Press Release

Some good news for Canada's arts and culture sector

announced in 2006 Federal Budget

Ottawa, ON (May 2, 2006) - The Canadian Conference of the Arts (CCA) is encouraged by the announcement of new monies for the Canada Council for the Arts contained in the 2006 Federal Budget unveiled today by the Hon. Jim Flaherty, Minister of Finance.

This announcement comes on the heels of months of sustained advocacy by members of the country’s arts and cultural sector, who were seeking a doubling of the Canada Council’s annual budget. Though the figure of $50 million over the next two fiscal years falls well short of the target, it is nevertheless a welcome development.

“Though it is far too early to uncork the champagne, the CCA sees this as the first step on the part of a new government that is trying to be attentive to the sector’s long-standing call for stable, increased, multi-year public funding for arts and culture,” says Alain Pineau, National Director of the Canadian Conference of the Arts. “Now our work begins to ensure this $50 million is secured as permanent, sustained funding and to make the advocacy case for the still required increases in the very near future.”

Unfortunately, what today’s federal budget does NOT contain is any news related to the CCA’s other current advocacy priorities. For instance, there is no mention of a new federal museums policy, nor is there an announcement regarding additional monies to the Canadian Broadcasting Corporation (CBC), particularly for its regional programming plan. Regrettably, an announcement last November to allocate additional monies to the cultural programs housed at the Department of Foreign Affairs did not re-materialize either. The CCA has also called on the federal government to determine the needs for increased funding for the various portfolio agencies of the Department of Canadian Heritage; this recommendation also went unheeded.

Additionally, CCA’s various 2006 budget appeals in the area of taxation and tax credits went unaddressed for the time being, though during the fast-track consultation process, Minister Flaherty has at least opened the door to having future discussions with the CCA on these issues. The CCA asks the government to reinstate income averaging for self-employed Canadians whose income fluctuates drastically from year-to-year, as artists and cultural workers comprise the fastest-growing part of the country’s 21st Century post-industrial labour force and to implement a taxation exemption on artists’ income, including copyright income. Last, the CCA had encouraged the government to expand its planned tax credit of $500 for parents of young Canadians under the age of 16 who enroll their children in programs promoting physical activities, to also include a tax credit to cover children participating in arts and cultural activities.

Canada’s artists and cultural workers earned an average of $23,500 in 2001 and should therefore benefit in one way or another from the various tax relief measures contained in the 2006 budget. It is too soon to assess the potential impact of these proposals, which include: changes to the personal income tax rate, as well as tax credits for trades people’s tool expenses and scholarship and bursary income, among other measures.

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