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ECA Review 2017-12-07

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6 D e c e m b e r 7 ' 1 7 H A N N A / C o r o N A t i o n / S t e t t l e r , A b . E C A r e v i e w<br />

V I E W P O I N T S<br />

The opinions expressed are not necessarily<br />

the opinions of this newspaper.<br />

<br />

Guest Editorial<br />

Is celebrity gossip<br />

your ‘local news’?<br />

Is celebrity gossip your ‘local news’?<br />

Ottawa seems to think so.<br />

Hockey news, fashion tips, TV and<br />

movie listings, retirement strategies,<br />

updates on Celine Dion—all of this<br />

information now constitutes local<br />

media—at least according to federal<br />

Heritage Minister Mélanie Joly.<br />

Last week marked a black spot in the<br />

history of Canadian newspapers with<br />

the closure of three dozen papers,<br />

taking out of circulation three million<br />

copies of printed newspapers each<br />

week and eliminating more than 300<br />

jobs.<br />

Joly’s response in Ottawa was a<br />

refrain that she has been using more<br />

and more lately, saying the federal government<br />

is already helping news<br />

providers. “We value the importance of<br />

journalism and that’s why we invest<br />

up to $75-million per year in local<br />

media,” she said.<br />

“<br />

And how on earth<br />

does giving a subsidy to a<br />

promotional magazine for<br />

a TV channel qualify as<br />

support for local media?<br />

This is true only if you use a definition<br />

of “local media” unlike any other<br />

ever attempted.<br />

The minister was referring to the<br />

Aid to Publishers program, through<br />

which the federal government provides<br />

annual grants to printed publications—magazines<br />

and subscription<br />

based non-daily newspapers—primarily<br />

to help with distribution costs.<br />

Many Canadians will be surprised<br />

by who is getting this support for<br />

“local media.”<br />

Figures from the 2014-15 fiscal year<br />

show:<br />

The Hockey News, which primarily<br />

covers the NHL, got $1.3 million.<br />

TVHebdo got $1.5 million. It provides<br />

TV listings in French and is<br />

owned by the same company as the<br />

TVA television network in Quebec.<br />

TV Week, which provides TV listings<br />

in British Columbia, got $1<br />

million.<br />

Allo Vedettes, which provides<br />

Quebec celebrity news and often features<br />

Celine Dion on the cover, got<br />

$218,721.<br />

Good Times, a magazine aimed at<br />

retirees, got $588,531.<br />

Flare magazine got $408,236;<br />

R<br />

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Published by<br />

Coronation<br />

<strong>Review</strong><br />

Limited<br />

Chatelaine got $1.5 million for its<br />

English edition and $848,428 for its<br />

French one.<br />

Movie Entertainment got $1.5 million.<br />

It is produced for subscribers to<br />

the paid TV channel The Movie<br />

Network, owned by Bell Media.<br />

The <strong>ECA</strong> <strong>Review</strong> got $000,000. No,<br />

that’s not a typo. Because the <strong>ECA</strong><br />

<strong>Review</strong> is a total market coverage free<br />

newspaper we get zero dollars.<br />

This is a snapshot of one year. The<br />

same publications get large grants<br />

year after year. Publications such as<br />

Maclean’s get the maximum $1.5 million<br />

annually. Chatelaine, which gets<br />

money for both its English and French<br />

editions, has received $19.3 million in<br />

the past eight years. Movie<br />

Entertainment has received $11.3 million<br />

in the same period.<br />

The list goes on and on to hundreds<br />

of magazines that get federal funding.<br />

It raises all sorts of questions.<br />

Why does a TV book distributed by<br />

a broadcaster qualify for funding<br />

when a TV guide distributed in a<br />

daily newspaper does not? And how<br />

on earth does giving a subsidy to a<br />

promotional magazine for a TV<br />

channel qualify as support for local<br />

media?<br />

The simple fact is that the Aid to<br />

Publishers program mostly supports<br />

magazines, an industry that, for the<br />

most part, does not have a viable<br />

business model without public<br />

subsidies.<br />

Many community newspapers get<br />

money, but relatively little. Those affiliated<br />

with NewsMedia Canada got<br />

between $3,301 and $<strong>12</strong>4,252 in 2014-15,<br />

and averaged $25,831, less than two per<br />

cent of what The Hockey News<br />

received. Daily and free distribution<br />

newspapers are not eligible.<br />

Overall these community papers got<br />

about $7.8 million of the $68.9 million<br />

handed out. Some went to ethnic, farm<br />

and religious publications. The<br />

Catholic Register got $403,355; The<br />

Western Producer got $1.2 million.<br />

The bulk—$53.4 million—went to<br />

magazines. Some individual magazine<br />

companies get more per year than all<br />

community newspapers combined.<br />

TVA Publications got about $7.5 million<br />

this year, as did Transcontinental<br />

Media. Rogers Media, publisher of<br />

Chatelaine, Maclean’s and other magazines,<br />

got $8.9 million in 2016.<br />

Reader’s Digest got $3 million this year<br />

for its related publications.<br />

The Aid to Publishers program is<br />

being revamped. It’s unclear what the<br />

new qualification criteria will be or<br />

whether the program will get any<br />

more money.<br />

“<br />

Turn to Cynical, Pg 7<br />

72 pt<br />

East Central Alberta<br />

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<br />

On The Other Hand<br />

It’s just wrong!<br />

by B.P. Schimke<br />

The demise of Sears Canada was an<br />

unnecessary happening and I would<br />

argue had little to do with Amazon but<br />

everything to do with mismanagement<br />

and greed.<br />

There was a very big winner in the<br />

demise of Sears Canada and that was<br />

American billionaire and hedge fund<br />

manager, Ed Lambert.<br />

If any company should have succeeded<br />

eking out a niche in on-line<br />

sales, it would have been Sears who,<br />

with its catalogue, was truly the forerunner<br />

to e-commerce.<br />

Sears over the years had a number<br />

of ‘stay-the-course’ American CEO’s<br />

which put the retail giant behind the<br />

eight ball. But in 2011, successful<br />

Loblaws’ senior executive, Calvin<br />

McDonald, a Canadian, was hired with<br />

a new, progressive vision for Sears.<br />

Soon after his arrival, sales began to<br />

tick upwards. But innovation takes<br />

investment and he soon learned that<br />

his Board had little interest in innovation<br />

or investment.<br />

He left in 2014 after overseeing the<br />

sale of many valuable assets and yet<br />

seeing little re-investment.<br />

In reality the final nail in the coffin<br />

for Sears came in 2005 when hedge<br />

fund manager, Ed Lambert, became<br />

the controlling owner.<br />

Allowing hedge fund managers to<br />

become majority owners in an ongoing<br />

business is akin to putting the<br />

fox in charge of the hen house. In economic<br />

terms, hedge fund managers<br />

are “rent seekers” not “value<br />

creators”.<br />

In the same way the fox is going to<br />

watch the chickens closely until they<br />

are all eaten, hedge fund managers<br />

watch over stripping everything “cashable”<br />

out of a going-concern company.<br />

The fox has eaten the chickens and<br />

the farmer ends up with nothing but<br />

feathers.<br />

The American hedge fund manager<br />

Alberta Press Council<br />

Do you have a concern or<br />

complaint about a<br />

newspaper article or ad?<br />

If after bringing your<br />

concerns to the attention of<br />

this newspaper, you are not<br />

satisfied, you may contact<br />

the Alberta Press Council at<br />

www.albertapresscouncil.ca<br />

or toll free in Alberta at<br />

1-888-580-4104 for<br />

information.<br />

has eaten away Sears’ on-going viability<br />

leaving behind employees with<br />

nothing and debtors with little.<br />

Mr. Lambert, in 10 years, stripped<br />

$2.7 billion out of Sears Canada into<br />

two funds that he controlled. He and<br />

his board of directors, I would argue,<br />

knowingly caused <strong>12</strong>,000 hardworking<br />

Canadians to lose their jobs.<br />

In their greed, they didn’t even have<br />

the decency to leave enough behind to<br />

provide severance pay.<br />

Most tragic, those long-term<br />

employees who have been paying into<br />

a pension plan have nothing for their<br />

retirement years.<br />

It’s just wrong!<br />

What story is going to convince<br />

those on the political right about the<br />

need for government to play a larger<br />

role in this complicated international<br />

marketplace?<br />

Surely the Sears’ case highlights a<br />

problem of “rent seeking” entities<br />

hiding behind limited liability and foreign<br />

ownership to screw the middle<br />

class out of their livelihood and<br />

retirement.<br />

The private sector, specifically the<br />

corporate elite and foreign owners,<br />

have no interest in the public good.<br />

Why do we continue to trust these<br />

corporations more than our elected<br />

government?<br />

It’s just wrong.<br />

In Canada we still have a law that<br />

holds directors of corporations personally<br />

liable for all statutory deductions<br />

(taxes, CPP and EI).Bankruptcy does<br />

not free them of this obligation.<br />

It is long overdue for a similar provision<br />

to be enacted where directors and<br />

principal owners are held personally<br />

liable for pensions, unpaid wages and<br />

severance pay.<br />

If it’s fair to protect the government<br />

from shysters, surely it is equally fair<br />

to protect hardworking employees<br />

from billionaire bankruptcy-promoting,<br />

“rent seeking” shysters!<br />

Joyce Webster<br />

Publisher/Editor<br />

publisher@<strong>ECA</strong>review.com<br />

YvoNNe tHulien<br />

Manager<br />

office@<strong>ECA</strong>review.com<br />

Gayle Jaraway<br />

Marketing 403-578-4111<br />

advertise@<strong>ECA</strong>review.com<br />

BoNNy Williams<br />

Circulation Manager<br />

LiSA Myers-sortlAND<br />

Graphic Artist<br />

LISA Joy<br />

Marketing/Reporter 403-3<strong>07</strong>-3398<br />

contact@<strong>ECA</strong>review.com<br />

R<br />

18 pt

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