COLUMN: Liberal government ignores even its own MPs on supporting Canadian news

With nice words and platitudes, they rejected everything that the Heritage committee recommended

The federal Liberal government has ignored its own Members of Parliament – again.

Anyone following the furor over proposed changes to small business taxes won’t be surprised by this.

But it was disappointing nonetheless to see how Liberal cabinet ministers responded this week to a report done on local news by the House of Commons committee on Canadian Heritage.

MPs on the committee spent 15 months studying what is happening in the rapidly changing news media landscape. They met 44 times and heard from 131 witnesses. Liberals and New Democrats issued a majority report in June that said steps must be taken to help news media navigate this tumultuous period.

Their conclusion: “Given the media’s importance as a reflection of Canada’s diversity and a pillar of our democracy, the government of Canada must implement the necessary measures to support the existence of a free and independent media and local news reporting.”

The government is required to respond to such reports. This week the response came from Heritage Minister Melanie Joly, Innovation Minister Navdeep Bains and Finance Minister Bill Morneau.

With nice words and platitudes, they politely rejected pretty much everything that the Heritage committee recommended.

They said the federal government is already doing lots to help local news media survive, innovate and transform.

This is laughable.

The ministers said the government is ensuring a vibrant, local and reliable news media ecosystem is a pillar of democracy with its Canada Periodical Fund. This is a $75 million program that mostly subsidizes printed magazines and provides some money for paid, printed community papers, especially those catering to ethnic and specialty audiences. It is not open to daily newspapers that still provide the base of the news media ecosystem in cities across Canada.

The ministers point to the business innovation component of the Periodical Fund as a way to encourage innovation to adapt to changing market conditions. This part of the program spends $1.5 million per year. For the whole country.

The ministers have no answer to the Heritage committee’s concerns that foreign news aggregators – like Google and Facebook – don’t have the same tax obligations as Canadian providers.

For example, a business placing an ad with a Canadian newspaper or TV station cannot deduct the expense if the media outlet is foreign-owned. Yet the same business can place ads on foreign-owned digital platforms aimed primarily at Canadian market and deduct the costs.

All the ministers say is that the digital economy poses challenges for tax systems in all jurisdictions and the Finance department is examining the issue.

Another Heritage committee recommendation to help news media is to allow the creation of charitable foundations to support journalism. People could get a tax deduction for donating to this cause. There could be PBS-like campaigns to raise money for news outlets.

The ministers say “it is not clear that amending the Income Tax Act to include not-for-profit media organizations and foundations as charities would be an effective way of supporting the not-for-profit media.”

This is an incredible statement. It suggests that charitable status is not an effective way of supporting not-for-profit organizations. In fact, it is the only effective way of surviving for many non-profits, which is why there are 86,000 charities in Canada.

The ministers also contradict themselves. They say charitable status is for purposes recognized as beneficial to the public. They also say in the letter that the government “recognizes the important role media and journalism play in Canadian society and more specifically their role as fundamental pillars of our democratic process.”

So news media are fundamental to democracy, but not beneficial enough to the public to have charitable status.

The ministers go on to say, essentially, that the government has put enough money into the system, into areas such as the CBC, to ensure the health of local news coverage.

The whole response amounts to a careful, bureaucratic rejection of any change in what the government is doing – which is next to nothing – on what the majority of MPs on the Heritage committee determined was a serious and urgent problem.

I testified before the Heritage committee, hoping that their work would bring greater attention to the issue and lead to action.

I was wrong.

– Bob Cox

Just Posted

Métis Flag flies in Trail on Louis Riel Day

Area students, officials and public attend flag raising at Trail City Hall

Early Trail borrowed a couple of names from the U.S.

Place Names: Connection between Trail and Butte, Montana

First Past the Post is the only option

Letter to the Editor by Dieter Bogs of Trail

Acid tainted vehicles from Trail spills, held for evidence

Contaminated vehicles are evidence in ICBC’s lawsuit against “negligent parties”

Kootenay Boundary swears in 7 new directors

Regional District of Kootenay Boundary swears in 7 new directors and 6 returning directors

Winter weather hits parts of Canada

As some parts of the country brace for cold, parts of B.C. remain warmer than 10 C

Canada’s health system commendable overall but barriers to care remain: UN

The United Nations says Canada’s health care system is “commendable” overall but vulnerable groups still face barriers to quality care.

Unique technology gives children with special needs more independent play

UVic’s CanAssist refined seven prototypes aided by $1.5M government contribution

Kelly Ellard’s boyfriend has statutory release revoked

Darwin Duane Dorozan had several parole infractions that found him ‘unmanageable’

Doctor’s note shouldn’t be required to prove you’re sick: poll

70% of Canadians oppose allowing employers to make you get a sick note

German-born B.C. man warns against a ‘yes’ vote on proportional representation

Agassiz realtor Freddy Marks says PR in his home country shows party elites can never be voted out

Fashion Fridays: 5 coats you need this winter!

Kim XO, lets you know the best online shopping tips during Fashion Fridays on the Black Press Media Network

Saskatchewan college honours memory of Humboldt Broncos coach

Darcy Haugan wore jersey No. 22 when he was a star player with the Briercrest College Clippers

Liberals to act quickly if Saturday midnight deal deadline breached: source

Oh Friday, Canadian Union of Postal Workers said it would not bring the latest offers to a vote of its members

Most Read