Project freeze at OMDC results in “fear, uncertainty and doubt”: NMBA

Uncertainty surrounding the Ontario Media Development Corp.’s (OMDC) budget has led to a program freeze at the agency that has put several important industry initiatives on hold, says one provincial industry leader. Ian Kelso, head of the New Media Business Alliance (NMBA) tells Canadian NEW MEDIA that a roster of programs proposed by the group, including a much-needed Toronto conference, well-received networking events, and an industry research initiative are on hold or uncertain pending Ontario Ministry of Culture budget announcements with respect to the OMDC. In the absence of any indication from the ministry of how it intends to fund the OMDC’s programs, Kelso says the Toronto rumour mill is predicting dangerous budget cuts to the agencies, and credits the silence for the creation of "uncertainty, doubt and fear" in the minds of producers. In a June issue of its newsletter, Kelso wrote to NMBA members that, "With gathering positive momentum at the federal level, I have become very concerned with the situation here at home in Ontario. (The OMDC), the provincial agency that oversees business development opportunities for the cultural industries and that has been a vital partner to NMBA and to the industry, is about to be massively cut. Though there have been no official announcements to date, the OMDC has been forced into a holding pattern since early spring as it reached the end of its mandate and awaited the report from a review by the Ministry of Culture. Now it seems certain that the axe will fall and their annual budget will be reduced by $2 million (20%). What does this mean for our industry? It certainly can’t mean anything good. I will keep you apprised as more information becomes available." Kelso has since spoken with a ministry official who says budget cuts may not be as bad as rumoured. It’s likely, however, that no one really knows what the future might hold for the agency since a sunset review of the OMDC conducted at the end of its mandate last March has yet to table a report. Without that report, it’s likely premature to predict the size of a potential cut, if one is, in fact, in the works. In the meantime, several potential events and initiatives are on hold. The popular iLunch series of networking luncheons, scheduled to be re-launched this fall, is on hold, as is a report on the size and makeup of the Ontario new media sector. Each are NMBA initiatives. Also frozen is potential OMDC support for a Canadian new media conference tentatively planned for next winter (CNM, June 10/05). Kelso expresses frustration with the uncertainty. "(OMDC has) certainly shown much enthusiasm for being involved in those things. We’re designing those programs to fit well with their...economic development priorities in new media. But, I haven’t got a firm commitment yet. But, it looks like they’ll be on board for our research project, which is something we’ve been talking with them about for six months. But, aside from that, where they definitely would have been playing a role, we’re kind of playing wait-and-see." While there appear to be quiet moves by the OMDC and by ministry staff to quell fears that a massive cut may be in the works, Kelso nonetheless worries that even when program funds are released, there may be too little time left in the current fiscal year to spend them wisely. OMDC operates on a fiscal year basis in which funds must be spent during that period – of which the time remaining in this one is melting away. "From our point of view, we just need something. The time is ticking, and we need some kind of word on how the OMDC can proceed so we don’t get into a situation where, they’ve only got three to four months to spend the money and it becomes total madnesss...They may sort of get their budget figures in the fall and have to disperse them all within a short period of time and have them all spent by March 31." OMDC CEO Michel Frappier tells CNM that the ministry-led review will likely be completed by this fall, but that it will be just a matter of days before the agency decides on how it will allocate available funding. He says he is more optimistic than Kelso about the financial position of the OMDC since the agency will draw upon what he calls reserve funds to top up what he concedes is a lower budget for this fiscal year. Program announcements, he notes, could begin flowing within just a couple of weeks.

Project freeze at OMDC results in “fear, uncertainty and doubt”: NMBA

Broadcast | July 20, 2005

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