the next few minutes.
Today is not only April 1—the tale of the tires was a joke for my colleague—it is also the first day of the new Canada Periodical Fund. Today is the day it comes into effect. The fund is the result of a merger of two programs: the Publications Assistance Program and the Canada Magazine Fund. The Publications Assistance Program had been in existence for many years and the Canada Magazine Fund had been in existence for 15 or 20 years.
When we talk about periodicals, we are talking about traditional magazines on glazed paper. It also includes more traditional newspapers and community newspapers. For the purposes of the discussion, our program relates only to community newspapers that are not daily papers. So forget about The Globe and Mail, La Presse, and Le Journal de Montréal. We aren't in that business, in terms of government support.
What are the key features of the new Canada Periodical Fund? Essentially, these two funds were merged to simplify the application process, which had become exceedingly complex. It was also to simplify the reporting that recipients had to do periodically to the government on the support they receive. The new Canada Periodical Fund will also provide increased flexibility for publishers of community newspapers or periodicals, i.e. magazines, in their use of resources. In the past, for example, the Publications Assistance Program supported the costs of distributing magazines and community newspapers only. With this new program, we are expanding that to cover a range of eligible expenses, including creating content, transfer to websites, editing, distribution, production, etc. So it is a much broader gamut of eligible expenses.
The Canada Periodical Fund also has the objective of supporting their transition to the digital era. We can talk about that a little later on, if you like. The fund still ties support to the purchasing choices of Canadians. So we are dealing with an industry where we are going to work with the periodicals that Canadians buy.
The annual budget is $75.5 million.
On page 4 of the deck, we have three main components to the program. The first component is the aid to publishers component. This is where most of the money is going. It's a formula-based process. Essentially, we're looking at the number of readers who those magazines or community newspapers are reaching.
I've mentioned that the funds can be used for a wide variety of publishing activities, including creation, production, and online activities. We anticipate that over 900 titles will benefit. There's a new feature under this program. There's a cap per title of $1.5 million. This is a major change from what the two other programs had as program guidelines. The periodicals must sell 5,000 copies per year, with exceptions for aboriginal, ethnocultural, and official language minority publications. We'll talk about that later in the presentation.
There are two other small but important components of the program. The collective initiatives are for project funding for industry-wide initiatives and generic marketing campaigns for magazines. When you travel in an airport, you may see maple leaves on the racks where magazines are. This is the type of project that this component is designed to support. The third component is business innovation. Essentially, it's to help publishers work on their business plans, professional development, market research, etc. We are also going to be working only with online publications. We could take a few questions on that if you're interested.
On page 5, for official language minority publications, we have customized criteria. Essentially, the eligibility requirement of at least 50% of the paid circulation is waived for periodicals from official language minority publishers. The 5,000 copies sold per year has been split in half for those publications, to 2,500. Organizations such as l'Association de la presse francophone and the Quebec Community Newspapers Association can apply to one of the components of the program, which is the collective initiatives program.
Essentially, at page 6, you will see our two programs in 2008-2009: the Publications Assistance Program and the Canada Magazine Fund, which supported 27 official language minority publications. The total amount was a little over $700,000 for those publications. Most of the publications were community newspapers. We anticipate more applicants this year because there will be more publications of this type. The competition is closed and we have already received 35 applications. This is a significant increase. Analysis of those applications is currently underway. We project that funding will be equal to funding in the past, if not higher, for this type of publication. That figure could go as high as about $1 million. By our calculations, official language minority publications might receive as much as $1 million of the total resources.
Scott, do you want to walk us through the last page?