Advocacy Updates: Federal Government Provides $181.5 Million for Arts and Culture
/The following is excerpted from a communication issued by Global Public Affairs.
On November 30, Minister of Finance Chrystia Freeland presented the Fall Economic Statement, Supporting Canadians and Fighting COVID-19, which presented a fiscal update from the Economic Snapshot presented in July 2020. The projected deficit is expected to reach $381.6 billion by end of March 2021. The report notes that the deficit could be just shy of $400-billion if the pandemic worsens, leading to more restrictions. The Statement also presents a short-term stimulus package value at $70-$100 billion over three years.
The arts and culture sector were recognized by the Government as being among the hardest hit – only second to accommodation and food services in a decline in revenue, and the highest change in business insolvency. Further, it is among the bottom two sectors (second to hospitality) among sectors that have fully opened.
The government has prepared a high-level summary of new Support for Tourism and Hospitality, which shares support measures for arts and culture within.
Relevant announcements include:
The government will provide $181.5 million in 2021-22 to the Department of Canadian Heritage and the Canada Council for the Arts to expand their funding programs. This includes a one-year renewal of funding provided in Budget 2019 for the Building Communities through Arts and Heritage program, the Canada Arts Presentation Fund and the Canada Music Fund.
The government will provide additional COVID-19 relief to local television and radio stations by supporting the waiving of broadcasting Part II licence fees in 2020-21, which are collected annually by the Canadian Radiotelevision and Telecommunications Commission. Waiving these fees will provide up to $50 million in relief to these companies.
The government understands that certain major live events and festivals will require unique support. The government will work with industry to prevent the closure of unique and irreplaceable flagship events and festivals across Canada, and to ensure the survival of key, globally-recognized assets in this sector.
Proposing to move ahead with implementing changes to ensure that the Goods and Services Tax/Harmonized Sales Tax (GST/HST) applies in a fair and effective manner to all ecommerce transactions, including those facilitated by multinational digital giants, and to limit stock option deductions in the largest companies. While we strongly favour a multilateral approach, Canada proposes to act unilaterally, if necessary, to apply a tax on corporations that provide digital services.
The government will work with financial institutions in the near term to create the Highly Affected Sectors Credit Availability Program (HASCAP) – a new program for the hardest hit businesses, including those in sectors like tourism and hospitality, hotels, arts and entertainment. This stream would offer 100 per cent government-guaranteed financing for heavily impacted businesses, and provide low-interest loans of up to $1 million over extended terms, up to ten years. Rates will be lower than those offered in Business Credit Availability Program (BCAP) and beneath typical market rates for hard hit sectors.
On the Regional Relief and Recovery Fund in supporting local tourism businesses, the government is proposing a top-up of up to $500 million, on a cash basis, to Regional Development Agencies and the Community Futures Network of Canada, bringing total funding to over $2.0 billion in this fund. The government will earmark a minimum of 25 per cent of all the Fund’s resources to support local tourism businesses, representing $500 million in program support through June 2021.
The government is proposing to increase the maximum wage subsidy rate to 75 per cent for the period beginning December 20, 2020 and to extend this rate until March 13, 2021.
The government is proposing to extend the current subsidy rates of the Canada Emergency Rent Subsidy for an additional three periods. This means a base subsidy rate of up to 65 per cent will be available on eligible expenses until March 13, 2021. With the 25 per cent Lockdown Support also being extended, businesses may be eligible for a subsidy of up to 90 per cent of their eligible expenses.
The CEBA program will soon be expanded, allowing qualifying businesses to access an additional interest-free $20,000 loan, in situations where there is need. Half of this additional amount, up to $10,000, would be forgivable if the loan is repaid by December 31, 2022
And finally, for your interest, last week Canadian Heritage published the survey results on feedback regarding the Emergency Support Fund for Culture, Heritage and Sport Organizations (ESF). 96% of respondents reported that the COVID-19 crisis affected their organization financially to a large or moderate extent. The top reasons for seeking ESF funding were to pay for operating costs and to pay self-employed workers. 42% of respondents said they were using the ESF in combination with other emergency support measures from the Government of Canada.
