Reporters Against Proposed Media Bailouts Speak at Committee Hearing
During their testimony before the Commons heritage committee (CHPC), journalists criticized the ongoing federal bailout of unprofitable news organizations, stating that receiving subsidies has damaged the credibility of newsrooms.
“There is evidence to suggest subsidies have created an environment in which segments of the public believe media has been bought off,” testified Toronto author and Lean Out podcast host Tara Henley, as reported by Blacklock’s Reporter.
The CHPC meeting on Feb. 27 was part of the “National Forum on the Media” series and marked the third time witnesses were heard.
In 2019, Parliament approved a $595 million media bailout that included annual payroll rebates for newsroom employees. The rebates were later increased to a maximum of $29,750 per employee annually, with an additional $129 million added to the program in 2023.
Ms. Henley emphasized the importance of trust in maintaining an audience for revenue generation. She highlighted the need for Canadian media to save itself rather than rely on government intervention.
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She published her reasons for resignation on Jan. 3, 2022, accusing CBC News of devolving from a trusted news source to “churning out clickbait that reads like a parody of the student press.”
Chuck Thompson, CBC’s head of public affairs, disagreed with Ms. Henley’s perspective in an email to The Epoch Times.
Ms. Henley suggested the cessation of government intervention in the media industry while acknowledging the need for a public broadcaster.
Media relations director Sarah Andrews from Friends of Canadian Media testified that CBC is underfunded and called for a sustainable funding model.
Canada enacted the Online News Act, Bill C-18, in mid-2023 to address revenue sharing with companies like Google and Meta.
Google eventually reached a deal with the Canadian government to pay $100 million to Canadian news companies.
Journalistic Integrity
Broadcast journalist John Gormley testified that accepting government funding could compromise the media’s independence and reliability.
He raised concerns about the blurring of lines between reporting and editorializing in “legacy media.”
Mr. Gormley attributed the media’s challenges to modernization failures and a lack of preparation for the impact of the internet and social media.
Liberal MP Taleeb Noormohamed highlighted that some media outlets receiving government funds still criticize the government, prompting further discussion.
A report by Statistics Canada showed low levels of public trust in the media compared to other institutions.
