The Trudeau government’s $595 million media bailout did not succeed in preserving jobs and consisted primarily of “temporary” measures, says a briefing note for Heritage Minister Pablo Rodriguez.. Newspaper stackNewspaper stack .The note highlighted that despite receiving substantial subsidies, newspapers still had to cut jobs. At the same time, the only notable growth in the media industry was observed in digital startups that operated without subsidies, according to Blacklock’s Reporter..“Since the beginning of the pandemic, 78 news outlets closed, including 65 community newspapers,” said the note Federal Support for Journalistic Content. .“However, in the same period, 57 local news outlets have launched: two TV stations, five radio stations, nine community newspapers and 41 online news organizations.”.“Due to government support and a recent boost in advertising revenue, some news organizations have experienced some stability and growth,” said the note. .“Since the peak of the pandemic closures, 16 community newspapers have reopened although overall job losses have continued upwards.”.Subsidies like a 15% subscription tax credit were only “temporary,” said the note. The tax credit and a 25% payroll rebate worth $13,750 per newsroom employee were budgeted initially to last five years. They are to expire on March 31, 2024..Cabinet released the March 3 briefing note on Friday without any comment. This release came just days after the chief lobbyist for newspaper publishers had called for additional subsidies..“We have a market failure here,” Paul Deegan, CEO of News Media Canada, testified on May 30 at the Senate Transport and Communications committee..“We need a solution. And that’s why we’ve come to government even though frankly we would like to stay as far away from government.”.According to an Inquiry of Ministry tabled in the Commons on Jan. 24, News Media Canada publishers reduced their workforce so significantly that the cost of payroll rebates was lower than budgeted. .The rebate budget was $170 million, but the actual costs incurred to date amount to $96.1 million..“The loss of even just one job is a tragedy,” Rodriguez earlier told reporters..Despite the unprecedented direct subsidies, a senior official in Rodriguez's department recognized on April 26 that they could not rescue struggling media companies..“We have seen a significant decline in journalism,” said Thomas Ripley, associate assistant deputy Heritage minister..“The labour tax credit that’s in place, notwithstanding those interventions, we continued to see a decline in news,” Ripley told the Senate Communications committee. .Records show that most publishers took advantage of federal grants during the pandemic by receiving a 25% journalism payroll rebate and additional Canada Emergency Wage Subsidies. However, this COVID relief program has now expired.
