Tories Suggest CBC Could Get a Third of Google’s $100M Annual Payout

People walk toward the CBC building in Toronto in a file photo. Nathan Denette/The Canadian Press

Conservative Party MP Rachel Thomas has expressed concerns that public broadcaster CBC could receive the lion’s share of Google’s $100 million annual payment to Canadian media while smaller publishers see few benefits from the deal.

Ms. Thomas, who serves as her party’s heritage critic, says she assumes CBC could be receiving $33 million based on the fact that the public broadcaster employs a third of journalists in Canada.

“Your government actually claimed that this bill was about supporting local news, small outlets, that is not the case,” Ms. Thomas told Heritage Minister Pascale St-Onge during her appearance at the House of Commons heritage committee on Nov. 30.

The Liberal government announced on Nov. 29 that a deal has been reached with Google in relation to the Online News Act, previously known as Bill C-18, which compels web giants to provide “fair compensation” to news businesses for displaying their content.

The compensation will be provided to eligible news businesses based on the number of full-time journalists they employ, according to Canadian Heritage.

Ms. St-Onge told MPs that CBC employs about a third of Canada’s journalists.

Ms. Thomas remarked that CBC already receives $1.4 billion in taxpayer funds and $400 million in ad and subscription fees.

“Will the CBC be approved as an eligible news business in this deal with Google?” she asked. Ms. St-Onge said CBC would receive the funding.

“We also took into account that CBC/Radio-Canada hires about a third of the journalists and news workers in the country and this will be taken into account in the final regulations that will be published when the legislation is brought in,” said the minister.

Ms. St-Onge didn’t say exactly how much CBC would receive from the Google pay-out, only that details would be released with the act coming into effect on Dec. 19.

Ms. Thomas asked how much money would be going to smaller publishers, referencing the Parliamentary Budget Officer estimate that suggested 75 percent of funds would go to broadcasters like CBC and Bell.

“We take into account the fact that CBC/Radio-Canada represents a large proportion of journalists of the country and it’s important that the $100 million from Google is also distributed to local, independent, and indigenous media outlets,” said Ms. St-Onge.

After the committee meeting, the minister told reporters she doesn’t “think CBC/Radio-Canada should get a third of the envelope, so we'll address this in the final regulations.”

Bloc Québécois MP Martin Champoux asked the minister whether CBC should take the initiative of refusing money from Google given the size of its current budget and the more dire situation faced by smaller news outlets.

“Will you encourage them to take that road?” asked Mr. Champoux.

“I won’t speak for CBC/Radio-Canada, they are independent,” responded the minister.

Google made a deal with the federal government after months of holding out and threatening to block Canadian users from accessing news on its platform. Meta is the other media giant which falls under the Online News Act and it has already taken this step.

The $100 million agreed to by Google is $72 million less than the government was seeking. The company will also be able to negotiate with a single entity representing all media companies interested in getting a share, instead of having to strike independent agreements.

Ms. Thomas charged that the government caved and acceded to Google’s demands. She says that “more power was put in the hands of Big Tech” despite the intention to fix an imbalance between web giants and news organizations.

Ms. St-Onge said that Google nevertheless made a deal despite opposing the government legislation. “They didn’t believe that the government should do so and we decided to go ahead nevertheless, presenting legislation that allows to create a commercial balance.”