CAC Recommendations for Pre-Budget Consultations In Advance of Upcoming Federal Budget

• Recommendation 1: That the government extend Emergency Wage and Rent supports to the arts sector beyond October 2021 until May 2022, until true recovery is possible. 
• Recommendation 2: That the government, through collaboration between Health Canada and Destination Canada, provide appropriate, consistent guidance and marketing funding and support to encourage Canadians to return to the arts safely.  
• Recommendation 3: That the government open up to charities and not-for-profits the funding provided through Regional Development Agencies to enhance digital adoption, in addition to expanding the investment in digitization to meet the specific challenges of capturing the content of performing arts.
• Recommendation 4: That the government continue to pursue a policy of Basic Income.
• Recommendation 5: That the government provide the resources to the Open Government Program of Treasury Board to ensure that there is transparency and accountability for all grants made by departments and agencies, to enable the arts sector to track the government’s commitment to support Indigenous, racialized and other marginalized artists and arts organizations. 
• Recommendation 6: That the government engage the private sector in the recovery through such measures as eliminating the capital gains tax on gifts of private securities and real estate to charitable organizations.

 

The Canadian Arts Coalition (CAC) is grateful for the opportunity to provide a written submission to the Standing Committee on Finance.  We are pleased that, last year, the Committee endorsed the Recommendations made by the CAC to dedicate sector-specific funds for the relief and recovery of the sector, a recommendation that was followed through with the commitment, in Budget 2021, of a $300 million Recovery Fund for Heritage, Arts, Culture, Heritage and Sport Sectors. 

However, as a recent survey of the CAC’s membership makes clear, true recovery is a long way off for the arts sector which was among the first to shut down and will be among the last to be able to return to pre-pandemic capacity.  The CAC is acutely aware of the effect the pandemic has had on artists and arts organizations across Canada. We are particularly aware of its impact on Indigenous, racialized, deaf and disabled artists, community-engaged artists and arts organizations who were already at risk, as has become more evident during this crisis. It is important to build back better, rebuilding the arts ecology to rectify historical exclusions and barriers many artists, arts organizations and their communities continue to face.  

We are concerned about how the arts and the broader Canadian society will rebound and how we need to work together to build a truly inclusive and representative society, one in which the arts play an important role in the health and well-being of Canadians, as they have done during this past year with Canadians finding solace during this time of social distancing by spending their time reading, listening to music, watching movies as well as online performances.  

Recommendation 1: That the government extend Emergency Wage and Rent supports to the arts sector beyond October 2021 until May 2022, until true recovery is possible. 

So much remains uncertain, with the threat of a fourth wave looming, that, despite Canadians’ desire to return to the arts when the population is fully vaccinated, artists and arts organizations continue to lose income. Arts organizations are grateful for the emergency support provided by CEWS and CER, but join others in the Coalition of the Hardest Hit in pleading for the government to extend these essential programs beyond October 2021. In a survey just completed by CAC in the first week of August, arts organizations continue to be very concerned about the impact of Covid-19 on their operations, wondering how they will survive this crisis without an extension of these two vital emergency programs.  According to Statistics Canada, they are right to be concerned.  Employment in the arts, entertainment and recreation sector was down 25.4% from February to November 2020; worse, the GDP of the sector was down 48.2%.   

Recommendation 2: That the government, through collaboration between Health Canada and Destination Canada, provide appropriate, consistent guidance and marketing funding and support to encourage Canadians to return to the arts safely.

Budget 2021 provided $100 million to Destinations Canada for marketing campaigns to encourage Canadians to explore their own country.  Cultural events, museums, galleries and  and heritage sites are key tourism destinations that should be a focus of these campaigns. 

However, while the public is keen to return to live art venues, they have to feel safe to do so. It is essential that protocols are standardized across the country.  The arts sector is looking to Health Canada to provide leadership and support, not only in terms of clarifying protocols but also in ensuring that there is funding to cover the increased costs associated with implementing practices to minimize the risk of transmission of infection among attendees and performers.

Recommendation 3: That the government open up to charities and not-for-profits the funding provided through Regional Development Agencies to enhance digital adoption, in addition to expanding the investment in digitization to meet the specific challenges of capturing the content of performing arts.

From the onset of the pandemic artists have tried to innovate, despite a lack of investment, to enable them to share their work on digital platforms. Canadians have increasingly turned to digital experiences with the arts. This has exposed the challenges faced by artists and arts organizations to meet the demands of their fellow citizens, while being fairly compensated for their own work. 

The transition from live performances to digital experiences during this pandemic has highlighted the severe technology gaps, data access, and poor infrastructure that racialized and Indigenous communities are experiencing.  It has demonstrated that many organizations require significant investment in basic technology and training.  It has also highlighted the need for the current copyright, licensing and royalty regimes to be updated and to make a rapid adjustment to digital art.    

As a result, the CAC recommends that the government open up to charities and not-for-profits the funding provided through Regional Development Agencies to enhance digital adoption, in addition to expanding the investment in digitization to meet the specific challenges of capturing the content of performing arts.

Recommendation 4: That the government continue to pursue a policy of Basic Income.

The pandemic has laid bare the fact of income inequality in Canada. The CAC was glad to see that the Standing Committee on Finance, in its February 2021 Report, endorsed last year’s recommendation that Canada move from the Canada Recovery Benefit to adopt a permanent Basic Income program (#42). It would ensure a stable and effective future that recognizes the changing nature of employment for all Canadians. Furthermore, a Basic Income program would create equity and reduce poverty while continuing to support a thriving cultural economy. It would also address the long-standing painful truth that those who contribute the most, who are truly the lifeblood of this $53.1 billion industry – the artists – are paid the least for their contributions to an unquestionably essential service.   The CAC recommends that the government pursue the development of a Basic Income for all Canadians.

Recommendation 5: That the government provide the resources to the Open Government Program of Treasury Board to ensure that there is transparency and accountability for all grants made by departments and agencies, to enable the arts sector to track the government’s commitment to support Indigenous, racialized and other marginalized artists and arts organizations. 

The arts have always had a role to educate, enlighten and entertain but they also promote empathy and understanding as society grapples with the issues of racism and prejudice. The CAC is particularly aware of the impact Covid-19 is having on Indigenous, racialized, the deaf and disabled and other marginalized artists and arts organizations who were already at risk.   Yet, while those from Indigenous and racialized communities consume arts at the same rate as others, they are severely underrepresented in decision-making roles within the arts, are perilously behind White artists in their earnings and their organizations tend to exist on project or low-levels of operating funding.  Further, there are high needs for legal services to support these artists. This affects the framing, commissioning, and funding of the arts in Canada and their presentation to Canadians.  

The CAC has consistently recommended that the federal government address issues of systemic racism in arts funding and require implementation of equity actions with clear goals and timetables to achieve equality of outcomes to ensure operational and project funding are provided to Indigenous, racialized, the deaf and disabled as well as community-based artists and arts organizations.  

While the CAC was heartened to see, in Budget 2021, some commitment to address these gaps, it is critical that there is  transparency and accountability for all grants made by departments and agencies, to enable the arts sector to track the government’s commitment to support Indigenous, racialized and other marginalized artists and arts organizations.  The CAC, therefore, recommends that the Open Government Program of Treasury Board be provided with the resources to enable the sector to track the government’s progress. 

Recommendation 6: That the government engage the private sector in the recovery through such measures as eliminating the capital gains tax on gifts of private securities and real estate to charitable organizations.

The CAC recommends that the government engage the private sector in the recovery.  There are a variety of ways to do this, including potentially increasing the disbursement quota. This could potentially increase support for the charitable sector and those that rely on its services by between $1 billion and $2 billion annually.

The CAC also endorses the recommendation in the Finance Committee’s February Report to “eliminate the capital gains tax on donations of shares in private corporations or real property to charities” (#56) – both of which are effective incentives to increase private donations.  

Even more effective would be a donations matching program.  By matching donations, the government can provide an incentive to the private sector to actively participate in the recovery.  The success of the Canada Cultural Investment Fund’s existing matching program for donations to endowment has already enabled those that have built endowments and developed strong relationships with donors to have a better chance of survival after the pandemic.  The CAC recommends increasing the funds available for the CCIF in order to provide a new matching program for donations to operating budgets.