Cogeco calling for radio representation on tax credit panel

Cogeco Inc. is lobbying the government to help Canadian radio news broadcasters qualify for a media tax credit and to have radio representation on a panel of experts vested with administering those benefits. The Montreal-based telecom last month registered a new subject matter under consultant Andrew Richardson from National Public Relations to press the government to allow the radio news a piece of the tax benefits expected to cost the government nearly $600-million over five years, as announced in the fall economic update. The ultimate beneficiaries of the credits will be newspapers, as the rules currently exclude broadcasters from receiving the benefits. On Wednesday, Canadian Heritage announced details of the independent panel of experts -- announced in this year’s budget -- to decide who will get the credits intended for Canadian media who produce original news. The support measures include a tax credit for journalism organizations, a tax credit for subscriptions to Canadian digital news, and charitable tax incentives for not-for-profit journalism. The panel will be made up of members based on the recommendations of eight associations: News Media Canada, the Association de la press francophone, the Quebec Community Newspaper Association, the National Ethnic Press and Media Council of Canada, the Canadian Association of Journalists, the Fédération professionnelle des journalistes du Québec, Unifor, and the Fédération nationale des communications. The composition of the panel is expected to be decided by the middle of June. The panel’s recommendations are then expected to be received by minister Pablo Rodriguez in July, according to a Wednesday press release. Last year’s budget also announced investments of $50 million over five years to support local public interest coverage to underserved communities. Those monies will be handed out by seven independent non-governmental organization representing a swath of the media industry, the release said. In a March press release, the Canadian Association of Broadcasters called the exclusion of broadcasters from the credits “arbitrary and unfair policy.” The group represents the private broadcasters and programming services, including private radio, TV and discretionary services. “If the government is truly committed to recognizing the vital role media plays in helping citizens make informed decisions, it must find a way to include radio and television news outlets in this tax credit regime,” said CAB board chairwoman Lenore Gibson, who is a senior counsel in BCE Inc.’s media division. The CAB cited a 2018 digital news report from Reuters Institute, which said 75 per cent of Canadians get their news from television and radio, while 31 per cent got it from newspapers as a primary source, the release said. Cogeco’s media division owns 23 radio stations in Quebec and Ontario reaching more than five million people each week, according to its website. Its Cogeco News segment operates 13 stations and provides content to more than 40 affiliated independent stations connected globally. In 2010, the company received CRTC approval to purchase 11 Quebec radio stations from Corus Quebec, a subsidiary of Corus Entertainment Inc. Cogeco spokesman Gabriel Beauséjour said in an email that the company is also engaging with government officials about Ottawa’s media buying strategy, which includes where the feds spend their money on advertising. According to the government’s annual advertising activities report for 2017 to 2018, while the government has spent $39.2 million on advertising -- its second lowest amount spent in 10 years, after the previous year -- it spent only one per cent, or $391,916 on radio. Digital ad spend made up 65 per cent, or $18.2 million, eclipsing all else, including spending on second-place TV, which netted close to $4.5 million. Social media -- especially Facebook Inc., Twitter Inc., and LinkedIn Corp. -- was the most used digital media for advertising, making up 43 per cent of placements, the report said. It added Facebook allows for niche-targeting and “generally has higher engagement rates.” “Radio -- as other news media in Canada -- is an important source of information for Canadians that faces growing challenges such as the exodus of advertising revenues to Internet giants,” Beauséjour said. “After witnessing such a trend in Canada’s media buying strategy, we wanted to engage with government officials to discuss this specific situation,” he added. Organizations including the Friends of Canadian Broadcasting and the Public Policy Forum have for years been pushing for the government to amend a section of the income tax act that allows advertisers to deduct ad spending on foreign digital platforms. If the “loophole” is closed, they say close to a half million dollars could be repatriated. https://twitter.com/Sendinthewolf/status/1131230101331480577 Last week, the NDP called for the income tax changes when it unveiled part of its platform for the upcoming federal election. — With reporting by Ahmad Hathout at ahathout@thewirereport.ca and editing by Anja Karadeglija at akarad@thewirereport.ca

Cogeco calling for radio representation on tax credit panel

Broadcast | May 22, 2019

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Cogeco calling for radio representation on tax credit panel

Broadcast | May 22, 2019

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