moved:
That, in the opinion of this House, the government should consider the advisability of increasing literacy in Canada by removing the Goods and Services Tax on all reading materials.
Mr. Speaker, it is a pleasure and privilege to rise today to put forward Motion No. 93 which reads as follows:
That, in the opinion of this House, the government should further contribute to increasing literacy in Canada by removing the Goods and Services Tax on all reading material.
Since the GST was introduced in 1990 under the Conservative government of Brian Mulroney and implemented in 1991 the people of Canada have been subjected to a 7% tax on all reading material. That includes books, children's books, magazines whether at the news stand or by subscription, and newspapers. In fact all reading material.
The GST is the first federal tax on reading in Canada's history. Provinces have never taxed books. Every time someone opens their wallet to buy a magazine or a novel they pay an extra 7¢ on the dollar to the federal government. Post-secondary students who buy their own books must pay tax. Literacy learners who mostly buy their own materials must pay tax. Tutors in literacy are also affected. Canadians purchasing books for self-health purposes and to further their knowledge must pay tax. Parents who buy their children books must pay tax.
We recognize there are GST credits and other educational credits for students, but these do not make up for the fact that we tax textbooks. We are talking about a tax burden on a fundamental activity which people the world over take part in and benefit profoundly from, reading, something very simple, something very intimate when shared.
I had the honour of attending the public readings of the governor general literary award winners last week. It was a very special event to be involved in a public reading. We all know reading is something quiet and restorative. It helps us to connect with ourselves and link up the outside with our inner selves. It is a healthy, nurturing and calming pastime.
Unlike our national sport, fights never break out in groups of readers. Reading is educational, sustainable, non-polluting and non-violent, an A1 activity. Yet we are being taxed by the federal government for the privilege of engaging in it.
I would even go so far as to put forward the radical idea that reading is an important cornerstone of the country's culture. If writing is so then reading must also be.
In 1960 the O'Leary royal commission asserted that magazines and newspapers were the most important publications in creating a Canadian culture and sense of identity:
So far as the written word is concerned it is left largely to our periodical press, to our magazines, big and little, to make a conscious appeal to the nation to try to interpret Canada to all Canadians, to bring a sense of oneness to our scattered communities.
One does not have to be reading a 400-page novel by Jane Urquhart or David Adams Richards. One can be enjoying a favourite column in the newspaper or the weekend funnies.
My children still love to pour over magazines which advertise toys at Christmastime, reading every word about the toys they are interested in over and over and over so that they can conjure up a perfect picture in their minds of how wonderful that toy will be when they finally see it under the Christmas tree.
Magazines and newspapers are the reading material of choice for young Canadians and new learners. For someone young or old trying to crack the barrier between the non-reading and the reading world, magazines provide a colourful, picture filled non-threatening and potentially successful journey into the world of print.
Reading is thankfully something which Canadians continue to engage in despite the barrage of audio visual images coming at us at all hours of the day and night. Reading, however, like many other good things in our cultural and physical environment is somewhat on the endangered list and not helped along in the least by the GST.
Canada has a very high illiteracy rate. One if five Canadians tested in a recent international literacy survey could not understand the label on a bottle of aspirin well enough to know the safe dosage. When provided with a nutritional analysis, only one out of four Canadians could calculate the percentage of calories that came from fat in a Big Mac.
On September 12, 1997 the Globe and Mail quoted the Minister of Finance as saying: “I can't see how taking the tax off books is going to stimulate literacy”. The Minister of Finance continues to contend that literacy is not a financial issue and therefore, I guess, somehow not his responsibility.
This kind of thinking is very disturbing because it indicates that he either does not understand his own job or he is flailing about for any excuse to denounce the Don't Tax Reading Coalition's ongoing campaign.
I will try to take him through it step by step. The GST makes reading material more expensive. Reading is the foundation of literacy so literacy in this case is entirely the responsibility of the minister.
Clearly the best way to promote literacy is to ensure no obstacles are in the way of those who are trying to achieve it. Anything that makes books more expensive, for example a 7% federal tax, is certainly a large obstacle.
An international survey done in 1996 found that 97% of Canadians who achieved the highest literacy levels had more than 25 books in their homes. Only 50% of those in the lowest literacy levels had more than 25 books in their homes.
The GST prices reading materials out of reach of low income Canadians. It is truly regressive for that reason. Relatively speaking, lower income Canadians spend a larger amount of their income on reading materials than those of higher income Canadians. The government's own data say so.
Why should the Minister of Finance care if we are a nation of bookworms? After all, it is the age of the Internet and computers. Why not toss out the idea of reading along with the time honoured belief in universal health care and pension plans?
Why do we want to be literate? Because it is good for business. Britain, Japan, Australia, Ireland and the United States do not tax books. They know that strong literacy skills are essential in the modern workforce. Strong literacy skills are even more essential in this technologically driven era. Bear in mind, one has to be able to read to use the Internet. Canada's ability to train and redeploy its workforce to compete internationally is hindered by inadequate literacy skills.
Senator Joyce Fairbairn opened an international policy conference on adult literacy in November, saying on behalf of the Minister for Human Resources and Development:
A highly skilled literate workforce is crucial to a strong and internationally competitive economy as industrialized countries around the world fight to maintain and expand their share of high wage jobs.
Decision and policy makers have to take literacy seriously because the information society and the global economy require individuals and economies with high literacy and numeracy skills.
Today's new jobs require highly literate workers. Literate adults and senior citizens will be far better equipped to maintain their independence and quality of life in the future, thus lessening the need for social services.
The percentage of unemployment decreases as the literacy level decreases. The Minister of Finance and his government should surely be interested in these facts. He should also be interested in the stunning impact the GST has had on the Canadian publishing industry.
Within the first three months the GST was introduced, book sales dropped by 14% and the market has never really recovered. The used book trade has dropped even more sharply from 15% to 20%. Magazine sales are down 15%. Newspaper circulation is down 5%.
During the most recent recession of the early 1980s and every previous recession in Canadian history sales of reading materials have increased but not this time. It is astounding to think of the revenues that have been lost because of this regressive tax.
Writers' royalty earnings dropped significantly due to the imposition of the GST. We should think of the legions of artists, printers, book sellers and publishers who are no longer working because of the plummeting fate of the publishing industry.
The Government of Ireland, incidentally, tried a tax on books 10 years ago and withdrew it after six months because it was having such a negative impact on sales, but not our government.
Let us consider the astounding economics of book publishing. The authors of children's books currently gets 5% royalties on the sales of their creations. The government gets 7% in tax. Yes, the government is earning more than the writer while the publishing houses continue to tread water with the odd infusion of funds from a beneficent government.
The impact on the magazine industry with the imposition of the tax has been profound as well. Many consumers simply would not remit the GST on their subscription renewals. Magazine publishers have had to remit the 7% even if they have not collected it.
All of this reminds me of a story in Jewish folklore found in a letter to the editor of the Globe and Mail from a Charlottetown reader. It is about a mythical town of fools. In one story the citizens of the town discover that a storm has left a wide crater in the middle of their main street and they fear that passers-by will fall in and break their legs. After much discussion they decide not to fill the hole but to build a hospital beside it.
Rather than removing the GST from the sale of books Ottawa is throwing life rafts to the publishing industry and the Canadian literacy program. What we need to do is empower the consumer. Take the 7% stranglehold off the book marketplace and then the demands for and sales of books will rise. That is what is really needed to benefit the publishing industry.
Finance claims that the general public has become accustomed to GST on magazines and books. But the Don't Tax Reading Coalition to this day gets hundreds of phone calls, letters and petitions complaining about the GST. People hate the principle of paying tax on reading. Books are for learning and improving. They are not cash cows. Eighty-three per cent of Canadians are on record as opposing a tax on reading.
I say to the Minister of Finance that it is time he filled that hole caused by the devastating tax on books. It is time to do the right thing, do what the Liberals promised before the 1993 election at a policy conference chaired by the Minister of Finance. As well during the election and after the 1993 election the Liberals promised to reaffirm the historic principles embodied in the tax free status of the printed word and remove the GST from reading materials. The prime minister said so himself.
We recognize that the government has tried to reduce the impact of GST on books by offering tax rebates to municipalities, schools and qualifying literary organizations, but these rebates are only for institutions. What about the individual consumer?
Taxing books deals a crippling blow to our fight against illiteracy. If want to be a country that reads, then we must eliminate the tax on books.
In closing, I would like to read from a well loved and respected Canadian children's writer, Sheree Fitch, on the topic of GST:
On the road to Lunenburg A village by the sea I met some politicians Here's what they said to me; This is the road to Lunenburg We're committed to literacy I said I know you really care... So...what about reading and the GST?
On the road to Heart's Content In the middle of Newfoundland I met a group of children Here's what they said, off hand; We really like your books miss, We really like them a lot Where do we go to get them? Two dollars is all we got.
On the road to anywhere In the middle of the galaxy, I met a child who always smiled Here's what she said to me; Yesterday I saw the moon It wasn't in the sky It was in a book—it sounded round The gold got in my eye. You see—I learned to read, miss. Isn't it grand? I never knew it possible To hold the moon in my hands I never knew it possible To hold the moon in my hands.
In closing, I believe it is time we tackled the problem of literacy in our country by taking the tax off the printed word. It is time we took the tax off our country's imagination.
Mr. Speaker, I would like to put forward a request for unanimous of the House to make this motion votable.