Letter to Minister Freeland: Recommendations from Live Music

March 29, 2021

The Honourable Chrystia Freeland
Deputy Prime Minister, Minister of Finance

Dear Minister Freeland,

Thank you for your efforts on behalf of all Canadians during this difficult time.

The Canadian Live Music Association (CLMA) represents hundreds of businesses, organizations, and thousands of employees and contract workers across Canada who bring incredible live music experiences to Canadians and visitors from coast to coast to coast. This includes venues, festivals, concert promoters, talent agencies, artist managers, performing arts centres, arenas and the diverse and varied supply chain that make up our ecosystem.

Sector Specific Emergency Relief – “Phase 3”
Prior to the pandemic setting-in, our sector contributed upwards of $3B to GDP and created 72,000 jobs. Our stakeholders create both opportunities for our incredible artists as well as broad direct and indirect economic, social, and cultural impacts. We intersect closely with tourism, travel, and hospitality and our complex touring and performing infrastructure has been the envy of other markets for decades. Canada has always ‘punched above its weight’ artistically, and many of our international stars have launched their careers as a result of the lifelong passion and dedication of our members.

Live music venues have experienced an average of 92% revenue loss  
since March 2020

As you know, the pandemic continues to ravage Canada’s live music sector and, with an invisible finish line, we remain at great risk. We have lost over 85 primary venues alone – spaces that incubate and foster the talent of tomorrow, create jobs, and enhance quality of life in our cities, towns and neighbourhoods.

In summer 2020, the federal government delivered more than $25M in emergency relief directly to our sector via the Emergency Support Fund for Cultural, Heritage and Sport Organizations. That support made the difference between hanging on and permanent closure for so many - taken together with other relief programs, our members were able to stay operational despite restrictions, lockdowns and mandated closures. For most, those restrictions remain in place and will for many weeks to come, if not longer.

“85% of professional musicians agree that if they can’t perform live,
they will have a difficult time making a living” Crowded Out

Canadians miss live music, and are worried about its future. In fact, 91% of all Canadians like or love live music. As such, you will have begun to see calls for help from across the country, from average people who know that with additional support, our precious live music industry will have a better chance of survival. We are asking you to protect your investments to-date, safeguard our nation’s critical cultural infrastructure and help us make it to the time when we can be a truly meaningful part of our country’s economic rebuild – as we so dearly wish to be.

CEWS and CERS – Extend and Enhance
The Canada Emergency Wage Subsidy (CEWS) program is also a critical lifeline for our industries and our employees. The program was well designed for the early stages of the pandemic, well administered and relatively easy to access. It is keeping many of our highly-impacted businesses open to employ people today, and for this, we thank you.

The Canada Emergency Rent Subsidy (CERS) program also provides critical support to help with fixed costs like insurance, which has risen on average by 40% because of COVID, and is expected to spike again in year two. Though inadequate for medium-sized businesses, this program has supported many of our small operators who would not be operational today without it.

60% of Canada’s hardest-hit businesses will be unable to stay operational
without an extension to CEWS and CERS

As a member of the Hardest Hit Coalition, and the voice of Canada’s live music sector, we are hopeful that you will announce the following in Budget 2021/22:

• Urgently implement a “Phase 3” of $25m sector-specific funding: protect all venues, concert promoters, festivals, production/sound + lights/supply companies, others whose core business is live music (talent agencies, management companies, and so on) and self-employed people working in live music.

  • Build on Phase 2 so that initial investment isn’t lost

  • Save live music infrastructure so artists can tour and perform in the future

  • Enable the sector to support meaningful rebuild and recovery

• An extension and enhancement of the Canada Emergency Wage Subsidy (CEWS) at 75% targeting hard-hit industries until the end of 2021; and

• An extension and enhancement of the Canada Emergency Rent Subsidy (CERS) for hard-hit businesses, including deeper support for medium-sized businesses, until the end of 2021.

We also encourage you to review our Live Music Recovery Plan for more information and additional recommendations.

We appreciate your consideration and your continued leadership. On behalf of our members and community, thank you.

Erin Benjamin
President & CEO
Canadian Live Music Association