Journalists criticized the ongoing federal bailout of unprofitable news organizations during their testimony before the Commons heritage committee (CHPC), saying that the practice of soliciting and receiving subsidies has eroded 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,” Toronto author and Lean Out podcast host Tara Henley testified, as first covered by Blacklock’s Reporter.
The Feb. 27 meeting of CHPC was the third time it had recently convened to hear from witnesses as a part of a “National Forum on the Media” series.
Parliament sanctioned a $595 million media bailout in 2019, which included annual payroll rebates of up to $13,750 per newsroom employee. The government subsequently increased these rebates to a maximum of $29,750 per employee annually, adding an additional $129 million to the program on Nov. 21, 2023.
Ms. Henley emphasized in her testimony the importance of trust in maintaining an audience, which she said is essential for generating revenue. She acknowledged the urgent need for saving Canadian media and stated the government cannot be the saviour in this scenario; instead, the media must take the initiative to save itself, she said.
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, expressed disagreement with Ms. Henley’s perspective in an email statement to The Epoch Times.
“As the public broadcaster, CBC News takes its responsibility very seriously to cover the stories that need telling in an ever-changing Canada,” he wrote on Jan. 4, 2022.
Ms. Henley said on Feb. 27 she sees the need for a public broadcaster, but added that government intervention in the industry should stop.
“I think that at this point, we need full competition,” she said.
“I also think that we need to have a reform of the CBC … in order for the CBC to fulfill its role in society, I think it’s important to have a mandate review.”
Media relations director Sarah Andrews from Friends of Canadian Media, another witness, testified the CBC is suffering from “chronic underfunding.”
“We must also provide CBC/Radio Canada with a sustainable funding model,” she said. “It is crumbling under the weight of chronic underfunding.”
Ms. Andrews laid the media’s woes at the feet of lost advertising to Big Tech companies like Google and Meta, who have “cannibalized” advertising revenues.
Journalistic Integrity
In addition to revenue issues, the question of government funding’s effect on journalistic integrity was raised.“Accepting government money neither enhances confidence in the media’s independence nor its reliability,” broadcast journalist and witness John Gormley testified.
“At the risk of sounding as sensationalistic as I accuse many journalists of sounding, I really don’t wonder if there has to be a fundamental reconstruction,” he added.
Mr. Gormley is a former Conservative MP for Battlefords-Meadow Lake, Sask., and was the 1988 chair of the Commons communications committee. He said the “legacy media” has intentionally blurred the distinction between “neutral reporting” and “editorial commentary” and decided to replace them with “agenda-based journalism.”
Mr. Gormley, who is also the now-retired host of John Gormley Live on Radio CKOM Saskatoon and CJME Regina, questioned the idea that the Canadian media’s struggles are due to insufficient government funding.
He attributed the media’s difficulties to a flawed modernization of journalism that failed to resonate with audiences and to a lack of foresight regarding the impact of the internet and social media on traditional media revenue and content distribution.
However, Liberal MP Taleeb Noormohamed at the meeting questioned this thinking. He pointed out that some media and think tanks, including True North and the Macdonald-Laurier Institute, receive government money and have no problem criticizing the government. He asked Ms. Henley for her thoughts on the issue.
“I think you’re absolutely right,” she responded.
“There are outlets who have taken advantage of the subsidies who have still maintained strong criticism of the government. I think that is a fair point.”
A report by Statistics Canada released Nov. 14 highlighted the media’s credibility issue, showing that only 31 percent of Canadians have a good or great deal of confidence in the media. This contrasts with higher levels of public trust in other institutions such as in Parliament (32 percent), courts (46 percent), the school system (47 percent), and police (62 percent).
