Media subsidies have provoked a historic mistrust of reporters, the House of Commons heritage committee was told yesterday. The best-known federal subsidy, a $595 million payroll rebate and tax credit scheme for cabinet-approved publishers, expires in 2024..“Canada is facing not one news crisis but two,” testified Jeanette Ageson, publisher of the Vancouver news site The Tyee. “One is financial and the other is the crisis of mistrust.”.“Canadians are expressing unprecedented distrust towards the news and the reporters who deliver it,” said Ageson, speaking on behalf of the Independent Online News Publishers of Canada. “Canadians need to know who is funding the news they receive and on what terms.”.According to Blacklock's Reporter, the heritage committee is examining Bill C-18 the Online News Act. The bill would permit federal regulators to compel Google and Facebook to surrender a portion of ad revenues to publishers whose content is distributed through social media platforms..Large news corporations like the CBC would be exempted from anti-trust law in negotiating their own revenue sharing agreements..Ageson said the bill required numerous amendments, including mandatory disclosure of all cash payments to publishers. Lack of transparency was among “serious concerns” with the bill, she said..“It looks like a subsidy to me,” testified Peter Menzies, ex-CRTC commissioner and former Calgary Herald editor in chief. “It’s going to create more mistrust and it’s not going to end well,” added Menzies..“Trust in Canada’s media has never been lower,” said Menzies. Bill C-18 “will keep the wolves form the door of a few legacy companies for a few more years but won’t save journalism,” he added. “While the amount of money involved may keep some from starving it will still leave most hungry, needy and assumed to be grateful.”.“Bill C-18 will permanently entrench the industry’s dependency not on the loyalty of citizens, readers and viewers but upon the good graces of politicians,” said Menzies. Parliament in 2019 amended the Income Tax Act to offer payroll rebates of $13,750-per newsroom employee and 15% subscription tax credits to publishers who applied and were approved by Revenue Minister Diane Lebouthillier..“The more government assistance news media gets, the more broken the relationship with readers becomes,” said Menzies. “The more that relationship is broken, the more subsidy will be required.”.“The people who today think media are toadying up to the Liberal government will at some point in the future believe they are toadying up to someone else,” said Menzies. “It doesn’t really matter whether they are or they aren’t. What matters is people won’t believe them.”.Neither the Western Standard or Blacklock’s Reporter accepts media subsidies from the federal government.
