journalism

Federal fall update expected to offer more support for struggling news industry

Ottawa committed $50 million over five years for local journalism in ‘underserved communities’ last budget

The federal government is expected to lay out fresh plans next week to support Canada’s struggling news industry.

The measures, expected in Finance Minister Bill Morneau’s fall economic statement Wednesday, will be designed to help journalism remain viable after years of shrinking advertising revenues.

The decline has already shuttered newsrooms, led to job cuts in many others, and eroded coverage of key democratic institutions across Canada — everything from municipal councils to provincial legislatures to Parliament.

In last winter’s federal budget, Ottawa committed $50 million over five years for local journalism in “underserved communities.”

The government also pledged in the budget to search for additional ways of supporting Canadian journalism.

Internal federal documents obtained by The Canadian Press under access-to-information legislation say the government assembled a working group of officials from the finance and heritage departments following the February budget.

Their goal, the memo said, was ”to identify options to address the issues affecting journalism in Canada ahead of the fall economic statement.”

The fall statement will be one of the last opportunities in the current fiscal year to announce the new measures.

READ MORE: Some Canadian news outlets ready to cope with Facebook’s News Feed changes

READ MORE: Who pays for journalism? One way or another — you

“A range of options to ensure the continued viability of the journalism industry in Canada are being considered,” reads the briefing note prepared for deputy finance minister Paul Rochon ahead of his meeting last July with the president and the publisher of Montreal’s La Presse newspaper.

In the budget, Ottawa promised to take a closer look at potential models to enable private donations and philanthropic support for “trusted, professional, non-profit journalism and local news.”

The government said eventual steps could include new ways for Canadian newspapers to innovate and receive charitable status for “not-for-profit” journalism.

The briefing document for Rochon noted how La Presse announced its plan to adopt a not-for-profit structure last May — a couple of months after the budget — to position the newspaper to take advantage of the federal commitments on journalism.

A separate July briefing note laid out options for “government action” but those sections of the document were redacted.

“There are calls for the government to intervene to save the legacy newspapers under the premise that this is the key way of ensuring the continued production of civic-function journalism,” reads the memo.

The document summarized recent industry trends — including how overall operating revenues tumbled to $3.2 billion in 2016 from their peak of $5.5 billion in 2008. The decrease included a steep drop of 34 per cent between 2012 and 2016.

It said the decline has been caused mainly by falling advertising revenues and, when it comes to online ads, noted how Canadian news outlets have struggled to compete with giants like Facebook and Google, which scoop up about 80 per cent of the digital business.

The number of daily newspapers in Canada was down to just 88 by May 2018, the document said. A decade earlier, there had been 139.

The news industry’s challenges have also led to job losses. The memo said news organizations slashed salary spending by 37 per cent between 2006 and 2016, a period that saw the number of workers in the industry fall to 24,000 from 36,000. Between 2007 and 2017, employment in journalist positions declined 5.7 per cent — to 11,688 from 12,396.

“There are indications that journalists are less able to cover stories about Canada’s democratic institutions. Dedicated coverage of public interest news (e.g. legislatures, town halls, courts) has declined,” the note said.

In the lead up to the federal budget, the government was bombarded with ideas on how to help the news industry.

A report last year from the Public Policy Forum called for a sales tax on foreign companies selling digital subscriptions in Canada, a fund to help finance reliable news and information with $100 million in federal seed money, a new “local” mandate for news agency The Canadian Press and changes to the CBC’s online advertising.

Andy Blatchford, The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Winner takes home snowboard in annual Rock Paper Scissors competition

Jordan Tostevin, a visitor from the United Kingdom won this year’s competition

Ghostriders nail down thirtieth win this season

The Riders beat the Spokane Braves 3-2 in overtime

Kootenay-Columbia MP urges end to ‘illegal roadblocks’ in solidarity with pipeline dispute

Rob Morrison says protestors across Canada need to remove roadblocks on roads, rail lines

Elkford celebrates another exciting Winter in the Wild

The citizens of Elkford came out for a fun weekend of tossing frozen turkeys and playing Sno-Pitch

Fernie Mountain Film Festival coming to the big screen

Amateur and professional films about all things mountain related will screen at this year’s festival

VIDEO: B.C. senior recalls ‘crazy’ wartime decision to grab bear cub from den

Henry Martens – now 96 – says he was lucky to be alive after youthful decision to enter a bear’s den

B.C., Ottawa sign sweeping 30-year deal for northern caribou habitat

West Moberly, Saulteau co-manage new protection on two million acres

Eyes on police after Trudeau orders blockades torn down, injunctions enforced

The RCMP in B.C. have sent a letter to the traditional leaders of the Wet’suwet’en Nation

B.C. massage therapist suspended following allegations of sexual misconduct

While suspended, Leonard Krekic is not entitled to practice as an RMT in B.C.

Cheapest in B.C.: Penticton gas prices dip below $1 per litre

Two stores in Penticton have gas below a dollar.

Loans or gifts? Judge rules woman must pay B.C. man back $7K

B.C. judge rules that woman must pay back more than $7,000 in advanced funds to man

VIDEO: Outpouring of worldwide support for bullied Australian boy

Australian actor Hugh Jackman said ‘you are stronger than you know, mate’

‘A horror show:’ Ex-employee shares experience at problematic Chilliwack seniors’ home

Workers are paid below industry standard at all Retirement Concepts facilities

Forest industry protests northern B.C. caribou protection deal

B.C. Mining Association supports federal-Indigenous plan

Most Read