:
I'm calling this meeting to order.
Good morning, everyone. Welcome to meeting number 39 of the Standing Committee on Canadian Heritage.
Before we begin, I'd ask all in-person participants to read the guidelines written on the updated cards on the table. They are measures in place to help prevent audio incidents and to protect the health and safety of all participants, especially our interpreters. You'll notice that there's 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 witnesses have completed the required connection tests in advance of the meeting.
Please wait until I recognize you by name before you speak. All comments should be addressed through the chair.
I'll remind members that the committee will meet on Thursday, June 11, to finalize a report on social media and to provide instructions to the analysts so they can prepare draft reports for our studies on the state of the media and for the study that we're launching today. To be clear to members, that is June 11.
I understand that we will ask the again to reconsider his decision regarding his participation in the study on the state of the media. Regardless, analysts will be able to prepare a draft this summer and make adjustments this fall, should the minister decide to participate.
I'll also advise the committee that our clerk is celebrating 25 years of service today, so congratulations. I was going to bring a cake, but given that we're here at 8:15 in the morning, I wasn't sure it was necessary.
We'll go on to today's business. Pursuant to Standing Order 108(2), we're meeting today for our first meeting on the study of the state of creative and performance spaces across Canada.
We have Erin Benjamin with us in the room today. She was formerly the chief executive officer of the Canadian Live Music Association. We also have the Falun Dafa Association of Canada. Joel Chipkar is a spokesperson and Joel Etienne is the lawyer. Jennifer Brewin, from Globe Theatre, is here with us online. Welcome.
[Translation]
We also have with us, by video conference, Patrick Kearney, the chief executive officer of the Regroupement des festivals régionaux artistiques indépendants, and Jon Weisz, the executive director of Scènes de musique alternatives du Québec.
Welcome.
[English]
Each of you will have five minutes for an opening statement, and then we will turn to members for questions.
We'll start with Erin Benjamin.
You have the floor now for five minutes.
:
Madam Chair, Vice-Chair, PS Myles and members of the committee, thank you for the invitation to appear today.
I'm here in my former capacity as president and CEO of the Canadian Live Music Association. My brand new role is executive vice-president at the Ottawa Board of Trade, where I continue to work on issues connected to economic growth, community vibrancy and the conditions that help local economies thrive.
Canada's live music sector is a significant economic and cultural force. According to the Canadian Live Music Association's “Hear and Now” study, released last year, live music activity generated nearly $11 billion in economic impact and supported more than 100,000 jobs nationwide. The sector includes major venues, festivals, promoters, touring companies and independent operators, all operating in a deeply interconnected and complex ecosystem.
Large-scale operators generate substantial economic activity. They attract tourism and support hospitality and downtown economies. They create jobs and help position Canadian cities competitively on the global stage.
Independent venues and operators play a fundamentally different role within that ecosystem. They are where artists first develop, where creative risks are taken, where local communities form and where the talent pipeline that ultimately feeds the broader commercial industry begins. The success we see later in theatres, arenas, major festivals and international touring circuits very often starts in these smaller rooms.
At the same time, independent operators are increasingly operating under extraordinary pressure. Rising rents and insurance costs, labour shortages, inflation, post-pandemic debt burdens and growing market consolidation are all placing a strain on businesses that already tend to operate within very limited margins. Unlike larger operators, many independent venues don't have diversified revenue streams, large sponsorship structures, significant access to capital or real estate leverage to help absorb market volatility.
Despite these pressures, they continue to invest in emerging Canadian talent. They support local economies. They animate our neighbourhoods and main streets, creating cultural vibrancy that communities increasingly recognize as part of economic competitiveness and quality of life. This is why this conversation is not just about culture. It is about economic infrastructure and market diversity, talent development and tourism, and community vitality and the long-term sustainability of a sector that contributes significantly to Canada's economy and international cultural presence.
I also think it's important to acknowledge that the federal government recognized the strategic importance of this ecosystem during the pandemic. Thank you. The targeted investment in budget 2022 helped stabilize and save critical parts of the live music sector during an unprecedented period of disruption. More recently, the reinstatement of the promoter and festival support components of the Canada music fund represents a really important recognition that independent operators require unique policy tools that reflect the realities of how the sector functions today. That matters because healthy ecosystems depend on balance.
Canada's live music sector works precisely because different parts of the industry perform different functions, but independent venues and operators aren't simply one segment of the sector. They're foundational to its long-term sustainability and renewal. If these spaces continue to weaken, the impacts will extend far beyond individual businesses. Over time, fewer artists will be able to build sustainable careers. Fewer communities will have access to live performances. The industry will become more concentrated, less locally rooted and ultimately less resilient and competitive.
Canada already has an extraordinary live music ecosystem with enormous growth potential. The opportunity now is to ensure that public policy continues evolving in ways that recognize the essential role that independent venues and operators play within that ecosystem, and the broader economic and cultural value they create across the country.
Thank you very much. I very much look forward to your questions.
:
Thank you, Madam Chair and honourable members, for the opportunity to speak.
We're here to show how foreign interference is systematically targeting municipal, provincial, private and federal theatres in Canada and to urge this committee and the government to protect our venues and artistic freedom.
For 20 years, the Falun Gong spiritual community in Canada has brought Shen Yun Performing Arts, the renowned classical Chinese dance company, to theatres right across this country. However, the Chinese Communist Party, under Xi Jinping's direct orders, has escalated a global campaign to stop the show through diplomatic pressure, 150 bomb threats worldwide, baseless lawsuits and leaked documents outlining a disinformation campaign using western media and social media against Shen Yun and Falun Gong.
Why would a so-called superpower fear a dance company? It's because Shen Yun celebrates a China before Communism and exposes the Communist Party's 27-year ongoing and horrific human rights crimes against Falun Gong practitioners in China. That's why the Communist Party wants Shen Yun silenced.
In the past two years, Canada has seen over 20 hoax bomb and death threats targeting Shen Yun theatres, Parliament Hill and politicians. This year, Shen Yun has faced booking denials, theatre evacuations and cancellations. For example, on March 15, Mississauga's Living Arts Centre received a bomb threat from China. It threatened to bomb the theatre and Parliament Hill if Shen Yun performed. The theatre was evacuated, and the show was delayed 90 minutes until police determined that the threat was not credible.
Weeks later, Toronto's Four Seasons Centre cancelled six Shen Yun shows after similar threats, which police quickly deemed unfounded. The sender later mocked Canada, saying it cannot be taken seriously, and claimed allegiance to “my motherland's Communist Party”.
In April, not only did Vancouver's Queen Elizabeth Theatre receive similar threats, which police traced to China, but Global News reported that the Chinese consulate directly urged civic theatre officials to cancel Shen Yun. This proved that this is a coordinated campaign by the Communist Party here in Canada and not spontaneous acts of harassment.
After hosting Shen Yun for 18 years, Montreal's Place des Arts declined dates for 2026 and 2027.
Here in Ottawa, Shen Yun was not given dates for 2026 and 2027 after performing for 18 years at the National Arts Centre. It's a decision they called private and confidential. This happened after NAC executives met twice with the Chinese ambassador about cultural co-operation. A Crown corporation getting over $60 million a year in taxpayer funding should avoid decisions that serve China's censorship goals.
In each case, the presenter and theatre were left to face national security-level threats alone.
:
Shen Yun is deeply connected to Canadians' right to present lawful artistic and cultural expression, free from foreign state intimidation. Members of the Canadian Falun Dafa community, who help present Shen Yun, are entitled, under the Charter of Rights and Canadian law, to participate fully in Canadian cultural life without fear, intimidation or foreign interference.
Our recommendations to the committee are the following.
Canadian Heritage should establish federal guidance and response protocols for publicly funded cultural institutions facing foreign state intimidation. Rental decisions under such circumstances should not be treated as private business matters.
Publicly funded venues and Crown corporations, including the NAC, should receive training on foreign interference, transnational repression and diplomatic pressure tactics. The NAC should be directed to offer Shen Yun dates to perform in Ottawa.
Public security agencies—the RCMP, CSE, CSIS and local police services—should assess and investigate the broader pattern of foreign interference and transnational crime targeting the cultural sector, including the threats and intimidation campaigns, not merely as isolated public-order incidents, and should enforce relevant provisions of existing legislation.
Global Affairs Canada should review whether consular pressure on Canadian venues violated the Vienna convention and should establish transparency mechanisms for diplomatic communications directed toward Canadian artistic programming.
We ask this committee to help ensure that no Canadian theatre is again made an instrument of foreign censorship and to help protect art institutions and their clients from foreign interference.
Thank you, Madam Chair and Mr. Vice-Chair.
I'm speaking to you from Regina, Saskatchewan, also known as “Pile of Bones”, located on Treaty No. 4, the homeland of the Nêhiyawak; the Anihšināpēk; the Dakota, Lakota, and Nakota peoples; and the Métis.
I have the privilege of serving as the artistic director of the Globe Theatre. It is located in the heart of downtown Regina, with an operating budget of over $5 million. I'm going to speak about the Globe as one example of an arts organization's life in its community.
For 60 years, the Globe Theatre has been a cornerstone of cultural life in Saskatchewan's capital city and in southern Saskatchewan. Like many cultural institutions across the country, we play a significant role in the social, economic and artistic life of our communities.
The Globe itself has a remarkable history. Founded in 1966, it was Saskatchewan's first professional theatre, and it remains the country's only permanent professional theatre-in-the-round. Our home is the historic Prince Edward Building, now known as MacCorquodale Place, in the heart of downtown Regina.
I want to note that we're in the final chapter of a transformative $48-million renewal project—the results of years of planning and more than five years of construction. A quick look at the donors for the building indicates that they all come from homegrown Saskatchewan businesses.
We host and inspire prairie storytelling, job creation and cultural discourse. Our new community theatre is purpose-built to remove barriers to use by the many diverse communities that call southern Saskatchewan home.
We host numerous events. We run a season of five productions, as well as other special events, comedy shows and dance recitals. A recent production of Frozen ran for eight weeks and performed to almost 19,000 people in a city with a population of under 240,000. That's a pretty attractive centre of attention.
We hire more than 150 artists, technicians, production staff, educators and administrators. We collaborate with dozens of sponsors, community organizations and cultural partners.
Clearly, the Globe Theatre, just as many institutions do, plays an important role in the revitalization of downtown and in Saskatchewan's broader community. Arts and cultural institutions bring people into city centres in the evenings, and on weekends they support restaurants, hotels, retail businesses, parking services and tourism. We animate public spaces, encourage foot traffic and help create vibrant downtowns.
Just recently, we were closed for five years. When we opened, the restaurants started to fill up again. They had been empty for numerous years, and all of a sudden they were looking at our programming to find out how to staff their restaurants for sold-out nights.
This season, more than $579,000 in provincial sales tax and liquor tax revenue is anticipated to be generated directly through Globe activity. Our annual operating grant from the province is just over $200,000, so it's an estimated 200% return on the provincial investment. These numbers tell an important story. Investment in cultural infrastructure supports artists, strengthens downtowns, drives tourism, creates employment and contributes materially to the livability and identity of our communities.
In closing, I want to return to and ask everyone to consider the role the arts play in public life and in the economy. During postwar America, Roosevelt loved the arts, as they played a particular role in the economic revival and renewal of postwar America. They later became regarded as a practical example of Keynesian economics in action, because theatre artists are not people who accumulate wealth. Most artists do not make enough to save significantly. They spend what they earn. They spend it locally on rent, groceries, restaurants, child care, transit and small businesses. The money goes back into the community immediately. With a budget of $5 million, the Globe Theatre spends a lot on its local communities, and you can feel it.
Tommy Douglas's government in Saskatchewan in the 1950s was the first to set up arm's-length arts boards because, as he said, the arts create community where there otherwise might be none. I find that idea especially compelling because it came from a man of the church, and even then, he recognized the role the arts play in diverse cultural infrastructure.
Thank you.
:
Thank you, Madam Chair.
The Regroupement des festivals régionaux artistiques indépendants, which represents more than 130 festivals in Quebec, now also brings together francophone festivals elsewhere in Canada. Our sphere of influence is therefore not just in Quebec.
I would like to talk to you about a situation now playing out in Canada and in Quebec. This is the dominance of a group called Live Nation, especially in Montreal. It owns 49% of a group called Evenko. The 49% gives it significant influence and allows it to keep obtaining support from grants, since the company remains Canadian.
The group formed by Evenko and Live Nation owns seven festivals in Quebec and six venues. Elsewhere in Canada, its position is even more dominant. In Toronto, for example, it owns all major events and all venues. It has a significant impact on the music scene in Montreal and elsewhere in Quebec. The monopoly is a real threat to Quebec's—not to say Canada's—cultural sovereignty.
We have frequently condemned this group's dominant position in Quebec to federal, provincial and municipal government authorities, from whom the group receives significant grants. The group's dominance is even greater in the rest of Canada. It is a curious paradox to see our governments subsidizing an American company like Live Nation, which is harming our culture.
Live Nation also owns Ticketmaster, which is 100% American. It is everywhere in the largest festivals and the biggest venues. Ticketmaster has created a concept called dynamic pricing, which greatly affects the cost of tickets. In the United States, Live Nation is facing lawsuits from more than 30 states and has had to spend more than $420 million in lawyers' fees. What clearer indication can there be that its practices are not acceptable? In Quebec, a class action against Ticketmaster about the cost of tickets is in progress.
We have heard little about the airing of Enquête's reporting on Radio-Canada last February. The report caused a shockwave in political and performing arts circles.
We might actually have expected politicians to react more strongly. We repeat that having such concentration in the hands of a huge player like Live Nation clearly threatens our culture, in that an American company controls it.
When we discussed the issue with the Enquête reporter, she actually acknowledged that it was the worst code of silence she had witnessed in her journalism career. It was stronger than the omertà of organized crime and the mafia. Very few people in Quebec and in Canada wanted to talk about the monopoly. This shows the power the group holds in Quebec and in Canada.
Unfortunately, little has changed since.
I have just come back from a trip to Europe for discussions on the concentration of major players in music. It is having many negative effects in Europe. For example, Live Nation's purchase of one of France's largest venues, where Céline Dion will perform, caused shockwaves in Europe. We believe that a partnership between Canada and Europe is needed to counter the strength of these major groups. We see that our has created many ties with Europe. Perhaps this is a good time to focus on this issue too.
We must bring this problem and this situation to the political level. It cannot remain a matter for the artists, the venues and the festivals to deal with.
Thank you very much.
[Translation]
Thank you, Madam Chair.
Members of the committee, thank you for including us in this study.
My name is Jon Weisz and I am the founder and executive director of Scènes de musique alternatives du Québec, or SMAQ. The association was founded in 2018 and today brings together more than sixty independent performance facilities throughout Quebec.
Independent performance facilities have a central role in the music ecosystem because they can accommodate the major transformations in the way culture is available. Today, more than 80% of live, professional music performances in Quebec take place in independent facilities. They are the laboratories of artistic innovation. For the public, they also play a major role in discoverability, as they introduce artists from Quebec and Canada in person. These venues also contribute to the vitality of local economies by attracting audiences to neighbourhoods, to municipalities and to regions. Today, more than 75% of artists' income is from touring. Independent performance facilities are therefore essential for their financial stability and for the development of their careers in the long term.
The first challenge that independent performance facilities face is chronic underfunding. The current envelope for halls in Quebec is a thin one indeed: one-third of what goes to venues in the rest of Canada.
Our first recommendation, therefore, is for the government to bring the amount of permanent funding for producers and for performance spaces to $10 million.
An investment of that kind would protect our cultural sovereignty. Without strong infrastructure to host our homegrown artists, Canada increases its dependency on foreign content, platforms and companies, mostly American, to shape our collective imagination and our access to music.
The second challenge is the precarious situation with the facilities. In Quebec, around 70% of independent performance facilities are leased. This makes them directly vulnerable to increased rental costs and to real estate sales, speculation and changes in use. Each time a lease is renewed, a number of tenants are anticipating increases of between 25% and 50%. In the last three years, other operating costs have increased by about 40%.
Our second recommendation, therefore, is for the federal government to support collective models of venue security that would establish independent performance facilities on a long-term basis.
The third challenge for independent performance facilities is the growing concentration in the market for live events.
Internationally, players like Live Nation and Ticketmaster have been strengthening their position through evermore aggressive vertical integration. This has fragmented, not to say dismantled, a number of cultural ecosystems.
In Quebec, the concentration took a specific form in 2019 when Live Nation Entertainment acquired 49% of Evenko. Today, this conglomerate controls a critical mass of major performance venues and festivals in Quebec. Therefore, half the profits from those events, supported by millions of dollars in public money, go off to Los Angeles.
While the huge integrated groups make record profits quarter after quarter, independent production continues to operate in an ecosystem that is growing evermore precarious.
Our recommendation, therefore, is that the federal government institute a solidarity fee on ticket sales for major events. To be specific, this would be a modest contribution on tickets for major concerts attracting a large audience. The fee would be paid into a fund for independent performance facilities.
A measure of that kind would recognize the artistic research and development role of those facilities. They are where the first risks are taken with emerging artists and new projects.
In conclusion, support for independent performance facilities is support for our cultural sovereignty. Investment in a strong network of independent venues protects our ability to bring our stories to life and to produce them for the public to discover.
Thank you for your attention. I look forward to your questions and am ready to answer them in either official language.
:
It's foreign interference, but it really has a true Canadian dimension. Including the organizers and the performers, the entire Shen Yun community is a very Canadian community. You have 18- and 19-year-old kids, Canadian-born kids, who are on stage with years of training. They're facing bomb threats, criminal harassment and the fear of cancellation. I'm a father of a 19-year-old. My children are not talented enough to be Shen Yun performers, but as a parent, I think it's a horrible situation to have to live with, not knowing if these bomb threats will manifest themselves.
As far as I'm concerned, it's really a situation of transnational crime that has an impact on Canadians—what Canadians get to see and what Canadians get to experience culturally speaking—and on Canadian artists and Canadian performers. With anything that's transnational crime, sure the origins.... Take as an analogy criminal drug cartels. Cocaine is harvested outside the country and imported from outside the country, but the dealers are here. The crime has an immediate criminal impact in the country.
As an analogy, it's the same situation here. The difference is that the scheme is very intelligent, because the Criminal Code infractions originate from outside the country. Under diplomatic cover, the work is then finished by consular officials. Under the veil of diplomatic immunity, they go about trying to seal the deal and convince venues to disenfranchise Shen Yun, which is, as I've said, a Canadian institution with Canadian artists and performers.
:
Federal departments are supported by other federal departments. The Office of the Superintendent of Financial Institutions, OSFI, is supported by CSIS when it does security checks. When you want tax credits or you need extra monies for your envelope, you go to the Department of Finance. Any time my law firm sues the government, it's a lawyer for the Department of Justice who shows up, no matter what the department is. Ultimately, as a department, you have the full support, if you call on it, of CSIS, the RCMP and Global Affairs.
As far as I'm concerned, when diplomats are involved in engaging in criminal activity in Canada, they can be made personae non gratae and asked that the behaviour stop or asked to leave the country. There's no doubt—I don't think there's any debate—that the activities are Criminal Code activities. Mischief, threats to life and harassment are Criminal Code activities.
The CCP is very clear about its mandate in relation to Shen Yun and Falun Gong. It's unequivocal. It comes from the top. It is organized, and it is very public. They're not shying away from their feelings, certainly not when they're meeting with Canadian officials and asking them to ban Shen Yun. As far as I'm concerned, that's complicity. That's conspiracy.
I would ask the committee and members of Parliament to refrain from looking at this as silos. This is a—
:
Thank you, Madam Chair.
Good morning, everyone. Thanks to all of you for taking the time to be with us today.
I am not an artist, but I am the proud member of Parliament for one of the most diverse and vibrant communities in our country, and certainly an artistic community. I fundamentally recognize the value of these venues and the performance opportunities that young and emergent artists get.
I'll also make a point of saying that despite aging a couple of months back—I am now one year older—I'm still fairly young, and I have the privilege of engaging with young artists all the time. Some of my favourite videos online are of artists performing in smaller venues before they became famous, because you can see a blend of three traits. I would say they are talent, passion and opportunity.
Ms. Benjamin and Ms. Brewin, you both work closely with independent venues and grassroots artists across the country. For many young Canadian musicians, smaller venues are where they perform for the first time. It's where they build confidence and it's where they start growing an audience. Could you speak to the value of these venues for emerging artists?
:
I was one of those artists long before you were born. How long, I'm not going to say.
Honestly, they're fundamental to an artist's ability to, as I said in my remarks, develop an audience and build markets over time. Everyone loves to talk about a TikTok phenom's overnight success, but even those artists likely started somewhere else. The reality, especially in this country, is that touring, as Jon mentioned, is not only where artists earn most of their revenue; it's really how they build a fan base. If we don't have access to those performance spaces, we simply don't see that.
This was the crux during COVID, obviously. All of you would have felt this in your ridings, with emerging and especially independent artists who had no place to play. We almost lost an entire generation of emerging artists because of this, which is why the Canadian Live Music Association and so many other organizations work together to champion investment in the sector to save infrastructure so that we can continue to facilitate touring across the country at every level.
As I referenced in my remarks, it establishes the pipeline, and not every artist goes on to be a commercial success. I am also an example of that. I do something else now that I very much enjoy. The reality is that in the opportunity to share songs and stories with different communities from coast to coast to coast, that's where it happens. Whether it's a church basement or a library—and we might put some of those venues in the same sort of bucket for the purposes of this conversation—any contraction of those opportunities very likely means fewer performance opportunities for emerging artists, who may ultimately go on to write the song that your children dance to at their wedding. That's how it works.
We have a wonderful artist in the room who is a perfect example of that legitimately. David Myles's music has changed the way Canadians feel many times over, and in a good way. Truly, this is what artists do. If we don't have those spaces, we are simply not creating our artists of the future, and we're missing a huge opportunity as a country if that happens.
:
All the arts are labour-intensive, and theatre in particular because it's live performances and because it's usually more than one person. Emerging artists are going to exist in any culture over time and over history. What they need is space. As a person who used the Poor Alex Theatre and all these tiny spaces in Toronto, I know they need space. It's going to happen no matter what.
The other thing I see constantly is that independent art theatre-makers will get a grant of possibly $5,000 or $8,000, and they spend most of that in Toronto on space. I'm trying to figure out how on earth we can do it so they don't have to spend money on administrators and producers.
In particular, they just need space. They need a clean, safe space where they can make work and be creative. They need a black box, and they can make anything anywhere. A place where they're honoured, revered and cared for is inspiring. They're acknowledged for what they do by opening up the doors.
The University of Regina just started a residency program where their final year class cohort of emerging artists were residents in our company. It was great for our company to have those young people around. When they were in that space, they made something they could aspire to from being in a professional theatre environment. It was great for this company. We had an intergenerational story happening in our space.
Theatre artists need space to make work, and they will make it. They'll be independent. They're naturally entrepreneurial, so that's why a roof, walls and doors are really great.
:
Thank you for that important question. It's been the foundational question my entire career to this date.
I've spent 35 years advocating for the industry side of the live music sector. I believe we have in this country a remarkable opportunity. I referenced the promoter program and the festival support component of the Canada music fund. We also see the Canada arts presentation fund, the building communities through arts and heritage program, and all of the Heritage supports.
I've talked to PS Myles about a broader Canadian live music strategy. We need to look to other countries to understand how they're incentivizing growth in this sector. We need to treat these independent and all live music spaces as a legitimate industry—again, it's almost $11 billion to GDP and 100,000 jobs—and understand the growth potential. We are so far from harnessing the potential of this sector.
As I said, during COVID, it was the first time there were direct investments in the independent venue and promoter space in the history of this country. This is a segment of our economy that is underutilized and misunderstood. That is why this study is so important.
You asked a question about artists, which is very important—
:
Thank you, Madam Chair.
Mr. Kearney, let me turn to you right away.
In your opening remarks, you talked at length about the Live Nation situation, which is a major concern and raises a lot of questions. I have to tell you that we have heard you and we are extremely worried by it all. Discussions are taking place and pressure is being applied so that the rules can be changed to the benefit of many in the environment who are harmed by the actions of certain huge multinationals. As you know, this does not just affect festivals and shows, it also affects a number of other aspects of cultural life in Quebec and Canada.
I would like to talk to you a little about the state of festivals. Your group, REFRAIN, represents many regional festivals and many small festivals that are extremely diverse and often thematic. They reveal aspects of our culture that are not easily available, or not as easily presented outside a festival structure.
Could you tell us a little about the ways in which these festivals have to fund themselves? Do some organizers feel a kind of lack of commitment on the part of the federal government? I personally receive several appeals along those lines. How can we get back on track and make sure that these festivals, significant and often underfunded as they are, as I said, can continue to present their offerings?
:
Those festivals certainly do play a really important role in the development of the artists' careers. They are often the gateway for new or mid-level artists. We did a small study that showed that festivals with fifty or so artists is like being at a huge buffet. You can consume a lot of culture and meet a lot of artists. Then you can choose to go and see them elsewhere. Festivals are an important complement to, say, the independent performance facilities that Jon Weisz represents. It's a continuum.
Certainly, funding is always a challenge. The problem we have with Canadian Heritage is that the department gives us some money, but not more money, despite there being more festivals. Here's an example: we receive $25,000 for a festival. When we apply for the same festival the next year, we receive $22,000. Funding decreases because the feds distribute their funds to all eligible festivals.
So there are two solutions: Either provide more money, or turn off the tap and have no additional festivals. Except that—
:
Thank you, Madam Chair.
Mr. Chipkar and Mr. Etienne, as you may recall, just 13 months ago, the Prime Minister at the time, , referred to China as the biggest security threat to this country. Now he's allowing 49,000 Chinese EVs into this country. In fact, I was in Vancouver a couple of months ago as they were preparing to take them off the ships. They're expanding trade with China.
Falun Dafa, what are your thoughts about this? Thirteen months ago, they were the biggest threat, and today we seem to be in bed with them.
:
We've heard the speak about standing up to America, and every day we do business with the Americans—they're our best friends—yet we're maintaining our Canadian values and principles in relation to the Americans. I'd like to see the same—Canada standing up to the CCP.
This department and our country have a history of standing up for the freedom of cultural expression. We did it during Jim Crow. Don't forget Josephine Baker, Billie Holiday, Louis Armstrong, Duke Ellington, Jackie Robinson in sports, Jack Johnson and Willie O'Ree. We stood up to Jim Crow, did business with the Americans and stood up for the Canadian values of equality and decency.
I just can't understand for the life of me.... During the Cold War in 1972, there were Paul Henderson and Ken Dryden. The east and the west were just about to nuke each other, but we were allowed to play hockey without foreign interference and without any bomb threats, and push the advancements of international brotherhood through cultural expression without any interference.
If the federal government wants to do business with China, that's an issue for a different discussion on another day, but there's no reason we can't stand up for Canadians and their right to express themselves through arts and culture on stages.
:
Wow. That's interesting.
First of all, Little Red Warrior is a play, but let me take a step back.
What your question is addressing—and it comes off the previous conversation—is the idea of cultural diversity, diversity of communities and diversity of ideas. The idea that we live in a community with multiple realities and cultural realities is something the arts get to show off and embrace.
In terms of Little Red Warrior, this play has been produced across the country. It's by a Governor General's Award-winning playwright. It has been produced for students for high school matinees many times. The script was available to the teachers. The script follow-up conversations were had with the schools and the teachers, and the content was revealed to them. That's one part of the problem we had.
There was a school that showed up—
:
Thank you very much, Madam Chair.
My thanks to everyone for joining us today.
A media report published in January 2026 dealt with the issue of new approaches to the use of their activity space by artists' organizations. For example, in Calgary, there's a network of heritage buildings, like King Edward School, more than 100 years old, that has been converted into a space for the arts. I am also thinking about the director of the Halifax Folklore Centre in Nova Scotia, who organized an open-mike acoustic evening in a funeral home. I could also talk about Terrebonne, my own constituency, where heritage buildings are used as spaces for artists to present their works. In my opinion, making buildings that would otherwise sit empty part of emerging culture is a good practice.
Mr. Weisz and Mr. Kearney, how can we encourage practices of those kinds? What role can the various levels of government play in encouraging those practices?
:
North America, meaning the United States and Canada, is probably where ticket prices are highest. Europe still has large companies that can compete among themselves. Going to see a show at the Bell Centre for less than $200 is really very rare. In Europe, it's not so much of a problem.
Let's talk about what is called cultural spending. A kid who pays a lot to see a French artist, perhaps a rapper from France, at MTELUS, will have less money in his wallet to go and see a Quebec artist in a small venue, such as the ones Mr. Weisz's association represents. At some point, there's a limit. The Enquête report showed it clearly. A girl who is a big fan of Paul McCartney had a budget of $500, but she ended up paying $900 for her ticket because of Ticketmaster's dynamic pricing. In the piece, she said quite clearly that she would be going to fewer shows this year. What she means, of course, is that she will be consuming less Canadian and Quebec culture.
So the impact of this major player and its dynamic ticket pricing is so important in the way culture is presented.
:
Thank you very much, Madam Chair.
I am going to add to the point that my colleague Ms. Auguste raised. It was about the use of heritage buildings for presenting culture. I feel that it's a key factor. However, we must also consider the state of the buildings. Gentlemen, I believe you mentioned that building maintenance is not always a matter for show promoters. They are often tenants of the building. Now, as we frequently hear, the owners of the buildings very often cannot take advantage of grants, for all kinds of reasons. Not to mention the lack of commitment that we were talking about a little earlier.
To what extent can the state of the buildings have an effect on the presentation of various events and shows, or on programming?
Mr. Weisz, I see that you seem to be ready to answer that question. I feel that it's particularly close to your heart. Tell me a little about maintenance in buildings and the inability of producers, in many cases, to fix the problems themselves.
:
You are exactly describing one of the reasons for a project we have launched. We are in the process of setting up a real estate company ourselves; it will be able to remove some of the buildings that house performance venues from the speculation market.
Let's be honest; there's not enough public investment. The fact that two-thirds of the venues are rented does not encourage investment from those who operate the spaces. Someone with a five-year commercial lease has no incentive to invest $300,000, $400,000 or $500,000 in a building that may become a microbrewery or a pharmacy when the lease expires.
There is still a lot of work to do to create a kind of permanence, to ensure that these places remain as performance venues. If we do the job properly, it will greatly encourage private investment, with a potential for public investment to follow.
:
I get the impression that I am not going to have enough time for my question to Mr. Kearney, but I am going to ask it anyway. It may turn out to be more of a comment, which we can come back to in my next round.
What you were saying about the explosion of the ticket prices for major shows was very interesting, I find. It's often enough to drain budgets completely. So people in larger centres cannot travel to the regions in order to attend festivals there and discover new artists that they might not consider discovering in the city on the stages that Mr. Weisz represents.
Mr. Kearney, we can come back to that later, but I would like to hear about festival attendance and the clientele you want to attract. Festival operators may be feeling the impact of what's happening in major centres, like the Ticketmaster situation you described and the increase in prices.
I see that my time is up. So I am not going to ask you to begin an answer just to have you interrupted. We will talk about it again shortly.
Thank you.
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There were no grade 9 students at the show. They were from grades 10, 11 and 12. At Campbell Collegiate, we gave them a warning about the content and what was in the show, and they did not bring their grade 9 students as a result.
That's the kind of misinformation we saw from Just Bins and the National Post—which picked it up from Just Bins, a trashy site—about the show.
Until someone sees the show, reads the content and reads the reviews from across the country about the show from the teachers who did come to see it and the parents who did bring their children to see it.... We could have a big conversation. That was the coolest thing that happened out of this terrible misrepresentation of the story. Really cool conversations could have happened between parents and arts organizations about content.
It actually did happen. More people showed up to the theatre than before. We all spoke to the principals and offered to have reconciliation and conversations with all the schools, because it's an important story. It's an important play written by indigenous artists, and it's funny. There's nothing more in that play than what's been on regular TV at seven o'clock in the evening.
:
Thank you, Madam Chair.
I'm going to centre my questions first on Ms. Benjamin.
I'll give a bit of context. I'm a west coast MP, and I represent four of the 21 metro Vancouver municipalities—Anmore, Belcarra, Port Moody and Coquitlam. That's from smallest to largest. It's 800 people right up to nearly 170,000 people. It's four communities. Of those, Port Moody chose a moniker about 25 years ago. That moniker is “City of the Arts”. Even back when I was a city councillor for 11 years, we were still trying to live up to that moniker. It was very important to our community.
You talked about the cultural ecosystem and the necessary infrastructure. One of the things we would often do for smaller groups looking for performance space, which is also limited in the community.... There are really two main venues. One is in Port Moody, the Inlet Theatre, which has a capacity of about 190 seats, and there's a similar, slightly bigger venue in Coquitlam, the Evergreen Cultural Centre. In Port Moody, council would often grant fee waivers. How that really transpired was that a group could avoid the rental fee, but they would still need to satisfy the other costs, like the cost of the theatre technician. That might result in having to pay about $1,400 a day. That gets really expensive in smaller venues.
With municipalities all over granting fee waivers, it still might not be enough to help these performing groups get their starts, so in your best estimate, what would you suggest? How can the federal government better support municipalities when there may be some existing infrastructure, albeit not enough? What do you imagine we can do?
:
Thank you so much for the question. It's great to see you again.
The federal government can send a signal to all levels of government about the importance of cultural industries, arts, and culture by developing fiscal and cultural policy that incentivizes sustainable growth in the sector and starts treating this industry for the value it represents economically and culturally.
There's a deficit of existing policy. This is what we have an opportunity to address through this committee and other committees like it. We can say that Canadian content matters and Canadian stories matter. Telling those stories, accessing Canadian artists and bringing us together in spaces of all sizes matters, so what kinds of policy tools are we going to develop?
It's not just about funding. Jon said that it's about attracting private sector investment. It's about signalling the importance of community building and city building. What are the elements and aspects that we need in order to renew our downtowns, no matter what size of city? We are all still struggling across this country.
Frankly, I've said this for a very long time. I'm not sure I'm crazy about the term, but it's accurate: This sector is low-hanging fruit. You're talking about non-profit community arts, which are an essential ingredient of what we're all talking about today. The commercial side and the non-profit side work together, but this sector has been historically under-leveraged. Canadian Heritage programs are amazing. They're incredibly important. They should always be addressed in every budget and be renewed to reflect the realities of the sector.
All of us have these arts organizations and commercial entities—small businesses—in our ridings. They intersect with other types of companies. Canada is doing an excellent job at understanding how we can import and export across provincial borders and national borders. We should look at culture and cultural exports and imports the exact same way.
The federal government can lead the conversation. We can learn from other jurisdictions across the country—there are some really amazing places in Canada doing great work—and around the world, not just to understand how to harness the economic and cultural activity, but to understand the intersectionality. When theatre, music, dance or whatever it is thrives, it is more likely to draw tourists. Where we're sitting right now, in the beautiful cities of Ottawa and Gatineau, we understand that better than most. When we leverage cultural content, tourists are likely to spend more and stay longer. We attract talent, like the talent we need to work for our tech companies and our defence primes.
This is a layer that I believe we have misunderstood for a very long. It's why it's so important to have a diversity of elected officials who come from different backgrounds and bring different perspectives to this conversation. We have a moment in this country right now to really harness the activity that all of our witnesses today represent, along with so many others who are doing incredible work.
The municipal piece that you're referencing is so important, because that is where we come together as neighbours. From there, we grow our amazing Canadian artists and voices.
:
I would say we have an ecosystem in the live music industry, and it is imperative that we understand that. My previous response was trying to allude to this.
When we think about multinationals in other sectors.... For some reason, in entertainment, we're more preoccupied with the impact. What I've been suggesting all along is that we build policy tools to balance the ecosystem.
When I talk about $11 billion in GDP from the live music sector, this is a range—small, medium and large companies are delivering this. Our multinational companies with a presence in Canada are important to the Canadian economy, to Canadian jobs and to local economies. In fact, the Canada pension plan owns 8.79 million shares of Live Nation. That stake amounts to approximately 3.7% of the company's total outstanding common stock and is valued at roughly $1.39 billion.
We're not talking about big versus little. We need multinational companies in this country to grow our economy. What we need in order to address the concerns of our colleagues from across the country are better policy tools to identify how we build sustainable growth at every rung of the venue ladder, because this ultimately will serve Canadian artists, Canadians and the Canadian economy.
:
Yes, we do represent thirty or so festivals in and around Montreal. We have a presence there, it's a region for us.
I don't quite agree with Ms. Benjamin. I actually think a group like Live Nation can play a role.
First, we don't have to support it financially. But for a good number of the major festivals, the group can apply for grants. Our governments are asking us to consume locally, but, at the same time, they are funding an American company. I find that it makes no sense at all.
The funding for Live Nation has an impact on the share of the pie for others. I was talking about this earlier. Canadian Heritage does not have unlimited amounts of money. If you give a lot to the major players, the minor ones get less. It's quite the game.
I have a really hard time understanding why we are funding an organization that is extremely profitable and powerful.
Let me share a fun fact. When Taylor Swift came to Toronto, it cost less to buy a plane ticket to go and see her in Germany than to see her in Toronto, because the tickets cost so much. It's another example of the effect that company has. Clearly, when you are paying $3,000 to see Taylor Swift in concert, you are not going to see as many shows in Quebec and Canada.
So, yes, our sector is becoming Americanized.
:
I don't know if we want to have this supply and demand conversation today, but there's a reality when one million people want 500,000 tickets. We see this every time we have international shows.
Do I think it's okay? No. Do I think it's capitalism in action? Absolutely. I don't like paying $1.95 at the gas pump. I broke my iPhone. I'm going to need a new one, and it's going to cost a lot. This is the world we live in.
If we want to be intentional about how we address these things, again, we need to unpack policy. We do this in other sectors. We do this in defence. We do it in tech. To a certain extent, we do it in health care and education. We need to do it in entertainment and creative and cultural industries to understand the opportunities they represent. If we have all these people willing to....
I don't disagree with my colleagues in Quebec at all. We have finite dollars for culture, but there's a reality. My 18-year-old daughter saw Taylor Swift, and I paid for it. I can tell you that it was expensive, but she wanted to see that. I am helping her to understand other types of shows that she'll enjoy, and she does consume music of all kinds in all sizes of rooms. The reality is that this will always exist.
What is our opportunity? Our opportunity is to look at where the gaps are. Smaller venues work in a different market context. How can we address that? How can we help them stabilize and grow? How can we help Canadians and people coming to Canada to consume our culture and understand the range of opportunities?
It can't be big versus little. Otherwise, we don't have the balance that I feel is fundamental to the success of the ecosystem or Canadian artists in the Canadian economy.
:
Thank you, Madam Chair.
Good morning, everyone. It's nice to see you all here. Thank you for being here.
I am in a rural Nova Scotian community, and we have a very active small theatre here.
I'm going to ask my first questions of Ms. Brewin.
Here in northern Nova Scotia, we have a lot of indigenous-led arts and culture happening. I'm wondering, based on your experiences, how you would say indigenous-led arts and culture spaces and programming contribute to reconciliation and cultural revitalization.
:
I think it's critical, primary and effective. I think that because it's fun to watch. We just recently had a festival called the spring thaw festival, and we worked with Gordon Tootoosis's theatre company out of Saskatoon. They came down to Regina, because Regina doesn't have the same kind of indigenous theatre community as Saskatoon.
What was so striking to us was how grateful they were to be able to come into a space. I don't want to use the word “grateful” around hosting and being guests and hosts. We were both at once all the time. What we heard was that it was so great that they didn't have to do anything. They could come in and read their scripts. They could work on their stand-up comedy. They could have conversations. They could just walk into the space and do what they did well. That energy radiated out to the community, and people started saying, “I want to have that conversation with you guys, too.”
For us, reconciliation is a lot about finding the worlds where settlers and indigenous and non-indigenous people meet. Comedy is a place where we do it, and that's one of the critical parts. We're watching as it happens in different areas.
For us, what we're recognizing is that, on reserve, the kids are into music, visual art and dance, but they're not so much into theatre. That tells me that there's no theatre program per se; it's a multidisciplinary area. The more agency we can provide or offer up so that we're not dictating the kind of work they want to do, but we have a space in which they can access whatever they want, such as our sound booth to create music....
Also, 85% of our audience is non-indigenous. Ten years ago, when we put on a play by an indigenous artist, no one came to it. Now they sell out. It's becoming a third space where people are sorting out that conversation among communities and among different cultural and ethnic spaces. We're watching stories happen on stage around what it's been like for conversations to happen.
I'm inspired by it all the time. It's not easy. We're always learning. We're always open to it, but it's a pretty critical place for some big ideas to take off and flourish.
:
Thank you. It's such an important question.
I spent 13 years living in northern Ontario as an artist, and I have direct experience. I spent many years on the board, actually, of the East Coast Music Association. I was from away, but I somehow ended up on that board. I certainly spent a lot of time in different parts of eastern Canada and as a touring artist playing in very small communities across the land.
Organizations like the Canada Council for the Arts, when we're talking about the non-profit side of things, have a deep understanding of this and attempt to approach effectively some of the very unique, specialized needs of live music spaces in rural parts of Canada, but we need to go further in terms of connectivity. The cost of touring is exponential. You're less likely to attract artists because of the cost of getting to smaller places. Typically, we may see smaller budgets in smaller rural places as well.
It's a great opportunity, when we're thinking about the modernization of cultural policy, to understand those unique aspects and to consult with folks—artists, venues and festivals—on both the not-for-profit and commercial sides of that spectrum to understand those challenges and integrate their perspectives into future policy.
:
Thank you, Madam Chair. It's a pleasure to be here.
I want to welcome our witnesses and the many people who are listening to the committee in the room today. From my recall of faces, it appears that many representatives of the Falun Dafa community are here to observe these hearings.
I want to thank you for being here. You're regular witnesses on Parliament Hill in various fora, including here at this committee. I will be directing my questions to you as representatives of Falun Dafa. If you're able, give responses that are as short as possible. I'd like to get through a few different things.
What we're talking about, as I see it, is the systematic targeting of a particular arts and culture presentation by a foreign state that doesn't like it. Is that fair?
This whole situation is so incredible—that we would allow a foreign state to be involved in trying to censor arts and culture here in Canada.
To put a fine point on it, imagine if it was someone else. Imagine if there was a large organization in the United States that was trying to induce the censorship of a play or a dance performance here in Canada. What kind of response would you expect from Canadian elites in that situation?
Hypothetically, let's say there was a right-of-centre group in the United States trying to cause the censorship of arts in Canada. What kind of response would you expect from elites to that sort of event, and how would you compare that to what we're seeing in the case involving the CCP?
:
Look, Shen Yun is targeting a Canadian institution. Shen Yun is Canadian. Shen Yun performers are Canadian artists.
The analogy with the United States is very interesting. We've been, as a country, standing up to America, our best friends, while doing business and commerce with them now for these many months. We're standing up for our principles. There was a time when Canada stood up for its principles in terms of equality and human rights in relation to Jim Crow in the United States. I was pointing out earlier that Jackie Robinson had to play baseball in Canada. There's Jack Johnson in boxing, as well as and Willie O'Ree, Josephine Baker, Billie Holiday, Louis Armstrong and Duke Ellington.
Canada was instrumental in ending Jim Crow in the United States, and at the same time we were doing commerce with the Americans and were standing up for our principles. The analogy is the same with the Eastern bloc during the Cold War and with Ken Dryden and Paul Henderson. There was a time when we, the smaller country, would stand up to bigger institutions.
:
I have to jump in, just because of time. It's a great point—the importance of culture in the process of us standing up for our values, and especially not allowing censorship on our soil by foreign actors.
I think it's important for this committee, having heard this testimony, not only to listen but to take action and propose solutions. In that spirit, I'd like to move a motion on this matter at hand, which I believe the clerk has and can now proceed to distribute. The motion reads:
the Chinese Communist Party is targeting Falun Dafa practitioners and Shen Yun performances in Canada;
the National Arts Centre (NAC) ended its relationship with Shen Yun after years of hosting its performances;
Shen Yun performances in Toronto were cancelled due to bomb threats;
in April of this year, reports indicate that Chinese consular officials met with Vancouver City officials in an attempt to pressure them into cancelling a Shen Yun performance at a Vancouver theatre; and
the same Shen Yun performance was subsequently targeted with a bomb threat;
the committee report to the House its unequivocal condemnation of foreign interference by the Chinese Communist Party in Canada, including efforts to intimidate, censor, or suppress artistic expression and freedom of speech, and reaffirm the importance of protecting Canadians from foreign intimidation and safeguarding fundamental freedoms.
Colleagues, I hope this motion can be a matter of consensus and an opportunity for this committee to speak strongly and push back against foreign interference and to defend the freedom of artistic expression in this country. It has been a long road. We know the important work that artists do in creating beautiful things and, through that beauty, challenging ideas and advancing perspectives.
This is so important to a free society, and it would be a profound shame if we allowed the freedoms that we are supposed to have here in Canada to be interfered with, to be suppressed through foreign interference.
This motion is clear. I believe it should express the consensus positions of all parties, and I hope it provides us with an opportunity to send a clear and substantial message in defence of the arts, in defence of freedom of expression and in defence of our national sovereignty.
Thank you, Chair.
:
Thank you, Madam Chair.
I am going to turn to you, Mr. Kearney and Mr. Weisz.
Earlier, my colleagues asked some questions and we skirted around the topic of the unfortunate closures of performance halls and creative spaces in the regions.
In terms of major centres and cities like Montreal, I will use the recently closed Afromusée as an example. It was a creative space. It also had a little bar and a small area for shows in an attempt to bring in more revenue. Despite the fact that it was in downtown Montreal and close to public transit, it ended up closing.
Are you seeing a trend where concert halls or theatres are closing or being converted into studios? How do you see that?
:
Yes. It's a bipartisan issue. It's an issue that affects everybody. It's not just about the Falun Gong community or Shen Yun. Today, it's Falun Gong and Shen Yun. Tomorrow, it's going to be somebody else.
When we allow a foreign dictatorship to silence our voices and our arts, we lose everything. We lose everything in Canada. We have no sovereignty anymore. We're at the behest of a foreign dictatorship.
We have support. We've appreciated the support over many years, for over a quarter century now, from Liberal members of Parliament, like Irwin Cotler, who championed our cause many years ago. We have supporters from the Conservative side as well.
Again, this is an issue that affects all Canadians, and we appreciate the support from everybody on it.
:
I would like to add something about the climate of fear in which the cultural communities are living, especially in greater Toronto. When the Chinese government can act with such presence, such force and such impunity, it affects all the other communities. Clearly, it affects the Chinese-Canadian community. However, it's not just the community of Falun Gong practitioners that suffers, it's actually every Canadian multicultural community.
So this international interference, which is preventing us from expressing ourselves culturally on our own stages here in Canada, is a serious matter. I believe that it is your prime responsibility as a committee and as parliamentarians. You are the defenders of the Canadian Charter of Rights and Freedoms. You are the defenders of our rights and freedoms. Your voices are heard internationally. I feel that you cannot remove yourselves from the obligation to protect the citizens of this country.
Of course, I thank Mr. Genuis for the request he made today. I hope that the members of the committee will, on a non-partisan basis, not only support the request, but will also urge action from federal sources, such as the Royal Canadian Mounted Police, the Canadian Security Intelligence Service, Global Affairs Canada, or other federal services. They must intervene to protect these Canadians who have the right to express themselves.
Thanks to all the witnesses for being here for this important study.
Maybe I'll start with Jon and Erin.
My question is about whether the definition of what a “venue” or a “cultural centre” is might be too narrow. Some of the funding that has been traditionally given out for culture and heritage in Canada has been directed, obviously, towards more traditional arts centres, municipal arts centres and these kinds of things, and some of the challenges are around—Jon, you spoke to it—whether they do other things.
Can we talk specifically about the definition and how that has become a bit of an obstacle to accessing funding? I know the live music fund did help with some of that, but I think it's an ongoing conversation, so maybe we can speak to it.
:
Jon, maybe we can handle this together.
There are two sides to this coin. There's a non-profit side and a commercial side.
On the commercial side—especially during COVID, when the government put $70 million into the independent concert promotion and venue sector to save the infrastructure—there was a very comprehensive conversation at Canadian Heritage about what would define the eligibility criteria. In my opinion, it was too narrow, and we lost a bunch of venues as a result. However, there are a few pockets on the commercial side where.... In the province of Ontario many years ago, for instance, we had something called “Vision for Ontario's Live Music Industry”, which we prepared in partnership with the government at the time. We defined what a venue is, a commercial venue.
There are different jurisdictions that have looked at the amount of Canadian content on stage, the size of capacity, and the business-model shapes, such as whether it's owned by a sole proprietor or a conglomerate, etc. There's that side of things.
Then there's the non-profit side. Typically, a program like the Canada arts presentation fund would outlay eligibility criteria and have something like a development component to bring smaller venues into that space to help them scale over time.
I think it really depends on what aspect we're looking at, but certainly there's a conversation to be had about understanding the way the business is today. It's changed fundamentally, and not just because of COVID, but over the last many years. What do artists need? What do audiences need? Where are the gaps? Where are the opportunities? Again, I'm a broken record today, but how can policy respond to that?
:
A big part of it is definitely about the way certain venues are structured—the not-for-profit and the for-profit divide.
Traditionally, the federal government has seen venues as not-for-profit theatres and performing arts centres. I'm painting with a bit of a broad brush, but that's a pretty good way of putting it. A lot of operators don't necessarily want to structure as not-for-profits, but that doesn't mean they're making money hand over fist. They're still investing in the same types of expenses. They're still paying artists' fees in the same way that theatres and performing arts centres do. They've just chosen to structure differently for reasons that are complex—and which are too complex to go into today.
The for-profit and not-for-profit piece is a big one. Over time, my sense is that this divide has become ingrained and instantiated in the way federal funding has been rolled out. It's as if it's assuming structurally that for-profit venues shouldn't be funded because they're for profit, but when you look at the profit margins in these spaces, they're incredibly low. For example, in the U.S., I think 64% of independent venues lose money. In the U.K., I think it's 54%. Even if I'm getting the numbers slightly wrong, it's a majority of independent venues, most of which are for-profit, that are losing money. The average profit margin in the U.K. is about 2%. We don't have these numbers for Canada, but anecdotally I can confirm the same thing is true in Quebec.
I believe we have to rethink the way we determine eligibility and the way the assumptions are baked into the system about where artists play and where they earn their money.
:
Thank you, Madam Chair. You know that I am very strict and precise on matters of time. I will do this quickly.
Mr. Kearney, in your opening statement, you brought up the matter of Live Nation. I know that Jon Weisz and the people from SMAQ have, in recent months, had an open letter published, in Le Devoir specifically, to express their acute concerns and to alert media and politicians alike to the matter.
You talked about the number of performance venues that belong to Evenko and Live Nation, and about their grip on a number of major festivals.
Have you witnessed any practices that show that Live Nation and Evenko are trying to have greater control, to exclude smaller players, and to prevent them from being part of the kind of ecosystem that is developing around the multinationals?