Budget ignores CTF, industry requests for tax credit increases, but is good to CBC

The budget had some promising elements for the cultural community, but fell short of what is needed, according to industry players. The industry was disappointed that the budget made no mention of the Canadian Television Fund (CTF), despite repeated pleas for a long-term, stable commitment to the fund from the federal government. Last year, the CTF was renewed for two years, which means that the government’s annual portion of $100 million is in place for TV and film production until March 2006. But many complain that there’s no certainty after that. "Where are the commitments to the Canadian Television Fund that we had hoped for?" asked Stephen Waddell, national executive director of the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA) of the budget unveiled February 24 by the minority Liberal government. "There’s some belief that we may see some mention in the general estimates, which will be coming out in a couple of weeks. We certainly hope so, because at the end of this year the money runs out. If there’s no renewal, we’re into a huge crisis again. So we definitely need to have some quick indication from the government that there’s going to be continued funding for the CTF." "We’ve seen the budget and, in fact, we’re still wondering what it includes for the (private) broadcasting side," said Pierre Pontbriand, VP of communications at the CAB. "We didn’t see anything about the CTF." The unions are also disappointed that the federal government ignored their lobbying for increased tax credits. The industry was looking for an increase in Canadian tax credits for homegrown productions to increase to 30% from the current rate of 20%. On the foreign tax credit side, it was pushing for an increase to as much as 20% from 11%. "The provinces – Ontario, B.C., and Quebec – have recently raised their provincial tax credits to between 18% and 20%. We were looking for at least an increase to 16% to 18%, and that hasn’t happened as a result of the budget, unfortunately," noted Waddell. "The Standing Committee on Finance about two months ago came out with recommendations on the budget. The recommendations that dealt with our sector said that the budget should increase funding to the CBC, should provide sustained funding for the CTF, and should increase the tax credits available…The government picked up on the CBC, but not the other two critical issues." The Directors Guild of Canada (DGC) also criticized the budget for failing to deliver long-term funding to the CTF, and for not enhancing the rate of the Canadian Film or Video Production Tax Credit (CPTC), which supports Canadian productions. "A moderate increase to the CPTC would have given the industry a great shot in the arm at a critical moment," noted DGC national director and CEO Pamela Brand. The government, however, was praised by the industry for its five-year commitment to Canadian Heritage’s Tomorrow Starts Today program, and for pumping an additional $60 million into the CBC’s coffers in 2005-06. The federal government topped up the CBC’s budget with a one-time contribution of $60 million last year as well. CBC executive VP of English TV Richard Stursberg on February 14 lobbied the government for $84 million in additional funding so that the public broadcaster could resurrect the local newscasts, which were chopped from one hour to a half hour, and other regional programming that was cancelled in 2000 because it lacked sufficient funding. The Tomorrow Starts Today program was allocated $688 million over four years. The initiative is a federal funding program that was inaugurated in 2001 to invest in new media production and expanding markets for Canadian film and TV overseas. Telecom sector under review The budget also announced that the government would appoint a panel of eminent Canadians to review Canada’s telecommunications policy and regulatory framework – which received mixed reaction. The panel would report to the minister of Industry Canada with recommendations before year end on "how to move Canada to a modern telecommunications framework in a manner that benefits Canadian industry and consumers." The unions see this as a threat as they predict it will lead to another push for the liberalization of foreign ownership rules. "From what we see in the Speech from the Throne, we believe that the panel will be looking at the issue of foreign ownership. They are using euphemisms like ‘modernize,’ which to me mean foreign ownership restrictions," said Waddell. He added that he had spoken to senior policy members of Industry minister David Emerson’s office and was told that the loosening of foreign ownership restrictions on the telecommunications side was definitely on the table. But Waddell warns that if they are changed on the telecom side, they likely will be on the broadcast side as well because many companies operate in both businesses. The Canadian Cable Television Association (CCTA) sees potential, however, in the telecommunications review, and urged the government to ensure that it examines fundamental changes resulting from convergence in all sectors of the Canadian communications industry. "A narrow telecom review will result in less competition, uneven regulation, and a retreat from Canada’s aggressive rollout of innovative broadband services," said CCTA president Michael Hennessy in a media release. Budget documents also noted that, "The government will table amendments to the Telecommunications Act to provide the CRTC with direct fining authority. This measure should provide the CRTC with the flexibility to regulate in a more strategic manner. That focuses on results."

Budget ignores CTF, industry requests for tax credit increases, but is good to CBC

News | 02/25/2005 5:00 am EST

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