journalism

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Andy Blatchford, The Canadian Press

Like us on Facebook and follow us on Twitter.

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

Just Posted

COVID-19. (Image courtesy CDC)
Interior Health reports 18 COVID-19 cases, highest daily count since July

The total of COVID-19 cases in the region is now at 662

A Kelowna clinic decided to immunize their patients in a drive-thru flu clinic earlier this month. (Twila Amato - Black Press Media)
Interior Health anticipates increase in flu vaccinations this season

Some 300,000 doses of flu vaccine ready for distribution across Southern Interior

Your Columbia River Revelstoke candidates; Nicole Cherlet (NDP); Samson Boyer (Green) and Doug Clovechok (BC Liberal)
Candidates’ messages: Columbia River Revelstoke

The Bulletin offered each candidate in Columbia River Revelstoke space to hold forth on issues important to them and to voters.

COVID-19. (Courtesy of CDC).
Interior Health reports 12 additional COVID-19 cases

The total number of cases in the region is now at 644

Carmen Hintz poses with the four kittens she rescued. Paul Rodgers photo.
WATCH: Kimberley local rescues four kittens, starts fund to help others

Kimberley local Carmen Hintz has found her house to be a little… Continue reading

B.C. provincial health officer Dr. Bonnie Henry gives a daily briefing on COVID-19 cases at an almost empty B.C. Legislature press theatre in Victoria, B.C., on March 25, 2020. (Don Craig/B.C. government)
B.C. sees 223 new COVID-19 cases, now 2,009 active

Two new care home outbreaks in Surrey, Burnaby

100 Mile Conservation officer Joel Kline gingerly holds an injured but very much alive bald eagle after extracting him from a motorist’s minivan. (Photo submitted)
B.C. driver thought he retrieved a dead bald eagle – until it came to life in his backseat

The driver believed the bird to be dead and not unconscious as it turned out to be

Chastity Davis-Alphonse took the time to vote on Oct. 21. B.C’s general Election Day is Saturday, Oct. 24. (Chastity Davis-Alphonse Facebook photo)
B.C. reconciliation advocate encourages Indigenous women to vote in provincial election

Through the power of voice and education Chastity Davis-Alphonse is hopeful for change

White Rock RCMP Staff Sgt. Kale Pauls has released a report on mental health and policing in the city. (File photos)
White Rock’s top cop wants to bill local health authority for lengthy mental-health calls

‘Suggestion’ included in nine-page review calling for ‘robust’ support for healthcare-led response

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

A Le Chateau retail store is shown in Montreal on Wednesday July 13, 2016. Le Chateau Inc. says it is seeking court protection from creditors under the Companies’ Creditors Arrangement Act to allow it to liquidate its assets and wind down its operations.THE CANADIAN PRESS/Ryan Remiorz
Clothing retailer Le Chateau plans to close its doors, files for CCAA protection

Le Chateau said it intends to remain fully operational as it liquidates its 123 stores

Green party Leader Sonia Furstenau arrives to announce her party’s election platform in New Westminster, B.C., on October 14, 2020. THE CANADIAN PRESS/Jonathan Hayward
B.C. Green party says it’s raised nearly $835,000 in 38 days

NDP Leader John Horgan is holding his final virtual campaign event

U.S. border officers at the Peace Arch crossing arrested two men on California warrants this week. (File photo)
Ottawa predicts system delays, backlogs unless court extends life of refugee pact

Canada and the United States recognize each other as safe places to seek protection

Most Read