CHPC Committee Report
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CANADIAN MUSICAL DIVERSITY INTRODUCTION On 8 October 2009, the Standing Committee on Canadian Heritage adopted the following motion: It was agreed, – That in light of the recently announced cuts to Canada’s Musical Diversity program, the Committee will conduct a study, over the course of no more than 3 meetings, in order to: a) inform Committee members of the details and impact of this program on music and musicians in Canada; b) determine how and why the Department of Canadian Heritage decided to make these cuts; c) establish what programs would be available to the musicians who made use of these programs, if these cuts proceed as scheduled; d) make recommendations to the government on how to support musical diversity in Canada; and in order to conduct this study, the Committee will hear testimony from witnesses including, but not necessarily limited to: i) Canadian musicians who made use of the program to describe how they benefited from it; ii) Department of Canadian Heritage officials who administered the program to explain its mandate and operation; and iii) Department of Canadian Heritage officials and/or the Minister of Canadian Heritage and Official Languages to explain the rationale for the cuts.[1] Description of
the Canada Music Fund The Canada Music Fund (CMF) was created in 2001 and renewed in 2005. It is the main element of the Canadian Sound Recording Policy. This policy has three primary objectives:
The Canadian Musical Diversity Component is one of seven CMF funding components:
The Canada Council for the Arts administers the Canadian Musical Diversity Component for the Department of Canadian Heritage. This CMF component provides resources for the production, distribution and promotion of specialized music recordings that reflect the diversity of Canadian voices. “Specialized music is defined as music whose intent or content is not shaped by the desire for wide market appeal – instead, it places creativity, self-expression or experimentation above the demands and format expectations of the mainstream recording industry. Specialized music has significance beyond being just entertainment.”[3] The Canadian Musical Diversity Component has two sub-programs. The first is Grants for Specialized Music Sound Recording, which supports the production of specialized music. The program’s clientele includes Canadian music professionals who are individual artists, ensembles, groups and bands, independent record producers and record companies. The second is Grants for Specialized Music Distribution, which supports the distribution of specialized music by Canadian distribution companies. On average, the Canadian Musical Diversity Component distributes approximately 100 grants a year, which cover up to 60% of eligible costs to a maximum of $20,000. The annual budget is approximately $1.3 million. Table 1 – Sub-program – Grants for Specialized Music Distribution
Source: Canada Council for the Arts, Searchable Grants Listing, http://www.canadacouncil.ca/grants/recipients/ ol127245536828281250.htm. Table 2 – Sub-program – Grants for Specialized Music Sound Recording
Source: Canada Council for the Arts, Searchable Grants Listing, http://www.canadacouncil.ca/grants/recipients/ ol127245536828281250.htm. Eligible applicants to the Canadian Musical Diversity Component are Canadian music professionals who are individual artists, groups and bands, independent record producers, or record companies that are at least 51% Canadian owned.[4] On 31 July 2009, the Department of Canadian Heritage announced that the number of CMF components would be reduced from seven to five, with current support for the Canadian Musical Diversity Component and the Support to Sector Associations Component reallocated to the five remaining components. According to the department’s news release, “This will result in the elimination of overlap in program delivery, a reduction of the administrative burden currently placed on a number of applicants, and better targeting of public funds to emerging priority activities.”[5] These two emerging activities are digital market development and international market development. SUMMARY OF EVIDENCE On 20 and 22 October 2009, the Committee heard from various funding recipients who said that the Canadian Musical Diversity Component has helped artists enter the music business. Gary Cristall, head of Gary Cristall Artist Management, stated that eliminating the program would have a negative effect on musical creation. He felt that the $1.4‑million budget was not exorbitant given the program’s positive impact on the music sector. Jesse Zubot explained that the program had helped him and the artists signed to his label to launch their careers. The Grants for Specialized Music Sound Recording program, administered by the Canada Council for the Arts, was the only federal program for artists working in non-commercial musical genres.[6] Musician and composer Nilan Perera has been working in the field of creative music for 25 years. He launched an online petition to express his concern over the elimination of funding programs for specialized sound recording and specialized music distribution.[7] He considered support for these programs to be vitally important to the creation of Canada’s music culture. He stated that these musical works focus more on creativity and originality than on commercial profitability.[8] Érick Dorion is a musician living in Quebec City who has received funding through the Canadian Musical Diversity Component. Obtaining this support marked a turning point in his career and today he performs in countries around the world. Andrea Menard, a Saskatchewan performer, told how a $18,700 grant from the Canada Council for the Arts enabled her to explore the blending of jazz and traditional music. Her music has been nominated for awards across the country. Bill Garrett is a partner in the Borealis Recording Company, specializing in the production and distribution of exclusively Canadian folk artists. He praised the fact that the specialized sound recording program does not assess music based on commercial viability. He felt that moving the funding for specialized music to components of the CMF administered by FACTOR and MUSICACTION could turn profitability into a funding criterion. Sylvie Gamache, Director General of the Conseil québécois de la musique (CQM), felt that withdrawing support for specialized sound recording and distribution would have a negative impact on artists, groups, record companies and independent Canadian record producers. Christophe Papadimitriou, Vice-president of the CQM and President of Montreal’s OFF Jazz Festival, supported Ms. Gamache, stating that recording is a key step in the creation and dissemination of a work. Profitability should not be measured simply in terms of record sales but in terms of concerts in Canada and outside the country as well.[9] The jazz label Effendi Records Inc. received funding through both programs of the Canadian Musical Diversity Component (specialized sound recording and music distribution). The company’s Vice-president, Carole Therrien, stated that the CMF programs administered by FACTOR and MUSICACTION would not adequately replace the Canadian Musical Diversity Component. She felt that juries may not have “the requisite in-depth understanding necessary to evaluate the quality of a project, and may only consider commercial factors.”[10] The representative of the Guilde des musiciens et musiciennes du Québec stated that music culture is an ecosystem and specialized music is one of its components, with artists who innovate, research, discover and develop new music. By eliminating the Canadian Musical Diversity Component, “the government has essentially left a whole category of musicians and artists – whose contribution to our culture is vital – to fend for themselves.”[11] Bob D’Eith of the Music BC Industry Association suggested that the Canada Council for the Arts use the increased federal funding it has received in recent years to maintain its support for specialized music.[12] The Canadian Conference of the Arts was very pleased that the Canada Music Fund had been renewed for five years, but did not want this funding to come at the expense of other sectors of the music industry. Alain Pineau, the organization’s Director General, said he is very concerned about the elimination of the musical diversity component. Moreover, he stated that asking the Canada Council to use its own annual budget to compensate for the elimination of the program would “in fact amount to some kind of cut.”[13] During their appearance before the Committee on 29 October, representatives from FACTOR and MUSICACTION were anxious to respond to statements made by other witnesses concerning support for specialized music. The spokesperson for FACTOR stated that the organization supports all musical genres and uses a peer-assessment process for applications which is similar to that of the Canada Council for the Arts. Andrée Ménard, Chief Executive Officer of MUSICACTION, stated that the organization attaches great importance to emerging artists and organizations that support their development. Her organization supports all musical genres, including more specialized works: MUSICACTION receives project submissions for all categories of music and does not exclude any category. Last year, 320 production and marketing projects were approved totalling close to $6 million. While half of these projects were in the categories of songwriting, popular music and contemporary folk, the other half were jazz, instrumental, classical, world music, urban music, hip hop, alternative and traditional. We feel this diversity reflects the range of musical genres that we support.[14] [Translation] In addition, contrary to the evidence given by other witnesses, eligibility for funding by MUSICACTION is not based mainly on commercial viability. Sales represent only one of the evaluation criteria, and assistance can be offered in the form of a grant rather than a loan.[15] The Committee also heard from the Canada Council for the Arts, which administered the Canadian Musical Diversity Component for the Department of Canadian Heritage. According to the Canada Council’s initial assessment of the new format for the Canada Music Fund, “many jazz, folk, world music and contemporary classical artists would no longer have access to federal support for sound recordings.”[16] The Canada Council believes this sector is essential to Canada’s “music ecology system.” The financial analysis conducted by the Canada Council does not support the impression that there is significant overlap between projects funded by the Council, FACTOR and MUSICACTION. At most, 15% of the artists receiving Canada Council funding for activities such as touring, market promotion, showcasing and sound recording also receive support from FACTOR or MUSICACTION. Officials from Canadian Heritage also appeared to explain why the two components of the Canada Music Fund had been eliminated. Jean-François Bernier, Director General, Cultural Industries, pointed out that the Department and the Canada Council have made financial commitments to the music sector totalling close to $57 million.[17] Mr. Bernier also cited highlights from the 2007 evaluation of the Canada Music Fund. The CMF helps to make a wide range of Canadian music available to the public. However, the evaluators recommended simplifying the CMF’s structure by reducing the number of components and administrators. Other recommendations included helping the industry take advantage of digital technology, and increasing support for foreign tours and music showcases. After consulting with various segments of the Canadian industry, the Department of Canadian Heritage reduced the number of components in the Canada Music Fund from seven to five. The Canadian Musical Diversity Component was eliminated and the financial resources reallocated to priority activities:
According to the Department of Canadian Heritage, eliminating the Canadian Musical Diversity Component will end program overlap, as 60% of funding recipients also received support from other components of the Canada Music Fund or the Canada Council. In addition, most recipients of funding from the Musical Diversity Component will continue to be eligible for funding from programs administered by FACTOR and MUSICACTION. PART 3: THE COMMITTEE’S POSITION Recipients of funding from the CMF’s Canadian Musical Diversity Component told the Committee that the component supported the production and distribution of recordings that would not have been possible without government assistance. The different forms of specialized music, while they may not reach a mass audience, reflect the diversity and creativity of Canadian artists. The Committee therefore feels that this component of the Canada Music Fund plays a strategic role and must be maintained. Most of the witnesses supported the federal government’s decision to renew the CMF for five years and allocate $27.6 million to the fund over that period. Many witnesses said that this commitment helped bring stability to the Canadian music industry. However, the Committee feels that this strategic investment must benefit all musical genres and not penalize any specific style. As many witnesses pointed out, the Canadian music industry is a complex ecosystem of which specialized music is one part. It should continue to be supported. The Committee also recognizes that the music industry’s business models are changing, that more and more music is becoming available on various digital platforms, and that consumers are increasingly getting their music through downloading. However, some witnesses stated emphatically that traditional forms of music recording must be maintained. The Committee does not fully understand the decision by the Department of Canadian Heritage to eliminate this component of the Canada Music Fund, particularly since the results of the 2007 evaluation were favourable and administration costs were low. Based on the testimony heard, we have not identified alternative programs other than the components of the Canada Music Fund administered by FACTOR and MUSICACTION. It should be noted that some witnesses were concerned about funds being reallocated to programs administered by these two external agencies. Doubts were expressed about the eligibility criteria and funding models (grant or loan) that will be used to evaluate funding applications for specialized music. Therefore, the Committee makes the following recommendations: Recommendation 1 The Standing Committee on Canadian Heritage commends the work of FACTOR, MUSICACTION, the Canada Music Fund and the Canada Council of the Arts for promoting and developing Canadian talent. Recommendation 2 The Standing Committee on Canadian Heritage recommends that the Department of Canadian Heritage restore, in its entirety, the Canadian Musical Diversity Component within the Canada Music Fund. In addition, the committee recommends that additional funding be allocated to the Canada Council for the Arts to further support the grants program for recording and distributing specialized music. Recommendation 3 The Standing Committee on Canadian Heritage did not hear evidence from the witnesses or from the Evaluation of 2007 that justified the cuts to the Canadian Musical Diversity Component. [1] Standing Committee on Canadian Heritage, Minutes of Proceedings, 8 October 2009, /HousePublications/Publication.aspx?DocId=4140816&Mode=1&Parl=40&Ses=2&Language=E. [2] Department of Canadian Heritage, Canada Music Fund, http://www.pch.gc.ca/pgm/fmusc-cmusf/ msc_fnd-eng.cfm. [4] Ibid. [6] Standing Committee on Canadian Heritage, Evidence, Meeting 30, 2nd Session, 40th Parliament, 20 October 2009, 11:20. [7] Standing Committee on Canadian Heritage, Evidence, Meeting 30, 2nd Session, 40th Parliament, 20 October 2009, 11:20. [8] Standing Committee on Canadian Heritage, Evidence, Meeting 30, 2nd Session, 40th Parliament, 20 October 2009, 11:20. [9] Standing Committee on Canadian Heritage, Evidence, Meeting 31, 2nd Session, 40th Parliament, 22 October 2009, 11:15. [10] Ibid., 11:25. [11] Ibid., 11:30. [12] Ibid., 12:35. [13] Ibid., 12:20. [14] Standing Committee on Canadian Heritage, Evidence, Meeting 33, 2nd Session, 40th Parliament, 29 October 2009, 11:20. [15] Ibid., 11:25. [16] Ibid., 11:30. [17] Ibid., 12:05. |