Manitoba Daily, a newspaper that led the national campaign for a $595 million government media bailout, claimed the “uncertainty of the political landscape” is impacting subsidized outlets.The publisher of the Winnipeg Free Press did not identify any political party by name but noted the loss of taxpayers’ aid would hurt the business, according to Blacklock’s Reporter.“The uncertainty of the political landscape continues to impact the newspaper industry, the impact of which may necessitate cost reduction initiatives to address the continued revenue decline and reliance on government subsidies,” managers of FP Canadian Newspapers Ltd. wrote to shareholders..The company in 2024 received $2.8 million in taxpayers’ payroll rebates compared to $1.8 million the previous year, according to accounts.“There can be no assurance the amounts accrued will be realized or that these tax credit programs will continue to be available to us in the future or will not be reduced, changed or eliminated,” wrote management.“Any future elimination or reductions of these tax credits or amendments to, or unfavourable determinations regarding, their application could increase our costs, having an adverse effect on our business.”.The shareholders’ report did not elaborate. Opposition Leader Pierre Poilievre has proposed ending payroll rebates as wasteful.“Sell subscriptions and advertising, get sponsorships and do what media have done for, I don’t know, 3,000 years,” he told reporters last August 15.Parliament in 2019 amended the Income Tax Act to pay rebates of up to $13,750 per employee of cabinet-approved newsrooms. Payroll rebates in 2024 were doubled to a maximum of $29,750 per employee**,** though the Free Press and other dailies had said subsidies should expire after five years.“We will have to save ourselves,” then-Free Press publisher Bob Cox, chair of News Media Canada that successfully lobbied for subsidies, 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.”“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,” testified Cox. “There does need to be a deadline.”“Deadlines can also focus you and get you moving to where maybe you aren’t moving now,” said Cox. “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 Liberal MP Rachel Bendayan (Outremont, QC).“In my opinion**,** yes,” replied Publisher Cox.The Free Press reported net income of $2.7 million last year after pocketing $2.8 million in bailout money. Print advertising revenue was down 11%.“We anticipate circulation to remain challenging,” said the shareholders’ report.
Manitoba Daily, a newspaper that led the national campaign for a $595 million government media bailout, claimed the “uncertainty of the political landscape” is impacting subsidized outlets.The publisher of the Winnipeg Free Press did not identify any political party by name but noted the loss of taxpayers’ aid would hurt the business, according to Blacklock’s Reporter.“The uncertainty of the political landscape continues to impact the newspaper industry, the impact of which may necessitate cost reduction initiatives to address the continued revenue decline and reliance on government subsidies,” managers of FP Canadian Newspapers Ltd. wrote to shareholders..The company in 2024 received $2.8 million in taxpayers’ payroll rebates compared to $1.8 million the previous year, according to accounts.“There can be no assurance the amounts accrued will be realized or that these tax credit programs will continue to be available to us in the future or will not be reduced, changed or eliminated,” wrote management.“Any future elimination or reductions of these tax credits or amendments to, or unfavourable determinations regarding, their application could increase our costs, having an adverse effect on our business.”.The shareholders’ report did not elaborate. Opposition Leader Pierre Poilievre has proposed ending payroll rebates as wasteful.“Sell subscriptions and advertising, get sponsorships and do what media have done for, I don’t know, 3,000 years,” he told reporters last August 15.Parliament in 2019 amended the Income Tax Act to pay rebates of up to $13,750 per employee of cabinet-approved newsrooms. Payroll rebates in 2024 were doubled to a maximum of $29,750 per employee**,** though the Free Press and other dailies had said subsidies should expire after five years.“We will have to save ourselves,” then-Free Press publisher Bob Cox, chair of News Media Canada that successfully lobbied for subsidies, 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.”“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,” testified Cox. “There does need to be a deadline.”“Deadlines can also focus you and get you moving to where maybe you aren’t moving now,” said Cox. “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 Liberal MP Rachel Bendayan (Outremont, QC).“In my opinion**,** yes,” replied Publisher Cox.The Free Press reported net income of $2.7 million last year after pocketing $2.8 million in bailout money. Print advertising revenue was down 11%.“We anticipate circulation to remain challenging,” said the shareholders’ report.
