Private sector calls on government to transform Telefilm into a CTF-type agency

Industry support is growing for the idea of a single national organization for film, television and new media funding – an idea that could result in a Telefilm Canada evolving into an organization more akin to the Canadian Television Fund. While many in industry would prefer to see the CTF be the body that takes on this expanded role, one of Canada’s leading communications lawyers doubts the political will exists to dismantle such an established and prestigious crown corporation. "... it is unlikely that the federal government... would want to see programs representing discretionary disbursements of approximately $200 million per year managed and administered over an indeterminate period by a private sector corporation, even one that is not-for-profit."Bob BuchanIn a legal opinion prepared for the Canadian Film and Television Production Association (CFTPA), Bob Buchan, a partner in Johnston & Buchan, said the most palatable solution for government would be one that transforms Telefilm into a one-stop "super funding agency". By either amending its current legislation or creating new legislation, Telefilm would effectively replace the CTF, yet adopt many of the private sector fund’s characteristics, such as allowing industry representatives on its board of directors. There’s widespread agreement that the current governance model for CTF is flawed, and lacks accountability. Its working relationship with Telefilm is also unmanageable. As a solution, several industry groups are pitching the idea of "one fund, one program and one board" to Canadian Heritage as part of the department’s current review of the future of the CTF. In July, Canadian Heritage gave interested parties until mid-September to submit their comments on the CTF’s structure, operation and administration. The CTF receives $50 million from broadcast distributors, $50 million from Telefilm and $100 million from Canadian Heritage. Telefilm administers $100 million of that budget through its Equity Investment Program, while the CTF distributes the rest through its Licence Fee Program. The idea of creating a single fund that would manage private sector contributions and public money appears to be the preferred model supported by producers, distributors, broadcasters and cable operators. Some groups suggest that a revamped Telefilm is best suited to take on this broader role, considering it is a publicly mandated agency. Others like the Canadian Cable Television Association, whose members contribute about $50 million annually to the CTF, envision a restructured CTF taking on full responsibility for television and new media funding. Currently, that responsibility is shared with Telefilm. The idea of a CTF-type board is also supported by CTF chair Richard Stursberg. Filmmakers get $50M boostThe federal government is allocating an additional $50 million per year to support feature film production, starting next April. It will also invest $15 million over the next few months. The much-anticipated Feature Film Fund has been in the works for about two years. The funding is to be used to finance all aspects of film production from script to screen, including the marketing of Canadian movies. The $50 million will be pooled with $50 million already doled out to filmmakers through Telefilm Canada, which will administer the new expanded fund. The investment is aimed at upping the percentage Canadian films account for at the domestic box office from 2.1% to 5%. Another goal is to raise the average Canadian production budget from about $1.5 million to $5 million, and to increase marketing budgets. Disbursement of the funds will be tied to box office performance and festival prizes. In May at Show Canada, the annual convention of the Motion Picture Theatre Associations of Canada, it was announced that the association and the Canadian government were teaming up to develop a national system for collecting weekly boxoffice and admissions data. At the time, Francois Macerola, Telefilm Canada executive director, said the data-gathering plan was intended to bring more accountability to a planned feature film fund. The Independent Production Fund suggests that the CTF return to its roots as a private fund, leaving Telefilm as a public sector agency supporting television, film and new media. CTV Inc also supports the continuation of two distinct funding organizations, with the CTF acting as a market-driven fund "that provides licence fee top-up contributions to culturally relevant television", while Telefilm would continue to support culturally relevant television through equity investments. Another idea calls for the creation of an entirely new funding agency that is accountable to the minister of Canadian Heritage and includes representatives from both industry and government. "What we are proposing is a true melding of the two institutions – the CTF and Telefilm Canada," the Canadian Association of Broadcasters states in its Sept. 15 submission to Heritage. "Such a melding would result in a single board, a single administrative and a CEO that leads it so that there is a clear line of accountability." Two reports released over the past year by KPMG Consulting and consultants François Colbert and David Silcox call for the creation of one administrative body for television funding to ensure greater accountability (CCR, Apr. 27/00). The Canadian Association of Film Developers and Exporters believes this entity should be Telefilm, and criticizes KPMG in particular for not exploring this possibility. "CAFDE’s members consider this to be a major flaw in the study which seems to be more concerned with taking away responsibilities from Telefilm Canada, without any consideration for how we could make the organization more effective, rigorous, transparent and accountable," the CAFDE states in its Sept. 15 comments to Canadian Heritage. And then there’s the Canadian Broadcasting Corp, which has its own ideas on which federal public broadcaster is best suited to administer a new $100-million "public sector fund". The CBC recommends that the government create a fund with 50 per cent of total CTF financing "to be administered by the CBC and to be spent exclusively on Canadian independent production." It says the remaining $100 million should be distributed among all other broadcasters, excluding the CBC. In his six-page legal opinion, Buchan suggests the best course of action would be to have a crown corporation that is responsible to Parliament, and is subject to annual review by the Auditor General of Canada. "We believe it is unlikely that the federal government, if it is planning to alter the future direction and possibly the organizational structure of the CTF, would want to see programs representing discretionary disbursements of approximately $200 million per year managed and administered over an indeterminate period by a private sector corporation, even one that is not-for-profit," he writes. He also notes that the Canadian Film Development Corporation Act (which governs Telefilm) would have to be "radically overhauled" if Telefilm were to become a single federal funding agency for TV, film and new media. For example, he points out that the act doesn’t even refer to television or video, let alone new media. The legislation also doesn’t allow for private sector participation on its board of directors. Even if the government supports a new legislative mandate for Telefilm, making those changes will take time. Until that happens, groups like the CFTPA say the government should renew the CTF’s funding mandate beyond March 31, 2001 to ensure stable financing for the industry over the short term, and at the same time, implement measures to ensure greater accountability by the CTF.

Private sector calls on government to transform Telefilm into a CTF-type agency

News | 10/13/2000 4:00 am EDT

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