:
Good morning, everyone. I call this meeting to order.
Welcome to meeting number 31 of the Standing Committee on Canadian Heritage.
Before we begin, I would ask all in-person participants to read the guidelines written on the updated cards on the table in front of them. These measures are in place to prevent feedback incidents and protect the health and safety of all participants, especially our interpreters. You will notice a QR code on the card. It links to a short awareness video.
Pursuant to the routine motion adopted by the committee, I can confirm that the witness online has completed the required connection tests in advance of this meeting.
Please wait until I recognize you by name before you speak. All comments should be addressed through the chair.
Pursuant to Standing Order 108(2) and the motion adopted by the committee on Monday, September 22, 2025, the committee is meeting to study the state of the journalism and media sectors.
We have with us today in the room l'Association des journalistes indépendants du Québec, Léa Villalba et Samuel Lamoureux. We also have Jane Robertson from the Canadian Media Guild. Welcome.
From the Fédération professionnelle des journalistes du Québec, we have Éric-Pierre Champagne and Stéphanie Mac Farlane.
Hopefully we won't get confused because we have Éric St-Pierre and Éric-Pierre Champagne in the room today.
From the Independent Press Gallery, we have Sheila Gunn Reid.
From the Macdonald-Laurier Institute, Peter Menzies joins us online. Welcome, sir.
We will start with opening statements. You have five minutes as a group if you're here with an organization, or five minutes on your own if you're here independently.
We'll start with l'Association des journalistes indépendants du Québec.
[Translation]
The floor is yours for five minutes.
:
On behalf of the Association des journalistes indépendants du Québec, the AJIQ, I thank you for giving us this forum in which to describe our reality and our needs.
The culture sections and the special sections of Le Devoir, professional periodicals, L'Actualité, Radio-Canada, podcasts. I could go on. Did you know that a hundred media outlets in Quebec and in Canada are filled with the talent and professionalism of often invisible freelancers?
Our reality is to deliver research files, in-depth articles, photos and radio reports and to be paid only when the finished product is delivered. Research, interviews, writing, corrections and work on location are all obvious and vital tasks in quality journalism. But as freelancers, we are not paid to do them. Our per-page rate, meaning 250 words, has not changed for 10 years, for 20 years for some media. Some still pay the equivalent of $50 per page, often hardly more. According to a 2022 survey, 29% of us still, even today, work for minimum wage. Freelancers in Quebec earn a salary of about $31,000 per year, despite our strong qualifications. Eighty per cent of us have university degrees. To top it all off, late payments are unfortunately not uncommon.
Finally, Meta's block on journalistic content in Canada does nothing to improve our situation. The impact on media visibility and, by extension, on our work is considerable.
The media depend on our expertise a great deal. They do not have the budgets they need to rely wholly on their staff journalists to fill all their pages and to meet all their editorial needs. Many call on freelancers to provide full and varied coverage. Freelancers are neither staff, nor artists, nor business people. We fall between the cracks in the system.
What is sad in all this is that many freelancers are tending to reduce their freelance work and turn to other endeavours because they are afraid that they will not be able to pay the rent or put food on the table at the end of the month. In Quebec, almost 60% of independent journalists have some other professional activity. This is killing journalism, slowly but surely. Fewer freelancers means fewer journalists and therefore less protection for democracy.
As links in the media chain, we are free, of course. But do we have to be the weak links?
For 35 years, the AJIQ has been arguing for the improvement of working conditions for freelance journalists as indispensable information workers. But we need you, as members of the government, to implement measures in support of our cause.
What are the solutions?
The conditions under which the $100 million that Google pays to all information media could be adjusted. For some reason unknown to us, freelancers were excluded from the criteria by which that money is distributed. The federal government correct its course by putting freelancers back on the list of eligible journalists. A number of local, indigenous and ethnic media are also excluded from the funding. This does not meet the spirit of the law, which stipulates that the money must be distributed fairly and in a way that represents Canada's entire media ecosystem.
The Canadian journalism labour tax credit should also be redistributed. Independent media are growing in numbers and they too count on the work of freelancers. To repeat, they are as many journalists as those on the payroll of the major media outlets. Let us not forget that, in Canada, the federal government pays 25% of the salary of staff journalists, but nothing for independent ones.
Could we not imagine employment status like the casual entertainment workers in France? Freelancers would be eligible for employment insurance, which would kick in after a certain number of journalism contracts. In that way, they would feel less stress the next month even if an article were not picked up. And they could stay in journalism.
In recent years, we have been fortunate to have a bursary program established by the provincial government. If Ottawa had a program like that, many freelancers could be fairly paid for their work in supplying media.
One of our strongest claims is still for a legislated fee schedule. The schedule could, of course, be adjusted for the size, the circulation and the budget of the media outlets. It would accommodate different formats such as podcasts and lengthy reporting. In an ideal world, the fees would be adjusted for inflation each year.
Finally, independent journalists should be included in legislation that already exists. This would allow them to properly negotiate their working conditions. It would also require the media industry to pay decent basic fees, as is the case for members of the Union des artistes. In 2023, there was an attempt to have us included in the Status of the Artist Act. Unfortunately, the attempt was not successful. A separate act for independent journalists could be a possibility, since our working conditions are specific and unique.
As a matter of urgency, the government and the entire media industry must recognize the essential contribution of freelance journalists in Quebec and in Canada and work with the specific aim of improving the conditions under which they work and live. Measures to ensure that independent journalism survives are required. Supporting freelancers means ensuring the diversity, the quality and the vitality of information as a fundamental pillar of our democracy.
As members of the government, you alone are in a position to ensure that we, as the free links in the media chain, are no longer the weak links, but rather full participants, with appropriate recognition and support.
:
Once again, Madam Chair and members of the committee, thank you for inviting me here today.
The Canadian Media Guild represents thousands of media workers across Canada. These can be journalists, producers, editors, technicians, digital creators, administration staff and more working at institutions like APTN, CBC/Radio-Canada, The Canadian Press, TVO, TFO, BuzzFeed and Canada's National Observer, just to name a few.
To identify our members' priorities, we conducted an online survey in February. The findings provide a timely snapshot of media workers whose labour underpins Canada's cultural sovereignty. The survey results, while not surprising, were deeply concerning. Permanent jobs are being replaced with contract, casual and freelance work offering fewer protections.
Media workers are expected to produce more content across more platforms around the clock, but their hearts are still in the work, with 90% saying they are proud to work in Canadian media and 87% believing their work is valuable. The commitment to public service remains strong, but the conditions they face do not: 88% are concerned about job security and describe the industry as unstable, and nearly everyone—99% of respondents—says wages must keep up with the cost of living, not because workers are seeking immense wealth but because they are trying to survive in this industry.
Artificial intelligence is reshaping the media sector in fundamental ways. Workers are concerned about AI systems being trained on their work without consent or compensation. The misuse of AI can destroy the audience's trust and take away meaningful work, and 90% of media workers say they want protections as technology and AI change their work.
Having the government defend existing copyright laws and put out transparent policies on AI use will help the public have more trust in the media sector. We encourage the government to include human content standard language around AI use in the Canadian journalism labour tax credit.
This tax credit has already helped sustain journalism jobs. Adding a human content standard will ensure the credit is supporting Canadian workers and not their artificial replacements. Supporting CBC/Radio-Canada is vital for protecting cultural sovereignty. Our public broadcaster provides local journalism where private media has withdrawn, reflects communities across the country and delivers trusted information, yet ongoing financial uncertainty has resulted in repeated layoffs, reduced local programming and increased precarity for workers.
Of our members, 92% support increasing CBC/Radio-Canada funding towards levels comparable with other G7 public broadcasters, and 85% support moving to legislated, stable, multi-year funding. We urge you to follow through on the 2025 government paper, “The Future of CBC/Radio-Canada”. It provides a clear road map to protect and enhance our public broadcaster, independent of political change.
For many journalists, especially women, minorities and 2SLGBTQ+ members, the toxicity we face online and in person while doing our job is becoming overwhelming. Many are also routinely exposed to traumatic content, violence, tragedy and hate, leading to high rates of burnout, and 89% of members say they need supports in health, safety and mental well-being.
We urge the government to support stronger protections through the upcoming online harms act, particularly with journalist safety and mental health as explicit priorities. This would have to be a balanced approach to have harmful content removed from online platforms while not silencing charter-protected rights of freedom of expression or limiting freedom of the press.
Among media workers, 95% believe government action is essential to support the media sector—action like protecting both the Online News Act and the Online Streaming Act. We need you to resist pressure and coercive tactics in trade negotiations with the U.S. that seek to amend or water down this legislation.
Change happens all the time in the media. I started as a youngster, splicing film reels together with tape at a movie theatre. An early job for me was right here on Parliament Hill, as a physical camera operator for Senate committee meetings. I could now do a broadcast-quality video with the tech contents of my purse.
As media workers, we are all keenly aware of the inevitability of change. The Canadian Media Guild urges this committee to continue its leadership by centring workers in media policy decisions. This is not a workforce resisting change; this is a workforce asking for stability, fairness and a future.
Thank you.
Good morning, everyone. My name is Éric‑Pierre Champagne and I am the president of the Fédération professionnelle des journalistes du Québec, ou FPJQ. I have been a journalist for more than 30 years and I have been working at La Presse since 2001. I have been covering environmental issues for a dozen years.
With me is my colleague, Stéphanie Mac Farlane. She is vice-president of the FPJQ and editor-in-chief of Le Canada Français, a weekly founded in 1860 that serves the Saint‑Jean‑sur‑Richelieu region.
The FPLQ has about 1,400 members working in various media professions. We are the largest association of journalists in Canada.
The first message I want to stress today is that without journalists, there is no journalism.
From every side, we often hear that journalism is dead. Nothing can be further from the truth. Despite the many difficulties, excellent journalism is very much alive in Quebec. I would even say that the quality of journalism in 2026 is superior to what was being done 10 or 20 years ago.
There are many examples, but I will provide just one as an illustration. Fifteen years ago, there were only a handful of investigative journalists in the media. Today, all the major media outlets in Quebec have investigative teams, not just a single journalist, regularly publishing stories of great public interest. Local and regional media, as well as new media, are also publishing impactful investigations, despite the lack of resources at their disposal.
Everything is far from perfect, but it must be admitted that true journalism is still very much alive, despite the many obstacles. In my view, that is a testament to the adaptability and resilience of the journalists in the Quebec media.
We at the FPJQ believe that the information produced by professional journalists is essential in a democratic society. In these times of polarization and disinformation, with artificial intelligence sweeping everything before it, we need journalists and quality journalism more than ever.
And yet we are facing a global phenomenon: the media business model is broken. At the moment in Canada, 70% to 80% of advertising revenue goes into the pockets of two foreign giants, Meta and Google. Let me ask you, what industry would manage to survive under those conditions? Those two giants have war machines that are allowing them to literally strangle the Canadian media ecosystem.
Nevertheless, public assistance, both federal and provincial, has helped to reduce the damage. Without that support, the picture would be very different.
We completely understand that, in the current financial situation, it is difficult for our governments to do more. They have to juggle a number of different priorities. That is why we are astonished to learn that advertisers can still deduct their publicity expenses on foreign platforms. The measure is in place as a way to promote Canadian media, but we fail to understand why corrections have not been made for foreign platforms, despite the repeated requests from the FPJQ and from other players in the media industry. Doing so would cost the Canadian government absolutely nothing.
The Online News Act, imperfect though it is, has produced results. Today, about 450 Canadian media organizations are sharing at least $100 million from Google. It is high time for Meta to stop its detestable blocking of news on its platforms and pay Canadian media their fair share. We are asking the government not to negotiate a cut-rate agreement with a giant that spreads disinformation on its platforms.
Adapting copyright to this digital age also has to be done faster. Above all, our media must be protected from having their content destroyed by the giants of generative artificial intelligence. We too often forget that producing information comes at a cost, a significant cost. We cannot allow the tech giants to usurp journalistic content without the slightest compensation.
The overall situation remains a concern. In some regions of Quebec and Canada, we are slowly beginning to see media deserts. As you know, nature abhors a vacuum, so it will be quickly filled, probably with artificial intelligence, with all the dangers that entails.
The dangers are real. They are the elephant in this very room, one might say. So I invite us all to look beyond our partisan interests in order to serve the public interest that is so essential in this time of great upheaval.
I'm here on behalf of independent, reader-funded journalists who are being pushed out of Canada's media landscape, not by the market but by their own government. Canada already has a two-tiered media system. On one side are government-subsidized outlets. On the other side are independent journalists who rely entirely on their market and their audience. We are increasingly denied equal access to both government and the public square.
Federal departments have decided who gets answers and who does not. An independent journalist was told by Immigration, Refugees and Citizenship Canada very recently that his organization does not qualify for these services. The services were answers to his questions. Global Affairs Canada has also done the same. The message is clear: If you're not approved, you're not entitled to answers.
The same pattern exists at the political level. We have seen elected officials refuse to answer questions from independent outlets. We have seen reporters arrested for attempting to question ministers. We have been denied access to federal leaders debates and forced to go to court, successfully twice, just to do our jobs. Increasingly, independent journalists are not just excluded; they're also treated like a problem to be managed.
The discrimination does not stop on Parliament Hill. Our journalists are routinely blocked from political events, not because we're disruptive but specifically because we're independent. At the Liberal convention, our journalists were refused accreditation. When they then were forced to conduct walk-and-talk interviews outside the venue, security was called on them at least twice—outside, in public, peacefully talking to people. In Edmonton, at 's campaign kickoff, police were called on independent journalists simply for trying to ask questions—no disruption, no threat, just questions.
This is the pattern: Deny access, treat reporting like trespassing, and then escalate it to a security issue. Meanwhile, legacy outlets are waved through.
When independent journalists are shut out, it's not just reporters who are excluded; it's the millions of Canadians they represent. The distortion, however, goes deeper. The federal government has spent hundreds of millions of dollars subsidizing legacy media. The money overwhelmingly flows to outlets that already receive preferred treatment. This creates a closed loop. Subsidized media get access, and access reinforces their dominance. Independent media, who reject government funding as a matter of principle, are left to compete in a tilted market. I reiterate that we do not want these subsidies. We reject them, because government money in journalism is political contamination.
Government policy is also interfering with how we reach our audience. Legislation like the Online News Act has disrupted how news is shared online. When platforms block news links, independent outlets lose a critical connection to their audience.
Then there's Parliament Hill itself. The parliamentary press gallery, a taxpayer-supported institution made up largely of our competitors, controls access to the Hill. Independent journalists are routinely denied membership, blocking us from press conferences and daily government proceedings.
Let's be clear about what this system in Canada produces. Government decides who is a journalist. Government funds those it prefers. Gatekeepers control access to power. Policy limits how the rest of us reach the public. This is not a free press. According to Reporters Without Borders, Canada has fallen from eighth place in 2015 to 21st place in 2025.
Independent journalists are not asking for special treatment. We're asking for equal treatment. End discrimination in media access, ensure that no journalist is blocked from public institutions by their competitors, and stop using public policy to interfere with how independent media reach their audience. A free press is not funded, filtered and approved by the government; it is free to challenge it. Right now, that freedom is under pressure, and it's time to restore it.
Thank you.
By now, you've been informed by several people that the health of many news organizations in Canada is poor. The situation is that if the mounting requests for subsidies are anything to go by, it is even more dire than it was in 2018, when publishers first convinced the government to get involved. That might indicate that while current solutions have provided hospice care for several companies, most journalists are now reliant on the corridors of power they are expected to patrol on the public's behalf.
Unless significant changes are made, that dependence is only going to grow stronger as the list of organizations asking for more money grows and grows. As it does, the playing field for the news industry will continue to be unstable and its content viewed with increasing suspicion. That, in turn, will suppress investment by innovators looking to create new, independent and sustainable 21st-century-appropriate platforms.
That has been the pattern since 2019, when the “temporary” five-year journalism labour tax credit for newspapers was introduced. Enhanced in 2023, it is now in its eighth year.
The local journalism initiative, which was initially announced as a five-year, $50-million plan in 2019, also continues, enhanced.
The CRTC, meanwhile, is working on more financial support for broadcast-based news, while the CBC, the nation's largest employer of journalists, has received an additional $150 million. Then there's the $100-million Google fund, which partially offsets the loss of revenue created when Facebook was lost as a delivery platform. Of course, there is also the Canada periodical fund.
It adds up to a lot of money, but sooner or later news media will run out of other people's money to spend, so this is a good time to pause and reflect upon whether current approaches are achieving the desired public good outcomes, what those are, and what those who are experiencing success are doing differently.
If the public good is to sustain companies with broken business models, it must be accepted that this tilts the industrial playing field to the disadvantage of those trying to create sustainable, independent and trusted models. If, on the other hand, the public good the government is trying to support is a nation of well-informed citizens, an entirely fresh approach is needed. That begins with policy-makers developing an industry-wide policy platform focused on the 21st-century reality that all news media are converging on the Internet.
Surveys also indicate that a large plurality of Canadians worry that media dependence on government negatively impacts objectivity. Since 2018, trust in news in Canada has been in decline. Correlation is not always causation, of course, but this coincides with government funding of news organizations.
Alternative positive suggestions can be found in a Macdonald-Laurier Institute policy paper I co-authored, entitled “...and now, the news.” It details an alternative path forward to achieve a sustainable, trusted, innovative and independent news industry. I ask that you read it.
In the meantime, I propose the following steps to promote a sustainable, independent and trusted news industry. First, create a national news industry policy that views journalism organizations as a single sector. This would necessitate the industry forming a new all-encompassing association that could, instead of a government-appointed panel, determine what constitutes a qualified Canadian journalism organization.
Next, phase out direct subsidies and implement policies that not only encourage the production of news and employment of journalists but also ensure that what news is produced is actually consumed. Subsidizing consumers through enhanced subscription tax credits and/or tax deductions is agnostic, while encouraging news consumption, choice and competition. Portugal, for instance, pays for two-year digital news subscriptions for 15- to 18-year-olds.
Next, demand that companies benefiting from funding or government contracts are publicly accountable and prominently post details of these relationships; limit access to production-based benefits to not-for-profit organizations; insist that all recipients of direct taxpayer support provide space for rebuttal commentary, particularly as it applies to discussions of public policies impacting news organizations; and enhance copyright protections for news subscriptions.
The path the industry and the government are currently on is only going to produce increased demands for more golden handcuffs.
Thank you very much.
:
Depending on the day, we are Canada's largest independent news organization. We have journalists all across the country. We have journalists in Australia.
I'll give you an example. During the “freedom convoy”, despite the fact that the CBC building is right across the street from where we're sitting right now, our coverage of the “freedom convoy” dwarfed the CBC's, because we had independent journalists, first-hand, in the streets, talking to people.
The media landscape is changing. You don't need satellite trucks or expensive newsrooms anymore, yet these organizations are not experiencing the market correction I think they so rightly deserve because of the government subsidies to failing news organizations. They are not innovating, because the government is hindering that innovation through subsidies.
:
Thank you, Madam Chair.
Thank you all for joining us today.
So far, much of our discussion has been focused on government supports, the democratic importance of journalism and the risks posed by media deserts. Today, my questions will be geared towards the notion of content sovereignty, newer platforms contrasting traditional journalism, the challenges facing young professionals entering the space, and the distinct challenges facing Mississauga Centre.
[Translation]
Mr. Champagne, in communities like Mississauga Centre, people are often navigating through a number of information sources, sometimes in different languages, on different platforms, and with very different levels of confidence. I know that this is also the case in a number of regions of Quebec.
Diverse voices and perspectives are a strength, of course. But it also means that people are dealing with information sources that vary greatly.
In your view, how does journalism maintain its standards of credibility in that kind of fragmented environment?
:
I would say that, in order to become members, the journalists whom we represent at the FPJQ must adhere to the code of ethics.
Our code of ethics is very clear. I won't go through all its provisions, but we have provisions on independence, on conflict of interest, and on things of that nature. That ensures a certain level of quality, of rigour, if you will. There are other organizations; the FPJQ is not alone. But it is one of the guardians of journalism in Quebec. We try to make sure that our members live by the rules.
As I said, we have about 1,400 members. They are journalists, researchers, anchors, almost every role in information. I am referring to journalists, I am not referring to columnists, to people with opinion pieces. That's another matter, another area. For journalists, we try to maintain the rigour by making sure they live by our ethical standards.
:
The main role should be to develop a truly national news industry policy. Right now, the problem is that they're kind of hopscotching. There's broadcasting over here, there are independents over here and there are newspapers here. There's really no such thing anymore, in the news industry, as separate areas. Broadcasters produce text news. Newspapers produce video and audio.
Right now, every time the government tries to address one problem, it creates an imbalance elsewhere. If you give the CBC $150 million and it's a commercial competitor, you're actually tilting the playing field against non-CBC competitors. If you throw money at newspapers, you're tilting the field against broadcasters, so you counter that by doing broadcasters. This is a crazy way to do things. If you really want to get a good outcome, you have to understand, and look forward into the century, that this is a single industry—news—and then build public policies to support that.
One of my key recommendations—there are several in the paper—is to go ahead and subsidize the consumer, not the producer. There's no point in subsidizing the production of something that's not being consumed. I think it's the entirely wrong approach. Maybe it was okay on a temporary basis, but on a long-term basis, you really need to sit back, take a look at this and stop shifting from crisis to crisis, trying to solve the problem individually.
:
Good morning, Mr. Champoux.
I am a member of AJIQ's board of directors. I also conduct research into independent journalism. I feel that the issue is not whether it's hard to achieve recognition. The issue is whether it's difficult to see one's work valued in an online environment, in which the information economy is now completely in the hands of online platforms whose business model is based on profit. The economy is no longer based on employment, it's based on profit.
It is easy to produce online. It's very easy to publish content. A number of people are doing that, journalists, influencers and even a blend of the two. It's certainly very easy to publish content online, but it's extremely difficult to have it valued. It's almost impossible, especially in French. Online, if you speak French on YouTube, Meta or TikTok, it's almost impossible. You need private sponsors, but if you have them, you may have an ethical problem.
For me, the issue is not about credibility, but about the value of the work. The work has been devalued because we're now in a profit-driven economy and no longer in an employment-based economy. Of course, I am talking about the digital economy. That is the issue.
:
I would say that our first tool is when we hand out press cards to those who apply to become members of the FPJQ. As I explained earlier, we have criteria, specifically to abide by our code of ethics.
Of course, people also have to work as recognized journalists. We check that. It takes a little less time to check someone like me, because I have been there for a very long time. But for new applicants, we will check the type of work they do. Do they work as journalists? Is that their principal occupation? I understand the reality of freelancers, of course, but if a freelancer also works in, say, a marketing firm, that might become a problem.
We have criteria like that. We issue, or do not issue, press cards, which are, in a way, a seal of credibility. That's more or less how we control things.
:
We feel that it is not a good idea.
You are right that we hear a lot about a professional body, but we do not hear about the problems that there would be to establish it.
First, a professional body becomes a media licence. From the outset, that creates a problem vis-à-vis charters of rights and freedoms, because it establishes who has permission to function in the media.
A professional body also formalizes relationships between professionals and clients or patients. That's not what journalists do. There is no individual relationship with the public; the relationship is collective. That's a difficulty too.
We feel that another difficulty is deciding who gets a card, who can become a member. In this new generation, a lot of journalists have studied journalism. But there are also a lot, like myself and my colleagues, who have studied physics, chemistry, history. Including it all can become very difficult.
:
There's been a fragmentation of the marketplace that is pretty obvious to most people. One difficulty with it is that you have to shop around these days. If you're inclined to the right of the spectrum, there are a number of advocacy journalism organizations, as I call them, that you can go to, where you can get your opinions reinforced. They can also produce some fresh news, but it's unlikely that you're going to go there.
It's the same on the left of the spectrum. There are dozens of them. You're not going to go there and say, “Gosh, I never thought of things that way before,” or, “Gee, I didn't know that,” or, “That MP that I thought I hated, maybe she's not so bad. Maybe she's not a crazy lady.”
There's nothing that disrupts the flow of your predetermined thinking unless you shop around. That's dangerous, because you start to get a very segmented society, and people start to view people with opposing views as a danger and a threat, so all of a sudden those opinions have to be managed. Once you get one government thinking that they need to manage these opinions they find objectionable, another government's going to come along and manage the other side. I think it's a very dangerous road that we're walking down right now.
:
Thank you, Madam Chair.
It's a pleasure for me to sub in for MP Royer.
I studied journalism very briefly in my early 20s. It's been a few years and, unfortunately, I transitioned to law school instead. It's nice to be here today, because I get to live my past. I briefly wanted to be a war reporter, but I digress.
[Translation]
I would like to thank all the witnesses for joining us.
Mr. Éric‑Pierre Champagne, can you specify one or two reforms to aim for? Could existing strengths in the field be used to fill any gaps that may exist, such as information deserts in rural areas or financial volatility? What would be your recommendations to the committee?
But first, I would just like to provide some clarification on the previous witness's comment about the independence of media that receive public funds. Let's go and ask François Legault, of the Coalition Avenir Québec, whether he found that the media was treating him kindly. I don't feel that media are not independent because they receive public funds—quite the contrary.
Now, one of the requests I made a little while ago was about the tax credit for advertising costs. We are absolutely disgusted that advertisers placing ads on foreign platforms can deduct 50% of their expenses. An advertiser placing an ad in the New York Times or USA Today or in any other media cannot deduct those expenses. However, if it is on Facebook or Google—foreign platforms, remember—they can deduct those expenses. This is completely unfair for Canadian media who have to do battle with giants equipped with advertising war machines. The giants get an advantage too, simply because companies advertising on those platforms can deduct their expenses.
The FPJQ and other players in the industry have been making that request for a very long time and nothing has been done about it. I just don't understand. It would cost the government nothing. I will make the request again and I hope that we will be heard because it is something that could help. I feel that almost everyone around this table would agree. There is no reason to encourage foreign platforms that are known for spreading disinformation.
:
I am doing a research project right now. I have interviewed about 25 journalists mostly working in rural areas, like Côte-Nord or Gaspésie. These are local media. I have none in New Brunswick. What I see is that regional media are barely hanging on and have very few resources. When I interview them, they tell me that once there were 20 of them. Now there are 10, but with the same amount of work, and social media content on top. Basically, there is too much work and too few employees to do it. One person is now doing the work of five, but with no better pay and fewer resources.
Facebook blocking news content in those regions is huge. In some regions, like Gaspésie and Côte-Nord, Facebook was like the town square. Everyone shared information there. When Facebook blocked the news, it was a major shock to information in some rural communities, that's for sure.
I have done research on Facebook. From an economic perspective, Facebook has replaced journalism with fake information since 2024. If you look at Facebook's accounting, you see that 10% of its revenues now comes from online scams, from fake information and advertising, from online casinos and from things that are illegal. It seems to me that this would be one major aspect of the regulations that could be imposed. What company can have a business model based on online scams? It's illegal, as least as I see it. Facebook has replaced information with fraud. It has a major impact, especially on rural communities, that's for sure.
:
Two and a half minutes is not very long, but I will try to use the time wisely.
As I said just now, I am all for diverse voices and opinions. I want people to be able to find information wherever they want, even if they are seeking to confirm their own opinions. Having an ecosystem like that is fine, but things have to be well-defined and clear. There must be one code of ethics that applies to everyone, from one end of the spectrum to the other. It matters little whether they are in the business of providing opinions, or in rigorous journalism.
Earlier, we were talking about Alexane Drolet, or Alexplique, who is doing good work in making information accessible. She tells the young people who come to her to not trust her only but to go and shop around in the information sources, because having a variety of sources is important. Farnell Morisset also popularizes information, but that's where my question about ethics arises. When you read the subtleties between the lines, you may possibly be able to see that he leans more to one side than to the other. But now we learn that he is jumping to provincial politics for the Liberal Party. I find that adds to people's cynicism; they already have a hard time trusting their sources of information.
I would like to hear your quick opinion on it. I know that we only have two and a half minutes. Mr. Champagne and Ms. Mac Farlane, please start.
:
Thank you, Madam Chair.
This is our fourth meeting on the state of the journalism and media sectors. That's about eight hours.
On how media ownership impacts fairness in media, I'll go to you, Mr. Menzies. You've had three decades in newspaper. You were with the CRTC as vice-chair for four years.
When I look at the National Post, it's owned 62% or 63% by a hedge fund in the United States, by Chatham Asset Management in New Jersey. That was, I think, a turning point in this country. All of a sudden, the newspaper industry, the major newspapers in many cities, changed when that happened. I don't have to tell you that when you go down Deerfoot Trail, you can see that the iconic Calgary Herald building has now been sold. The letters of the Calgary Herald are off the building. It's now a U-Haul facility.
I would like your thoughts on media ownership. How could we let a hedge fund from the United States buy our most precious newspapers in this country?
:
First of all, I sort of cross myself every time I go by that building.
How? The companies were emerging from bankruptcy under Canwest. That was how Postmedia was initially set up. The ownership structure has changed over the years. I suppose it happened for the same reason that subsidies became popular. It's because the companies were too big to fail. Politicians don't like massive failures on their watch, so you tried to get the best deal you could, even if it wasn't a great deal.
In terms of the ownership set-up, when you have a hedge fund, you have an entirely different financial model. You need to feed the beast. That becomes a priority. There isn't time for long-term thinking. There isn't time for long-term structures and that sort of stuff. You need to make those payments, and you need to make them on time. That becomes the priority. That can be a big issue.
If you have a proprietorship ownership, like The Globe and Mail, you can appeal to the owner to be patient, hang on, not lay people off and try to invest in journalism. I think that approach has generally worked pretty well for The Globe and Mail.
Essentially, if you have a free press, it means you can be whatever you want. The only time it makes a difference is now that the government has gotten into funding, government and people such as yourself, Mr. Waugh, have to look at it and ask what is being funded here. Is it a hedge fund or news?
That is why I think that one of the ways out of that is to get around to funding the consumer. Let them choose what they want to read or not read. Subsidize that through tax credits to them. Then the market can actually work, and you get some sort of feedback. You get a flow-through impact to successful operators.
In my 30 years in the business, who owns what and how was never the government's business.
:
I can't really speak for the rest of Canada because our organization is primarily based in Quebec. So let me tell you about Quebec, because I have no detailed knowledge about the situation in other Canadian provinces.
We have the Fédération professionnelle des journalistes du Québec, the FPJQ, but we also have the Quebec Press Council, which you must also know. It's a self-regulating system. The council is basically made up of journalists, of media employers, and of representatives from the public. It handles complaints. When complaints about journalistic work are filed by members of the public, they are heard by a committee representing the three groups I have just named. They check for breaches of ethics. Any penalties are moral in nature. The penalties are not financial or of any other kind. But I know no journalist who likes to receive a black mark from the press council.
To my knowledge, the Quebec Press Council system is quite unique in Canada. I can't think of an equivalent anywhere else. So we have to celebrate the dynamic nature of the Quebec media industry and the way it regulates itself. It's not perfect, but is still a cut above anything else in the rest of Canada, or in the United States, where things are worse.
:
Well, I think you could enhance the tax credit for buying a subscription, or you could make it purely tax-deductible in the same way you would make a charitable donation tax-deductible.
Say you gave each family, each household, 1,000 dollars' worth of tax credits per year that they could spend on subscriptions. They could spend it on a subscription to Le Devoir, La Presse, The Globe and Mail or whatever they chose. You subsidize their consumption of the news. There's money going to the consumer to choose, money that, again, flows through to the publishers, because they get the money from the subscription. However, there is no association, then, between government and the publisher. It's an arrangement between the government and the consumer. It's there to promote for the government, if the government wishes, the public good of having a well-informed public, but it's agnostic in terms of where they spend it. If it's a qualified Canadian journalism organization, I suggested a different way to do that.
This way, people are free to consume the news that they want, and government can subsidize the behaviour that it wants without putting the publishers in a conflict of interest.
:
I feel that there is a lot of debate on public funding. In my view, the role of the government is not to keep funding the media for ever and ever. One of its main roles, however, is to put an end to the asymmetry in certain markets. At the moment, there's a lot of asymmetry in some markets.
Google has developed a vertical monopoly in digital advertising in Canada. I read where the monopoly was compared to a major bank also owning the Toronto Stock Exchange. Imagine if a private company issued shares and also owned the platform on which those shares were traded. Think of the extent to which that could cause asymmetry and conflicts of interest in the way Canada's economy operates. Surely, regulation would automatically ensue.
In terms of digital advertising, Google controls the advertising industry and the platform on which the advertising appears, as well as controlling Android and Google Chrome, actually. It's a disaster. It stifles innovation and it affects both consumers and the media. If this were not all digital, the government would have become involved already. But we seem to be saying, oh, it's digital, oh, it's special, it's new, and so on. But if it was a company that was not digital, regulations would be in place already.
The same goes for Facebook, whose monopoly is horizontal. Those are the issues that I see as the really major ones that need to be addressed. These informational asymmetries must be stopped. It's not about the funding; it's about the asymmetry.
:
Thank you, Madam Chair.
Ms. Robertson, thank you for joining us today, and thank you for your patience.
Earlier, you said that you could now make broadcast-quality content with the contents of your purse. I thought that was funny, but it's also entirely true, and it highlights how quickly things have changed in this space.
We've heard quite a bit on radio over the past few meetings, but I'll be candid in saying that it's not really my generation. I would listen to it occasionally on the way to school with my father in the morning, and on the way back while a hockey game played in the background, but what these new spaces have done is create new entry points into journalism, specifically for younger voices, I find.
From your perspective, do you find these formats represent a meaningful expansion of opportunity for journalists, or are they simply shifting the space into a new age?
:
I think that when it comes to this discussion about media, we have to take in the consumers' appetite, and they are expanding into spaces like Twitch streamers or YouTube channels, where my children watch hours and hours of Minecraft content. This is now media.
With a cellphone, you can be anywhere broadcasting live, so this is disrupting the space. Traditional media spends a lot of money to have broadcast-quality equipment and studios and journalists and investigations, but someone with an iPhone can have a million subscribers, and that's where younger folks are turning to get information.
The media sector is being completely disrupted by this, and we have to take that into account, especially with respect to AI. People are using it to generate what they should say to broadcast to millions of followers, and using it to distort the information. We have to recognize that for what it is, and all the media players have to adapt to that.