Are Government Subsidies Destroying Trust in Media?
🎧 Podcast Episode 179 with Holly Doan
The relationship between media and government in Canada has come under increasing scrutiny in recent years, with growing concerns about how government subsidies impact journalism's integrity and public trust.
To explore this issue, I had the privilege of speaking with Holly Doan, publisher of Blacklock’s Reporter and a veteran journalist with over 40 years of experience. Our conversation shed light on the evolving media landscape, the role of subsidies, and the consequences for independent journalism.
The Mechanics of Media Subsidies
Government subsidies for media are not new, but their scope has expanded significantly in recent years. Programs like the Periodical Fund have long provided financial support to publications such as Maclean’s, but a turning point came in 2018 when the federal government introduced newsroom subsidies. These subsidies provide up to $29,000 per newsroom employee, essentially creating a financial lifeline for many struggling legacy media outlets.
"Media subsidies have become the lifeblood for many organizations," Doan explained, noting that while these funds were initially pitched as temporary solutions, they now appear to be permanent fixtures. “Welfare never really makes you retool, rethink, or become better because you are not working under necessity,” she added, arguing that subsidies have discouraged innovation and allowed media organizations to maintain outdated business models.
The Impact on Trust and Innovation
A critical concern raised during our discussion was the effect of subsidies on public trust. Doan pointed out that the reliance on government funding creates an inherent conflict of interest, whether real or perceived. "Nobody thinks that Bombardier or SNC-Lavalin gets subsidies without doing favours for the government. Why would media be any different?" she asked.
Doan believes these subsidies have dulled journalism's edge, particularly for legacy media. “Publishers used to be fearsome people,” she said, describing an era when newsroom leaders demanded hard-hitting stories. Today, many media organizations prioritize securing subsidies over investigative rigour, and this shift, Doan argued, has made them “tired, dull, and unreadable.”
Meanwhile, independent media like Blacklock’s Reporter are left to compete against taxpayer-funded outlets like the CBC and subsidized newsrooms. Doan highlighted how this uneven playing field discourages innovative business models and risks marginalizing independent voices. “We’ve just asked the public not to trust us,” she said, referring to how subsidies have eroded perceptions of journalistic independence.
Independent Media: A Balancing Act
Despite these challenges, Doan and her team at Blacklock’s Reporter have chosen to forgo government subsidies, relying instead on a subscription-based model. “Investigative journalism is expensive,” she acknowledged, “but we’re not going to give it away for free just to go out of business.” This approach has resonated with their niche audience, which values government accountability reporting over partisan narratives.
Doan was clear that Blacklock’s focus is not on what politicians say but on what government does—a distinction she feels is increasingly lost in modern journalism. “If you don’t know what the government is doing, it’s like the dog that didn’t bark. That’s the dog that can hurt you,” she said.
However, the path for independent media is not without obstacles. Doan revealed how government departments have actively worked to undermine her publication by discouraging licensees from using Blacklock’s content. "Government communication staff measure their success by whether they can get media to change the copy," she explained, illustrating the lengths to which some officials will go to control the narrative.
A Call for Accountability
The stakes in this conversation go beyond the media industry—they affect the health of democracy itself. Doan argued that government accountability suffers when media fails to scrutinize policy decisions. She shared examples of how Blacklock’s reporting has prompted changes, from revealing conflicts of interest in green energy programs to uncovering wasteful government spending. “Imagine if you had ten Blacklock’s in Ottawa,” she said. “We’d have the best damn government in the G7.”
Rebuilding Trust
While government subsidies have undoubtedly kept some media organizations afloat, they come at a significant cost to public trust and journalistic independence. Doan’s insights suggest that the media must find ways to innovate without compromising its integrity. Independent outlets like Blacklock’s Reporter demonstrate that it is possible to hold power accountable without relying on government funding—but it requires a commitment to fearless reporting and a loyal audience willing to support high-quality journalism.
As Canadians, we must consider the kind of media we want to consume and support. Do we value depth, accountability, and independence, or are we content with a subsidized status quo? The future of journalism—and its role in our democracy—depends on the answer.