Canadian newspapers, already receiving large federal subsidies, are lobbying for a massive increase in government support. Blacklock's Reporter says News Media Canada, the industry's trade group, has called on MPs to mandate a 20-fold increase in federal advertising spending for print media, despite earlier rejections from the cabinet.“The business environment for most news publishers remains challenging, and there are no immediate silver bullets to address the decline in advertising revenue,” News Media Canada wrote in a petition to the Commons finance committee. The group argued that securing millions in federal advertising could “begin to address some of the challenges.”Federal departments and agencies spent $86.1 million on advertising last year, with only $944,602 going toward print media, according to a Department of Public Works report. Publishers are asking that at least 25% of all federal advertising—around $21.5 million—be earmarked for Canadian print media.“To support domestic news media, earmark 25% of the government’s advertising spend toward private sector Canadian news sources,” the petition urged, noting that the government spent more on TikTok ($1.1 million) than on print publications in 2022.The issue of declining federal ad spending is not new. “Our members are losing money which is vital for their survival,” testified Thomas Saras, CEO of the Ethnic Press and Media Council of Canada, during 2017 Commons committee hearings. Saras said that several publications had already shut down due to inadequate funding. “The whole industry is in trouble, and we try to survive,” he said.Despite the industry's concerns, former Treasury Board President Scott Brison dismissed the idea of mandated ad revenue for newspapers, calling it a misuse of funds. “Government advertising is not intended to provide such support,” Brison wrote to the government operations committee in 2018. He emphasized that ad spending should be driven by specific objectives, not industry bailouts.News Media Canada has already succeeded in securing additional government assistance. In 2023, the group successfully petitioned the Commons finance committee to double “temporary” payroll rebates for newsrooms from $13,750 to $29,750 per employee. Initially budgeted at $595 million over five years, the media bailout was set to expire on March 31, 2023. However, the subsidies are expected to continue, with some calling for permanent financial support.Bob Cox, former publisher of the Winnipeg Free Press and then-chair of News Media Canada, acknowledged the need for a transition away from government dependency but emphasized the difficulty of doing so. His newspaper received $1 million annually from the subsidy program.“We will have to save ourselves,” Cox testified in 2018, explaining that news outlets were working to transform their business models to remain sustainable. When asked by Liberal MP Rachel Bendayan (Outremont, Que.) about the timeline for the transition, Cox replied that the five-year program was appropriate: “There does need to be a deadline... 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.”The Western Standard does not accept any government bailout money.
