STUDY OF THE CANADIAN MUSIC INDUSTRY
BY THE
STANDING COMMITTEE ON CANADIAN HERITAGE
COMPLEMENTARY REPORT BY THE LIBERAL PARTY OF CANADA
Stéphane Dion
Liberal Critic for Canadian Heritage
June 11, 2014
On
behalf of the Liberal Caucus, I state that with a few exceptions, which nevertheless
have to do with some important aspects, I support the Standing Committee's
Report and encourage the Government to act on it.
The Report does not
address all the issues. For example, it fails to address concerns voiced by the
witnesses regarding the impact of the Copyright Act (2012) on the music
industry, particularly on songwriters, composers, performers and other
stakeholders. This is a complex issue, one which will have to studied in 2016 as part of the
five-year legislative review mandated in Section 92 of the Act.
Although the Report
is not perfect, there is no question that its implementation would greatly
improve the conditions under which music is created and distributed in Canada.
This is why I wish to thank all those who took the time to share their insights
with the Standing Committee, either by appearing before it or submitting
briefs. I also wish to thank the Parliamentary staff for their outstanding
support and am pleased to underscore the cordiality that prevailed between the
Committee Members.
In total, the Liberal
Caucus proposes three things to correct and two to add:
- In order to support
the key role played by the Copyright Board, we need a better recommendation
than the one currently in the Report;
- The proposal to
create a new body to manage, in lieu of Canadian Heritage, the funds available
to support record companies, music publishers and national associations must be
removed from the Report;
- The proposal to use
taxpayer money to advertise the funding role played by the government must also
be removed from the Report;
- A recommendation
regarding entrepreneurship education and training for artists and creators must
be added to the Report;
- A recommendation
regarding the funding and efficiency of touring by Canadian musicians within
Canada and abroad must also be added to the Report;
I will now
expand on these five points, outlining their relevance for a better federal
music policy.
1. Better support for the Copyright Board
In its
first recommendation, the Standing Committe's proposal to support the Copyright
Board is inadequate. Recommendation 1 reads as follows:
"The
Committee recommends that the Government of Canada examine the time that it
takes for decisions to be rendered by the Copyright Board of Canada ahead of
the upcoming review of the Copyright Act so that any changes could be
considered by the Copyright Board of Canada as soon as possible."
This
recommendation does raise a real issue, one that was mentioned by many
intervenors. Many decisions take unreasonable amounts of time to be rendered.
Stakeholders must too often wait many years to be paid, particularly in those
cases involving musical broadcasting via digital platforms. This generates a
feeling of uncertainty that hinders the launching of new digital broadcasting
platforms in Canada thus limiting access of Canadians to musical expression.
Recommendation
1 has two flaws.
The first
flaw is that it ignores the main issue raised by many intervenors: an apparent
lack of resources. The Copyright Board of Canada seems overwhelmed by the
number and complexity of the cases it must address. The Board must face a huge
workload and constantly analyze complex and massive expert reports dealing with
legal, economic and technical issues. Although this is not only a resource
issue and the Board's modus operandi must also be scrutinized, it is clear
that a serious study of the means presently available to the Board must also be
included in the Standing Comittee's recommendation.
The second
flaw of Recommendation 1 is that it fails to emphasize the urgent need for
action. Instead, it merely suggests that a consultation will be enough for the
coming years and that concrete changes will have to wait until after 2017, the
year of the planned Copyright Act review. In fact, the government and
the Board would be perfectly able to fix things in the coming months if they
only started now.
Therefore,
in order to ensure that the Copyright Board of Canada can have the means to
fulfill its mandate adequately:
- It is
recommended that in keeping with Section 66.8[1] of the Copyright Act (2012), the Government of Canada undertake as soon as
possible a consultation with the Copyright Board in order to analyse the delays
in rendering decisions, notably in the digital context, and to establish, with
the Commission, a level of funding that is adequate for the timely delivery of
its mandate.·
2. "No" to the creation of a new body to manage funds allotted to music producers
Committee
Recommendation 8 reads as follows:
“The
Committee recommends that the administration of the “Music Entrepreneurs”
component of the Canada Music Fund be transferred from the department of
Canadian Heritage to a new third-party organization based on the model of
FACTOR and Musicaction.”
The Liberal
Caucus cannot support this recommendation, which was neither the topic of any
intervention from those music sector experts who testified during the Committee's
study nor the topic of any question from a Committee Member. The objective of
this recommendation is totally unclear and its potential impact on the current clients
of the programme has not been evaluated.
If
the objective is to save on operating costs, it is very farfetched to believe
that creating a new body is the way to achieve this. What it is likely to
achieve instead is an increase in costs for staff, facilities, etc.
Furthermore, it is not one body that would be required but two – one
Anglophone and one Francophone – if the FACTOR-Musicaction model is to
be followed. If the government's objective is better service for a specific
client group, such as independent entrepreneurs, that client group should have
been consulted in advance. In any case, the "Music Entrepreneur" and
"Collective Initiatives" components do not lend themselves well to
such focussed action because they include a wide range of clients – record
companies, music publishers, national organizations.
For
those reasons, the government should not implement Recommendation 8.
3. "No" to the use of Canadian taxpayer money for government advertising
The
Standing Committee's Recommendation 9 reads as follows:
“The Committee
recommends that the department of Canadian Heritage ensure that the general
public and recipients are aware that Factor and Musicaction funding is made on
behalf of the Government of Canada.”
This
recommendation does not belong in a report that is meant to set a better music
policy for Canada. Besides, no witness raised this during Committee. If the
government is in such dire need of visibility, it should let Canadian Heritage
and FACTOR/Musicaction
deal with it themselves.
One thing is sure: the
current governement must not be encouraged to spend more money on political
advertising, with its already inflated budgets compared to the sums it invests
to respond to the needs of the Canadian population. Too much taxpayer money is
already being spent for the current government's self-glorification.
Furthermore, the
recommendation is inaccurate. It gives the impression that the whole of
FACTOR-Musicaction's funding comes from the federal government's pockets when
in reality, a large part of it comes from the private sector. Finally, it
should not be suggested that independent organizations such as
FACTOR-Musicaction act "on behalf of the Government of Canada".
For those reasons, the
government should not implement Recommendation 9.
4. Better support for entrepreneurship training for artists and creators
The
Standing Committee heard a true call for help from many intervenors. They told
us that songwriters, composers, performers, however talented, do not
necessarily have the competencies required to manage their own careers and be
able to live off their art, particularly in the very difficult digital
environment. More and more, artists must act as producers, promoters and
managers.
Representatives
from Société professionnelle des auteurs-compositeurs du Québec (SPAC),
Alliance nationale de l’industrie musicale, Canadian Independent Recording
Artists Association (CIRAA) and MforMontreal brought to the Committee's
attention the importance of providing creators and performers with adequate
knowhow and training to manage their professional lives as independent
entrepreneurs.
Indeed,
Recommendation 7 of the Standing Committee's Report proposes that the Canada
Music Fund be adapted to reflect the changes that have happened –
and are happening – in the industry. But that
recommendation is very general, whereas the training issue deserves special
attention. The government has to focus on the pressing and vital need to
develop programmes that provide artists with better entrepreneurship training.
Therefore:
- It is recommended that the Government of Canada consider the
possibility of new programmes to enable songwriters and performers to improve
their participation in the business sector of the music industry.
5. Better support for touring within Canada and abroad
Many
witnesses underscored the fact that in the new context of digital broadcasting,
it is more important than ever for Canadian musicians to tour within our
country and abroad. In its current form, the Report says nothing about this key
issue.
For
a huge number of musicians, touring is an essential lever. Not only do the
artists themselves benefit from this activity, but also the public and the
economy at large. Further to the revenues from concerts and music festivals,
Canadian artists contribute to the economic vitality of concert halls,
theaters, stadiums, bars, and restaurants throughout the country.
Several
suggestions were made for improving the efficiency and efficacy of federal
support programmes, including increasing the budgets of those touring support
initiatives currently available through various funding organizations. It was
also pointed out that rather than acting in isolation, the Federal Government
should collaborate with the other players.
Therefore:
- It is recommended that the Government of Canada consult members of
the music sector and other levels of government to improve funding and
efficiency of the support granted to Canadian musicians for domestic and
international touring. ·
Conclusion
The Report of
the Standing Committee on Canadian Heritage is the result of a thorough and
wideranging consultation process. As such, it is worthy of close government
attention. While the Liberal Caucus supports the Report, it proposes five
corrections or additions to it.
The Copyright
Board needs better support to fulfill its mandate; no new buraucratic body must
be created with no valid reason or consultations; the government must avoid
wasting public funds on its own political self-promotion; entrepreneurship training
for musicians must be better supported; and finally, musicians need better and
more efficient support for national and international touring.
Thus amended and
if implemented, the Report will foster the creation and distribution of music
in Canada and will help our music makers weather the challenges of the digital
era. Thus will the Government of Canada better be able to support an industry
that is important not only for our culture but also for our economy and
international standing as a Nation.
We strongly urge
the Government to take every necessary measure to implement both the Standing
Committee's Report and Complementary Report of the Liberal Caucus.
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