This article was written and provided by government relations firm Global Public Affairs, with whom we have partnered to provide the Alberta arts sector with important federal news and updates. Join us for a live webinar this Thursday, April 21 to ask questions and hear more about the 2022 federal budget details. On Thursday, April 7th, the Liberal Government tabled the 2022 Federal Budget entitled A Plan to Grow Our Economy and Make Life More Affordable. Key areas of the Budget include economic growth, housing, and Canada’s leadership in the world. For the Arts and Culture sector specifically, there was support announced for Canada’s Performing Arts and Heritage sectors, the arts training sector, Canada's tourism sector, local and diverse journalism, an Anti-Racism Strategy, and compensation for news media in the digital news ecosystem. The Government also announced amendments to the Copyright Act and the Employment Insurance Act, and their intentions are to create stronger partnerships within the charitable sector. Arts Sector Recovery While this 280-page document did include some support for the Arts and Culture sector, many within the sector are saying more should have been provided to assist the sector in its post-Pandemic recovery. It is important to note that the Fall Economic Statement, announced in the Fall of 2022, is another opportunity for the sector to receive additional support. It is also important to remember that Budget 2021 announced $500 million over two years to support the re-opening and recovery of the arts, culture, heritage, and sports sectors. $250 million announced in 2021 will be delivered in 2022-2023 to support performing arts. $62.3 million was announced in the 2021 Economic and Fiscal Update to create a temporary program aimed at supporting workers in the arts sector. This program is now known as the Canada Performing Arts Workers Resilience Fund (CPAWRF). For new or increased funding for the Arts and Culture sector, the 2022 Budget proposes to provide an additional $50 million in 2022-2023 to the Department of Canadian Heritage, the Canada Council for the Arts and Telefilm Canada to help compensate arts, culture, and heritage organizations for revenue losses due to public health restrictions and capacity limits. This $50 million commitment aligns with the Liberal’s election promise and mandate letter commitment to develop an Arts and Culture Recovery Program. This program is likely to come in the form of a retroactive ticket-matching subsidy recovery program. Details on the eligibility and structure of this program will be announced soon. Canada Arts Training Fund and Anti-Racism
Budget 2022 proposes additional support for the Canada Arts Training Fund (CATF). $22.5 million over five years starting in 2022-23, and $5 million annually therefore will be given to CATF to address the historic inequities for Indigenous and racialized training organizations. This is additional funding and will be disbursed as $4.5 million/year for the first five years, and then $5 million/year ongoing. The Department of Canadian Heritage is also set to receive $85 million over a four-year period, starting in 2022-23, to launch a new Anti-Racism Strategy and National Action Plan on Combatting Hate. National Arts Centre and New Productions The Government is proposing $12.1 million over two years, starting in 2022-23, for the National Arts Centre to support the creation, co-production, promotion, and touring of productions with Canadian commercial and not-for-profit performing arts companies. Journalism and Digital News Budget 2022 proposes to ensure fair compensation for news media in the digital news ecosystem. Therefore, the Government proposes $8.5 million over two years, starting in 2022-23, to the Canadian Radio-television and Telecommunications Commission. The purpose of this funding is to establish a new legislative and regulatory regime to require digital platforms that generate revenues from the publication of news content to share a portion of their revenues with Canadian news outlets. Providing support for Local and Diverse Journalism is a priority to this government. Specifically, this Budget proposes $15 million in 2023-24 to Canadian Heritage for Canadian Journalism. $10 million will be provided in 2023-24 to the Local Journalism Initiative to continue to support the production of local journalism for underserved communities across Canada. Additionally, $5 million will be provided in 2023-24 to launch a new Changing Narratives Fund. This fund will break down systemic barriers in the media and cultural sectors and help racialized and religious minority journalists, creators, and organizations have their experiences and perspectives better represented. Budget 2022 also proposes to provide $40 million over three years, starting in 2022-23, to Canadian Heritage for the Canada Periodical Fund to support the availability of journalistic content and to help these publications adapt to the continually evolving technology and media consumption habits of Canadians. Charity Disbursement Quota Increased Following consultations with the charitable sector in 2021, Budget 2022 proposes a new graduated disbursement quota rate for charities. For investment assets exceeding $1 million, the rate of the disbursement quota will be increased from 3.5 per cent to 5 per cent. These changes will be effective in respect of a charity’s fiscal period beginning on or after January 1, 2023 and will be reviewed after five years. To ensure sufficient flexibility for charities to carry out their work, Budget 2022 proposes to amend the Income Tax Act to allow a charity to provide its resources to organizations that are not qualified donees, provided that the charity meets certain requirements designed to ensure accountability. This is intended to implement the spirit of Bill S-216, the Effective and Accountable Charities Act, which is currently being considered by Parliament. Amendments to Employment Act and Copyright Act As well in Budget 2022, the government proposes amending the Employment Insurance Act. Amendments to the Employment Insurance Act include extending the rules of temporary measures that provides 5 additional weeks to seasonal workers in targeted regions. This rule will be extended until 2023. It was noted that Minister Qualtrough the Minister of Employment, Workforce Development and Disability Inclusion, is currently consulting with Canadians to create an employment insurance system that better meets the needs of Canada’s workforce. Under Annex 3 the budget document, Legislative Measures, the Government proposes to introduce amendments to the Copyright Act. The amendments include extending the general term of copyright protection from 50 to 70 years after the life of the author, as agreed under the Canada-United States-Mexico Agreement (CUSMA). The Government is committed to protecting all creators and copyright holders under the Copyright Act. Therefore, the Government will work to ensure a sustainable educational publishing industry, including fair remuneration for creators and copyright holders, as well as a modern and innovative marketplace that can efficiently serve copyright users. Support for Tourism
Finally, Budget 2022 proposes continued support for Canada’s tourism sector. Minister Boissionault will work with the tourism industry, provincial and territorial counterparts, and Indigenous tourism operators to develop a new post-pandemic Federal Tourism Growth Strategy, which will plot a course for growth, investment, and stability. Proposed support builds on other supports for the sector, including $1 billion through Budget 2021 programs such as the Tourism Relief Fund and the Major Festivals and Events Support Initiative. $750 million of these funds are expected to be used in 2022-2023. We are anticipating that Destination Canada will spend $48 million for marketing campaigns in the United States to draw in more visitors and increase economic activity. Budget 2022 proposes $20 million over two years, starting in 2022-23, in support of a new Indigenous Tourism Fund to help the Indigenous tourism industry recover from the pandemic. It also proposes $4.8 million over two years, starting in 2022-23, to the Indigenous Tourism Association of Canada to help the Indigenous tourism industry rebuild and recover from the pandemic.
Global Public Affairs will join us at our next webinar this Thursday, April 21 at 1:00 pm. This is your chance to get your funding program questions answered by the experts! Individual artists and arts managers can click the graphic below or register at https://april21criticalconversationswebinar.eventbrite.ca.