Introduction

Background

On 23 October 2020, the House of Commons Standing Committee on Canadian Heritage (the Committee) adopted the following motion:

• That, pursuant to Standing Order 108(2), the Committee undertake a comprehensive study on the challenges and issues faced by the arts, culture, heritage and sport sectors during the COVID‑19 pandemic; that it consider new measures that would:
• draw up a clear picture of the impacts of the pandemic on their activities;
• better identify their needs during the current crisis;
• identify gaps in federal aid programs;
• identify better support to these sectors which are disproportionally affected by the pandemic to better suit their reality; and
• facilitate getting artists, athletes and the cultural sector workers back to work; that it also consider measures to best assure and protect business continuity for events, festival, and sporting events in these specific sectors; that the Committee hold no less than four meetings on this subject; and that the Committee report its findings to the House as soon as possible.[1]

Pursuant to this motion, between 30 October 2020 and 4 December 2020, the Committee held five meetings and heard from 31 witnesses. It also received 16 briefs. Witnesses included representatives from the arts, culture, heritage, sports and event planning and management sectors as well as officials from the Department of Canadian Heritage. The Committee would like to thank all those who contributed to the study.

This report examines the impacts of the COVID-19 pandemic on these sectors and presents witnesses’ views on both current and future measures to support their recovery efforts.

1.  Impacts of the pandemic on the arts, culture, heritage and sport sectors

1.1  Economic impacts

1.1.1  Summary of information provided by the department

Over the past year, the COVID-19 pandemic spread quickly around the world, rapidly turning from a health crisis into an economic crisis. The arts, culture, heritage, and sports sectors were not spared, and among the first to feel the pandemic’s impacts. The closure of theatres, parks and museums and the cancellation of festivals and sporting events are just a few examples of the pandemic’s heavy toll. Hélène Laurendeau, Deputy Minister of the Department of Canadian Heritage, believes these sectors will also likely be among the last to recover.[2]

Some witnesses pointed out that the culture sector was already in a precarious state prior to the COVID‑19 pandemic’s arrival. Solange Drouin, Vice-President and Executive Director of Public Affairs at the Association québécoise de l’industrie du disque, du spectacle et de la video (ADISQ), explained the situation:

Our independent companies have always been dynamic but fragile. The pandemic has made them even more fragile, and their capacity to produce, market and distribute music and shows for local artists has been [damaged].[3]

Between February and July 2020, real gross domestic product (GDP) in the arts, entertainment and recreation subsector plummeted by more than 50%, from $15.6 billion to $7.3 billion.[4] In comparison, GDP for all Canadian industries fell by 5.6% over the same period.[5]

The pandemic has also had a direct impact on the labour market in the arts, culture, heritage, and sports sectors, which shed 180,500 jobs between February and May 2020, a decline of 57.7%.[6] In comparison, total employment in Canada fell by approximately 20% over the same period. Despite a steep rise in employment (+65,500) in June, July and August, employment in arts, entertainment and recreation was 36.4% below its February 2020 level.[7]

1.2  The federal government’s response

Since March 2020, the federal government introduced a series of support measures to offset income losses caused by the pandemic. Workers, businesses and non-profit organizations in the arts, culture, heritage, and sports sectors benefited from these measures.

March 25 was a pivotal date in the federal government’s response to the pandemic with the introduction of the Canada Emergency Response Benefit (CERB). CERB provided financial support to employed and self-employed Canadians who were directly affected by COVID‑19.[8] At the request of the Department of Canadian Heritage, the eligibility criteria for CERB were revised “to allow classes of artists to have access.”[9]

The federal government replaced the CERB with the Canada Recovery Benefit (CRB). The CRB is intended for employed and self-employed individuals who are directly affected by COVID‑19 but not entitled to Employment Insurance benefits. This benefit will be in place until 25 September 2021 and may be collected for up to 26 weeks.[10]

On 1 April 2020, the Canada Emergency Wage Subsidy (CEWS) was introduced to help employers cover a part of their employees’ wages.

On 17 April 2020, the federal government announced specific measures to support the arts, culture, heritage, and sports sectors. The temporary Emergency Support Fund for Cultural, Heritage and Sport Organizations (ESF) has a $500‑million budget envelope. The objective of the ESF is to support cultural, heritage and sport organizations “whose cash flow and short-term operational viability have been negatively impacted by the COVID‑19 pandemic.”[11]

The ESF is administered by the Department of Canadian Heritage with the support of its partners, including the Canada Council for the Arts, the Canada Media Fund, FACTOR, Musicaction and Telefilm Canada. These partners are responsible for distributing the funds through their existing programs.

Table 1 provides a budget breakdown by program and agency as of 30 September 2020.

Table 1—COVID 19 Emergency Support Fund for Cultural, Heritage and Sport Organizations ($ millions)

Programs and Agencies	Budget
Building Communities through Arts & Heritage	5.3
Canada Arts Presentation Fund	7.7
Canada Arts Training Fund	5.2
Canada Book Fund	19.7
Canada Media Fund	146.3
Canada Music Fund	32.9
Canada Periodical Fund	60.4
TV5	0.3
Museum Assistance Program	48.9
Digital Citizen Contribution Program	4.3
Harbourfront Centre Funding Program	1.3
Indigenous Languages and Cultures Program	1.7
Development of Official-Language Communities Program	1.4
Sport Support Program	34.5
Sport Support Program - Bilateral agreements with provinces and territories	32.5
Athlete Assistance Program	5.0
Line A: Department of Canadian Heritage sub-total	407.4
Canada Council for the Arts	62.8
Telefilm Canada	29.8
Line B – Sub-total – Crown corporations	92.6
Total (Lines A + B)	500.0

Source:  Department of Canadian Heritage, COVID‑19 Emergency Support Fund Financial Update as of September 30, 2020 (document sent to the House of Commons Standing Committee on Canadian Heritage). Amounts have been rounded.

To accelerate the distribution of funds, a two-phased approach was taken. Phase 1 used existing programs to distribute $307 million to recipients already receiving funding through the Department of Canadian Heritage, the Canada Council for the Arts or Telefilm Canada. Phase 2 disbursed funds based on gaps related to diversity and regional distribution identified after Phase 1. This phase also allocated “$52.1 million to arts and culture organizations that were not previously eligible for funding from regular Canadian Heritage programs.”[12] As of 30 September 2020, “[o]ver 96% of the funding—which is $482 million—was distributed.”[13] The remaining funds were to be distributed by 31 December 2020.

In November 2020, the Department of Canadian Heritage released the results of a survey of ESF Phase 1 recipients. The overwhelming majority of respondents (77%) of respondents said that the ESF had “helped them stay in operation to a large or moderate extent.”[14]

1.3  Use of digital technologies during the pandemic

Artists and organizations working in the arts, culture, heritage, and sports sectors turned to digital technologies to pursue their activities.

For example, organizations like ADISQ[15] continued their day-to-day activities through telework. Artists working in the music sector have created virtual shows to continue to reach their audience.[16]

In the heritage sector, museums “have developed digital resources, providing access to collections online, educational programs, virtual tours, etc.”[17] However, the Canadian Museums Association points out that not all museums have “the capacity or the resources”[18] to deliver online programs.

Festivals have adapted their activities by delivering some of their programming through digital technologies. Martin Roy, Chief Executive Officer of Festivals and Major Events, with the Regroupement des événements majeurs internationaux, explained that some events lend themselves to digital formats more easily than others. In Montreal, the Francos de Montréal and the Montreal Jazz Festival “set up a digital component based on events that had already been recorded.”[19] Other events, like the Toronto International Film Festival, have opted instead to offer their programming through paid formulas.[20]

For its part, the Canadian Actors’ Equity Association says that digital broadcasting has allowed live performance to “reinvent itself” during the pandemic. It has also allowed international audiences to see the quality work of Canadian artists. However, the organization says it is not a viable long-term solution.[21] Digital broadcasting requires expertise in audio-visual production as well as financial resources “to capture live performance properly.”[22] In addition, the revenue generated by digital broadcasting does not “cover the costs of production.”[23]

It is important, however, to understand both the challenges and opportunities of using digital technologies in the culture and sport sectors. Not all cultural activities lend themselves to digital broadcasting. Some music or theatre performances require live performances to provide a unique experience for the audience and for artists to reach the audience. As Music Canada’s Patrick Rogers noted:

While watching a concert online might scratch the itch, it’s no substitute for the feeling you get from being at a live show. Canadians love live music, and they’ve told us that they desperately want to go back when they believe it’s safe to do so.[24]

Ms. Drouin echoed Mr. Rogers’ remarks, saying “nothing can replace a real stage show.”[25]

1.4  Challenges and issues by sector cited by witnesses

1.4.1  Common issues

Economic losses

Every witness who appeared before the Committee reported current or future economic losses due to the pandemic. Low or sometimes zero ticket sales and the cancellation of events and competitions have all had a major impact on the budgets and finances of the organizations that participated in the study.

Many organizations count on sponsorships for funding, which dried up due to the pandemic. This is particularly true for elite sport, events, the performing arts and museums.[26] Clément Turgeon Thériault, executive director of the Regroupement des festivals régionaux artistiques indépendants, highlighted the specific challenges for regional festivals:

Festivals that take place in smaller communities sometimes rely on businesses that have fewer resources. These businesses may be garages or supermarkets, for example. However, all these businesses in small communities are extremely weakened. We can already see concrete evidence of this. Some partners can no longer fund an event because their losses are too significant. Obviously, their priority isn’t to maintain the sponsorship, but to pay their employees and contribute to the recovery.[27]

In the case of festivals, revenue is not only from ticket sales but also from related sales. Mr. Turgeon Thériault gave the example of the festival he works for, Le Festif!, in Baie-Saint-Paul:

We obviously have box office revenue, which constitutes our core revenue, and our bar revenue, which is the revenue from the sale of beer and non-alcoholic beverages. In small communities, such as Baie-Saint-Paul, there’s no accommodation available, so we organize campgrounds on site. We generate substantial revenue. However, when things aren’t as busy, we can’t set up campgrounds, and we lose this revenue. We lose rental income from food stands, for example, or merchandise stands. There’s all this revenue on top of the box office and bar revenue.[28]

This point was also raised by Adam Mitchell, Executive Director of the Fringe Theatre, who said that the festival’s cancellation meant that about 50 food vendors were unable to generate revenue.[29]

In addition, witnesses said that because of the pandemic expected economic benefits for the broader community never materialized. In his testimony, Dana Peers, President and Chairman of the Calgary Stampede Board of Directors, told the Committee that the Stampede generates yearly revenue of $540 million for Alberta and over $700 million for Canada. The cancellation of the 2020 Calgary Stampede also resulted in thousands of job losses and wage cuts for the remaining employees.[30]

Mental health

Several witnesses underscored the pandemic’s serious impact on the mental health of people in the arts, culture, heritage, and sports sectors. Several witnesses described the mental distress many artists experienced. As Mr. Mitchell explained:

Professional artists working in this country have been working gig to gig and collecting enough contracts through the year to eke out a very meagre living. That has completely disappeared. Not knowing whether they are eligible for benefits…Understanding and negotiating the benefit system has been incredibly taxing on their mental health and their existence, and not knowing what the next few months look like, and beyond, is going to be the reason people turn away.[31]

Alex Mustakas, Artistic Director and Chief Executive Officer of Drayton Entertainment, shared stories of similar artists, torn at the thought of possibly having to change careers.[32]

David Shoemaker, Chief Executive Officer and Secretary General of the Canadian Olympic Committee, said that elite athletes have also felt the impact of the pandemic on their mental health. He noted the havoc created by the postponement of the Summer Olympics and their inability to train due to the closure of sports facilities.[33] As a result, many athletes had to revise their plans.

In addition, witnesses told the Committee that the pandemic’s impact on mental health has also been felt by people who engage in culture and sport.[34] Elio Antunes, President and CEO of ParticipACTION, said that the mental health benefits of physical activity are well known: decreased anxiety and depression, improved resiliency and lower stress.[35]

Mr. Shoemaker added that sport can help build more inclusive social and cultural communities, stimulate economic activity and assist with the integration of newcomers.[36]

Pitseolak Pfeifer, Executive Director of Qaggiavuut! Nunavut Performing Arts Society, highlighted the benefits of art for the entire community:

We have so many young people who are, unfortunately, experiencing and dealing with the effects of suicide and domestic violence. There are single moms, children who are in foster care. You can imagine how promoting and investing in performing arts is not something as flippant as saying, “Let's give these kids some money to develop a stage play.” It really is, ladies and gentlemen, much deeper…[37]

Mr. Pfeifer explained that “[i]n Nunavut and for Inuit, embedded in our cultural survival are the ability and the power of transmitting knowledge of a simple song within deeply coded cultural rules.”[38]

This view was shared by Mélanie Raymond, General Director of Carnaval de Québec, who said that, through their social impact, events are “an essential service for individual and public health.”[39]

1.4.2  Performing arts and events

During its study, the Committee heard from a number of witnesses from the performing arts and events sectors. They raised several common issues, including long-term programming and retaining artists and staff. These are important issues during both the pandemic and recovery.

Long-term programming

All the witnesses who shared their experience with the Committee said that they have had to modify or cancel, in whole or in part, their planned programming for 2020. This has resulted in heavy losses for organizations and artists, as noted in the previous section.

Witnesses also told the Committee that an automatic, immediate recovery is impossible given the time frames in this sector. For example, launching a live performance series requires signing new contracts with performers, booking technicians, promoting the event and selling tickets, which can take several months.[40] Mr. Turgeon Thériault explained, “Normally, at this time of the year, I already have 70% of my programming confirmed. My partners are already confirmed…I currently have none of that. I have only one confirmed artist.”[41]

Slow recovery in the live performance community was raised by numerous witnesses, including Julie-Anne Richard, Executive Director of the Réseau indépendant des diffuseurs d’événements artistiques unis (RIDEAU); Lisa Rubin, Artistic and Executive Director of the Segal Centre for Performing Arts; and Mr. Mitchell, all of whom pointed to a period of months, if not years, before a return to pre-pandemic times.[42]

Retaining workers

Several witnesses expressed concern about the departure of artists and employees due to the uncertainty of contracts and delays in resuming cultural activities. They cited difficulties in securing contracts and earning a living from their art, which have been exacerbated by the pandemic.

Mr. Mitchell expects that “we are probably going to see the youngest generation and the oldest generation of artists leave us either for new opportunities or because the struggle is too difficult.”[43] This concern was also shared by Ms. Rubin and Mr. Mustakas.[44]

Ms. Drouin said that the sector risks losing “not only artistic careers, but also an important industrial infrastructure” for artists at the beginning of their careers.[45] Frédéric Julien, Director of Research and Development at the Canadian Association for the Performing Arts, also expressed concern about an “exodus of the workforce” to other sectors.[46]

Sophie Prégent, President of Union des Artistes, shared how her organization has been impacted:

The [Union des artistes] has 8,500 active members. In any given year, about 2,000 members do not earn a penny; their income is zero dollars. That leaves about 6,500 members. In our business, there’s clearly not enough room for all those people…Although there is no room for 6,500 members, 6,500 members still want to work in our profession. At the moment, there is no work. This will have a direct impact on the membership of the Union des artistes. I expect lots of memberships to lapse and a number of members to leave the union.[47]

1.4.3  Heritage

The COVID‑19 pandemic has had an impact on the Canadian museum sector. The Committee heard testimony from Catherine Cole, Principal Consultant for Catherine C. Cole & Associates, and received briefs from the Canadian Museums Association and the Canadian Art Museum Directors Organization. Several museums have had to close their doors and lay off staff. Museums that chose to open incurred additional costs related to “implementing the necessary health and safety measures”[48] as well as lost revenue due to decreased visitors.

1.4.4  Media and publishing

In recent years, the Canadian news media sector has been experiencing financial difficulties due to the shift of advertising revenue to large international digital companies. The COVID‑19 pandemic has exacerbated this crisis.

For News Media Canada, the economic crisis has led to a decline in advertising sales for community, daily and weekly newspapers across the country. The organization estimates that these publications have seen a 20% drop in print advertising revenue since the beginning of the pandemic.[49]

The Association des médias écrits communautaires du Québec (AMECQ) made a point of clarifying what is meant by “community” newspapers in Quebec. Its 80 members are non-profit organizations whose newspapers and magazines are generally produced by volunteers.[50] Many of them would have had to close their doors during the pandemic had the Quebec government not purchased advertising.[51]

Witnesses also brought up federal advertising. Since 2016, the federal government has mainly used digital media to provide information about its programs and services. In 2018–2019, out of the total federal advertising expenditure of $58.6 million, $43 million was spent on digital media.[52] Social media, such as Facebook, represented “the largest investment in digital media.”[53] Both AMECQ and News Media Canada questioned the federal government’s advertising strategy. AMECQ said that federal government advertising in Quebec’s community print media has been practically nil.[54] News Media Canada was also critical:

Federal government advertising has fallen to almost nothing in the last few years. This defies logic given that our products are read by more Canadians than the digital giants. At the beginning of the pandemic, the government announced a $30-million communication budget, but unlike many provincial governments, there was limited placement in our news media.[55]

In addition to the media sector, the Canadian book industry has had to deal with the upheaval caused by the pandemic. The unexpected closure of bookstores, schools and libraries as well as the cancellation of book fairs are just a few examples of the pandemic’s impacts on this sector. According to the Association of Canadian Publishers, 36% of Canadian English-language publishers anticipate a “decline in sales of more than 40% in 2020.”[56] Emergency relief measures have helped publishers through the crisis. However, in the mid- to long-term, “distributors may not be able to pay publishers with any regularity.”[57]

1.4.5  Sport and recreation

The COVID‑19 pandemic has had an impact on the Canadian sport system, from recreational sport to elite sport.

Before the pandemic, statistics showed that only one in five Canadian adults met the recommended level of physical activity for health benefits.[58] The closure of sports facilities, lockdown measures and increased screen time have only made the situation worse. According to Mr. Antunes, low levels of physical activity have an impact on children’s health:

This past April, in the midst of the pandemic surge, fewer than 3% of Canadian children were meeting recommendations for physical activity, sedentary behaviour and sleep—a stark contrast to the already low 15% doing so before the health crisis.[59]

Several witnesses expressed concern about the precarious financial situation of local, provincial and national sports organizations. They said that the $72 million in the ESF is not enough to meet their needs. According to a survey conducted by ParticipACTION, “65% of local community clubs and associations have not been able to access emergency funding.”[60]

Katherine Henderson, Chief Executive Officer of Curling Canada and spokeswoman for Diversified and Event-Funded National Sports Organizations, said many local and provincial sports organizations are in “dire straits.”[61] Many of them have furloughed staff and had to draw on their financial reserves to maintain operations.[62]

National sports organizations (NSOs) such as Canada Soccer, Curling Canada and Tennis Canada have seen a sharp drop in revenue from non-governmental sources. This revenue is generated by “commercial events, hosting of domestic and international competitions, sponsorship, broadcast rights and registration fees.”[63]

Mr. Shoemaker also said that the 62 NSOs represented by the Canadian Olympic Committee have been hard hit by the pandemic. They have lost revenue to varying degrees from membership fees and the hosting of sporting events. Currently, NSOs are no longer able to perform one of their core functions, which is to grow their sport from the recreational level to the elite level.[64]

2.  Perspectives and recommendations

2.1  Lessons to be learned from the pandemic

2.1.1 Strengths and shortcomings of federal measures

Witnesses who benefited from the emergency measures put in place by the federal government expressed their thanks. However, they also identified some shortcomings that they would like to see corrected if the measures are renewed. According to the testimony heard during the study, these measures also need to be more flexible to respond to the concerns of the arts, culture, heritage, and sports sectors.

Ms. Richard said the emergency funding was poorly distributed. She gave the following explanation:

Unfortunately, for the multidisciplinary presenters, this program has completely missed its target. By giving more grants to those who already had a lot, it completely obliterated the idea that it was the less subsidized presenters that were most weakened by the crisis. The latter have seen their autonomous revenues shrink by 90%.[65]

Pascale St-Onge, President of the Fédération nationale des communications et de la culture, expressed reservations about the CRB:

One problem is that there is no mechanism in place to phase out the CRB. This means that contract workers receive either all or none of the CRB. The criterion of 50% income reduction on average weekly earnings makes it very difficult for many self-employed individuals with an average annual income of about $14,000 to access the CRB. If they earn more than $138 per week, they have no access to the CRB at all, which is extremely problematic.[66]

Several witnesses said that the CEWS has been useful but should be enhanced and extended.[67] Bob Davis, Volunteer Board Governor of the Rosebud Centre of the Arts, told the Committee that it was insufficient,[68] a view shared by Mr. Mustakas.[69] In Ms. Richard’s view, extending the CEWS beyond 21 June 2021 was “fundamental.”[70] Mr. Roy believes that the subsidy “must be very flexible and must accommodate the very seasonal nature of our activities.”[71]

Moreover, Mr. Roma lamented that municipalities do not qualify for the CEWS, which has impacted parks and recreation employees across the country.[72] He said that the recently announced Canada Healthy Communities Initiative is a step in the right direction in supporting municipalities. However, the $31 million provided under this initiative “will not even begin to meet the demand.”[73] The Canadian Parks and Recreation Association is calling on the federal government to create a community sport and recreation recovery fund to ensure that the parks and recreation sector contributes to Canada’s post-pandemic recovery. It is also asking that special attention be paid to services to reach the most vulnerable in society and rural Canadians.[74]

This issue was also raised by Mr. Julien, as many theatres are rented from municipalities.[75]

In the media and publishing sector, News Media Canada welcomed the CEWS and the 25% increase in funding to the Canada Periodical Fund. The organization asked that this additional funding be continued until 2021.[76] The Association of Canadian Publishers recommended that emergency support under the COVID‑19 Emergency Support Fund through the Canada Book Fund be continued until 2022 and beyond. It also recommended that the permanent budget of the Canada Book Fund be increased from $38.4 million to $58.4 million.[77]

Some witnesses wanting to access government assistance expressed concerns about the funding provided through ESF. They complained that, because they had not already obtained funding from the Canada Council for the Arts before the pandemic, their organizations were not eligible for the emergency fund during Phase 1. While specific funding was allocated to these organizations in Phase 2, some witnesses still raised the issue. For example, Mr. Davis recommended that, in the future, new applicants should also be eligible for emergency funding.[78] A similar recommendation was made by Mr. Mustakas[79] and Mr. Turgeon Thériault.[80]

Witnesses also called for flexibility in government measures in light of the evolving situation. Mr. Turgeon Thériault offered a number of suggestions to help the government be more flexible:

We also recommend more flexible evaluation criteria for existing programs, a flexibility that Canadian Heritage has already announced. There is talk of a decrease in the ratio of self-generated income and less consideration of support from local partners, all of whom are affected by the crisis.[81]

He further proposed that the government consider the surpluses generated during the crisis as a recovery fund for the future that can make up for the loss of other revenues.[82]

In her testimony, Ms. Raymond asked for more flexible funding in the Building Communities Through the Arts and Heritage program. She told the Committee:

The important thing is really that we adapt our programming to create a digital, virtual or even hybrid format. Although we did announce that the Carnival was happening physically this year, part of our programming will take place online, since we can’t generate large gatherings.

Each event experiences and does things differently. We have the opportunity to transform ours so that it can still play out on the ground and include a live portion. However, programs must embrace that distinction if we want to produce artists virtually or develop digital content with other types of artists who are not usually part of our programming.[83]

Mr. Shoemaker made the same plea for NSOs: “Critical relief funding has been delivered…but with their activities still largely stopped, they need government flexibility to spend money later and for different purposes.”[84]

According to Ms. Cole, the museum sector also requires flexibility; she said that funding is available but remains difficult to access, especially for small museums.[85] Moreover, small museums are often seasonal institutions that do not have paid staff during the winter to raise funds, plan programs or develop new activities.[86]

In its brief, the Directors Guild of Canada also made a call for enhanced flexibility, along with a call for eligibility for COVID-19 government supports to be extended to contract workers, a recommendation that was also supported by the Canadian Dance Assembly.[87]

Furthermore, both ADISQ and Union des artistes asked that the government ensure that measures are tailored to each sector and that the money reaches artists, not just institutions.[88] To achieve this goal, Union des artistes recommended that the government implement “[c]lear accountability mechanisms” and consequently that, “when funds are given to institutions or producers, contracts must be traceable, verifiable and honoured.”[89]

On the media side, AMECQ questioned whether support measures for the news sector were truly effective. It noted that the eligibility criteria of some government programs were not always adapted to the needs and reality of Quebec’s print media. For example, the Local Journalism Initiative, which aims to support the creation of civic journalism, does not meet the needs of AMECQ members. The criteria requiring communities to be a “news desert” or an area of “news poverty” limits members’ access to this initiative.

Moreover, AMECQ cannot access the Community Media Strategic Support Fund because it is available to print or digital official language minority newspapers in Canada only. AMECQ is calling for the creation of a program similar to the Community Media Strategic Support Fund, but one that would meet the needs of Quebec’s “small newspapers and small communities.”[90]

Both AMECQ and News Media Canada have asked the government to review its media placement strategy. News Media Canada believes that the federal government should consider using its Maple Network Exchange to reach Canadians.[91] This new network provides advertisers with advertising space on Canadian news media sites.

Recommendations 1

The Committee recommends that the Department of Canadian Heritage strike a committee to study new funding models for organizations in the arts, culture, heritage, and sports sectors. Representatives of the cultural industry, including organizations representing official language minority communities, would be asked to sit on this committee. In addition, the committee structure would take into account Canadian diversity in its membership.

Recommendation 2

The Committee recommends that the Government of Canada increase its use of advertising in traditional mediums, such as local, regional, and national newspapers rather than on platforms of international digital companies.

2.1.2 Return to live events

Several witnesses said it was important to recognize that the reopening of theatres and other venues does not mean things will be back to normal right away. Safety and health measures will have to be in place for a long time.

In his testimony, Mr. Rogers said his organization had commissioned surveys at the start of the pandemic, both among musicians and the general public. He shared some findings:

The virus will keep Canadians, including identified music lovers, home long after they’re allowed to attend events. About one in two of those live-music lovers believes that it will be six months or more after government restrictions lift before they’ll feel safe returning to live shows and festivals, small and large indoor venues, and elsewhere.[92]

Ms. Rubin said that the pandemic has created fears among much of her client base, and these fears will not go away overnight, which will prolong any return to the theatre.[93] Ms. Drouin shared this fear.[94] Mr. Julien said “the behaviour of customers will be different after the pandemic” and measures will have to be introduced to help organizations adapt.[95]

Mr. Peers of the Calgary Stampede was asked about this issue during his testimony. He told the Committee:

What I can say is that in the short period of time that we were allowed to open some of our events here in October in Stampede Park, in terms of our convention facilities and meetings and trade shows, there was definitely a demand. People wanted to get back out and participate, and I would hope that’s going to be the same come July.[96]

In its brief, the Canadian Endurance Sports Alliance, which represents organizers of participatory sporting events, asked for access to federal support measures.[97]

2.2  Post-pandemic: The federal government’s role

Throughout its study, the Committee heard several views about how the federal government should contribute to the recovery of the arts, culture, heritage, and sports sectors once the pandemic is over. Witnesses’ recommendations focused on government support programs and mental and physical health supports. In addition, a number of witnesses made recommendations on topics outside the scope of the Committee’s study.

2.2.1  Short-, medium- and long-term recovery

Various witnesses pointed out that recovery will be slow in the art, culture, heritage and sport sectors after the pandemic is over. Many recommendations about ensuring short-, medium- and long-term recovery were shared with the Committee.

Duration of measures

One of the most frequent requests heard during the study was for support measures to be extended beyond the announced time frames. As Ms. Richard pointed out:

One of the needs targeted during the crisis is predictability. Beyond the lack of the missing financial resources, what the performing arts sector is currently suffering the most from is the lack of predictability. For a multidisciplinary presenter, the development of a series of performances involves several activities that usually take place over several months or even a year. The marketing of a show alone extends over several months. [The piecemeal approach to] management such as we have been experiencing since the beginning of the crisis is therefore extremely difficult and exhausting.[98]

That is why Mr. Julien recommended a “holistic approach” that would “support all the players in the event value chain, both before and during the recovery phase.”[99]

Mr. Roy recommended creating a new measure that would complement existing programs: a transition fund that would ensure an “ecological and digital”[100] recovery. Mr. Mitchell also mentioned the need to “rebuild a more viable, sustainable and equitable arts sector.”[101]

As for Mr. Mustakas, he recommended creating an arts recovery incentive fund that would be a matching fund, modeled after the Endowment Initiative of the Canada Cultural Investment Fund. This incentive fund would give arts, culture and sports organizations that are not already eligible for the Endowment Initiative the opportunity to bolster their funding, and it would also promote philanthropy.[102] Ms. Richard was in favour of creating tax incentives for both sponsorships and donations to attract new donors.[103]

Organizations representing events and festivals advocated for the restoration of a program similar to the Marquee Tourism Events Program to help them recover. This program was in place from 2009 to 2011 and served to boost Canada’s tourism industry and attract both foreign and domestic tourists. Mr. Roy said that such a program would require “$225 million over three years” in funding.[104] Ms. Raymond also argued for the program’s return.[105] During Ms. Laurendeau’s appearance, she stated that this program is “certainly part of our reflection process” at the Department of Canadian Heritage.[106]

In addition to extending the duration of measures, witnesses called for increasing current and future funding envelopes. Mr. Roy explained the issue to the Committee as follows:

If nothing is done, next year, we will be back at the 2018 level, which was the same for 10 years. That makes absolutely no sense and it would be universally interpreted as a major cut to culture.

At this very moment, festivals and events are receiving letters telling them that, in 2021, they will be receiving less from the Department of Canadian Heritage. This comes at a time when we are in the middle of a pandemic and their survival is at stake. There must be action. We are talking about $15 million to maintain the 2019 envelope or $30 million to maintain the 2020 level, and we need to do more.[107]

To support recovery in the sport sector, the COC called on the federal government to invest an additional $50 million in Canada’s sport system “to address long-term need and reintroduce Canadians to sport at the grassroots and community level.”[108] Meanwhile, Diversified and Event-Funded National Sports Organizations called for “a dedicated stream of funding to replace the net revenues self-generated by our events, which would be reinvested into our grassroots sport.”[109]

Regarding the time frame for recovery, witnesses agreed that government financial support should be provided “over as long a period of time as necessary”[110] given the needs involved and the precarious state of these sectors even before the pandemic occurred. Ms. Raymond indicated that government support measures should extend “well beyond 2022,”[111] while other witnesses said that support should last for at least two to three years.[112] Mr. Turgeon Thériault recommended not only that emergency programs be renewed for the year ahead, but also that “multi-year agreements of three to five years be put in place to allow events to project into the future and to better plan for the recovery period.”[113]

Recommendation 3

The Committee recommends that the Government of Canada increase support for local sports organizations that are struggling due to the COVID-19 pandemic.

Recommendation 4

The Committee recommends that the Government of Canada create a community sport and recreation recovery fund to ensure that the parks and recreation sector, as well community sports organizations, are able to contribute to Canada’s post-pandemic recovery.

Operating costs

The topic of revenues to cover operating costs for artistic, cultural and sports organizations was raised several times. These costs include employee salaries, facilities management, and other fixed expenses.

The Committee heard that, due to the pandemic, more financial resources are needed for administrative tasks due to ever-changing circumstances. This point was raised by the Rosebud School of the Arts in the brief it submitted to the Committee,[114] as well as by Alex Sarian, President and Chief Executive Officer of Arts Commons,[115] and by Mr. Mustakas.[116]

Ms. Cole explained that the museum sector had a pressing need for operating funding, but that it was difficult to get.[117] Mr. Roma also called for this type of funding, summarizing the situation as follows:

…right now we’re allowed to have 25% capacity in our facilities. That equates to 25% of any of the revenue that was going into municipal budgets, but with a lot of the same, if not enhanced, expenses attached to operating those facilities.[118]

The Canadian Museums Association said it was in favour of additional assistance for the museum sector and increased federal funding.[119]

2.2.2  Prevention

Some witnesses made recommendations involving mental and physical health. Ms. St‑Onge was in favour of assistance that covered “training [and] labour market reclassification.”[120] Mr. Mustakas agreed.[121]

According to Ms. Rubin, extending subsidies and assistance measures would be beneficial to mental health of cultural sector employees by eliminating a source of uncertainty.[122]

Mr. Antunes had two recommendations to encourage Canadians to engage in physical activity and experience its benefits:

• Creating a public education campaign to encourage Canadians to get outdoors and be active while abiding by public health guidelines; and
• Declaring June 2021 “Canada Moves” month, and providing free sports, physical activity and recreation activities at the community level through ParticipACTION programming.[123]

This campaign would target families, seniors and under-represented groups of the Canadian population. ParticipACTION suggested that $20 million in funding be provided over three years.[124]

Recommendation 5

The Committee recommends that the Government of Canada create programs to both encourage Canadians to be active and ensure that all Canadians can access physical activity and recreational programs during and after the pandemic.

2.2.3  Related issues raised by witnesses

Some witnesses raised issues that were outside the scope of the study as outlined in the motion of 23 October 2020. The Committee wished to highlight those points in this section.

Official languages

The Fédération culturelle canadienne-française (FCCF) explained that the COVID-19 pandemic is “currently threatening more than 40 years of artistic and cultural development”[125] in francophone and Acadian minority communities.

The FCCF expressed concerns about the criteria established by the Department of Canadian Heritage for funding distributed during Phase 1 of the ESF. Phase 1 relied on existing programs to provide funding to recipients already receiving funds from the Department of Canadian Heritage, the Canada Council for the Arts or Telefilm Canada. However, artists, creators and cultural workers in francophone and Acadian communities are “under-represented and underfunded”[126] by these three governmental institutions. Cultural organizations in minority communities receive most of their funding through official languages assistance programs (which were not included in the targeted programs in Phase 1). It was not until Phase 2, in August 2020, that minority community artists and cultural organizations could get funding through the ESF.

To prevent such occurrences in the future, the FCCF called on federal institutions to apply an “official languages lens”[127] when analyzing funding requests. That way, federal institutions could determine whether projects submitted to them would be likely to enhance the vitality of official language minority communities.

Connectivity

As discussed above, the use of digital technologies was key to continuing activities during the pandemic. However, users cannot participate unless they have access to high‑speed, affordable Internet with a reasonable data allowance. Despite the progress that has been made in recent years, there is still room for improvement.

Orford Music, located in Quebec’s Eastern Townships, was forced to move up its technology plans in order to be able to provide training online. However, the organization encountered difficulties with its Internet connection in the region:

We had to undertake additional initiatives to bring dedicated fiber optics to us. It is a major issue for us: we absolutely must have a very good Internet connection for our activities.[128]

Mr. Pfeifer drew the Committee’s attention to the fact that access to reliable and affordable telecommunications services is still a challenge in northern Canada:

There are obviously some current northern and remote Internet and telecommunications capacity issues. I think it’s well recognized, especially in the small communities, that there is a high cost to having Internet at home. There’s the high cost of having to purchase perhaps a laptop. There’s the high cost of a monthly Internet service.[129]

Representatives of the Fédération culturelle canadienne-française[130] and Ms. Cole,[131] shared views similar to those expressed by Mr. Pfeifer.