The cabinet indicated on Tuesday that it plans to continue the $595 million temporary media bailout for newspapers, which is about to expire..Bob Cox, a press lobbyist who secured the media bailout on the promise “you can’t give them forever,” has been named as a panel member overseeing the bailout program until 2025..According to Blacklock’s Reporter, the cabinet disclosed an executive order signed on September 6 appointing Cox as a member of the Independent Advisory Board on Eligibility for Journalism Tax Measures. .The panel submits requests from publishers for financial assistance to the minister of Revenue for final approval after reviewing them..Cox will “hold office during pleasure for a term of two years,” said the notice..The bailout money given to help newspapers was supposed to end on March 31, 2024. .The bailout let “approved” newspapers receive a 25% rebate of their employee's salaries, up to $13,750 for each employee. The newspaper subscribers also got a 15% tax break..Cox, then-chair of the Canadian Newspaper Association, asked for the subsidies and said it would only be temporary assistance..“We will have to save ourselves,” Cox testified at 2019 hearings of the Commons Finance committee..“All of us are engaged in transforming our business models so we can continue to fulfill the key role that a free press must play in a healthy democracy,” testified Cox, then-publisher of the Winnipeg Free Press. His own daily’s share of subsidies was $1 million a year, said Cox..“I wonder if you can give us a sense of how long this transition period will last?” asked Liberal MP Rachel Bendayan (Outremont, QC). .“The program itself is envisioned to be for five years and I felt that was an appropriate period of time for the transition because, of course, there will be news outlets, newspapers, that fail the transition, and you can’t give them forever,” replied Cox..“There does need to be a deadline,” said Cox. .“Deadlines can also focus you and get you moving to where maybe you aren’t moving now. I think it’s important. I see this as a transitional program and temporary help. I don’t like the idea of a long-term subsidy for newspapers that becomes permanent.”.“Is the five years proposed appropriate in your opinion?” asked MP Bendayan. .“In my opinion, yes,” replied Cox..On April 27, department of Canadian Heritage managers spoke at a Senate Transport and Communications committee meeting. .The managers said that the money spent to help newspapers did not save jobs or improve the quality of the newspapers..“We have seen a significant decline in journalism,” testified Thomas Ripley, associate assistant deputy minister..“The labour tax credit that’s in place, notwithstanding those interventions, we continued to see a decline in news,” said Ripley. .Even with the government subsidies, a March 3 Heritage department briefing note Federal Support for Journalistic Content showed that 78 newspapers, including 65 weeklies, had closed.
The cabinet indicated on Tuesday that it plans to continue the $595 million temporary media bailout for newspapers, which is about to expire..Bob Cox, a press lobbyist who secured the media bailout on the promise “you can’t give them forever,” has been named as a panel member overseeing the bailout program until 2025..According to Blacklock’s Reporter, the cabinet disclosed an executive order signed on September 6 appointing Cox as a member of the Independent Advisory Board on Eligibility for Journalism Tax Measures. .The panel submits requests from publishers for financial assistance to the minister of Revenue for final approval after reviewing them..Cox will “hold office during pleasure for a term of two years,” said the notice..The bailout money given to help newspapers was supposed to end on March 31, 2024. .The bailout let “approved” newspapers receive a 25% rebate of their employee's salaries, up to $13,750 for each employee. The newspaper subscribers also got a 15% tax break..Cox, then-chair of the Canadian Newspaper Association, asked for the subsidies and said it would only be temporary assistance..“We will have to save ourselves,” Cox testified at 2019 hearings of the Commons Finance committee..“All of us are engaged in transforming our business models so we can continue to fulfill the key role that a free press must play in a healthy democracy,” testified Cox, then-publisher of the Winnipeg Free Press. His own daily’s share of subsidies was $1 million a year, said Cox..“I wonder if you can give us a sense of how long this transition period will last?” asked Liberal MP Rachel Bendayan (Outremont, QC). .“The program itself is envisioned to be for five years and I felt that was an appropriate period of time for the transition because, of course, there will be news outlets, newspapers, that fail the transition, and you can’t give them forever,” replied Cox..“There does need to be a deadline,” said Cox. .“Deadlines can also focus you and get you moving to where maybe you aren’t moving now. I think it’s important. I see this as a transitional program and temporary help. I don’t like the idea of a long-term subsidy for newspapers that becomes permanent.”.“Is the five years proposed appropriate in your opinion?” asked MP Bendayan. .“In my opinion, yes,” replied Cox..On April 27, department of Canadian Heritage managers spoke at a Senate Transport and Communications committee meeting. .The managers said that the money spent to help newspapers did not save jobs or improve the quality of the newspapers..“We have seen a significant decline in journalism,” testified Thomas Ripley, associate assistant deputy minister..“The labour tax credit that’s in place, notwithstanding those interventions, we continued to see a decline in news,” said Ripley. .Even with the government subsidies, a March 3 Heritage department briefing note Federal Support for Journalistic Content showed that 78 newspapers, including 65 weeklies, had closed.
