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Final Report of the Working Group on Cultural Policy for the 21 st Century

Executive Summary and Recommendations (June 1998)


 

We know intuitively that we will become great only when we translate our force and knowledge into spiritual and artistic terms. Then, and only then, will it matter to mankind whether Canada has existed or not.

 

Hugh MacLennan, essayist and novelist, 1978

It all began with the decision of the World Trade Organization. In the decision of the Appellate body, the WTO declared that the Canadian magazine industry policy could not be sustained without violating obligations Canada had undertaken in the General Agreement on Tariffs and Trade. With this development, many in Canada began to worry about the sustainability of other key elements in the federal cultural policy framework. PolyGram Filmed Entertainment heightened these concerns as it appeared that another policy would soon be facing similar challenges. Who will make Canadian cultural policy: Canadians and their elected representatives, or non-elected international tribunals responsible for the administration of trade agreements?

For the Board of the Canadian Conference of the Arts the decision was a simple one - Canadians must clearly establish our unfettered right to manage our cultural affairs as we best see fit without challenge or threat of retaliation. It was this decision that led the Board of Governors to create the Working Group on Cultural Policy for the 21 st Century. The mandate given to the Working Group was to examine the international environment created by a profusion of international trade agreements and determine how best to assert our cultural sovereignty within this network. The Working Group reported its Preliminary Findings on this component of its mandate on January 28, 1998 .

A second part of the mandate asked the Working Group to scrutinize the state of the federal cultural policy framework and recommend measures which would ensure that Canadian cultural development and expression could continue to flourish into the next century. The Working Group was asked to provide a holistic appreciation of the challenges, innovations and modifications that would be necessary to preserve Canadian cultural dynamism through a federal cultural policy. This Final Report presents the results of five months of extensive and intensive discussion, debate and reflection.

The Working Group drew on the experience, passion and wisdom of dozens of key figures working in every part of the Canadian cultural sector. They shared a common determination to develop a practical approach to the issue of a federal cultural policy which would minimize trauma to the existing cultural policy framework and impose clear disciplines on each and every measure, institution or programme to ensure that their individual and collective focus was on cultural objectives.

The Working Group sees the implementation of a federal cultural policy as an essential affirmation of the sovereign right of Canada to manage its domestic cultural affairs in the way it best sees fit. The affirmation of cultural sovereignty is one of the key tools necessary to preserve and develop the nation state of Canada . The measurement of effectiveness of such a policy must be gauged by our collective ability to enable Canadians to develop content in all media and to facilitate the broadest possible access by our citizens to these expressions of our shared national experience.

The theme of access by Canadians to their artistic works and cultural products is a recurring one throughout the Final Report of the Working Group. The entire objective of maintaining a vibrant community of artists and producers is to ensure that Canadians have ready access to the stories and reflections that stem from our shared experiences, aspirations and the diverse and sometimes provocative interpretations of them. Throughout the entire cultural policy framework, the achievement of this goal of access must be one of the principal preoccupations of government and the cultural sector alike.

A federal cultural policy must preserve and enhance our collective ability to celebrate those aspects of our national life that distinguish us from others, such as the cultivation of our two official languages, diversity, and the reality of our First Peoples. The primacy of cultural objectives must inform and direct any policies or programmes with industrial ramifications. The Working Group was adamant that this discipline within a federal cultural policy be seen clearly by both Canadians and our international partners.

The Working Group prescribes a legislative basis for a federal cultural policy within the enabling legislation of the current Department of Canadian Heritage. The revised legislation would confer upon the renamed Department of Canadian Culture and Heritage, the full responsibility for the management and development of a federal cultural policy, including foreign ownership and investment policies, all related content and carrier measures, and the retention of Official Languages promotion activities. The implantation of cultural policy objectives within the Act would create a template through which, over a three year period, all instruments within the federal cultural framework would be brought into conformity.

To oversee this process of harmonization, the Working Group has recommended the creation of a Special Commission which would be responsible for ensuring that each institution, measure and programme is in full conformity with the objectives of the federal cultural policy. The Special Commission would have the authority to recommend to the Government whatever changes are necessary to create a cultural policy framework that is unified by and focused around the legislated cultural policy objectives. In reaching its conclusions, the Special Commission would consult broadly with those responsible for affected programmes, institutions and measures, the cultural sector and those interested Canadians from all walks of life.

The Working Group believes that it is essential that the efforts of the federal government do not remain static during the workings of the Special Commission. Rather, building upon the objectives of a federal cultural policy, the federal government must proceed with further initiatives to foster and reward creativity in our society through revisions to the Copyright Act , and a broader range of measures to improve the status of the artist, to build new audiences and increase access by Canadians to our culture, and to fortify national training institutions and sector-based professional development and skills upgrading opportunities. It is also important that strength be built into our national cultural institutions to shape the next generation of Canadian talent and ensure that the current generation can remain competitive with the best artists and producers in the world.

Canadian museums and heritage institutions preserve and present the physical legacy of the Canadian experience. The Working Group believes that this community must do more to enhance the sense of ownership and access to the important collections they maintain. Travelling exhibitions, and the use of new technologies should be exploited more fully to reach this objective.

Turning its eyes to the world stage, the Working Group also sees further opportunities for innovation. The Third Pillar of Canadian foreign policy is the promotion of Canadian culture and values. The Working Group is not satisfied that this declaration has translated into tangible improvements in the promotion of Canadian artists and culture in the international arena.

It recommends the creation of a new federal agency responsible for the promotion of Canadian artists and cultural products around the world. This agency, styled after the British Council, would create a dedicated single-window through which support to artists, arts organizations and cultural industries could be funneled, enabling Canadian participation in trade fairs, international festivals and exhibitions, and the exchange of talent and skills development.

The resolution of the long-standing tensions around Canadian cultural policies emanating from the network of international trade agreements to which Canada is party, was another subject addressed by the Working Group. In the report of its Preliminary Findings, the Working Group recommended that the efforts to establish a separate international agreement which would remove culture from the mainframe trade and investment agreements and rules be a priority for government and the cultural sector. In the Final Report, the Working Group presents the concept of Global Parallel Rights which gives some form to the idea of a separate international agreement on culture. The Working Group recommends that this concept be added to the repertoire of the Canadian negotiating position for all bi-lateral and multi-lateral agreements and negotiations on trade and investment.

The Working Group also examined the current policies regarding foreign ownership and investment in cultural enterprises. The concept of "net benefit" must be fortified to ensure that the commitment to invest in Canadian productions becomes a life-long feature of good corporate citizenship in the Canadian market. The Working Group also reaffirms the importance of placing the administration of these policies within the jurisdiction of the Department of Canadian Culture and Heritage.

An important aspect of maintaining a strong base of domestic talent is the creation of a sound financial footing for both non-profit and industry components of the cultural sector. To this end, the Working Group has recommended that the Minister of Finance develop new incentives to encourage a growth in donations by modest donors and to attract investment capital to the sound recording, new media, book and magazine industries similar to those in place for film and video production.

The Working Group believes that the Special Commission should examine with care and imagination the role and mandates of the national cultural institutions. Agencies such as the CBC/SRC, the Canada Council for the Arts, the National Film Board, Telefilm Canada and the National Arts Centre have undergone profound changes as a result of the spending cuts of recent years. These changes were often affected without due consideration for the interrelationships that exist between the agencies and their clientele. The Working Group sees the opportunity to rebalance the manner in which these agencies can reinforce each other, and work to provide increased access by Canadians to their culture and enhance the development of a strong domestic artistic and cultural talent pool.

The sustenance of Canadian cultural sovereignty and the Canadian imagination as a distinct voice at home and around the world is worthy of the investment of public financing and political will. The Working Group calls upon the Government of Canada to redouble its efforts in this area by adopting its recommendations for a federal cultural policy. The Working Group is firmly convinced that if Canadians do not undertake this task, others will do it for us through continuing challenges by our international trading partners. Canada can take pride in what we have achieved in the development of a distinctive Canadian cultural voice; to risk its loss through inaction or neglect is unthinkable.

Summary of Recommendations

•  The Working Group believes that the best approach is a simple one. First, the policy must be based in legislation, in particular, the legislation that has created the Department of Canadian Heritage. This legislation should be amended to reflect a number of elements:

•  change the name to the Department of Canadian Culture and Heritage;

•  re-establish the linkage between cultural content and carrier issues by conferring an exclusive mandate for these areas to the Department of Canadian Culture and Heritage;

•  articulate the key objectives of a Canadian cultural policy framework, namely:

• i. That the federal government recognize its vital role in the sustenance, promotion and development of the arts, heritage and cultural industries and confer the coordinating role for these efforts upon the Department of Canadian Culture and Heritage.

• ii. That the federal cultural policy framework build upon the two official language communities, and that it maintain throughout its various components a strong commitment to the vitality of this fundamental dimension of Canadian artistic and cultural life.

• iii. That the full array of institutions, departments, and agencies involved in federal cultural policy facilitate the broadest possible access by Canadians to works and productions by Canadian artists and cultural producers.

•  That the Government of Canada, through the Department of Canadian Culture and Heritage, apply the tools of legislation, regulation and direct and indirect financial support measures as well as the use of the taxation system in pursuit of its cultural objectives.
•  That the Government of Canada confer upon the Department of Canadian Culture and Heritage full authority to establish and administer foreign investment measures in the arts and cultural industries.

• iv. That the Department of Canadian Culture and Heritage promote and respect the values of regional and ethnocultural diversity, the role of the First Peoples, and the need to foster among Canadians a greater appreciation of our collective experience and aspirations.

• v. That the Department of Canadian Culture and Heritage be given overall responsibility for the creation of an environment respectful of and conducive to the work and rights of Canadian creators and artists through revisions to the Copyright Act , the Status of the Artist Act , and the Cultural Property Act , and other instruments at the disposition of the state.

• vi. That the responsibility for the preservation and promotion of works important to Canadian heritage in all of its manifestations be supported through a variety of instruments dedicated to this mission, including private and public museums and art galleries.

• vii. That the Department of Canadian Culture and Heritage promote and facilitate the development of a strong domestic base of artists, creators, producers and audiences in partnership with other levels of government, the private sector and the cultural sector.

• viii. That the various institutions, agencies, programmes and measures that flow from a federal cultural policy framework be subject to the full disciplines of transparency and public accountability.

•  The Working Group recommends that a Special Commission be established to work with agencies, departments, and programmes which have a cultural dimension to ensure that their activities and priorities are consistent with the objectives of a federal cultural policy. The Special Commission, composed of artists and cultural workers, members of the general public, public servants and representatives of the Standing Committee on Canadian Heritage, would be given a mandate of no longer than three years to accomplish its work.

The ultimate objective of the Special Commission will be to ensure that cultural policies, institutions, programmes, and measures are based on the key objectives of federal cultural policy.

The Special Commission must be satisfied that any element of the federal cultural policy framework can demonstrate quantifiable and qualitative evidence of its contribution to the key objectives of federal cultural policy.

If any element is found to be inconsistent with the objectives of the policy, the Special Commission will recommend to the Minister of Canadian Culture and Heritage appropriate revisions, alternatives or a termination of the measure, programme or institution.

•  The Working Group calls upon the Government of Canada to move with dispatch to the third phase of revisions to the Copyright Act and to commission an in-depth study of more responsive mechanisms used around the world to develop or upgrade copyright legislation.

The Working Group also calls upon the Government of Canada to establish a legal aid fund to assist creators and copyright owners to underwrite the costs of legal challenges over the exploitation of their work by unauthorized users. For most individual creators, the defense of their economic or moral rights represents an onerous burden that few can afford to shoulder. The net result of this situation is a de facto loss of economic benefits owing to the creator and copyright owner.

•  The Working Group recommends that the status of the artist be the focus of a special meeting of federal and provincial governments, during which a broad action plan to advance the status of Canadian artists and creators would be devised. The involvement of key artistic and cultural labour and advocacy organizations would foster a better appreciation of the priorities most requiring attention.

•  The Working Group recommends that the funding of arts service and cultural industry trade organizations be identified as a priority for federal and provincial Ministers responsible for culture.

•  The Working Group believes that our collective ability to sustain these institutions is critical to the long-term health of Canadian culture. In the process of revising and refining federal cultural policies, attention must be given to a policy for national training institutions which will permit them access to adequate and predictable funding, so that their energies can be properly focused on their primary vocation of shaping forthcoming generations of artists and cultural workers.

•  That the Department of Human Resources Development Canada in collaboration with the Department of Canadian Heritage secure stable multi-year funding for nationally significant arts training, and for professional development and skills upgrading for artists and cultural workers.

That in negotiating the transfer of labour market services to the provincial governments, the Department of Human Resources Development Canada ensure that sector-based training and professional development councils are specifically referenced as the optimal delivery mechanism for the cultural sector and that specific funding of these bodies be part of the written delegation of responsibility.

•  The Working Group recommends that the Special Commission dedicate considerable attention to the manner in which the important national cultural institutions complement and support each other in their shared mission to develop, celebrate and promote Canadian cultural expression.

•  The Working Group recommends that the Special Commission examine various models of closer collaboration among the CBC/SRC, the National Film Board and Telefilm Canada to ensure that they make the strongest contribution possible to access by Canadians and the development and promotion of Canadian cultural expression.

•  The Working Group recommends that a Canadian City of Culture project be placed on the agenda of the next federal/provincial meeting of culture ministers for discussion and implementation. The Working Group also recommends that the Federation of Canadian Municipalities explore the feasibility of this project among its members. The Working Group recommends that this initiative start in the year 2000.

•  The Working Group believes that Canadians should have a right of full access to their heritage. We therefore recommend that:

•  Museums must have the responsibility to make their collections accessible to all. Creative solutions include more travelling exhibitions, exchanges, educational programmes, and enhanced distribution through the use of new technologies;

•  Federal, provincial, and municipal governments must work in partnership to ensure that Canadian museums and heritage institutions are viable and solidly funded. They must develop an outreach strategy to involve the full participation of Canadians in the celebration of our culture;

•  Museums and heritage institutions have a major role to play in the promotion, discovery and social integration of artists, scholars, and connoisseurs through which they will advance creativity in all Canadians;

•  The development of a national conservation strategy will ensure that our collective patrimony is properly cared for and documented. This strategy must reach beyond the museum and heritage community to involve our citizens, corporations, and non-profit organizations.

•  The Working Group recommends that the Minister of Finance in his next federal budget include amendments to the Income Tax Act to facilitate the so-called "stretch" provisions, which reward increased donations by the average donor to charities and registered arts service organizations.

•  The Working Group recommends that tax incentives for investment in all cultural industries be developed and implemented as soon as possible. These incentives are central to the ability of Canadian producers to remain productive and competitive both domestically and internationally.

•  The Working Group recommends that the federal government immediately commission a joint working group of the Department of Canadian Heritage and the Department of Foreign Affairs and International Trade to develop an implementation plan for an international cultural agency, with a view to implementation by January 1, 2000 .

•  The Working Group recommends that the Parliamentary Subcommittee on International Trade, Trade Disputes and Investment convene hearings as soon as possible to give shape and substance to a declaration of Global Parallel Rights, which would form an ongoing reference point for the elaboration of international trade and investment agreements as a condition of Canadian ratification. This task should be completed before the Millennium Round of the World Trade Organization negotiations in the year 2000.

•  The Working Group urges a strengthening of the "net benefit" test to ensure that the production, distribution, and promotion of content by Canadians is a permanent commitment by foreign investors receiving approval to operate in any aspect of culture in Canada. That commitment must be seen as a mark of good corporate citizenship and a fair recompense for the access that foreign enterprises enjoy to the Canadian market.

Further, it is our firm belief that the responsibility for the administration of foreign investment in the cultural sector must be transferred to the Department of Canadian Culture and Heritage.

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Working Group Members (Phase 2)

Mireille Gagné (Chair), Canadian Music Centre, CCA President
R. H. Thomson (Vice-Chair), Actor, Canadian Actors' Equity Association
Curtis Barlow, Confederation Centre of the Arts
Francine Bertrand-Venne, SPACQ
Dr. Thomas Condon, ret. Professor, University of New Brunswick
Lynn Cunningham, CMPA, CCA Board Member
Claudette Fortier, SODRAC
Jocelyn Harvey, Arts and Communication Consultant
Myrna Kostash, Writer, CCA Board Member
Jane Logan, Specialty and Premium Television Association
Roy MacSkimming, Association of Canadian Publishers
John McAvity, Canadian Museums Association
Catherine Murray, Simon Fraser University
Garry Neil, ACTRA
Ellie O'Day, Pacific Music Association
Richard Paradis, Communication, Information, Culture Group
Paul Spurgeon, SOCAN
Burke Taylor, Office of Cultural Affairs, City of Vancouver