Mr. Speaker, I am very pleased to have this opportunity to participate in the debate and discussions on Bill C-15. I would like to focus briefly on the issue of the digital services tax, which I feel is very important, particularly for the cultural and media sectors. We have discussed it at length. I think it is important to highlight the significant consequences of abolishing this tax.
First and foremost, it is important review the context and acknowledge that, in order for the government to address a problem and find solutions to it, the government must first recognize that a problem exists. The government must acknowledge the problem, take note of it, analyze it and then put measures in place to address it and correct it to the greatest extent possible.
That is what this government and governments around the world have done. Take, for example, the OECD, which set up a working group a few years ago to study the issue of digital giants, the so-called GAFAM, and their impact on the public finances of the various countries in which they operate. The OECD looked into this. Many countries, including the European Union and Australia, which we have also talked a lot about, have legislated on tax issues relating to digital giants.
In 2024, Canada took a step in the right direction. Not only did it recognize that there was a situation that warranted its attention, but it also introduced the Digital Services Tax Act. Subsequently, as we know, it introduced the much-talked about digital services tax, a tax aimed at correcting the kind of tax inequity involving multi-billion dollar companies, generally American, that are making a fortune here in Canada by flooding our devices and our cultural market with content. In the vast majority of cases, this content is in no way representative of the cultural fabric of Quebec and Canada and, by extension francophone culture. I am particularly concerned about that.
The purpose of the digital services tax was to address this inequity and bring some fiscal accountability with regard to these businesses. The revenue that could have been generated from this tax was estimated at $7.2 billion over five years. Let us be conservative and say $1 billion, $1.2 billion or $1.3 billion in revenue per year. In our opinion, that was great news, except for the caveat that it was not directly intended to support the cultural and media sectors. Still, that money could have been well spent. It could have been added to the public purse and ultimately used to support those sectors.
We were all there just over a year ago when President Trump returned to the White House in the United States with his rhetoric, threats and tariffs. We saw all of the instability he was causing, not only in his own country, but also here and around the world. We needed some bargaining power. We needed to show Canada's goodwill. To that end, the Prime Minister made what I believe was a highly questionable decision. He decided to bend the knee, take his spine and stick it in a drawer, and do away with the digital services tax, hoping that would make Donald think he was a nice, easygoing, understanding, co-operative guy. He did away with a tax that Donald Trump hates because it penalizes the American companies that provide him with such generous support. Perhaps the Prime Minister thought that Donald would surely be convinced to strike a good deal with his dear friend, the Prime Minister of Canada, and scrap the tariffs. The Prime Minister thought that everything would work out. However, that is not what happened at all. The American President watched him do it. He did not react. He did not bat an eye. He did not lift a finger, and everything continued to go as badly as it had been going for months.
The Prime Minister did not consider that, by abolishing the tax on digital services, he was eliminating a potential revenue stream of over $1 billion per year that could have been used to save the cultural and media sectors of Quebec and Canada. If he had, he might have decided to reinstate it, but no, he decided to let it go.
The government introduced Bill C-15, and we thought that common sense would prevail and that the minister would decide to reinstate the tax, not eliminate it. By retaining this one tool, or the possibility of implementing it, he would have had leverage for his discussions with the American President when it came time to negotiate CUSMA.
At that point, we could have extracted major concessions had we had something worthwhile or a bargaining chip. However, the government decided to abolish that tax.
What does that mean? That means that our media, particularly regional news outlets, remain in the extremely precarious situation that they have been in for years without any glimmer of hope from the government that they might be rescued from their current predicament.
There was a measure proposed by the Bloc Québécois. In addition to preserving the digital services tax and turning it into a levy that would have been used exclusively to save and support the cultural sectors and the media, we asked that electronic news media outlets, namely radio and television, be granted the same tax credit that print media outlets already get. This is something that electronic news media outlets have been actively calling for. Newspaper newsrooms receive a payroll tax credit that gives them a bit of breathing room in an environment that is extremely competitive, extremely volatile and extremely difficult for them financially. Radio and television media are saying that they too have extremely expensive newsrooms to operate and that they should have the same privilege and right.
This is something that these media outlets have long been asking for, and the Bloc Québécois has supported it from the beginning. We even included it in our 2025 election platform. The Liberals refused to listen and rolled out a budget with hundreds of millions of dollars for culture that they have been bragging about, but there is nothing in the budget for these media outlets. The budget does not even include this small, inexpensive measure, this payroll tax credit for radio and television newsrooms. There has been complete radio silence on that front.
We can see that this government lacks the will to truly walk the talk. We hear it saying that the media is important, that news is important, but yet it is failing to implement small, simple measures. It is also failing to implement major measures, like the digital services tax, or DST, which could have been transformed into a levy and would have been extremely beneficial. I would remind the House that this tax would have provided a great deal of support for the cultural and media sectors. When it came time to put these measures in place, once again, the government failed to listen. That is unfortunate. It is unfortunate because we are missing a great opportunity to help an extremely disadvantaged sector.
In my opinion, there are serious problems with news coverage in regional communities in Quebec and Canada. Companies in the business of delivering regional reporting, of covering our regional realities, are finding it increasingly difficult to do so. Covering only big cities and national and international issues is not enough. We also need coverage of what is happening here at home, of our own realities, of what makes our regions tick, but these companies are finding it increasingly difficult to cover those things. Businesses and media are struggling. They have to make cuts. They have to cut positions, and reporters' positions are often the ones to go.
I was very relieved and pleased to hear CBC's announcement in January and Radio-Canada's more recent announcement about the creation of new journalist positions at regional stations. CBC/Radio-Canada is creating 29 new positions in Quebec and about 30 in the rest of Canada. I think that is good news, obviously, because CBC/Radio-Canada is our public broadcaster, and its mandate is to cover news everywhere, all across the country. However, CBC/Radio-Canada should not be the only media outlet with the means to do that. It should not be the only media outlet available in those parts of the country. People everywhere need diverse news sources.
In closing, I want to come back to the digital services tax. I believe that it was a mistake and an enormous lack of political courage on the government's part not to have kept the tax in place simply because Uncle Donald was not happy with it. At some point, the Liberals need to grow a backbone that is strong enough to withstand anything and that will not turn to jelly when the wind howls a little too much or when Uncle Donald blusters and sends out a mean tweet at two a.m. after a couple of burgers.
It takes courage, and this tax was a show of courage and a willingness to stand up for ourselves. Most of all, it maintained some leverage for the upcoming CUSMA negotiations. However, the Liberals are basically tipping their hand to Donald. We will pay the price at some point, and so will our media.