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Trudeau gov’t dept. suggests giving LGBT, minority journalists $45k annually to promote ‘diversity’

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Heritage Minister Pascale St-Onge

From LifeSiteNews

By Clare Marie Merkowsky

‘Organizations mentioned the need for government funds dedicated to creators and journalists from Indigenous, racialized and religious minority communities in the media’

The Canadian Department of Heritage is advising that Indigenous, Muslim, Black or LGBT identifying journalists be federally funded up to $45,000 per year to promote “diversity.” 

According to a report titled Changing Narratives Fund Report On Consultations, published November 28 by Blacklock’s Reporter, the Department of Canadian Heritage has recommended that the Cabinet directly give individual reporters a salary of $45,000 annually.  

“Organizations mentioned the need for government funds dedicated to creators and journalists from Indigenous, racialized and religious minority communities in the media,” said the report. “Funding should be stable and targeted.” 

The proposed scheme, submitted by departmental advisors, professors Christopher Dornan and Adrian Harewood of Carleton University and Patrick White of the University of Québec, suggests “a salary of $45,000 per annum” for reporters who are Indigenous, Muslim, Black or LGBT. 

“Hiring journalists and creators from diverse communities especially new talent alone cannot guarantee diverse perspectives will be presented in media coverage,” the report asserted. “If these new talents are not trained or allocated budgets or resources to share their stories they may well remain invisible.” 

“For these stories to be seen a paradigm shift is needed in the way traditional news media share the stories of Indigenous, racialized and religious minority communities,” it continued.  

“A number of organizations argued media coverage of the reality of their communities has not only been historically deficient but has often been detrimental,” the report alleged.  

“Consequently the lack of regular and daily contact between majority and minority communities leads to misunderstanding of the other and worsens stereotypes and negative attitudes,” it added.  

The report failed to explain how “diversity” of reporting could be maintained if the Liberal government under the leadership of Prime Minister Justin Trudeau is funding the journalists’ salaries.  

“Communism much??” one wrote on X, formerly known as Twitter.  

“Not even trying to hide the bribery anymore!” another posted. 

“Government Approved Newsrooms are Pravda,” one wrote, referring to the official newspaper of the former Communist Party of the Soviet. “Government has no place in promoting narrative.” 

Notably, the call for increased federal funding for journalists closely follows Trudeau’s fall economic statement which includes massive payouts for mainstream media outlets ahead of and after the 2025 election.   

Beginning in 2019, Parliament changed the Income Tax Act to give yearly rebates of 25 percent for each news employee in cabinet-approved media outlets earning up to $55,000 a year, to a maximum of $13,750.   

However, the Canadian Heritage Department since admitted that the payouts are not sufficient to keep legacy media outlets running. The department recommended that rebates be doubled next year to a maximum $29,750 annually.  

This suggestion was adopted by the Trudeau government in its Fall Economic Statement, which increased the rebates to 35 percent on newsroom salaries up to $85,000, totaling a maximum rebate of $29,750. The temporary tax credit is set to apply for the next four years.    

While media subsidies were to set to expire March 31, 2024, they have now been expanded to 2029 past the next general election. The increased payouts are expected to cost taxpayer $129 million in the next five years and an additional $10 million for every subsequent year.    

The renewed media bailouts come as trust in mainstream media is polling at an all-time low with Canadians. 

According to a recent study by Canada’s Public Health Agency, less than a third of Canadians displayed “high trust” of the federal government, with “large media organizations” as well as celebrities getting even lower scores.  

Large mainstream media outlets and “journalists” working for them scored a “high trust” rating of only 18 percent. This was followed by only 12 percent of people saying they trusted “ordinary people,” with celebrities garnering only an eight percent “trust” rating.  

Business

Broken ‘equalization’ program bad for all provinces

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From the Fraser Institute

By Alex Whalen  and Tegan Hill

Back in the summer at a meeting in Halifax, several provincial premiers discussed a lawsuit meant to force the federal government to make changes to Canada’s equalization program. The suit—filed by Newfoundland and Labrador and backed by British Columbia, Saskatchewan and Alberta—effectively argues that the current formula isn’t fair. But while the question of “fairness” can be subjective, its clear the equalization program is broken.

In theory, the program equalizes the ability of provinces to deliver reasonably comparable services at a reasonably comparable level of taxation. Any province’s ability to pay is based on its “fiscal capacity”—that is, its ability to raise revenue.

This year, equalization payments will total a projected $25.3 billion with all provinces except B.C., Alberta and Saskatchewan to receive some money. Whether due to higher incomes, higher employment or other factors, these three provinces have a greater ability to collect government revenue so they will not receive equalization.

However, contrary to the intent of the program, as recently as 2021, equalization program costs increased despite a decline in the fiscal capacity of oil-producing provinces such as Alberta, Saskatchewan, and Newfoundland and Labrador. In other words, the fiscal capacity gap among provinces was shrinking, yet recipient provinces still received a larger equalization payment.

Why? Because a “fixed-growth rule,” introduced by the Harper government in 2009, ensures that payments grow roughly in line with the economy—even if the gap between richer and poorer provinces shrinks. The result? Total equalization payments (before adjusting for inflation) increased by 19 per cent between 2015/16 and 2020/21 despite the gap in fiscal capacities between provinces shrinking during this time.

Moreover, the structure of the equalization program is also causing problems, even for recipient provinces, because it generates strong disincentives to natural resource development and the resulting economic growth because the program “claws back” equalization dollars when provinces raise revenue from natural resource development. Despite some changes to reduce this problem, one study estimated that a recipient province wishing to increase its natural resource revenues by a modest 10 per cent could face up to a 97 per cent claw back in equalization payments.

Put simply, provinces that generally do not receive equalization such as Alberta, B.C. and Saskatchewan have been punished for developing their resources, whereas recipient provinces such as Quebec and in the Maritimes have been rewarded for not developing theirs.

Finally, the current program design also encourages recipient provinces to maintain high personal and business income tax rates. While higher tax rates can reduce the incentive to work, invest and be productive, they also raise the national standard average tax rate, which is used in the equalization allocation formula. Therefore, provinces are incentivized to maintain high and economically damaging tax rates to maximize equalization payments.

Unless premiers push for reforms that will improve economic incentives and contain program costs, all provinces—recipient and non-recipient—will suffer the consequences.

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Alberta

Alberta’s fiscal update projects budget surplus, but fiscal fortunes could quickly turn

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From the Fraser Institute

By Tegan Hill

According to the recent mid-year update tabled Thursday, the Smith government projects a $4.6 billion surplus in 2024/25, up from the $2.9 billion surplus projected just a few months ago. Despite the good news, Premier Smith must reduce spending to avoid budget deficits.

The fiscal update projects resource revenue of $20.3 billion in 2024/25. Today’s relatively high—but very volatile—resource revenue (including oil and gas royalties) is helping finance today’s spending and maintain a balanced budget. But it will not last forever.

For perspective, in just the last decade the Alberta government’s annual resource revenue has been as low as $2.8 billion (2015/16) and as high as $25.2 billion (2022/23).

And while the resource revenue rollercoaster is currently in Alberta’s favor, Finance Minister Nate Horner acknowledges that “risks are on the rise” as oil prices have dropped considerably and forecasters are projecting downward pressure on prices—all of which impacts resource revenue.

In fact, the government’s own estimates show a $1 change in oil prices results in an estimated $630 million revenue swing. So while the Smith government plans to maintain a surplus in 2024/25, a small change in oil prices could quickly plunge Alberta back into deficit. Premier Smith has warned that her government may fall into a budget deficit this fiscal year.

This should come as no surprise. Alberta’s been on the resource revenue rollercoaster for decades. Successive governments have increased spending during the good times of high resource revenue, but failed to rein in spending when resource revenues fell.

Previous research has shown that, in Alberta, a $1 increase in resource revenue is associated with an estimated 56-cent increase in program spending the following fiscal year (on a per-person, inflation-adjusted basis). However, a decline in resource revenue is not similarly associated with a reduction in program spending. This pattern has led to historically high levels of government spending—and budget deficits—even in more recent years.

Consider this: If this fiscal year the Smith government received an average level of resource revenue (based on levels over the last 10 years), it would receive approximately $13,000 per Albertan. Yet the government plans to spend nearly $15,000 per Albertan this fiscal year (after adjusting for inflation). That’s a huge gap of roughly $2,000—and it means the government is continuing to take big risks with the provincial budget.

Of course, if the government falls back into deficit there are implications for everyday Albertans.

When the government runs a deficit, it accumulates debt, which Albertans must pay to service. In 2024/25, the government’s debt interest payments will cost each Albertan nearly $650. That’s largely because, despite running surpluses over the last few years, Albertans are still paying for debt accumulated during the most recent string of deficits from 2008/09 to 2020/21 (excluding 2014/15), which only ended when the government enjoyed an unexpected windfall in resource revenue in 2021/22.

According to Thursday’s mid-year fiscal update, Alberta’s finances continue to be at risk. To avoid deficits, the Smith government should meaningfully reduce spending so that it’s aligned with more reliable, stable levels of revenue.

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