Quebec publishing had the wind in its sails during the pandemic, propelled by a craze among readers for Quebec books. But sales have stabilized or fallen slightly in recent months. Publishers are now calling for tax credits to be increased and simplified. A way, according to them, to financially help the edition to stay on its momentum.
“We believe that there is a significant difference in publishing compared to what is offered in other cultural sectors in tax credits”, summarizes Arnaud Foulon, of Groupe HMH, outgoing president of the National Association of Publishers books (ANEL).
This can be seen in the 2021-2022 annual report of the Cultural Business Development Corporation (SODEC), which manages cultural tax credits for the Ministry of Finance. Out of a total budget of $576,145,567, the book and publishing sector received $7,617,925. This is 1.3% of the total amount of tax credits for cultural industries.
The lion’s share of tax credits goes to film production and audiovisual, followed by live entertainment. Event production and sound recordings are lagging behind.
“The tax credit allowed until recently the Quebec book to be sold, on its own market, cheaper than the books published in France and distributed here”, writes the ANEL in the memorandum For an improvement and simplification of the tax credit for book publishing in Quebecwhich was recently presented to the Ministère des Finances as part of the pre-budget consultations.
But “a good number of publishing companies here have been forced to raise the selling price of their books in order to aim for a certain profitability”. The causes ? Paper shortages, competition for press time among Quebec printers and supply chain disruptions, among others.
“The price difference compared to imported works is diminishing, and books from here are losing their competitive advantage for the consumer. The ANEL therefore calls for an improvement in tax credits for publishing, but also a simplification and the removal of certain incongruities.
Bureaucracy, when you hold us
First, ANEL asks for less paperwork. The current system weighs heavily, and not just on the shoulders of publishers. “The management of the tax credit for book publishing would amount to approximately $1 million for SODEC…while in 2020-2021, some $7 million was given to publishers as a tax credit. Data that encourages us to review the modus operandi writes ANEL.
The problem, explains Arnaud Foulon, is that the credits are calculated on a project basis, and each book is a project. “A film producer, for example, will make one or two films a year, maybe three,” explains Mr. Foulon. “A publishing house like mine will make 140 books. Not everyone is eligible, but the fact remains that we will have a hundred applications to make. It takes a lot of time. The requests take a very long time to complete, it’s very difficult to do internally. »
According to information collected by The duty, at a medium-sized, well-established publisher, a person spends approximately one week of the year exclusively filling out tax credit applications, with occasional follow-ups in the following months. A significant tribute in time.
ANEL would also like an increase in eligible printing costs (labour and costs) and an increase in preparatory costs which include publishing (labour and costs) so that these credits are comparable to those in the entertainment and sound recording sector (65% of labor costs, compared to 35% for publishing).
Many local publishing companies have been forced to raise the selling price of their books
If support for printing were increased, ANEL believes, the printing of books made in Quebec would benefit. “For illustrated books, the cost difference between here and abroad is often 105%,” Arnaud Foulon analyzes. The other problem is that currently the printers are so busy that, even if we wanted to print everything in Quebec, it would not be possible.
“But with a dynamic tax credit, one can imagine a printer who would dare to invest millions of dollars in new presses. It’s a virtuous circle. If we stimulate internal demand, we can stimulate investment. It would take a credit that would allow Quebec printing companies to be competitive with foreign printing companies. »
ANEL would also like reprints to be eligible, as well as school notebooks and co-published translations. “Currently, for a Quebec book to be eligible for reprinting, it must be done within the first three years of the book’s life,” explains Arnaud Foulon. However, the longevity of books is more unpredictable. All it takes is a film project, for example, which often takes more than three years to come to fruition, to relaunch a title.
“We want, for culture, that publishers maintain fund books in their catalogs, by facilitating reprinting without time limit”, specifies Mr. Foulon. For co-publishing and translations, here too, the rules do not seem to be entirely adapted to the uses of publishing.
Very small, the planet delivers
“While co-productions are encouraged in the audiovisual sector, if a Quebec publisher does not assume 100% of the expenses of its project, it is not eligible for tax credits. We, for example, have already made books with Moulinsart editions for Tintin and Quebec. Hergé at the heart of the Quiet Revolution. Work done in Quebec on those books should also be eligible. »
SODEC declined to comment on ANEL’s demands. The Finance Minister’s office has indicated that it will take the time to analyze ANEL’s brief. “We are always on the lookout for the best ideas to move Quebec forward and improve the lives of Quebecers,” added press officer Claudia Loupret.