THE CASE FOR CONTINUING GOVERNMENT SUPPORT FOR THE CANADIAN-OWNED BOOK PUBLISHING INDUSTRY

Who Are We? We are Canadian-owned book publishers, home. No other cultural industry can claim this the foundation of ’s most successful cultural level of accomplishment. industry. With international recognition and The Association of Canadian Publishers (ACP) significant domestic market presence, our industry is a non-governmental organization representing has achieved an enviable status: major interna- more than 140 English-language, Canadian-owned tional awards for our authors, sales of our titles in publishing houses. Our members are based in cities 1 Who Are We? dozens of languages and countries around the world, and towns in all 10 provinces and one territory. 1 What Have Publishers constant representation on best-seller lists here at Achieved at Home and Abroad? What Have Publishers Achieved at Home and Abroad? 2 What are the Challenges Faced by the Industry? Canadian-owned book publishers promote 16,000 full-time authors in communities large and 2 What Role Has engaged citizenship like no other industry. small all across the country; Canadian-owned Government Played in We have been able to maintain a presence in our companies publish 85% of Canadian-authored Supporting the Book own marketplace, while achieving strong export books. The Canadian book publishing industry, Publishing Industry? sales and fostering a body of literature that is supported by the Association for the Export of 2 What Publishers Need respected and honoured around the world. Canadian Books (AECB), has achieved remarkable 3 Why is Cultural Policy Canadian publishers directly employ over 9,000 export success resulting in a tremendous increase in that Supports Cultural Canadians plus many more freelancers and ancillary rights and distribution sales. According to the most Industries Important? service workers—printers, distributors, technical recent Statistics Canada figures, export sales of 3 How Can the Government advisors, couriers, and others—across the whole of Canadian-controlled firms increased by 74 per cent Continue to Help Promote a Canadian Cultural the country. The annual combined economic impact between 1992–93 and 1998–99 (not including rights Identity? of these publishers is $1.02 billion.1 Canada has sales). 3 What is the Future of Publishing in Canada?

3 What Role Can the Government Play in Insuring the Viability and Continuation of a Strong Canadian-owned Book Publishing Industry? 4 Achievement in Canadian Culture 4 Award-winning Canadian Authors and Their First Publishers

4 ACP Council 2005-06 Source: Statistics Canada

1 Economic Impact Study of the Canadian-Owned Publishing Industry. A Report prepared for the Organization of Book Publishers of Ontario and The Ontario Media Development Corporation, March 2004. (Figures from this Ontario study were extrapolated to show direct, indirect, and induced economic impacts of English-language book publishing, Canada-wide.)

1 What are the Challenges Faced by the Industry? Foreign-owned corporations recognize the value of advocate any such measures that would impede Canadians’ access to Canadian markets for their cultural products, and promote them books from anywhere in the world. aggressively. This inundation can erode our cultural identity, weaken We compete for authors and the right to publish their manu- the quality of our education, threaten the livelihood of our citizens, scripts against powerful foreign-owned companies that maintain and undermine our sovereignty. satellite operations in Canada. These companies bring vast resources Canada is the world’s most competitive book-publishing market. to the author marketplace, and use them to acquire only the most We compete for bookstore sales and media attention with the daily lucrative works. On the other hand, Canadian-owned companies flood of books imported from the US, the UK and France. We publish books of regional interest, develop beginning authors, and operate without any tariff protection from these imports, and do not take risks on works of an experimental nature.

What Role Has Government Played in Supporting the Book Publishing Industry? The Book Publishing Industry Development Program In addition to BPIDP, Canadian publishers attract support from (BPIDP) was founded 26 years ago. It remains vital to the public the Canada Council for the Arts. The Canada Council provides interest. The program promotes Canadian books to Canadian readers financial assistance to Canadian publishers to offset the costs of while developing a strong and diverse Canadian-owned and -controlled publishing Canadian trade books that make a significant contribution publishing industry. Cultural matters are protected within our various to the development of Canadian literature. Grants are awarded by a international trade agreements, and the federal government must jury that assesses creative achievement and excellence. The best ensure that those agreements operate as designed. known of the Canada Council’s activities in writing and publishing is In 2004, Canadian Heritage through the Book Publishing the sponsorship of the Governor General’s Literary Awards. As the Industry Development Program (BPIDP) provided $46.6 million Canada Council celebrates its 50th anniversary in 2006, we are asking dollars, including funding provided in the Tomorrow Starts Today that funding to the council be doubled to $300 million. (TST) program, to Canadian publishers. The TST program was The structure of the federal funding highlights the successful renewed in 2004 for the next five years. The BPIDP, including TST, integration of the private sector into the survival of Canadian book must be sustained at current levels. Without the partnership of the publishing. Entrepreneurs, large and small, engage in Canadian federal government we will be faced with foreign control not only in publishing, and the fact that small businesses can participate is a book publishing but also in the distribution system and, ultimately, testament to the program’s broad-based success. Canadians receive in the decisions as to what gets written and published. Without true value for their tax dollars as shown by the consistently large BPIDP Canada’s book industry will disappear. Canadian voices will numbers of Canadian-authored titles being published, by the number fall silent. of jobs supported in the process, and by the secondary and tertiary impact of publishing. The following data2 are presented as combined numbers for both English-language and French-language publishers. 2001-02 2002-03 2003-04 2004-05 Number of Book Publishers 217 217 221 218 Number of New Titles Published 5,874 5,474 6,270 6,098 Sales of Canadian-Authored Titles (in millions of dollars) $281 $288 $281 $272 Publishing Revenue (in millions of dollars) $388 $410 $416 $393 Total Revenue (in millions of dollars) $615 $635 $671 $658 Sales of Canadian-Authored Titles as a % of Total Revenue 45.6% 45.4% 41.9% 41.3%

2 Printed Matters: Book Publishing Policy and Programs, Annual Report 2004-2005. Canadian Heritage.

What Publishers Need

1. Increased recognition of and support for Canadian ownership in book publishing and distribution; 2. Continued support for the programs that address the unique challenges facing this industry including BPIDP and the Canada Council Funding for translation of Canadian books into English, French and Aboriginal languages. 3. A commitment in principle at the political level to see appropriate succession measures developed and put in place.

FOR FURTHER INFORMATION CONTACT Executive Director T 416.487.6116 Association of Canadian Publishers F 416.487.8815 161 Eglinton Avenue East, Suite 702 E [email protected] Toronto, Ontario M4P 1J5 W http://www.publishers.ca

2 Why is Cultural Policy that Supports Cultural Industries Important? “The world needs more Canada.” Canada’s cultural policy must Canada’s cultural industries and cultural policy by Canadians is be founded in telling Canadian stories to Canadians and to the fundamental to our sustained cultural identity. rest of the world. The development and enhancement of Canadian The arts and culture sector in Canada now employs 700,000 cultural industries is the insurance that Canadian stories will not people.3 That number represents a significant number of votes and be abandoned. Our cultural industries include broadcasting and tax dollars, and its reduction would be culturally and economically telecommunications, the performing arts, the visual arts as well catastrophic. as our celebrated publishing industry. Continued authority over

How Can the Government Continue to Help Promote a Canadian Cultural Identity? To ensure Canadian authored books are published, fact that give Canada to the world and to ourselves. the Government of Canada should continue the Book Publishing With these programs in place, Canadian-owned publishers Industry Development Program, and the Tomorrow Starts Today will continue to discover and develop inspired authors who are program through the Department of Canadian Heritage. Current celebrated at home and abroad. The unique content of Canadian stories funding levels of $46.6 Million should be maintained in the next and the often exploratory and cutting-edge nature of Canadian books Parliament. Current foreign ownership rules regarding publishing will be maintained. and distribution in Canada should also be maintained. These While in harmony with the International Trade Agreements, programs ensure that Canadians maintain control of their stories by these federal programs are designed to protect the rights of enabling Canadian owners to publish the works of Canadian authors. Canadians to develop and produce books for the marketplace. These Canadian writers of all genres, publishing in French and English and programs ensure that Canadian sovereignty in cultural policy and in other languages will continue to produce works of imagination and our cultural industries will be promoted without fear of challenge.

What is the Future of Publishing in Canada? The business of publishing tests the entrepreneurial skill of and successful Canadian-owned book publishing sector. The legacy publishers everyday. Canadian-owed publishers operate on slight of that activity has been the discovery, development and delivery of margins and in a domestic market that is small with limits on avenues clear Canadian voices in the world. for distribution and sales. In our own market, Canadian publishers The continuation of a viable Canadian-owned book publishing are obliged to compete with foreign publishers who have the benefit industry depends upon Canadians being able to acquire Canadian of far greater economies of scale. Yet, Canada’s publishers have risen publishing houses as ownership changes hands and succession policies to this challenge and with continued program support, and new need to take into account the interests and wellbeing of existing owners. approaches to business planning, Canadian publishers will continue There are many factors to be considered in succession scenarios that to do so, well into the future. are not unique to Canadian cultural industries and include the In the early 1970s the first wave of Canadian-owned publishing following key considerations: the viability of existing companies; the houses arose in answer to the need to tell our own stories to ourselves preparedness, education and training of the next generation; and the and the rest of the world. The result was the evolution of a dynamic availability of financial resources to support the transition.

What Role Can the Government Play in Insuring the Viability and Continuation of a Strong Canadian-owned Book Publishing Industry? Through continuing and stable financial support as Specifically, transition loan programs available, for example, in presently available from the Book Publishing Industry Development the sale of Canadian farms could be tailored to address publishing. Program and the Tomorrow Starts Today program current owners Ways in which the Canada Small Business Financing Act can meet may feel confident in attracting next generation Canadian buyers small publishers’ needs should be considered. We encourage the to their publishing houses. The industry is working on concrete Government of Canada to work with the provinces to determine how proposals and wishes to do so in consultation with the Government. provincial business finance support programs may address publishing. The next generation of Canadian publishers is primed and ready The Government of Canada should promote and facilitate an to assume the role and responsibilities of leading the Canadian- Employee Share Ownership Plan that will permit employees to owned book publishing sector. In order to ensure a smooth and purchase shares in their firms. Exploration of tax shelter benefits, successful transition there is a need for the Government of Canada to potential tax credit availability and a review of government review existing succession financial support programs and find ways regulations governing RRSP operations should also be considered. to bring the publishing industry into those programs. The viability of Canadian publishers and continued ownership by Canadians will result from a combination of these approaches.

3 Wyman, Max. The Defiant Imagination: Why Culture Matters. Douglas & McIntyre, Vancouver/Toronto. 2004 3 Achievement In Canadian Culture

Canada’s cultural diversity is strengthened when our cultural industries can produce cultural products throughout the whole of the country. It is important that the regions of Canada have books that tell their stories that can be shared with neighbours at home, and around the world. Achieving a strong Canadian-owned publishing industry will help to bring Canadians and the world “…a little more Canada.”

Award-winning Canadian Authors and Their First Publishers

Ownership Author First Published by in Year of Publisher Awards Margaret Laurence MacMaster University Press 1954 Canadian Governor General’s Award (twice), Molson Prize Leonard Cohen McGill Poetry Series 1956 Canadian Turned down the Governor General’s Award in 1969. Pierre Berton McClelland & Stewart 1959 Canadian Governor General’s Award (1956, 1958, 1971) Austin Clarke McClelland & Stewart 1964 Canadian Commonwealth Prize (2003), (2002), Trillium Prize (2003) Margaret Atwood Contact Editions 1966 Canadian Booker Prize (2000), Governor General’s Award (1966, 1986), The Giller Prize (1996), Arthur C. Clarke Award (1987), etc. Michael Ondaatje Coach House 1967 Canadian Governor General’s Award (1971, 1980, 1992, 2000), Booker Prize (1992), The Giller Prize (2000), The Prix Medicis (2000) Alice Munro Ryerson 1968 Canadian Governor General’s Award (1968, 1979, 1978, 1986), Canada Council Molson Prize (1990), W.H. Smith Literary Award, UK (1995), etc. David Adams Richards New Brunswick Chapbooks 1974 Canadian Governor General’s Award (1988), Canada-Australia Literary Prize (1992) Alistair Macleod McClelland & Stewart 1976 Canadian IMPAC Dublin Literary Award (2001) Jane Urquhart Porcupine’s Quill 1982 Canadian Governor General’s Award (1997) Guy Vanderhaege Macmillan 1982 Canadian Governor General’s Award (1982, 1996) Anne Michaels Coach House 1986 Canadian Orange Prize (1997), Commonwealth Prize (1986) Bonnie Burnard Coteau Books 1988 Canadian Commonwealth Prize (1988), The Giller Prize (1999) Anne Marie MacDonald Coach House 1990 Canadian Governor General’s Award (1990), Commonwealth Writer’s Prize for Best First Book (1997) Nino Ricci Cormorant 1990 Canadian Governor General’s Award (1990) Turnstone Press 1996 Canadian Governor General’s Award (2004) ACP Council 2005-06

P RESIDENT T REASURER David Carr, Jim Lorimer, Kirk Howard, Jack Wayne, U of Press James Lorimer & Co. Ltd./ Dundurn Press Canadian Scholars’ Press Rm 301, St. John’s College, Formac Publishing 3 Church St., Suite 500 180 Bloor St. West, Suite 801 U of Manitoba Company Ltd. Toronto, ON M5E 1M2 Toronto, ON M5S 2V6 , MB R3T 2M5 5502 Atlantic St. Tel (416) 214-5544 x.230 Tel (416) 929-2774 x.23 Tel (204) 474-9495 Halifax, NS B3H 1G4 Fax (416) 214-5556 Fax (416) 929-1926 Fax (204) 474-7566 Tel (902) 421-7022 [email protected] [email protected] [email protected] Fax (902) 425-0166 [email protected] V ICE PRESIDENT S ECRETARY Diana Douglas, Todd Besant, Brian Lam, Self-Counsel Press Kathy Lowinger, Turnstone Press Arsenal Pulp Press 1481 Charlotte Rd Tundra Books 100 Arthur St., Suite 607, 310 Water St., Suite 103 North Vancouver, BC 75 Sherbourne St., 5th Floor Artspace Bldg Vancouver, BC V6B 1B8 V7J 1H1 Toronto, ON M5A 2P9 Winnipeg, MB R3B 1H3 Tel (604) 687-4233 Tel (604) 986-3366 Tel (416) 598-4786 Tel (204) 947-1555 Fax (604) 687-4283 Fax (604) 986-3947 Fax (416) 598-0247 Fax (204) 942-1555 [email protected] [email protected] [email protected] [email protected] M EMBERS- AT-LARGE Jordan Fenn, Rick Wilks, P AST PRESIDENT Rhonda Bailey, Key Porter Books Annick Press Linda Cameron, XYZ Publishing 6 Adelaide St. East, 10th Floor 15 Patricia Ave. U of Alberta Press P.O. Box 250 Toronto, ON M5C 1H6 Toronto, ON M2M 1H9 Ring House 2, Lantzville, BC V0R 2H0 Tel (416) 862-7777 Tel (416) 221-4802 University of Alberta Tel (250) 390-2352 Fax (416) 862-2304 Fax (416) 221-8400 Edmonton, AB T6G 2E1 Fax (250) 390-2329 [email protected] [email protected] Tel (780) 492-0717 [email protected] Fax (780) 492-0719 [email protected] 4