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CHPC Committee Report

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STUDY OF THE CANADIAN MUSIC INDUSTRY BY THE
STANDING COMMITTEE ON CANADIAN HERITAGE

COMPLEMENTARY REPORT BY THE LIBERAL PARTY OF CANADA

Stéphane Dion
Liberal Critic for Canadian Heritage
June 11, 2014

On behalf of the Liberal Caucus, I state that with a few exceptions, which nevertheless have to do with some important aspects, I support the Standing Committee's Report and encourage the Government to act on it.

The Report does not address all the issues. For example, it fails to address concerns voiced by the witnesses regarding the impact of the Copyright Act (2012) on the music industry, particularly on songwriters, composers, performers and other stakeholders. This is a complex issue, one which will have to studied in 2016 as part of the five-year legislative review mandated in Section 92 of the Act.

Although the Report is not perfect, there is no question that its implementation would greatly improve the conditions under which music is created and distributed in Canada. This is why I wish to thank all those who took the time to share their insights with the Standing Committee, either by appearing before it or submitting briefs. I also wish to thank the Parliamentary staff for their outstanding support and am pleased to underscore the cordiality that prevailed between the Committee Members.

In total, the Liberal Caucus proposes three things to correct and two to add:

  1. In order to support the key role played by the Copyright Board, we need a better recommendation than the one currently in the Report;
  2. The proposal to create a new body to manage, in lieu of Canadian Heritage, the funds available to support record companies, music publishers and national associations must be removed from the Report;
  3. The proposal to use taxpayer money to advertise the funding role played by the government must also be removed from the Report;
  4. A recommendation regarding entrepreneurship education and training for artists and creators must be added to the Report;
  5. A recommendation regarding the funding and efficiency of touring by Canadian musicians within Canada and abroad must also be added to the Report;

I will now expand on these five points, outlining their relevance for a better federal music policy.

1. Better support for the Copyright Board

In its first recommendation, the Standing Committe's proposal to support the Copyright Board is inadequate. Recommendation 1 reads as follows:

"The Committee recommends that the Government of Canada examine the time that it takes for decisions to be rendered by the Copyright Board of Canada ahead of the upcoming review of the Copyright Act so that any changes could be considered by the Copyright Board of Canada as soon as possible."

This recommendation does raise a real issue, one that was mentioned by many intervenors. Many decisions take unreasonable amounts of time to be rendered. Stakeholders must too often wait many years to be paid, particularly in those cases involving musical broadcasting via digital platforms. This generates a feeling of uncertainty that hinders the launching of new digital broadcasting platforms in Canada thus limiting access of Canadians to musical expression.

Recommendation 1 has two flaws.

The first flaw is that it ignores the main issue raised by many intervenors: an apparent lack of resources. The Copyright Board of Canada seems overwhelmed by the number and complexity of the cases it must address. The Board must face a huge workload and constantly analyze complex and massive expert reports dealing with legal, economic and technical issues. Although this is not only a resource issue and the Board's modus operandi must also be scrutinized, it is clear that a serious study of the means presently available to the Board must also be included in the Standing Comittee's recommendation.

The second flaw of Recommendation 1 is that it fails to emphasize the urgent need for action. Instead, it merely suggests that a consultation will be enough for the coming years and that concrete changes will have to wait until after 2017, the year of the planned Copyright Act review. In fact, the government and the Board would be perfectly able to fix things in the coming months if they only started now.

Therefore, in order to ensure that the Copyright Board of Canada can have the means to fulfill its mandate adequately:

  • It is recommended that in keeping with Section 66.8[1] of the Copyright Act (2012), the Government of Canada undertake as soon as possible a consultation with the Copyright Board in order to analyse the delays in rendering decisions, notably in the digital context, and to establish, with the Commission, a level of funding that is adequate for the timely delivery of its mandate.·  

2. "No" to the creation of a new body to manage funds allotted to music producers

Committee Recommendation 8 reads as follows:

“The Committee recommends that the administration of the “Music Entrepreneurs” component of the Canada Music Fund be transferred from the department of Canadian Heritage to a new third-party organization based on the model of FACTOR and Musicaction.”

The Liberal Caucus cannot support this recommendation, which was neither the topic of any intervention from those music sector experts who testified during the Committee's study nor the topic of any question from a Committee Member. The objective of this recommendation is totally unclear and its potential impact on the current clients of the programme has not been evaluated.

If the objective is to save on operating costs, it is very farfetched to believe that creating a new body is the way to achieve this. What it is likely to achieve instead is an increase in costs for staff, facilities, etc. Furthermore, it is not one body that would be required but two – one Anglophone and one Francophone – if the FACTOR-Musicaction model is to be followed. If the government's objective is better service for a specific client group, such as independent entrepreneurs, that client group should have been consulted in advance. In any case, the "Music Entrepreneur" and "Collective Initiatives" components do not lend themselves well to such focussed action because they include a wide range of clients – record companies, music publishers, national organizations.

For those reasons, the government should not implement Recommendation 8.

3. "No" to the use of Canadian taxpayer money for government advertising

The Standing Committee's Recommendation 9 reads as follows:

“The Committee recommends that the department of Canadian Heritage ensure that the general public and recipients are aware that Factor and Musicaction funding is made on behalf of the Government of Canada.”

This recommendation does not belong in a report that is meant to set a better music policy for Canada. Besides, no witness raised this during Committee. If the government is in such dire need of visibility, it should let Canadian Heritage and FACTOR/Musicaction deal with it themselves.

One thing is sure: the current governement must not be encouraged to spend more money on political advertising, with its already inflated budgets compared to the sums it invests to respond to the needs of the Canadian population. Too much taxpayer money is already being spent for the current government's self-glorification.

Furthermore, the recommendation is inaccurate. It gives the impression that the whole of FACTOR-Musicaction's funding comes from the federal government's pockets when in reality, a large part of it comes from the private sector. Finally, it should not be suggested that independent organizations such as FACTOR-Musicaction act "on behalf of the Government of Canada".

For those reasons, the government should not implement Recommendation 9.

4. Better support for entrepreneurship training for artists and creators

The Standing Committee heard a true call for help from many intervenors. They told us that songwriters, composers, performers, however talented, do not necessarily have the competencies required to manage their own careers and be able to live off their art, particularly in the very difficult digital environment. More and more, artists must act as producers, promoters and managers.

Representatives from Société professionnelle des auteurs-compositeurs du Québec (SPAC), Alliance nationale de l’industrie musicale, Canadian Independent Recording Artists Association (CIRAA) and MforMontreal brought to the Committee's attention the importance of providing creators and performers with adequate knowhow and training to manage their professional lives as independent entrepreneurs.

Indeed, Recommendation 7 of the Standing Committee's Report proposes that the Canada Music Fund be adapted to reflect the changes that have happened – and are happening – in the industry. But that recommendation is very general, whereas the training issue deserves special attention. The government has to focus on the pressing and vital need to develop programmes that provide artists with better entrepreneurship training.

Therefore:

  • It is recommended that the Government of Canada consider the possibility of new programmes to enable songwriters and performers to improve their participation in the business sector of the music industry.

5. Better support for touring within Canada and abroad

Many witnesses underscored the fact that in the new context of digital broadcasting, it is more important than ever for Canadian musicians to tour within our country and abroad. In its current form, the Report says nothing about this key issue.

For a huge number of musicians, touring is an essential lever. Not only do the artists themselves benefit from this activity, but also the public and the economy at large. Further to the revenues from concerts and music festivals, Canadian artists contribute to the economic vitality of concert halls, theaters, stadiums, bars, and restaurants throughout the country.

Several suggestions were made for improving the efficiency and efficacy of federal support programmes, including increasing the budgets of those touring support initiatives currently available through various funding organizations. It was also pointed out that rather than acting in isolation, the Federal Government should collaborate with the other players.

Therefore:

  • It is recommended that the Government of Canada consult members of the music sector and other levels of government to improve funding and efficiency of the support granted to Canadian musicians for domestic and international touring. ·  

Conclusion

The Report of the Standing Committee on Canadian Heritage is the result of a thorough and wideranging consultation process.  As such, it is worthy of close government attention. While the Liberal Caucus supports the Report, it proposes five corrections or additions to it.

The Copyright Board needs better support to fulfill its mandate; no new buraucratic body must be created with no valid reason or consultations; the government must avoid wasting public funds on its own political self-promotion; entrepreneurship training for musicians must be better supported; and finally, musicians need better and more efficient support for national and international touring.

Thus amended and if implemented, the Report will foster the creation and distribution  of music in Canada and will help our music makers weather the challenges of the digital era. Thus will the Government of Canada better be able to support an industry that is important not only for our culture but also for our economy and international standing as a Nation.

We strongly urge the Government to take every necessary measure to implement both the Standing Committee's Report and Complementary Report of the Liberal Caucus.

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[1] 66.8 The Board shall conduct such studies with respect to the exercise of its powers as are requested by the Minister.