Books

Canadian Heritage develops, implements, and maintains publishing policies and programs in support of books to help create a stronger publishing industry in Canada.

For more than a century, the Government of Canada has had programs and policies to support the production, distribution and promotion of Canadian books, magazines and newspapers that reflect Canada's unique and dynamic culture. This support is premised on the belief that Canadians must have access to Canadian voices and Canadian stories. Looking to the future, the cultural sector must continue to adapt so as to benefit fully from a changing global economy. For the Government of Canada, this means searching for innovative ways to support publishers so they can take advantage of opportunities available both at home and abroad.

The book publishing industry is supported by various direct assistance programs and regulatory measures. The Government of Canada established, in the 1970`s, direct assistance programs such as the Block Grant Program at the Canada Council and the Book Publishing Industry Development Program at the Department of Canadian Heritage. This assistance continues to help Canadian-owned and -controlled firms to grow, and enables them to undertake the principal activity of producing and distributing Canadian-authored books.

As a means of addressing publishers' access to capital and the undervaluing, by financial institutions, of their assets, the Department of Canadian Heritage developed, in conjunction with Royal Bank, a Loan Program for Book Publishers designed to provide publishers with access to incremental financing in the form of lines of credit.

Other federal measures designed to support the book publishing industry include the Cultural Industries Development Fund, administered by the Business Development Bank of Canada (BDC), which provides cultural firms with access to capital through term loans. As well, parallel importation regulations through the Copyright Act protect agreements for the distribution of books in the Canadian market.

Finally, the foreign investment policy for the book trade supports the Canadian-owned and -controlled book publishing industry. The Investment Canada Act requires that foreign investments in the book publishing and distribution sector be compatible with national cultural policies and be of net benefit to Canada and to the Canadian-controlled sector. Policy guidelines are as follows:

• foreign investment in new business enterprises is limited to Canadian-controlled joint ventures;
  
  
• acquisition of an existing Canadian-controlled business by a non-Canadian is not permitted. Under extraordinary circumstances, the government may consider an exception to this guideline;
  
  
• if a non-Canadian wishes to sell an existing Canadian business independent of any other transaction, the vendor is expected to ensure that potential Canadian investors have full and fair opportunity to purchase; and
  
  
• indirect acquisitions are reviewed to determine whether they are likely to be of net benefit to Canada and to the Canadian-controlled sector and are assessed on their merits by reference to the regulations set out in Section 20 of the Act.

These guidelines are strictly enforced and any undertakings negotiated under the net benefit test are monitored closely. The Investment Canada Act provides remedies for non-compliance and the Government applies them when and as necessary.