"Canada Post may no longer be an affordable option" -- Gourlay

HALIFAX -- Jim Gourlay, Chair of the Atlantic Magazine Association and a Halifax-based publisher of several magazines including Saltscapes took the lead in speaking to the Commons Standing Committee on Finance, convened in Halifax on Monday, primarily to discuss Canada Post's intention to withdraw its $15 million financial contribution to the PAP within the next several months.

The consumer magazine industry is now bracing for major change which will have a dramatic impact on magazine distribution and on the access that Canadians have to Canadian-content magazines. -- Magazines Canada is asking that the Finance Committee to recommend that Canada Post's financial contribution to the Publications Assistance Program (PAP) be maintained until there has been a proper review and evaluation of Canada's magazine policy.

In his presentation, Gourlay (who was accompanied by Magazines Canada CEO Mark Jamison), said:

"The price tag of this decision is a $15 million gap that will cause an immediate 31 per cent increase in postage costs for the average magazine. This, on the heels of staggering year over year postage rate hikes, means that distribution costs will soar even higher and the situation will simply not be viable for many publishers.

"The effects of Canada Post's decision are many: It could mean cutting back on the amount of editorial and Canadian-content pages that can be produced. It could mean fewer jobs and assignments for Canada's writers, creators, illustrators and photographers.

"The fact that some magazines won't survive could mean there will be fewer Canadian magazines in the marketplace and less choice for readers. It will also drastically alter the way that magazines are delivered to Canadians because Canada Post may no longer be an affordable option. If the industry is forced into alterative delivery methods, it could mean prohibitive distribution costs, especially in rural areas of the country. This will mean that Canadians living outside of major urban centres will not have the same access as others to affordable Canadian magazines."

Jamison added:

"Indiscriminate cuts do not take into consideration how best to serve Canadian readers. Canada's magazine policy needs to consider how to best ensure that rural Canadians and others are able to access Canadian information, perspectives and stories at affordable rates. It needs to consider the importance of Canada's 'smart jobs' -- our writers and designers, editors and illustrators. It needs to take into account the health of Canadian culture and all of the small-to-medium sized businesses that publish more than two-thirds of our diverse and rich collection of magazines."

(Read the Magazines Canada press release here.)