Feds face new pressure to help hobbled newspaper industry amid more shutdowns

Ottawa is coming under fresh pressure to find a way to save the ailing Canadian newspaper industry, although the Liberals remain steadfast in their argument that the solution lies in the transition to digital platforms and more viable business models.

Torstar Corp. and Postmedia Network Inc. announced Monday they will cut nearly 300 jobs as they plan to shutter more than 30 newspapers across the country, with most of the dailies and community weeklies affected based in Ontario.

“It’s absolutely brutal,” Canadian union leader Jerry Dias said Monday as he urged federal Heritage Minister Melanie Joly to protect print journalism.

Earlier this year, a major report from the Public Policy Forum called for a sales tax on foreign companies selling digital subscriptions in Canada and a $400-million fund to help finance reliable news and information. The Canadian Press participated in the roundtables and research.

And in June, the House of Commons heritage committee also issued recommendations on how to save the industry, including a five-year tax credit to compensate print outlets for a portion of their digital investments.

But in September, Joly unveiled a cultural strategy that was criticized by industry experts for lacking measures that could have given a boost to struggling newspapers across Canada.

At the time, Joly said Ottawa had no interest in bailing out industry models that are no longer viable, and would instead focus on supporting innovation, experimentation and the transition to digital platforms.

Asked Monday if news of the closures had encouraged her to rethink her approach, Joly reiterated that the government would provide support in the coming months for local media as they continue to shift to web-based models.

“Of course, I’m sad to hear about these local closures and my thoughts are with the families affected,” she said.

She also noted the federal government invests up to $75 million annually in the Canada Periodical Fund, which includes support for local media.

The Liberals believe there is still a strong appetite for local news and that there could be a way for other local media companies to begin filling in the gaps

Joly’s office said the Liberal government is looking at modernizing the Canada Periodical Fund in ways that could help local news outlets, such as by moving away from funding based on paid print circulation, which does not account for a digital audience.

Helping print media out of a crisis does not have to be about propping up a failed business model, said Dias, the national president of Unifor and one of several prominent Canadian business leaders who took part in consultations on the future of the industry.

“If the government wants to have a thriving industry, if they want to have freedom of expression, if they want to have journalistic integrity, then we’re going to have to find a mechanism to deal with it,” Dias said. “You put money into journalism. That’s what the issue is.”

CWA Canada — an umbrella group that represents multiple media unions, including the Canadian Media Guild, which represents employees at The Canadian Press — also urged the Liberals to take urgent action.