Mr. Speaker, thank you for this opportunity to address my colleagues, as well as all Canadians, with respect to Bill C-55, the Foreign Publishers Advertising Services Act.
This bill will make it an offence for foreign periodical publishers to sell advertising services on the Canadian market. This is an important legislative measure for the Canadian periodical publishing industry, because it will protect the health of this important cultural industry.
Revenues from advertising services are vital to any periodical publisher. Without them, periodicals would simply not exist. Revenues from advertising services pay for such things as editorial content, the cost of photos, and the development of new talent.
Bill C-55 will ensure that Canadian publishers have access to the limited advertising revenue in our country. They will thus continue to bring Canadians a wealth of diversified articles, information and viewpoints about their own country.
Over the years, the Canadian periodical publishing industry has played a very important role in developing our cultural identity. With the support of the federal government, the industry has grown.
Forty years ago, there were 660 Canadian periodicals, with an annual circulation of 28 million copies, representing 20% of all periodicals sold in Canada. Today, there are over 1,500 periodicals, with a circulation of 539 million, representing 65% of all periodicals sold in Canada.
In 1996-97, the Canadian publishing industry brought in over $1 billion, and provided jobs for close to 6,000 Canadians. This industry illustrates the success of Canada's cultural policy, which is why it is important to support this bill.
I want to point out that over 60% of all revenues reported, or $647 million, came from advertising, and this can go as high as 80% and up for general and special-interest periodicals. Paid subscriptions and newsstand sales are not enough to ensure the survival of periodicals.
Members have surely all had periodicals distributed free to their home or office. These are made possible by the sale of advertising services.
Advertising revenues are vital, as I will explain. Each page of advertising pays for one page of editorial content. American publishers have a net competitive advantage over their Canadian counterparts when it comes to supplying advertising services to Canada. This is because they can recycle content for the Canadian market. Furthermore, the size of the American market is conducive to economies of scale in the periodical industry. Bill C-55 seeks to address this unfair situation.
Parliament must ensure the economic survival of the Canadian periodical publishing industry and the continued prosperity of Canadian publishers.
As the Minister of Canadian Heritage said, periodicals differ from other products, in that they are vehicles for the expression of our unique views and experiences. We want those views and experiences to be heard.
The bill will not make it difficult to import foreign periodicals. In this regard, our country is one of the most open in the world. The United States exports more periodicals into Canada than do all other countries combined. Foreign publishers will be able to go on selling their periodicals without restriction in Canada, and Canadians will have the same access to foreign periodicals they have always had.
The new legislation will simply ensure that Canadian periodical publishers have access to the advertising revenues they need to create periodicals that give voice to our own cultural identity.
Canada is very aware of the advantages and opportunities of increased globalization, and intends to promote international trade and establish corresponding rules.
Canada also intends to support our cultural diversity, in which periodicals play an important role. We believe that these two goals can coexist.
In conclusion, I urge my colleagues to pass this bill quickly because, as we have mentioned throughout the debate, it is important for all Canadians and for Canadian jobs.