Government of Canada modifies its support programs for Canadian magazines and periodicals
OTTAWA, July 8, 2003 -- Minister of Canadian Heritage Sheila Copps today unveiled details of changes being made to the funding programs that support Canadian magazines and periodicals. The Canada Magazine Fund and the Publications Assistance Program will be reoriented to better reflect current market conditions."These new directions will enable us to address current realities and needs," said Minister Copps. "These steps flow from our commitment to offer Canadian readers a wide variety of voices and perspectives, while at the same time ensuring an efficient and effective use of public funds."
Since the passage of the Foreign Publishers Advertising Services Act in 1999, and the resolution of a long-standing trade dispute with the United States, the Canadian periodical and magazine industry is now on a solid footing and enjoying healthy growth. Given these developments, the Canada Magazine Fund has been evaluated and readjusted to a level that better reflects the Canadian industry's current situation.
As a result, by April 2005, the Canada Magazine Fund will be set at $16 million, while the Publications Assistance Program will be set at $45.4 million, for a total envelope of $61.4 million. These funding levels will enable the Government to continue to provide stable financial support to the Canadian magazine and periodical industry, while ensuring that it is more effective in addressing priority needs. While the level of support will decline gradually over three years, the total amount of available assistance will remain at a level that is $20 million more than that provided in 1999.
"By directing our support to where the need is greatest, we are laying the groundwork for the growth of hundreds of smaller publications that all contribute to creating bonds between cultural communities and the rest of Canada," Minister Copps added.
On June 27, 2003, the Minister announced the reallocation of more than $4 million to help community newspapers, as well as publications addressing ethnic, Aboriginal, and minority official-language communities. It was also announced that the Canada Magazine Fund would increase funding for cultural and literary magazines, and will support efforts undertaken for training, professional development, and business development of ethnocultural, minority official-language, and Aboriginal community magazines and publications.
Through the Canada Magazine Fund and the Publications Assistance Program, the Department of Canadian Heritage supports the publication of more than 1600 Canadian periodicals, and the distribution of more than 215 million copies of magazines, community newspapers, and other periodicals throughout Canada.
Information:
Sonya-Kim St-Julien
Press Secretary
Office of the Minister of Canadian Heritage
(819) 997-7788
NEW DIRECTIONS OF THE DEPARTMENT OF CANADIAN HERITAGE'S
PERIODICALS SUPPORT PROGRAMS
Since the passage of the Foreign Publishers Advertising Services Act in 1999, and the resolution of a long-standing trade dispute with the United States, the conditions for a stable advertising market have contributed to a strong and viable Canadian publishing sector, supported by the Canada Magazine Fund and the Publications Assistance Program.
The Government's support contributed to the growth of a Canadian periodical industry that helps build links between the members of various communities and the rest of Canada. Here are some numbers to keep in mind:
More than 50 percent of the periodicals available in the Canadian marketplace are Canadian.
Canadians are able to choose from some 2000 Canadian magazines.
12 of the 20 most popular magazines in Canada are Canadian.
603 million copies of Canadian magazines are available on the market every year.
The magazine industry has annual revenues of $1.3 billion.
The reorientation of the Canada Magazine Fund and the Publications Assistance Program will enable the Government to address the industry's current needs and current market conditions, while also ensuring the most efficient and effective use of public funds.
Over the next three years, the department will set the budget of the Publications Assistance Program at $45.4 million, while the budget of the Canada Magazine Fund will become $16 million. As a result, the total budget for the two programs will be almost $20 million more than the budget in 1999, and the support will be better targeted to reflect current market conditions (see following table).
| Expenditure of Funds to the Canadian Periodical Industry (in millions of dollars) | |||||||
| 1999-2000 | 2000-2001 | 2001-2002 | 2002-2003 | 2003-2004 | 2004-2005 | 2005-2006 | |
| Publications Assistance Program | 42.2 | 41.8 | 39.9 | 45.5 | 49.4 | 494 | 45.4 |
| Canada Magazine Fund | N/A | 26.2 | 31.1 | 32.6 | 18.0 | 16.0 | 16.0 |
| Total | 42.2 | 68.0 | 71.1 | 78.1 | 67.4 | 65.4 | 61.4 |
Directions for Change: Snapshot
| Change | Rationale | Results | |
| Ethnocultural, Aboriginal, and minority official-language publications | Increased access: to postal subsidy. to professional development and business development funding. | To ensure a diversity of publications serving the information needs of Canada's diverse communities. | Increase support from current level of 70 publications at $1.2 million to approximately 200 publications at $2.2 million. |
| Small community newspapers | Increased access: to postal assistance. | To ensure that rural Canadians continue to receive news relevant to their communities. | Increase support from 350 titles at $4.2 million to approximately 450 titles at a level of funding up to $7 million. |
| Arts and literary magazines Small-circulation magazines | Increased access: to editorial content funding. | To recognize the important role of small magazines in serving communities of interest and the unique challenges of small businesses. To ensure the continued development of Canadian artistic and literary talent through Canadian magazines. | Approximately 100 arts and literary magazines will have access to up to $1 million in new support. Small-circulation magazines will have increased access to current editorial support up to $1 million. |
| General consumer and special interest magazines | Funding will be scaled down to reflect market conditions. | Market conditions and the post-1999 regulatory environment have resulted in a more stable commercial magazine industry. | Reduction in funding of 5% (smallest circulation magazines) to 30% (largest circulation magazines). |
| Business and trade magazines | Free-circulation magazines will no longer receive editorial funding. Free magazines requested by readers will have new access to postal subsidy. | Free-circulation magazines do not need to compete as do paid-circulation magazines to reach readers. However, certain magazines, namely those that are requested by readers, have significant circulation expenses. | Reduction of up to $12.5 million in editorial funding. Access of up to $1.3 million in additional postal support |
| Rural weekly newspapers | Maintain current level of postal subsidy. | To reflect high cost of postal delivery. | Maintain support at $3 million. |
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