Official Hansard
Madam Speaker, the Liberal government must reject the CRTC’s massive increase imposed on our online streaming platforms such as Netflix, Disney+, Amazon Prime Video and Apple TV, an increase sometimes referred to as the “Netflix tax.” The government may try to frame this as a technical broadcasting adjustment, but Canadians know what it really means. It means higher costs and another blow to affordability at a time when families are already struggling. The government could not even contain itself from taxing at-home leisure. The CRTC has now increased the required contribution from major streaming services from 5% to 15% of Canadian revenues, tripling the burden imposed on these companies. The 15% levy now places Canada among the most expensive countries in the world for streaming services to operate in. Let us be honest, business and Canadians do not operate alone or in a vacuum. When the Liberal government increases costs, those costs do not simply disappear. They erode the quality of leisure for hard-working Canadians. The Liberal government will, of course, avoid answering a very simple economic question: Who ultimately pays for this massive increase in costs? There are only two possible outcomes. Either streaming platforms decide Canada is becoming too expensive and not worth investing in, or they pass the high costs directly on to Canadian consumers. In both cases, Canadians lose. If productions move elsewhere, Canada loses jobs, investment and economic activity. This industry is highly mobile. Streaming companies can produce content almost anywhere in the world. Governments everywhere are competing aggressively to attract these productions, because they generate high-quality jobs and billions of dollars in economic activity. Why is the government increasing costs at a time when Canada is already struggling to attract investment? Canada already has a growing reputation internationally for being expensive, over-regulated and increasingly difficult to do business in. We have already seen capital leaving sectors such as energy, manufacturing and resource development. This policy discourages investment in Canada and is particularly damaging for major film and television production hubs like Vancouver and Toronto. If the government believes companies will simply pass the costs on to consumers, then let us call the policy what it really is, which is an indirect tax on Canadians. The Liberals may insist this is not technically a tax because the money does not flow directly into government revenue, but if government policy deliberately increases costs for companies and companies then raise prices for consumers, the effect on Canadians is exactly the same: Families pay more. Whether it appears on a tax form or on a monthly streaming bill, it is still more money coming out of the pockets of Canadians during a cost of living crisis. The Liberals may argue that the increase per household is small, but Canadians are tired of being told every increase is small. A few dollars more for streaming, a few dollars more for groceries, a few dollars more for fuel and a few dollars more for utilities, and eventually, those small increases become a major burden for families already living paycheque to paycheque. The total amount involved is not small. Reports indicate the new framework could extract hundreds of millions of additional dollars annually from the Canadian market, potentially approaching $600 million overall in contribution obligations. That is money Canadians could otherwise spend in the broader economy. That money could go toward groceries, restaurants, children’s clothing, mortgage payments or supporting small businesses. Instead, the Liberals are squeezing more money out of consumers during a cost of living crisis. While the government talks about supporting industry, these platforms are already major contributors to the Canadian economy. Netflix alone has stated that, between 2021 and 2024, its activities generated approximately $6.5 billion in economic impact in Canada. These productions support thousands of jobs: camera operators, editors, visual effects artists, drivers, construction workers, caterers and countless small businesses connected to film production. This is especially important for major urban centres, such as Vancouver and Toronto, where the screen production industry has become a major economic engine. Netflix recently opened Netflix Animation Studios in Vancouver, creating more than 450 jobs in the city and bringing significant investment into British Columbia. This issue matters deeply to my riding of Richmond Centre—Marpole. Richmond and the broader Metro Vancouver region are directly connected to British Columbia’s growing film and streaming industry. Many residents in my community work directly or indirectly in these sectors. In Richmond alone, filming activities take place almost every day of the year. When productions expand, jobs are created. When investments slow, local workers and businesses feel the consequences. Conservatives believe Canada should be a country that attracts investment, rewards innovation and creates jobs. However, once again, the Liberals are moving in the opposite direction. Every time a sector becomes successful, this government seeks another opportunity to impose higher costs and heavier regulations. At a time when Canada desperately needs economic growth, productivity and investor confidence, this government is making Canada less competitive. Canadians are the ones who will pay the price, through fewer jobs, less investment or higher monthly bills. This increase is the wrong policy at the wrong time. Canadians deserve affordability. Canadians deserve economic opportunity. Canadians deserve a government that understands growth cannot come from squeezing more money out of consumers and businesses. Conservatives will continue standing up for affordability, investment, jobs and common sense.
