Canadian newspapers already subsidized with federal concessions say they will face hard times without more bailout dollars, says a publishers’ lobbyist to MPs..Daily papers — according to Jamie Irving of New Brunswick’s billionaire Irving family — are crumbling due to a decline in advertising revenue even with hundreds of millions in taxpayers’ grants, said Blacklock’s Reporter..“Canada’s news publishers are facing an existential threat,” Irving wrote the Commons finance committee..“The pandemic has only worsened the situation as advertisers cut costs or have simply disappeared.”.Irving is the vice-president of Brunswick News Inc. and CEO of News Media Canada — a trade group that lobbied cabinet and successfully secured $595 million in federal bailout dollars..Calling the press “fiercely independent and commercially viable” Irving said publications still require more federal help..“The financial pressures facing Canadian news outlets due to the current market failure are only becoming more dire,” he wrote..Under Canada’s Competition Act, publishers are seeking a waiver that would compel Google and Facebook to pay government-approved publishers for distributing their free content on social media platforms..Irving said he’s pursuing an exemption from anti-trust laws on behalf of “the 3,000 journalists we employ who inform Canadians across the country every day.”.Last June, Irving told a Senate communications committee the industry could see about $500 million a year in forecasted annual losses..In 2019, Parliament amended the Income Tax Act and channeled $595 million in subsidies to cabinet-approved newspaper outlets on the promise of job creation..“The loss of even just one job is a tragedy,” Heritage Minister Pablo Rodriguez said at the time..Despite the infusion of the half-billion in taxpayer dollars, a November 8 briefing note from Rodriguez’s department confirmed no net new jobs were created..“More and more Canadian newspapers are reducing or abandoning their print editions to publish only online because of the COVID-19 pandemic,” the note stated..“The decrease in advertising revenues caused by the COVID-19 pandemic has led to service reductions and newspaper closures resulting in the temporary or permanent loss of more than 3,000 jobs in the industry,” wrote staff..“Since the beginning of the pandemic 64 news outlets have permanently closed including 52 community newspapers.”.The bailout funds provided publishers payroll rebates of up to $13,750 per employee in addition to a 15% tax credit offered to subscribers..The subsidy program was structured to last five years and is set to expire in 2023..“Canadian newspaper publishers face many challenges,” said the briefing note..“The COVID-19 pandemic and its impact on the economy has exacerbated the situation of newspapers already weakened by declining advertising revenues.”.Blacklock’s nor the Western Standard solicits or accepts federal aid..Melanie Risdon is a reporter with the Western Standard.,.mrisdon@westernstandardonline.com
Canadian newspapers already subsidized with federal concessions say they will face hard times without more bailout dollars, says a publishers’ lobbyist to MPs..Daily papers — according to Jamie Irving of New Brunswick’s billionaire Irving family — are crumbling due to a decline in advertising revenue even with hundreds of millions in taxpayers’ grants, said Blacklock’s Reporter..“Canada’s news publishers are facing an existential threat,” Irving wrote the Commons finance committee..“The pandemic has only worsened the situation as advertisers cut costs or have simply disappeared.”.Irving is the vice-president of Brunswick News Inc. and CEO of News Media Canada — a trade group that lobbied cabinet and successfully secured $595 million in federal bailout dollars..Calling the press “fiercely independent and commercially viable” Irving said publications still require more federal help..“The financial pressures facing Canadian news outlets due to the current market failure are only becoming more dire,” he wrote..Under Canada’s Competition Act, publishers are seeking a waiver that would compel Google and Facebook to pay government-approved publishers for distributing their free content on social media platforms..Irving said he’s pursuing an exemption from anti-trust laws on behalf of “the 3,000 journalists we employ who inform Canadians across the country every day.”.Last June, Irving told a Senate communications committee the industry could see about $500 million a year in forecasted annual losses..In 2019, Parliament amended the Income Tax Act and channeled $595 million in subsidies to cabinet-approved newspaper outlets on the promise of job creation..“The loss of even just one job is a tragedy,” Heritage Minister Pablo Rodriguez said at the time..Despite the infusion of the half-billion in taxpayer dollars, a November 8 briefing note from Rodriguez’s department confirmed no net new jobs were created..“More and more Canadian newspapers are reducing or abandoning their print editions to publish only online because of the COVID-19 pandemic,” the note stated..“The decrease in advertising revenues caused by the COVID-19 pandemic has led to service reductions and newspaper closures resulting in the temporary or permanent loss of more than 3,000 jobs in the industry,” wrote staff..“Since the beginning of the pandemic 64 news outlets have permanently closed including 52 community newspapers.”.The bailout funds provided publishers payroll rebates of up to $13,750 per employee in addition to a 15% tax credit offered to subscribers..The subsidy program was structured to last five years and is set to expire in 2023..“Canadian newspaper publishers face many challenges,” said the briefing note..“The COVID-19 pandemic and its impact on the economy has exacerbated the situation of newspapers already weakened by declining advertising revenues.”.Blacklock’s nor the Western Standard solicits or accepts federal aid..Melanie Risdon is a reporter with the Western Standard.,.mrisdon@westernstandardonline.com
