MONTRÉAL, Feb. 21, 2018 /CNW
Telbec/ - Quebecor filed a motion in Superior Court today to
have the Government of Québec Order in Council of December 2017 that extended $10 million in
financial assistance to Groupe Capitales Médias (GCM) declared null
and void. Quebecor believes that in granting this loan in a
discretionary manner, the government abused its authority under the
Act respecting Investissement Québec, rendering the decision
illegal and setting a dangerous precedent for democracy in the 21st
century.
"Given the importance of maintaining media independence from the
government, any government spending to support print media should
be the exception and must be made in a standardized and even-handed
manner," said Pierre Karl Péladeau, President and CEO of Quebecor.
"What we see in this case is precisely the opposite. Just months
before an election campaign, the government is misusing its
authority by granting ad hoc financial assistance, without
established and known criteria, to one media group. This is a
situation that called for the highest degree of transparency.
Instead, the government has proceeded in an entirely arbitrary
fashion and shown blatant favouritism."
The financial support for GCM is particularly surprising and
unacceptable in view of the fact that it was extended barely two
weeks after the Minister of Culture and Communications of Québec
announced the eligibility criteria for a $19.2 million program designed to help the
digital shift of print media. The program's purpose was precisely
to "stimulate the transformation of business models by supporting
the initiation or continuation of the shift to digital by print
news media."
Quebecor's motion notes that section 19 of the Act respecting
Investissement Québec, on which the Order in Council was based,
stipulates that "When the Government gives it the mandate to do so,
the Company must grant and administer any one-time financial
assistance the Government determines for the realization of
projects that are of major economic significance for Québec." GCM's
digital transition project has neither the scale, nor the
potential, nor the necessary impact to make it a project of major
economic significance for Québec. This fact is underscored by GCM's
inability to specify the expected impacts of the transition, such
as the number of jobs that will be saved or whether it will involve
newspaper closures. GCM also says that much of the work has already
been done, which casts further doubt on the economic benefits that
may accrue from the financial assistance.
In view of the above, it would appear that the assistance was
granted on the basis of considerations other than economic
benefit.
As a discretionary act by the government may not be based on
considerations that are foreign to the letter and the spirit of the
enabling legislation, Quebecor believes thee Order in Council
should be declared null and void.
"At a time when print media are facing both a financial crisis
and a crisis of confidence, every effort must be made to ensure
that government support for the media serves to strengthen public
confidence in the press, not to undermine it. The assistance
granted to Groupe Capitales Médias misses the mark by every
measure," Mr. Péladeau concluded.
About Quebecor
Quebecor, a Canadian leader in
telecommunications, entertainment, news media and culture, is one
of the best-performing integrated communications companies in the
industry. Driven by their determination to deliver the best
possible customer experience, all of Quebecor's subsidiaries and
brands are differentiated by their high-quality, multiplatform,
convergent products and services.
Quebecor (TSX: QBR.A, QBR.B) is headquartered in Québec. It
holds an 81.53% interest in Quebecor Media, which employs more than
10,000 people in Canada.
A family business founded in 1950, Quebecor is strongly
committed to the community. Every year, it actively supports people
working with more than 400 organizations in the vital fields of
culture, health, education, the environment and
entrepreneurship.
Visit our website: www.quebecor.com
Follow us on Twitter: twitter.com/Quebecor
SOURCE Quebecor