Regulatory factors and government coordination

Addressing regulation, public policy, and coordination across departments and levels of government

An important aspect of this Vision is the creation of a more positive landscape for live music in Ontario by developing stronger relationships with the government and non-government bodies that set policy and regulation, or are key influencers in that process.

Regulatory challenges

There are numerous important regulatory and policy matters that could be addressed through advocacy at all levels of government over the short, medium and long-term, in order to create a landscape that is more favourable to live music presentation.

The interpretation of Alcohol and Gaming Commission of Ontario (AGCO) regulations, and their application by police agencies, is uneven and lacking in transparency, both between and within regions across the province, and by genre of music. Inadequate communication between municipal and provincial regulators compounds the problem. The result is a patchwork quilt of requirements for festivals and events, with some facing overly burdensome, and even cost prohibitive hurdles. Balanced regulation, fairly applied in a transparent manner and with reasonable opportunities for redress, is needed for the development of sustainable live music festivals and events across the province.

Similarly, there is a lack of transparency and perceived unfairness in regard to the level of security required for live music festivals and events. These requirements are determined by police agencies. Police agencies also decide the number of off-duty police officers that must be hired from among their ranks (at a non-negotiable cost per hour) to comply with the requirements they set. This dynamic restricts the ability of live music festivals and events to develop strategies to manage their security costs.

Municipal zoning, as well as noise and sound by-laws, often pose insurmountable barriers to presenting live music, both at outdoor and indoor venues. It is important to ensure that by-laws are balanced so they address the interests of those who may be affected by live music presentations in their neighbourhoods, without imposing undue restrictions on presenters.

Property taxes based on assessed value are making it harder to sustain live music venues in areas where property values are high and rising. As a result, and in larger urban communities in particular, venue rents have risen to the point where they are becoming unviable to the business model for live music. Similarly, the opportunity cost to venue owners/ presenters has become so high that it is becoming increasingly hard to justify the continued use of real estate for live music purposes.

Government coordination

Respondents to our consultation called for improved coordination between government bodies to reduce unintended consequences.

For example, the legalization and regulation of cannabis scheduled to come into effect in summer 2018 may create challenges for live music presenters in Ontario. Uncertainty over how the new legal framework will be implemented is giving rise to concerns that enforcement may result in a rise in cannabis-related incidents at live music events.

The Strengthening Protection for Ontario Consumers Act, 2017 includes a cap on the resale price of tickets at 50 per cent above face value, and requires businesses selling or reselling tickets to disclose key information to consumers. The resale price cap challenges the business model for some high demand live music events. Industry and government should work together to monitor the impacts of this legislation.

Barriers to Canadian musicians performing in the United States or other countries impede the growth of our live music sector and artists’ careers. This Vision supports the efforts of organizations working to improve the environment for Canada’s musical artists in markets outside of Canada. This includes the work of the Canadian Independent Music Association in lobbying for reciprocal treatment in obtaining touring work visas, and for better treatment in regard to withholding taxes.

Collaboration and advocacy

Paramount to realizing the full potential of the live music sector is working together to advocate strongly for better regulatory and policy frameworks, at every level of government and across departments and agencies that impact the live music industry. This requires mobilizing the grassroots to develop effective advocacy efforts and bring about positive change.

Strategic relationships

There are many government bodies whose decisions impact the live music sector, and with whom many live music industry players already have a working relationship. These include:

• federal departments and agencies such as Canadian Heritage, and FACTOR
• provincial ministries including The Ministry of Tourism, Culture and Sport, and its agencies, the Ontario Media Development Corporation (Ontario Music Fund), the Ontario Arts Council, the Ontario Trillium Foundation, and the Celebrate Ontario program
• the Ministry of the Attorney General and its crown corporation
• the Alcohol and Gaming Commission of Ontario
• Municipal governments and music offices.

Other partners may include:

• Destination Ontario
• regional tourism organizations, the Tourism Industry Association of Canada
• Chambers of Commerce and Boards of Trade, including their provincial and federal umbrellas
• Business Improvement Areas and their umbrella associations
• Regional development corporations
• Economic development organizations
• the Creative City Network of Canada
• Statistics Canada
• Canadian Federation of Musicians
• music industry and local music associations
• music rights collectives