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The Canadian federal government announced Wednesday that it would help the Canadian media industry in trouble by offering new tax credits and new incentives.
Canadian Finance Minister Bill Morneau said the total amount of planned measures was close to C $ 600 million ($ 453 million) over the next five years. Details of the program will not be available until the next federal budget.
The bulk of the expense will consist of a new tax credit for media organizations to support labor costs related to the production of original news content. . A temporary tax credit will also be created for subscribers to digital news media sites.
Non-profit media organizations will also be allowed to apply for charitable status. This will allow them to issue tax receipts for their donations.
"To protect the vital role of independent media in our democracy and in our communities, we will introduce measures to help support journalism in Canada," Morneau told Parliament.
John Honderich, president of Torstar Corp., owner of the Toronto Star and several other newspapers, as well as part of the Canadian Press, said he was encouraged by the proposals.
"They should significantly help the media sector in its transformation into a sustainable digital future," he said in a statement.
In Canada, more than 250 media outlets have closed in the past 10 years and newspaper revenues have dropped 40% since 2012.
Pierre Poilievre, a conservative opposition critic in the finance field, said his party would never support journalism. Conservatives believe the government's support for journalists interferes with press freedom, and Poilievre said the government would choose who should sit on a panel that would ultimately decide which news agencies would survive or not.
