Postmedia Network: Taxpayer Subsidies Spark Outrage Over Spending

CALGARY, AB — Canada's largest newspaper chain is drawing fire for collecting millions in taxpayer subsidies while its editorial pages routinely criticize government spending. Postmedia Network—which owns the National Post, Ottawa Citizen, Calgary Herald, and dozens of community papers—pulled in over $4 million from the government-mandated Google media fund alone, part of a federal support ecosystem that channeled an estimated $325 million to media outlets in 2024-25.

The money flows through multiple streams: the Canada Periodical Fund ($86.5 million allocated in 2024-25), the Canadian Journalism Labour Tax Credit ($65 million), and the Local Journalism Initiative ($19.6 million). The Google fund—$100 million annually—comes via the Online News Act, which forced tech giants to pay news organizations. The Canadian Journalism Collective distributes that cash, with Postmedia among the top recipients.

The Friction

Critics point to the gap between Postmedia's editorial stance and its balance sheet. CWA Canada issued an open letter in September 2025 alleging federal subsidies flow to executive compensation and the company's American hedge fund owner, Chatham Asset Management, rather than front-line journalism. Postmedia CEO Andrew MacLeod saw his 2024 pay jump significantly while the company carried $364 million in debt, largely in high-interest bonds held by Chatham.

Conservative leader Pierre Poilievre has criticized Liberal news policies, though he's suggested a Conservative government would still fund local outlets. The Macdonald-Laurier Institute and The Hub have questioned whether permanent subsidies compromise journalistic objectivity.

The Money Trail

Budget 2025, tabled November 4, extended journalism support for three years with $38.4 million earmarked for the Special Measures for Journalism component starting in 2026-27. The Business Innovation component of the Canada Periodical Fund shuts down by March 2026.

The Department of Canadian Heritage administers most programs. The Canada Revenue Agency processes the labour tax credit. No public tracking mechanism exists to ensure subsidy dollars fund newsrooms rather than debt servicing or executive pay packages.

What's Next

The Google fund began distributing in March 2025, weeks before a federal election campaign. Meta blocked Canadian news from Facebook and Instagram following passage of the Online News Act in 2023 and hasn't reversed course. The federal commitment to media support now stretches into 2029, with no sunset clause in sight.