Mags asked what -- if any -- changes they'd like in competition and investment policy

Should we be commenting and what should we be saying? That's the question that Magazines Canada is putting to its members; to advise it about the potentially far-ranging review that the federal government is conducting about foreign investment and competition policies.

A bulletin has gone out to Magazines Canada's 350 consumer magazine member titles asking for comment by November 30 on some of the following questions:

• Should the foreign investment regime change or stay as is?
• If it should change, what amendments should Magazines Canada recommend and how would they further Canada’s cultural policy goals?
• Should Magazines Canada make a submission to the panel on behalf of the sector?

A federal panel has released a discussion paper called Sharpening Canada’s Competitive Edge and will be receiving written submissions until January 11 as well as meeting with interested groups.

Under the current federal policy and the Investment Canada Act, foreign acquisition of Canadian-owned and Canadian-controlled periodical publishing businesses is not permitted and government policy is designed to ensure the production of majority Canadian editorial content if a business intents to produce or sell periodicals here or sell advertising in periodicals.

Although it doesn't refer specifically to the Canadian magazine industry, the panel has posed some questions that, depending on how they are answered, might have a major impact:

1. What changes, if any, are required to Canada’s sectoral investment regimes to minimize or eliminate negative impacts on Canada’s competitiveness?
2. What have been the impacts of these investment regimes on productivity and competitiveness in the specific sectors?
3. Are there alternative mechanisms that would achive the non-economic policy objectives of the sector while also ensuring maximum competitiveness of firms operating in the sector?

Magazines Canada has referred its members to two background documents:

• Overview of Cultural Sector Investment Review Policy from Department of Canadian Heritage
• The Investment Canada Act

Though MC members are being asked to e-mail their responses to President Mark Jamison (mjamison@magazinescanada.ca),there's probably no restriction on non-members giving him their views. There are certainly no restrictions on sending comments directly to the federal panel.

Recommendations the panel may make could substantially change the competitive landscape for Canadian magazines. For instance, the purchase of major Canadian publishing groups by larger U.S. firms. Or the removal of restrictions on competition in the advertising services field.