Canadian Heritage Committee on May 24th, 2007

[The Chair, Conservative, Gary Schellenberger]

Welcome this morning to the 62nd meeting of the Standing Committee on Canadian Heritage, here in St. John's, Newfoundland.

Orders of the day: pursuant to Standing Order 108(2), a full investigation of the roll of a public broadcaster in the 21st century.

This morning we welcome Paul Pope, from the Newfoundland Independent Filmmakers Cooperative, and from the Film Producers Association of Newfoundland, Lynne Wilson.

Mr. Pope, you're first on the list, so would you make your presentation, please?

[Paul Pope, Vice-President, Newfoundland Independent Filmmakers Cooperative]

I would like to start by thanking the standing committee for coming to St. John's, Newfoundland. It's always great to see you here. It's been ten years since my last confession. I had the opportunity to speak to the standing committee at the other hotel back in 1997, and I believe at that time we were talking about the CBC. I'd like to start by saying we're still able to talk about the CBC.

For 32 years, the Newfoundland Independent Filmmakers Cooperative, NIFCO, a not-for-profit film, video, and television production, professional development, and editing facility, has been a leading light of Newfoundland and Labrador's social economy. NIFCO's mandate is to provide training, infrastructure, and support for entry-level and advanced film and television professionals. For over 30 years, the organization has enjoyed a critical partnership with the CBC in nurturing talent, training, and cultivating awareness and pride in our culture. With the support of the CBC, NIFCO has an impressive history of adaptability and growth in an ever-changing international, knowledge-based discipline. As a result, NIFCO is a nationally admired centre of cultural excellence. The organization has been an essential entryway and professional development provider for the local production community.

NIFCO's achievements are many, including the following: the establishment of introduction-to-filmmaking and introduction-to-editing classes, and film and television produced through these programs, and the creation of the first-time filmmaker program.

NIFCO has also been an essential skills-enhancement provider for the film industry through the following: workshops, job placements, and technologies that enable smaller-budget films to be made. Furthermore, NIFCO has been crucial in the growth, development, and success of our cultural community by providing technical staff support for film festivals, screenings, and exhibitions; by giving other artists from other disciplines access to the media of film and video, including dance music, theatre, visual arts, and writing; and by offering space and technology to filmmakers for meetings, auditions, research, computer use, and so on.

NIFCO's vision and practices are key reasons for its success and longevity. Through the years, three philosophical pillars of management have governed the organization. These are, firstly, to provide access in Newfoundland and Labrador to the technological equipment required to make big-budget, market-driven film and television. Secondly, NIFCO is a focal point for creation and innovation. NIFCO encourages and provides a milieu for artistic and entrepreneurial excellence in the creation of film, video, and television in Newfoundland and Labrador. Thirdly, NIFCO works very hard to develop the film and television community overall, and, in the process, develop the industry and this province.

NIFCO is the heart and soul of the Newfoundland film community, and the CBC has been a valuable partner since our formation in 1975. Our positive relationship continues to this day.

The management of all healthy organizations is the management of change. I don't think anyone's going to stand here and say we can return to the two-channel universe of the eighties. When I think about the bright future for NIFCO and the CBC, I cannot help but think about the great accomplishments that lead us to where we are today. While I say that we can't go back in time and be a two-channel universe, I think we can look back and see what worked in that period, and perhaps apply it to our current events.

I'll tell a little tiny story. In 1975, NIFCO played a critical role in the production of some really funny films by a young comedy troupe called CODCO for use in their stage performances, sort of an early multimedia experience. The popularity of the film work with the local audiences helped inspire the local CBC to include comedy in their popular TV show, The Wonderful Grand Band, which was produced by the CBC in Newfoundland at the time. This in turn led to the production of the hit national TV series, CODCO, in the eighties, which eventually led to This Hour Has 22 Minutes, and eventually the successful Rick Mercer Report.

I put forward that there are three basic reasons a huge audience exists for the Rick Mercer Report. Firstly, in 1975, independent filmmakers crawled through the woods with a hand-held camera and a windup camera, inspired to film funny people. Secondly, there were enlightened producers at the CBC in Newfoundland who realized the material would resonate with Canadian audiences. Thirdly, Rick Mercer is really funny.

So we put forward from this example that it is important for government to provide the CBC with sufficient resources so they can strengthen their commitment to regional production and diversity. Newfoundland and Labrador is a region of Canada that is geographically, and in many ways culturally, cut off from the rest of the country. The CBC is the common thread, the cultural link that connects us to Quebec, Ontario, and all the way to B.C. We believe the CBC plays a vital role in promoting and preserving the identity of Canada, and it should be given the money and support needed to do the job properly.

Thank you.

[The Chair, Conservative, Gary Schellenberger]

Thank you for that.

Do you have a presentation, Ms. Wilson?

[Lynne Wilson, President, Film Producers Association of Newfoundland]

Sure. I'm representing the Film Producers Association of Newfoundland, PAN, as we call it.

PAN was formed in 1989 to develop the resources necessary to support film and television producers in this province. We advocate to various levels of government and to industry partners, and we provide support for our members in marketing, export development, and professional development. Many of our PAN members are also members of the CFTPA, and PAN as a group supports the paper submitted to this committee by the CFTPA. We believe it represents the vision of independent producers from a national perspective very well. We have also submitted a paper, but I won't go through that whole document. I just want to focus today on some regional issues we have here in Newfoundland.

We believe that the role for the CBC in the 21st century is to continue to provide high-quality, distinctive Canadian programming that would not otherwise find a broadcast outlet. The CBC must continue to be different from commercial private broadcasters. In the current broadcasting environment within Canada, the CBC is often forced to compete with private broadcasters. While CBC's mandate may be to offer high-quality, distinctive Canadian programming, gaining the largest audience share is increasingly becoming the benchmark by which decisions are being made. In this drive for an increased market share, programming becomes homogenized, and the first casualty is always regionally distinctive and reflective offerings.

[Diane Bourgeois, Bloc, Terrebonne—Blainville, QC]

This is a text that the interpreters do not have a summary of. If she would be so kind, perhaps she could be of assistance to us.

[The Chair, Conservative, Gary Schellenberger]

Just slow down.

[Paul Pope]

She already did.

[Lynne Wilson]

I'm a Newfoundlander, I can't slow down.

[The Chair, Conservative, Gary Schellenberger]

Our translators are going to have to make three translations.

[Lynne Wilson]

Sorry about that.

We feel that while the current mandate is vital and its implementation critical, we are concerned about the lack of specifics in regard to both the prioritizing of CBC's various programming objectives and direct mention of specific genres of programming activity. When coupled with the increasing CBC trend of using audience share of benchmarks as a primary driver, this lack of specifics leaves the mandate open to varying and often contradictory interpretation, particularly in relation to how they are then translated to CBC's actual programming decision-making. We therefore support the CFTPA's position that there be regular mandate reviews to ensure that Canada's public broadcaster remains relevant to Canadians as the broadcasting and communications environment changes.

Our nation has rejected the melting pot philosophy of social integration and identity-building in favour of the virtues of multiculturalism. This philosophy is a cornerstone of our society and must be nurtured and expressed by the nation's public broadcaster. The operational mandate of the CBC must be informed by all the voices, cultures, regions, stories, and people that inhabit and define the Canadian landscape. Therefore, in its goal to reflect Canadians to Canadians and to the world, CBC should, and must, embrace diverse programming in all genres produced in all regions of Canada.

Historically, CBC has played an integral role in the development and promotion of our regional production content across the country. The developmental nature of regional and local content from concept onwards requires that regional support from the CBC be an entrenched and a longer-term commitment. For example, the path from CODCO to This Hour Has 22 Minutes charts not only the course of CBC's historical commitment to regional programming, but also demonstrates how said commitment can translate into programming that fulfils the mandate to reflect the regions, while being allowed to build a sizeable national following.

While we appreciate that in the intervening years the nature of the production environment nationally has changed and that CBC has adapted its regional support and the manner in which it is delivered contextually, recent programming developments seriously call into question the broadcaster's regional presence in Newfoundland and Labrador. In the last 18 months we have seen a significant programming and philosophical shift at CBC towards a drive for a more homogenized populist programming. This has particularly manifested itself in the CBC's moving away from movie of the week and mini-series formats towards series with which the CBC feels it can compete more directly with private broadcasters and U.S. offerings.

This decision has impacted the regions significantly and has led to a significant reduction in regional content on the CBC. There has been no major CBC drama project in the Atlantic region for the past 18 month. With the exception of CBC's mainstay This Hour Has 22 Minutes, there is currently no major CBC series centred in or reflecting Atlantic Canada. This programming shift has seen the region take a hit in overall production activity and has in many ways effectively silenced this region's voice within the CBC programming schedule.

On the national level, the CFTPA estimates that this shift in CBC programming philosophy has reduced overall regional Canadian content to 80%, down from 90% in 2000-2001.

In terms of further negative programming regional impact, the current environment for documentary producers in Newfoundland and Labrador seems equally bleak. While the majority of our annual Newfoundland production value may traditionally have been in television big-budget drama, a majority of our local filmmakers are themselves documentary producers, with documentary production being a major ongoing foundation of our industry.

Nationally, broadcast space for documentaries on Canadian airwaves has always been at a premium. With the CBC's recent move towards more lifestyle-oriented fare and the reduction in documentary strength on CBC and Newsworld, the corporation has not demonstrated a strong commitment to independently produced television documentary programming.

Shelf space and funding for documentaries is slipping dramatically at the CBC, which is negatively impacting what has traditionally been a mainstay for regional content on the national broadcaster.

As stated, historically, through a variety of initiatives and programs, CBC has played a key role in the development of regional content for both a local and a national audience in recent years. This commitment has been most readily evident in CBC's relationship with Newfoundland independent producers, who have produced a variety of significant programming for the national broadcaster, Random Passage, Above and Beyond, Hatching, Matching, & Dispatching, and so on.

The Broadcasting Act states that the Canadian broadcasting system must include a significant contribution from the Canadian independent production sector. Given CBC television's role and mandate as the most important outlet for Canadian television programs, and because independent producers create programs in drama, comedy, and documentary genres, the relationship between the independent producers and CBC Television is, as the CFTPA suggested, symbiotic.

The Canadian independent production community is a strong supporter of CBC television, and as stated, this is even more so in our region. We rely on the CBC as the main outlet for our regional production, our stories, and our content to make it to a national audience. In return, it is that very content that has historically built audiences for, and helped fulfill the mandate of, the CBC.

In light of this symbiotic relationship and the recent negative regional programming trends, it is imperative that CBC both review its regional mandate and renew its relationship with independent producers in Newfoundland and Labrador, one of the real and vibrant parts of Canada referred to in the Broadcasting Act.

Specifically, this includes issues such as a commitment and a need for local and regional programming in all genres, and an examination of CBC's program development fund--formerly the TransCanada Development Fund--for development and pilots from the regions. Over the past 12 months, despite commitments to the contrary, the administration of this fund has been problematic and has resulted in less than positive results in the Newfoundland production community and in demonstrable commitments to regional activity. It is our opinion that this development fund is inadequate and falls short of what is really needed to seriously develop programming from the regions.

Another issue is the need for more local and regional airtime for independent regional productions to be seen--prime-time windows, not just fringe periods.

Also needed is a re-examination of the current programming philosophy and how the move away from movies of the week and mini-series has negatively impacted production from all regions outside central Canada.

Another issue is the need for re-examination of the role of documentary programming on both the main CBC network and CBC Newsworld, as well as a clearly defined operational philosophy for CBC's programming of The Documentary Channel, in view of documentaries' significant historical and regional content development roles and the current declining state of documentary presence within CBC.

Needed overall is a renewed and reinvigorated financial commitment from the Government of Canada to the CBC. In recent years reduced public funding, cost increases, increased competition, and audience fragmentation have forced CBC television to become more and more reliant on commercial revenues to continue to fulfill its broad mandate. This inevitably forces it to compromise on some aspects of its important public service mandate; regional content and regionally distinctive programming are usually first on the chopping block.

The Film Producers Association of Newfoundland believes that the CBC is an essential component of the Canadian broadcasting system. The success and viability of Canadian independent producers and productions, particularly within the regions outside central Canada, are in numerous ways directly reliant upon a strong and vibrant national public broadcaster that showcases almost 100% Canadian content on multiple platforms.

Historically, while CBC television has done a relatively good job of fulfilling its mandate, specifically the regional component, in the face of considerable financial and competitive challenges, recent years have seen an almost continual bleed-off of service, commitment, and tangible presence in Newfoundland and Labrador. Exacerbated by recent changes in programming philosophy, the relationship between CBC and the independent producers in our region has reached a stage that cannot be characterized as anything less than critical.

Nationally, this trend has been reflected in other regions outside of central Canada, and the overall homogenizing and centralizing effect this is having threatens the very goals, mandates, objectives, and foundations upon which the CBC brand and its rich history have been built.

The Newfoundland and Labrador independent production community highly values its relationship with the CBC and remains a committed and valuable partner in the realization of the goals and objectives of our national broadcaster. However, this must be tempered by the current context, which calls for an immediate review, renewal, and reinvigoration of the role that the CBC plays in bringing Canadians to Canadians, and in turn, to the world.

[The Chair, Conservative, Gary Schellenberger]

Thank you for that.

For our first question, we'll go to Mr. Simms.

[Scott Simms, Liberal, Bonavista—Gander—Grand Falls—Windsor, NL]

Thank you, Mr. Chair. Indeed it is an honour.

Ms. Wilson and Mr. Pope, thank you so very much for those great submissions.

I want to start by asking you, Mr. Pope, about your experiences with Above & Beyond—which, I might add, was a fantastic production. Given the fact that this is all going on the public record and I'm sure the executives of the CBC are probably reading what I'm saying, I would just like to put a plug in. I think Above & Beyond should be a continual series. I think it's a good idea.

Before you comment on that, I'd also like you to comment on your experience as a independent in getting Above & Beyond onto the airwaves of the CBC and what you would like to see the CBC change in the process of getting your production on the air.

[Paul Pope]

I have to quote an unnamed producer by starting off by saying “It's a miracle that any television show ever gets made.” So under no circumstance, anywhere in the planet, is it simple.

The process was relatively straightforward. It started as a pitch package that we put in front of three networks, two years before production, and the CBC was the first to come at it. Then we worked through the system and it made it on the air. It really was quite straightforward except for the natural torture that one will experience in making a television show anyway, regardless of what network you're working for.

I think the CBC is very clear today in terms of what they want. Perhaps there are producers who are hearing stuff they don't want to hear, and it is certainly a challenge. We are in the process now of closing a deal with the CBC to do a movie, set in Newfoundland, and it's still going on, but it's clear from statements they've made that they're interested in television series. This a programming choice, and one has to respect that they are programmers. We are producers. There is a reality that once you establish two or three one-hour series, then the amount of time available for mini-series and movies of the week will be diminished. The movies of the week and the mini-series do lend themselves as a production model to smaller companies because of the capital required to produce it. You're making only two or four hours of television. When you start coupling it with the provincial investment funds and with the size of the pool they are, they are a nice fit. Also, there can be eight or twelve movies and mini-series per year.

From my own perspective, I'm hopeful that the movies of the week and the mini-series will continue, but that's programming choice. I'm also actively trying to come up with a one-hour series. And by the way, I did pitch them Above & Beyond as a one-hour series, where we settle in 1942 and stay there for the whole time, just after the Americans arrive.

Thank you for the kind words. It was a pleasure to shoot in your district.

[Scott Simms, Liberal, Bonavista—Gander—Grand Falls—Windsor, NL]

It was a pleasure to have you, too. On behalf of all businesses and many kids who got involved, it was a chance of a lifetime.

In your submission, you talk about the CBC's TransCanada Development Fund. I want you to comment on that and the difficulties you may be having with that, as illustrated here. But also—I brought this up last night when we were talking about infrastructure and talent—boy, it must be quite a challenge to keep the talent here in this particular small corner of the world, given the fact that, as I mentioned yesterday, if we had to wait around for a feature film like The Shipping News to come in, that only happens once in a very long time. So the CBC becomes a cornerstone of keeping infrastructure and talent here.

You just mentioned, Paul, a movie staged here, I think it was. Did I get that right? I know there's one in Corner Brook. I mentioned that last night.

[Paul Pope]

Right, and there's equipment here. In terms of infrastructure, the industry itself, through NIFCO, through the studio co-op.... I mean, Newfoundland is an island, and there's nothing we can do about that except deal with it. Stuff that has to be brought in will always increase the cost and make us less competitive. So in terms of the three pillars--production equipment, post-production facilities, and crew infrastructure--I think we've been working quite strongly in that direction. Of course, as with everyone, you still have to have an ultimate buyer.

I'll ask Lynne to speak on the TransCanada Development Fund.

[Lynne Wilson]

On the former TransCanada Development Fund, which is now the Program Development Fund, we met with the local CBC the other day, because we've been finding over the past year that there's been kind of a disconnect between local producers and CBC locally and nationally in terms of how this fund is set up, how we can access it, and how they can use that money to help us develop new shows. They clarified a lot for us the other day, but one of the alarming things we found out was that they've only allocated $65,000 to Newfoundland to develop new shows. It's laughable. According to them, we've never had any more than that. But the industry is growing, and there are changes to the CTF--development has become even more important in the regions. How are we to develop shows that are going to catch the interest of the national CBC if we only have $65,000 a year to throw at writers and researchers? It's just not enough.

[The Chair, Conservative, Gary Schellenberger]

I'll give you another round, but I'm going to try to keep this a little shorter than our rounds yesterday.

I'm going to move to Ms. Bourgeois, please.

[Diane Bourgeois, Bloc, Terrebonne—Blainville, QC]

Thank you, Mr. Chairman.

Good morning to our witnesses.

Mr. Pope, you were saying earlier during your presentation that the CBC was a beacon in the social economy. I took note of that. Could you explain to me what you mean by that?

[Paul Pope]

I said that NIFCO was a beacon in the social economy because largely it functions as a non-profit facilitator or aggregator of opportunity. It provides access to a normally restrictive environment because of rental costs or equipment acquisition or access to personnel. So it's empowering people to create micro-businesses called film and television that employ a lot of people, which is the economy side, but with a social conscience. They're still making work that's about their place and their people.

I'll give you an example. If you look at the last year for which numbers are available, which would be two years ago, there was somewhere in the area of $26 million worth of independent production in Newfoundland and Labrador. It was all instigated by small companies like Lynne's and mine. Our numbers show that approximately 60% of that was for labour, and approximately 55% of that was spent directly in Newfoundland and Labrador. So it works out to be approximately $8 million or $10 million worth of labour paid straight into the cultural workforce economy.

When we did a sub-analysis of where that crossed over, it was impressive, because the film and television industry put more money into writers' pockets than the publishing industry. The film and television industry put more money into actors' pockets than the theatre industry, and it put more money into technicians' pockets. The only sector that beat us was music. The music industry put more money into the musicians' pockets than we did by hiring them for film.

So when somebody decides they have to make a film or television project that's important to them and important to the community, that's the social aspect of it. The economic aspect of it is that we can aggregate that activity to provide them with resources, trigger other money, team them up with the CBC and broadcasters, and get it out to the audience, and at the same time we create economic activity in a positive way that is non-polluting, labour-intensive, and export-oriented.

[Diane Bourgeois, Bloc, Terrebonne—Blainville, QC]

Thank you.

If I understood correctly, the CBC is already fulfilling part of its mandate as an economic leader in Canada. The fact that it is developing the artistic economy in general seems to make you very happy.

[Paul Pope]

The CBC is a leader and should be a leader and will be a leader because it has the shelf space available. As producers, there's no point in our making a television show unless people are going to get to see it, and if we look at where the shelf space is in the country, the prime time shelf space sits on the CBC. While the private channels, CTV and Global, are important—and we encourage them to do as much Canadian programming as possible, and both networks are committed to doing so—they still have a mandate to shareholders that requires a heavy reliance on simulcasting and a prime time schedule that's not Canadian. So the CBC is critically important in terms of getting the message out, but also of providing the place for the shows to be purchased to put on, in that its prime time is nearly entirely Canadian.

[Diane Bourgeois, Bloc, Terrebonne—Blainville, QC]

Ms. Wilson, on her part, seems to be flashing a warning light. She stated that there is currently some discord between the CBC and the independent producers, and that the situation is very serious. She also talks about a change in philosophy.

Did I understand you correctly, Ms. Wilson?

[Paul Pope]

Could I just jump in first?

They are not mutually exclusive. I am taking a big-picture, 30-year look at the CBC, as a discussion of its importance and what to learn from moving forward. I will agree with Lynne—I think I'm consistent with this statement—that in the short term there are things happening that are throwing out some of the good stuff from the past that we need to look at; hence the story I told of the regional production and the development.

[Lynne Wilson]

I agree with that. Over the years we have gone from being the producers of CODCO, This Hour Has 22 Minutes, Random Passage,Above & Beyond, and in this past 12-month period, all of a sudden our development dollars are $65,000 for the year for our region, and we've had 18 months of no major regional production happening.

Historically the CBC has been really important to our region. It still is, but it seems as if, with the cuts, we're getting hit first. The regions are getting hit first.

[The Chair, Conservative, Gary Schellenberger]

Thank you for that. We're going to move on. You'll have another opportunity.

Mr. Angus.