Steady as she goes, Magazines Canada tells competition panel

Magazines Canada has told the Federal Competition Policy Review Panel that it likes the stability of the current investment regime and doesn't want to see it change much, if at all. But Mark Jamison, the MC president, told the panel in Ottawa that there remain several nagging issues for the magazine industry.

Jamison pointed out that Canada Post has raised publication mail rates by almost 70% since 2000.

It is no surprise then that over 75% of new magazines choose alternative delivery streams to reach Canadians while more established magazines are now beginning to look elsewhere for stable, predictable business solutions. Canada Post needs direction from its only shareholder. It is time for the Government of Canada to review the core mandate of Canada Post in the context of the Canada’s economic, social and cultural priorities.

Without a clear idea of what the Government expects from Canada Post, he said, the forthcoming changes being proposed by Canadian Heritage -- particularly to the Publications Assistance Program -- could be potentially very damaging to the sector.

Some of the irritants Jamison brought up were provincial. Foreign companies are effectively given a pass on paying their share for blue box programs, he said.

So, while over half of the recycling from the magazine sector is due to magazines imported by foreign publishers, the full amount of the cost of recycling these magazines is borne exclusively by Canadian publishers.

He also noted that government liquor agencies continue to compete unfairly with the private sector for finite advertising dollars (for example, Food & Drink magazine in Ontario).

Magazines Canada believes the new investment regime [updated in 1999] is working well, helping the industry fulfill Canada’s cultural policy goals, ensuring an open marketplace -- a full choice of Canadian and international content at competitive prices -- and encouraging magazine publishers to invest in new titles, additionalcontent, and new technologies and forward looking business planning.