Canadian Heritage Minister Pablo Rodriguez has touted Bill C-18, the Online News Act, as critical for Canada’s media sector, but government’s internal modelling suggests there will be limited benefits for most news outlets. Earlier this fall, the Parliamentary Budget Officer estimated that it would generate $329 million per year, with over 75% of that revenue going to broadcasters such as Bell, Rogers, and the CBC. At the time, I noted that meant that “newspapers will receive less than 25% of the funding or about $81 million to split among hundreds of news outlets.” It turns out that the government believes that vastly overstates the benefit as its own modelling estimates about $150 million in total revenues, less than the 50% of the PBO’s estimate. Assuming a similar apportionment of revenues between broadcasters and newspapers, that would place the benefit at just over $37 million for the entire newspaper sector. In fact, as the government has expanded the eligibility to hundreds of additional outlets, the benefits for each organization shrinks even further.
Post Tagged with: "pbo"
Big Cost, Smaller Benefit: Government Modelling Pegs Likely Bill C-18 Revenues at Less Than Half of Parliamentary Budget Officer Estimates
Broadcast Bonanza: PBO Says Bill C-18 Would Give a Quarter Billion to Broadcasters Such as Bell and the CBC, Less Than 25% of Payments to Canadian Newspapers
As the witness portion of the Canadian Heritage committee hearing into the Online News Act (Bill C-18) comes to a premature end later this week (a hearing is planned with Heritage Minister Pablo Rodriguez and the CRTC, but remarkably Facebook, the CBC, and many experts will be blocked from appearing), new data from the Parliamentary Budget Office calls into question the claims of big benefits for Canadian newspapers. In fact, while the government has been anxious to cite the (questionable) PBO estimate that the bill will generate $329 million per year for Canadian news organizations, last week the PBO quietly released supplementary data that suggested it believes the vast majority of the money will actually go to the CBC, Bell, and other broadcasters. In fact, the supplementary data – posted with a link after the release of the PBO’s report – concludes that newspapers will receive less than 25% of the funding or about $81 million to split among hundreds of news outlets.
The Parliamentary Budget Officer released a report last week providing its estimate on the economic impact of the Canada – EU Trade Agreement. While the Liberal government made CETA its top trade priority when it came into office (and the Conservatives claimed that the deal would add $12 billion to the Canadian economy), the PBO report concludes that the economic benefits will be modest at best.
The report devotes a full chapter to CETA’s intellectual property provisions, particularly the patent related rules that will have a direct impact on the pharmaceutical industry. CETA establishes patent restoration and patent appeal rules that will extend the term of patent protection for pharmaceutical products, thereby increasing consumer prices and royalty outflows. With a regulatory framework designed to address pricing in place, the report focuses on increased royalty outflows with extended protection.