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

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

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.

Just Posted

file photo
UPDATE: Leduc RCMP, Millet Fire Department and more on scene at serious multi-vehicle collision

Traffic is expected to be diverted for several hours and alternative travel routes are recommended.

File photo
Leduc RCMP request assistance to identify armed robbery suspect

Leduc RCMP are searching for suspect involved in an armed robbery at the Leduc Giant Tiger.

Alberta is now below 3,000 active cases of COVID-19, as the province reported 2,639 Wednesday. (NIAID-RML via AP)
Red Deer below 100 active COVID-19 cases for first time since March

69.7 per cent of Albertans 12 and over have at least one dose of the COVID-19 vaccine

Premier Jason Kenney says the provincial government is doing everything it can to encourage Albertans to get vaccinated. (Photo by Chris Schwarz/Government of Alberta)
Travel prizes added to Alberta’s vaccine lottery

More than 40 travel rewards available for those who are fully vaccinated

People line up to get their COVID-19 vaccine at a vaccination centre, Thursday, June 10, 2021 in Montreal. THE CANADIAN PRESS/Ryan Remiorz
Vaccines, low COVID case counts increase Father’s Day hope, but risk is still there

Expert says people will have to do their own risk calculus before popping in on Papa

The Calgary skyline is seen on Friday, Sept. 15, 2017. THE CANADIAN PRESS/Jeff McIntosh
2 deaths from COVID-19 Delta variant in Alberta, 1 patient was fully immunized

Kerry Williamson with Alberta Health Services says the patients likely acquired the virus in the hospital

A vial containing the Moderna COVID-19 vaccine is shown at a vaccination site in Marcq en Baroeul, outside Lille, northern France, Saturday, March 20, 2021. THE CANADIAN PRESS/AP/Michel Spingler
mRNA vaccines ‘preferred’ for all Canadians, including as 2nd dose after AstraZeneca: NACI

New recommendations prioritizes Pfizer, Moderna in almost all cases

House Majority Whip James Clyburn, D-S.C., center left, reaches over to Rep. Maxine Waters, D-Calif., joined by Speaker of the House Nancy Pelosi, D-Calif., center, and members of the Congressional Black Caucus as they celebrate the Juneteenth National Independence Day Act that creates a new federal holiday to commemorate June 19, 1865, when Union soldiers brought the news of freedom to enslaved Black people after the Civil War, at the Capitol in Washington, Thursday, June 17, 2021. It’s the first new federal holiday since Martin Luther King Jr. Day was created in 1983. (AP Photo/J. Scott Applewhite)
Biden to sign bill making Juneteenth a federal holiday

New American stat marks the nation’s end of slavery

A screenshot of the First Peoples Cultural Councils First Peoples’ Map. (First Peoples Cultural Council)
Online resource blends B.C.-Alberta’s Indigenous languages, art and culture

Advisor says initiative supports the urgent need to preserve Indigenous languages

A plane is silhouetted as it takes off from Vancouver International Airport in Richmond, B.C., May 13, 2019. THE CANADIAN PRESS/Jonathan Hayward
Report calls for airlines to refund passengers for flights halted due to COVID-19

Conclusion: federal help should be on the condition airlines immediately refund Canadian travellers

Green party Leader Annamie Paul speaks during a news conference on Parliament Hill in Ottawa on Tuesday, June 15, 2021. Paul has survived another day of party strife after a planned ouster shifted course, leaving her with a tenuous grip on power ahead of a likely federal election this year. THE CANADIAN PRESS/Justin Tang
Green Leader Annamie Paul blasts ‘racist,’ ‘sexist’ party execs who sought ouster

Fallout has continued, with two of the federal council’s members resigning

Russian President Vladimir Putin, left, and U.S President Joe Biden shake hands during their meeting at the ‘Villa la Grange’ in Geneva, Switzerland in Geneva, Switzerland, Wednesday, June 16, 2021. (AP Photo/Alexander Zemlianichenko, Pool)
Biden says meeting with Putin not a ‘kumbaya moment’

But U.S. president asserted Russian leader is interested in improved relations, averting a Cold War

Most Read