The Canadian publishing community is reacting to Tuesday’s announcement that Random House of Canada has taken over full ownership of the century-old Canadian house McClelland & Stewart. Many see it as a sign that the Canadian government is no longer enforcing a long-standing policy of restricting foreign ownership within cultural industries.
The Association of Canadian Publishers, which represents independent English-language publishers in Canada, expressed dismay and sorrow. ““I want to cry,” said Margie Wolfe, ACP president. “It’s a sad day for Canada, and the end of a long and glorious chapter in Canadian publishing. McClelland & Stewart led the way, 50 years ago, in making Canadians aware of the wealth of writing talent in this country. They made Canadian book launches into media events, and turned Canadian authors into household names. They laid the foundation for a Canadian industry, in which they and other pioneering companies, like Coach House[Books] and [House of Anansi Press], could build the reputations of Canadian writers at home and around the world. ”
However, the ACP acknowledged that since M&S’s former owner Avie Bennett sold 25% of the company to Random House and donated 75% to the University of Toronto in 2000, questions had been raised about the degree to which M&S was still Canadian-controlled. Still, the ACP said that the editorial department had remained “fiercely independent,” and mourned the fact that it would now be under “the full control of foreign ownership.”
While Random House of Canada maintains its own large program for publishing Canadian books with a Canadian staff and has committed to maintaining the M&S publishing program, the issue of foreign ownership hits a nerve within the Canadian industry these days. The Canadian government has recently reviewed its policy of protecting Canadian cultural industries by restricting foreign ownership. No new policy or changes have been announced yet, but several recent decisions point to a shift away from past policies. “The absorption of M&S by a multinational comes two months after the sale of Canadian e-book retailer Kobo to Japanese interests, and two years after the U.S. retailer Amazon was granted permission to operate in Canada,” the ACP stated. “While we wait for a decision on ownership policy,” observed Wolfe, “it seems that the policy has become irrelevant in practice.”
Cormorant Books publisher Marc Côté echoed those concerns. Since the government permitted the sale of the first 25% of M&S to Random House, he said, “the Department of Canadian Heritage under both Liberal and Conservative governments has overseen the closure of a number of warehouses, as several foreign-owned publishers have withdrawn their warehousing to much less expensive locations south of the border.”
Such shifts in cultural protection policies also make Canadian publishers nervous about the government’s commitment to continue its financial support for Canadian publishers. Kim McArthur president and publisher of the independent Canadian firm McArthur and Company, said, “Although I’ve been alarmed by the erosion of this policy, I’m still hugely grateful as a wholly owned Canadian publishing company for the support of the government.”
Even with the 25% Random-owned share, M&S had still qualified for funding from the Canadian government over the past 11 years. But according to yesterday’s announcement, the takeover by Random House was necessitated by financial woes at M&S, attributed to difficult economic conditions and digital-driven transitions in the industry.
“I think this is a very good move on Random House’s part,” said McArthur. “They will now be 100% supportive of McClelland & Stewart, so that the imprint won’t disappear.”
