Report warns that 15,000 production jobs would be lost if CTF isn’t renewed

Nearly a half-billion dollars and almost 15,000 jobs would be eliminated from Canada’s independent film and television production industry if the Canadian Television Fund (CTF) isn’t renewed, according to a new report. Assessment of the Economic Impact of the Canadian Television Fund was commissioned by the Canadian Film and Television Production Association (CFTPA) in March and was released last month as part of the CFTPA’s efforts to secure long-term public funding for the CTF. The report was commissioned after the finance minister requested concrete figures on the economic impact of the fund. Among the study’s chief findings is that the Canadian television industry would be unlikely to replace approximately $500 million in funding stemming from the CTF by simply turning to offshore sources. That’s a message the CFTPA is now trying to hammer home with Ottawa bureaucrats in charge of federal purse-strings as it tries to guarantee stable funding when current funding runs out next March. One-year transitional funding was granted to the CTF when the government’s commitment expired last year, (CCR, Feb. 28/01). CFTPA chair Stephen Ellis said the report is a key component of the organization’s battle this year to secure a five-year guarantee for the fund. "We certainly feel that we have great allies at (Canadian) Heritage because the success of the fund is demonstrable and, from a cultural perspective, it’s delivering the goods. I think the finance minister has a job on his hands if he wants to consider a longer term commitment. He needs to know what the economic impact is, and that’s precisely why we commissioned this study – to really get at those hard numbers," says Ellis. According to the report, the CTF contributes over $200 million annually towards independent Canadian television production, every dollar of which raises an additional $2 in private and public sources. Combined, they create over $600 million in production activity annually, with over 16,000 direct and indirect jobs. Independent production, according to the report, is the largest contributor of programming, representing just under $2 billion of the $4.4 billion industry. Canadian television producers rely on the CTF and licence fees for over 60 per cent of their total financing, the report finds. Without that money, say the authors, the predominant financing model in this country would "collapse" and producers would be forced to cement even larger foreign presales. That, says the report, would mean greater foreign control over the creative elements of their productions – counter to the cultural objectives of the fund. In fact, the report indicates, an additional $485 million in foreign financing – double the current level – would have to be found just to maintain the status quo of independent Canadian TV production. Given the challenges Canadian producers would face trying to raise off-shore money, the report’s authors conclude that eliminating the CTF could result in a decline of 32 percent to 40 per cent, with a corresponding loss of $456 to $578 million, in independent Canadian TV production. That translates to a loss of 12,000-15,300 direct and indirect jobs. "Doubling the level of foreign sources that the independent Canadian TV production companies could obtain in one year is unlikely – access to key markets (i.e. U.S., U.K., France, Germany) are already well penetrated by Canadian producers and these markets will not grow dramatically due to the elimination of the CTF...," according to the report. Ellis concurs that the report presents an all-or-nothing view of a post-CTF environment, but that politicians need to be educated about the role of the CTF in creating independent Canadian television. "We don’t want to rest on our laurels... We know we have a lot of supporters in Cabinet and amongst the Liberal caucus, but that’s not universal and we just want to make sure we’ve covered all the bases so people can see what the realities are."

Report warns that 15,000 production jobs would be lost if CTF isn’t renewed

Broadcast | September 13, 2001

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