Unpopular federal subsidies have turned corporate media into targets of public scorn, the Commons heritage committee has been told. An Alberta editor said taxpayers believe reporters are “on the take.".“Attacks on media are strategic and they are popular,” said Jen Gerson of Calgary, co-founder of the online newsletter The Line. “Journalists are not well liked by the general public who have a negative opinion of the press corps that is perceived to be on the take.”.According to Blacklock's Reporter, Parliament in 2019 approved a $595 million bailout of cabinet-approved publishers. Subsidies include 25% payroll rebates to a maximum $13,750 per newsroom employee and 15% tax credits for subscribers..Federally-endorsed publishers also qualified for extra pandemic wage subsidies and sole-sourced contracts for news clippings at uncompetitive rates, a total average $7.5 million a year, according to the Department of Public Works..“Struggling media corporations are using every last iota of their dwindling financial and social capital to lobby for subsidies,” testified Editor Gerson. “When the federal government tries to save the media, the media become a legitimate target for partisan attack,” she added..The heritage committee is reviewing Bill C-18 the Online News Act that would allow media corporations to bypass anti-trust laws in seeking a portion of advertising revenue from Google and others. “I have real concerns about making media outlets dependent on revenue that is subject to the whims of the government in power,” said Gerson..“A future government, say one led by Mr. Poilievre, will have no compunction about undoing C-18 and other subsidies,” said Gerson. “The industry’s dependence on these revenue streams makes us pawns of partisan politics whether we wish to be or not.”.Opposition Leader Pierre Poilievre successfully campaigned for the September 10 Conservative Party leadership on a platform that included a proposal to repeal media subsidies and defund the CBC. The Crown broadcaster’s main revenue source is a $1.3 billion-a year parliamentary grant..“Essentially what I hear you saying is if you get rid of the government you bring back trust, the trust of the public which is waning right now because they perceive media as being bought off and not reporting stories correctly,” said Conservative MP Rachael Thomas (Lethbridge, Alta.): “Can you comment?”.“I am a small media organization and I don’t want money through this program and I don’t want money from this government,” replied Editor Gerson. “I want to be able to be a self-sustaining business.”.The $595 million bailout is to expire March 31, 2024. “The government is committed to supporting the long term viability of the Canadian news sector,” the Department of Canadian Heritage said in a July 7 statement.
Unpopular federal subsidies have turned corporate media into targets of public scorn, the Commons heritage committee has been told. An Alberta editor said taxpayers believe reporters are “on the take.".“Attacks on media are strategic and they are popular,” said Jen Gerson of Calgary, co-founder of the online newsletter The Line. “Journalists are not well liked by the general public who have a negative opinion of the press corps that is perceived to be on the take.”.According to Blacklock's Reporter, Parliament in 2019 approved a $595 million bailout of cabinet-approved publishers. Subsidies include 25% payroll rebates to a maximum $13,750 per newsroom employee and 15% tax credits for subscribers..Federally-endorsed publishers also qualified for extra pandemic wage subsidies and sole-sourced contracts for news clippings at uncompetitive rates, a total average $7.5 million a year, according to the Department of Public Works..“Struggling media corporations are using every last iota of their dwindling financial and social capital to lobby for subsidies,” testified Editor Gerson. “When the federal government tries to save the media, the media become a legitimate target for partisan attack,” she added..The heritage committee is reviewing Bill C-18 the Online News Act that would allow media corporations to bypass anti-trust laws in seeking a portion of advertising revenue from Google and others. “I have real concerns about making media outlets dependent on revenue that is subject to the whims of the government in power,” said Gerson..“A future government, say one led by Mr. Poilievre, will have no compunction about undoing C-18 and other subsidies,” said Gerson. “The industry’s dependence on these revenue streams makes us pawns of partisan politics whether we wish to be or not.”.Opposition Leader Pierre Poilievre successfully campaigned for the September 10 Conservative Party leadership on a platform that included a proposal to repeal media subsidies and defund the CBC. The Crown broadcaster’s main revenue source is a $1.3 billion-a year parliamentary grant..“Essentially what I hear you saying is if you get rid of the government you bring back trust, the trust of the public which is waning right now because they perceive media as being bought off and not reporting stories correctly,” said Conservative MP Rachael Thomas (Lethbridge, Alta.): “Can you comment?”.“I am a small media organization and I don’t want money through this program and I don’t want money from this government,” replied Editor Gerson. “I want to be able to be a self-sustaining business.”.The $595 million bailout is to expire March 31, 2024. “The government is committed to supporting the long term viability of the Canadian news sector,” the Department of Canadian Heritage said in a July 7 statement.
