Ontario digital media fund on hold as government reviews its future direction

The Ontario government has cut off funding applications to its much ballyhooed Interactive Digital Media Fund as it reviews what to do with the program’s remaining cash. Launched in 1999, the five-year, $10-million initiative has awarded about $6.4 million to six projects so far, and now officials at the Ministry of Energy, Science and Technology are meeting with the department’s minister, Jim Wilson, to discuss the possibility of another funding competition in the fall, and how it should be structured. The digital media fund is designed to provide seed money to help small- and mid-sized multimedia companies become self-sustaining by investing in strategic initiatives that create jobs in digital media. Sam Punnett, chief knowledge officer for consulting group Delvinia Inc, says the absence of the fund from the Ontario new media landscape is frustrating, particularly during these turbulent economic times. "It’s certainly disappointing – the state of things. It isn’t any easier to get initiatives underway right now. Certainly, the need for industry-building initiatives hasn’t been addressed one iota. If anything, it’s worse now." For the moment, the ministry is providing few details about what direction the fund might take with the remaining cash. "We have a little bit left," says ministry official Phil Baker, who is responsible for administering the program. "We’re reviewing where to go with that… we’re essentially reviewing it with the minister and others as to what we do with the remaining amount." Baker says the program hasn’t been closed, but that it simply hasn’t accepted any new applications for several months. "Once we determine the focus for the remainder of the funds, we will, obviously, go through the process – a call for proposals indicating where we’re at, what kinds of things we would be thinking." To date, the review of the fund has been conducted internally, with little outside consultation. Baker is unable to say in which direction the ministry is heading. "Clearly, we are in science and technology, and certainly, we need to try to advance the innovation agenda," is all he is prepared to say. Punnett says business development programs are sorely needed by industry players, especially the smaller and younger ones. The recent downturn in the economy and shortfall in private funding is hurting inexperienced companies that, due to their age, have likely never seen a recession, he adds. "For the past three years they’ve been standing around and taking orders. Now they’ve got to go out and sell," says Punnett. "Many of these companies are under seven years old, so many of them haven’t seen a recession before… All these are things that make things like networking and any kind of government information initiatives that much more important because it allows people to exchange information with each other. Right now, we don’t have that."

Ontario digital media fund on hold as government reviews its future direction

News | 07/25/2001 4:00 am EDT

To keep reading, get a free trial.

Already a Subscriber?

Reuse & Permissions

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us