Business of Supply

A Conservative supply motion calling on the government to cancel the CRTC’s new requirement that online streaming services pay 15% of their Canadian revenues, up from 5%, arguing the cost will be passed to consumers, cost jobs, and strain trade with the United States. Conservatives said the levy amounts to a tax that hurts households and cultural businesses, which should compete freely; the Bloc opposed the motion and argued both major parties have abandoned taxing digital companies, pointing to the cancelled digital services tax and what the government got in return for scrapping it; the NDP said streaming companies should contribute to Canadian film, television and artists and urged members to vote the motion down; Liberals defended the CRTC as an independent regulator whose decisions should not be directed by the House and said the government is protecting the arts sector and Canadian industries during trade negotiations with the United States. Some Bloc members also paid tribute to a departing colleague, and one Liberal question concerned how Bill C-11 supports francophone artists.Written by AI from the debate. Updated .

Official text (opens in a new tab)

114 statements

Martin Champoux, Drummond

Bloc Québécois
“Conservatives complain that the government interferes with CBC, which is independent. But now they want the government to interfere with the CRTC, which is also independent. I want to know why they have this double standard.”
Official Hansard

Madam Speaker, I often hear the Conservatives in committee criticizing what they perceive as government influence over what goes on at CBC/Radio-Canada, the public broadcaster. They often condemn what they see as a kind of collusion or the idea that the public broadcaster acts as a mouthpiece for the Liberal government and its policies. They are entitled to that view. However, if the Conservatives believe that the government is interfering in the operations of the public broadcaster, which is an independent body, then why would they ask the government to interfere in a decision recently handed down by the CRTC, which is also an independent body? This matter clearly falls within its jurisdiction, as it concerns the application of legislation passed by Parliament. I wonder why there is a double standard in this case.

Melissa Lantsman, Thornhill

Conservative
“I want the government to cancel its decisions on internet regulation and online news laws, and to stop giving money to the CBC. These rules do not work, they block Canadians from local news, and they act like a tax on families.”
  • Reply to a debate question

    Relevance 44 of 100

    None of this reply addressed the specific point raised or the topic under debate.

    See full analysis
Official Hansard

Madam Speaker, I think the member opposite knows that the position of the Conservatives is very clear on the funding to the CBC. We are talking about what the Prime Minister does and does not have control over. That is very simple. We have a motion in the House right now to ask the government to rescind its decision. While we are at it, it can rescind the decisions on Bill C-11, which has not worked, and Bill C-18, which has taken news out of the hands of Canadians and blocked them from local journalism. We can do all of that with this motion and with future motions. There is no regulatory problem for the government here. It is imposing a tax on Canadians, and the exact thing we are arguing today is that it should take that tax off of Canadian families.

Alexis Brunelle-Duceppe, Lac-Saint-Jean

Bloc Québécois
“The Conservatives want us to change our policies because they are scared of Donald Trump. The Liberals already tried doing that and got nothing in return. It will not work for the Conservatives either.”
Official Hansard

Madam Speaker, here is what I want to know. The fourth point of the Conservative motion basically says that we are scared of Donald Trump, that we should lower the tax and overrule the CRTC’s decision because we are scared of Donald Trump. The Liberals did just that last July. They repealed the digital services tax out of fear of Donald Trump. They believed they would get something in return. In the end, they got diddly-squat. I love that expression. If it did not work for the Liberals, why do the Conservatives think it will work for them?

Melissa Lantsman, Thornhill

Conservative
“The Prime Minister dropped a 3% digital sales tax in the United States and got nothing in return. Now the government is putting a 15% tax on Canadian families who watch online streaming services. This makes no sense.”
  • Reply to a debate question

    Relevance 47 of 100

    None of this reply addressed the specific point raised or the topic under debate.

    See full analysis
Official Hansard

Madam Speaker, I am not sure where the member was going with that question, but I will highlight what he highlighted. The Prime Minister went to Washington last year and rescinded a 3% digital sales tax, getting nothing in return. Now we see the Liberal government imposing a 15% tax, many more times than 3%, on Canadian families for watching streaming services that the CRTC does not even count as Canadian content. It makes no sense. It makes no sense in our negotiations—

Kelly DeRidder, Kitchener Centre

Conservative
“Canadians are struggling to afford life, and the government should not add another tax. I want my colleague to explain how our party would support the arts without taxing people more.”
Official Hansard

Madam Speaker, at a time when Canadians are barely getting by, here we are introducing another tax. I hear from residents all over my community about how they are barely getting by. I also have a very vibrant arts community in Kitchener Centre. I would like my colleague to dive a little deeper into the Conservative solution on how we could better support our arts industry, rather than adding another tax that Canadians cannot afford.

Melissa Lantsman, Thornhill

Conservative
“Government spending does not protect Canadian culture. Canadian creators succeed through the freedom to compete and express themselves, and we will keep standing up for that.”
Official Hansard

Madam Speaker, I think the Liberals often confuse spending and protecting. The Weeknd, James Carroll, Lorne Michaels and Saturday Night Live did not come from the CRTC content fund. What protects Canadian culture and talent is the freedom to compete. We will continue standing up for Canadian creators and their freedom to compete and express themselves.

Chak Au, Richmond Centre—Marpole

Conservative
“The government must reject the new fee on streaming services like Netflix. This fee will make subscriptions more expensive for families. It will also push movie and television jobs out of Canada.”
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.

Kevin Lamoureux, Parliamentary Secretary to the Leader of the Government in the House of Commons

Liberal
“Conservatives want to cut funding for the CBC, but they dodged my question about the CRTC. Does the Conservative Party support the CRTC or not?”
Official Hansard

Mr. Speaker, it has been an interesting learning process in terms of what the Conservative members have been speaking about this morning. There is definitely a reaffirmation in terms of a lack of commitment to the CBC, as an example, and reaffirming their commitment to take away financing. When I asked the former speaker about their position on the CRTC and its future here in Canada, that question was sidestepped. I am very much interested in trying to flush out the Conservative position on the CRTC as an arm’s-length organization of the Government of Canada. Does the member or does the Conservative Party support the CRTC in general?

Chak Au, Richmond Centre—Marpole

Conservative
“The government has changed CRTC decisions before, so it can do it again now. This new fee will make life more expensive. Does the government support adding this extra cost on people?”
  • Reply to a debate question

    Relevance 46 of 100

    None of this reply addressed the specific point raised or the topic under debate.

    See full analysis
Official Hansard

Mr. Speaker, let us see who is sidestepping here. From 2021 up to now, we have seen numerous occasions where the government intervened with decisions made by the CRTC. Now the Liberals are trying to hide behind the argument that the CRTC is an arm’s-length organization. Let us be clear. We are not talking about the CRTC’s mandate here today. We are talking about affordability and the burden on the people with this increase in levy. Let me ask a simple question: Does the government agree that this increase would impose an additional burden on the people? Also, will the government support this additional burden on the people?

Jim Bélanger, Sudbury East—Manitoulin—Nickel Belt

Conservative
“My area has become a big place for making movies and TV shows. How will this higher tax hurt our communities?”
Official Hansard

Mr. Speaker, I would like to say that the area I come from, the Sudbury area, has actually become a pretty major Ontario film hub over the last 10 to 15 years, namely for Shoresy, which is a spinoff of Letterkenny. How does my colleague think this increase in tax will impact our communities and what damage might it do?

Chak Au, Richmond Centre—Marpole

Conservative
“Our film industry brings jobs and money to our communities. We should not put extra costs or taxes on these businesses, because that will hurt people and the economy.”
Official Hansard

Mr. Speaker, I think my city and his riding are in a similar situation. We have a growing film industry, and we are creating jobs and economic activities in our community, which is very beneficial to people. I think we have to keep this economic growth going. If this kind of levy is imposed on companies creating jobs for our communities, I think it will hurt people. We have to safeguard and encourage the film industry, and not have it destroyed by this kind of additional cost for businesses.

Alexis Brunelle-Duceppe, Lac-Saint-Jean

Bloc Québécois
“The Conservatives say protecting our culture hurts trade. That means they are giving up on our language and culture, and just accepting American culture instead.”
Official Hansard

Mr. Speaker, by claiming that standing up for culture is a trade irritant, as the Conservatives do in point (iv) of their motion, they are also giving up on linguistic and cultural diversity and, above all, accepting English American culture as the standard. If the Conservatives do not have that cultural sensitivity, is it because they have already embraced that standard? Is it because, for them, the culture we are talking about is the U.S. culture?

Chak Au, Richmond Centre—Marpole

Conservative

Linked statement

“The Liberals are hurting Canada's arts and film industry with new fees and taxes. We should stop blaming Donald Trump for our problems. Instead of government control, we should bring in private investment and competition to help Canadian culture grow.”
Official Hansard

Mr. Speaker, I agree with the comments that my Bloc colleague made earlier that the Liberals are a major threat to the cultural sector in Canada. Imposing that kind of levy with an increase is not going to make the cultural sector stronger. Also, I believe we are focusing too much on Trump. We are talking about our own production and our own film industry in our country. Very often, Trump is being used as an excuse or as a defence, which again sidesteps the issue. We have to encourage investments coming into our country for the cultural sector, so that those investments and their efficiency through competition will make Canada’s culture be more widely broadcast, not by government intervention, but by the market economy.

Mike Kelloway, Parliamentary Secretary to the Minister of Transport and Internal Trade

Liberal
“I oppose this motion. Big foreign streaming companies make a lot of money in Canada, so they should help pay for Canadian TV shows and movies. Requiring them to invest here creates good jobs and helps local businesses across the country.”
  • A repeated line

    “The audiovisual production sector supports hundreds of thousands of direct and indirect jobs in Canada.”

    Said 3 times by 3 members since May 28.

    Every time it was said
Official Hansard

Mr. Speaker, I will be sharing my time with the member for Milton East—Halton Hills South. I am pleased to rise today to speak against this motion and in support of broadcasting systems that continue to invest in Canadian workers, Canadian creativity and Canadian economic growth. Despite the rhetoric we have heard today, this debate is not truly about the so-called streaming tax. In fact, it is about whether the global streaming giants, which earn substantial revenues from Canadian audiences, should contribute in a fair and reasonable way to the Canadian broadcasting and production ecosystem from which they benefit. That principle is neither radical nor new. For decades, companies participating in Canada’s broadcasting system have contributed financially to the creation and presentation of the Canadian programming on which they rely. Those contributions helped build one of the most respected production sectors in the world. Today, Canada is internationally recognized as a major centre for film, television, animation and documentary production, in addition to digital and interactive media. Talented Canadians from coast to coast to coast work on productions viewed around the globe. Our studios are full, our crews are world-class, and our creators are winning international awards. This success did not happen by accident. It happened because successive governments and regulators understood that Canadian stories and Canadian production capacity matter economically, as well as culturally. The motion before the House, in my opinion, ignores that reality. It frames contributions to Canadian programming as though they are simply a burden or a penalty, but these contributions are investments. They are investments in jobs, infrastructure, intellectual property, skills development and economic activity across this country. Not only that, but expenditures on Canadian programming are not a punishment. They are not being asked to shovel money into a bottomless pit. We are asking them to invest in some of the best programming in the world. We are asking them to continue to make some of the great shows that we talked about here today: Shoresy, Heated Rivalry and North of North. We want more of that. They cannot argue that the programming being made in Canada is unworthy of their services. The screen-based production sector supports hundreds of thousands of direct and indirect jobs in Canada. These are not abstract jobs. They are good-paying, highly skilled jobs held by Canadians in every region of this country. They include camera operators, lighting technicians, sound engineers, visual effects artists, editors, costume designers, set builders, location managers, caterers, truck drivers, musicians, actors, writers, producers, translators and post-production specialists. The economic impact extends well beyond the production set itself. When productions film in a community, they rent hotel rooms, use local restaurants, contract transportation companies and use facilities throughout the community they are filming in. I can attest to this. Little Lorraine, a movie that was filmed on Cape Breton Island, was a huge success at the box office, but in terms of economic development, it provided a boost to the Cape Breton Regional Municipality. In cities like Toronto, Vancouver and Montreal, the production industry has become a major economic engine, but places like Cape Breton Island have been home to many movies. Again, what it contributes, not just to the economy of the country, not just to the regional economy, but to the local economy, is quite substantial. This is why the framework established under the Online Streaming Act matters. The world has changed dramatically since the original Broadcasting Act was drafted. Traditional broadcasters continue to contribute to Canadian content obligations while facing increasing competition from large foreign streaming services that dominate audience share and subscription revenues. The problem the legislation sought to address was straightforward: The regulatory system has not kept pace with technological change. Canadians are increasingly consuming programming online rather than through conventional broadcasting platforms, yet the contribution framework that historically applied primarily to Canadian broadcasters is still an item. This imbalance is not sustainable. If Canadian broadcasters are required to contribute to Canadian programming while foreign streaming platforms generating significant Canadian revenues are exempt, eventually the financial foundation supporting Canadian production begins to erode. Contributions to broadcasting systems are not new, and they are not unique to Canada. Many countries around the world require streaming services to contribute to domestic production ecosystems. Jurisdictions across Europe, for example, have adopted similar frameworks to ensure that local production sectors remain viable in the digital era. Despite these obligations, global streaming companies continue to invest heavily in these markets. Why? Companies invest where there is talent, stability, infrastructure and opportunity. Canada, our country, offers all of those things. We have world-class crews. We have globally respected creative talent. We have competitive production environments. We have advanced visual effects and post-production sectors. We have strong educational institutions producing those skilled workers. Importantly, we have a long-established production ecosystem built through decades of public and private investment. I think today we have heard some really interesting dialogue in terms of the focus here. The focus is obviously on affordability when dealing with the Americans. We are focused on that. I could go through the measures we have produced and the ones we are working on, but we also have to look at the creative arts as a major force of economic development. It is essential. I see it first-hand on Cape Breton Island. I have seen the impact it has had on the economy. I have seen the impact it has had on families and jobs. We need to look at this not as an ideological argument, but one of economic development, one where we are not just protecting the creative arts but focused on enhancing them. With that, I yield the floor.

Alexis Brunelle-Duceppe, Lac-Saint-Jean

Bloc Québécois
“The Liberals say they cannot step in on the CRTC's decision because it is independent. I want to know what they would do if they could step in. Would they ask to overturn the decision to protect culture, or not?”
Official Hansard

Mr. Speaker, I listened carefully to my Liberal colleague’s speech. He is telling us that the Liberals want to defend culture. From the beginning, the Liberals’ argument about the Conservative motion has been that they cannot intervene in the CRTC’s decisions, since it is an independent body. The logical question is this: If they cannot intervene, that is one thing, but if they had the power to intervene, what would they do? Would they ask the CRTC to reverse that decision or not? That is the important question. Their answer will tell me whether or not they are protectors of culture.

Mike Kelloway, Parliamentary Secretary to the Minister of Transport and Internal Trade

Liberal
“Our government wants to protect and grow the film industry across the country. We are focused on making the system fair so movie companies, actors, and crew members get the support they need.”
  • Reply to a debate question

    Relevance 46 of 100

    None of this reply addressed the specific point raised or the topic under debate.

    See full analysis
  • Reply to a debate question

    Signal 9 of 100

    Much of this statement went to praise, blame, greetings, routine procedure or general stories rather than reasons, requests or specific points.

    See full analysis
Official Hansard

Mr. Speaker, I am not sure I would put all that power into this one Cape Bretoner, because all the production would happen on Cape Breton Island. I will say that the main focus of this government is not just on protecting this sector and those jobs and movies that take place in Quebec, Manitoba or Cape Breton, but enhancing them. Where we are focused is how we build equity and fairness into the system to ensure that these companies, the actors and all of those skilled people I talked about recently are given a leg up. That is what we are going to be focused on.

Jim Bélanger, Sudbury East—Manitoulin—Nickel Belt

Conservative
“Tax credits helped the film industry grow in Sudbury. I want to know if the member supports this tax or not.”
Official Hansard

Mr. Speaker, as I mentioned before, the filming industry in my area, in Sudbury, managed to come about and grow because of tax credits, incentives and so on. I listened to the member, and I would like to ask him whether he is for or against this tax.

Mike Kelloway, Parliamentary Secretary to the Minister of Transport and Internal Trade

Liberal
“We need to invest in our own local talent and make things fair across the country. I want to see more movies and shows made in places like Sudbury.”
  • Reply to a debate question

    Relevance 46 of 100

    None of this reply addressed the specific point raised or the topic under debate.

    See full analysis
Official Hansard

Mr. Speaker, I think the fundamental, foundational piece here is what I just mentioned about equity and fairness. Where we need to focus is how we reinvest in our own people, our own talent and our own ability. I want to see more movies and shows in Sudbury, where I have not been, but I hope to go. I want to see more of that. What we need to do is continuously focus on this: where the equity is not there, to make sure it is there. That is what a sound government does, and that is what a responsible government will do.

Robert Morrissey, Egmont

Liberal
“Conservatives often talk about cutting all taxes. How would it hurt rural development if the government stopped funding economic projects across the country?”
Official Hansard

Mr. Speaker, Conservatives often go to great lengths in the House to speak about eliminating all taxes. As a member from rural Canada, could the member explain what impact it would have on many development opportunities in rural areas if the government was not there to support economic opportunity all across this country?

Mike Kelloway, Parliamentary Secretary to the Minister of Transport and Internal Trade

Liberal
“The government should support film and TV production companies instead of arguing about politics. Canada has the best actors and film crews in the world.”
Official Hansard

Mr. Speaker, I will go back to what I said earlier. The fact of the matter is that if we just make this an argument about ideology, conspiracy theories and trickle-down economics, we are missing the point. The fact is that government does have a role to support: not to be the sage on the stage, but to be a guide on the side. That is what good governments do. They allow those production companies and those movies to know what we know here in Canada: that we have the best actors, production crews and companies in the world.

Discussion

No comments yet

See the full discussion

Comment rules

More from sitting 124

  1. Government Orders Business of Supply 114 statements
  2. Oral Questions Foreign Investment 13 statements
  3. Oral Questions Justice 6 statements
  4. Oral Questions Canadian Identity and Culture 6 statements
  5. Oral Questions The Economy 4 statements
  6. Oral Questions The Environment 4 statements
  7. Oral Questions Finance 6 statements
  8. Oral Questions Agriculture and Agri-Food 4 statements
  9. Oral Questions Steel and Aluminum Industry 2 statements
  10. Oral Questions Immigration, Refugees and Citizenship 6 statements
  11. Oral Questions Aerospace Industry 8 statements
  12. Oral Questions International Trade 2 statements
  13. Oral Questions Seniors 4 statements
  14. Oral Questions Public Safety 6 statements
  15. Oral Questions Oil and Gas Industry 3 statements
  16. Oral Questions Labour 2 statements
  17. Oral Questions Climate Change 2 statements
  18. Oral Questions Air Transportation 2 statements
  19. Oral Questions Business of the House 2 statements
  20. Government Orders Business of Supply 66 statements
  21. Oral Questions Health 4 statements
  22. Private Members' Business Canada Revenue Agency Act 12 statements
  23. Adjournment Proceedings Adjournment Proceedings 4 statements
  24. Adjournment Proceedings Adjournment Proceedings 4 statements
  25. Adjournment Proceedings Adjournment Proceedings 4 statements
  26. Government Orders Business of Supply 462 statements