Evidence of meeting #33 for Canadian Heritage in the 39th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was fund.
A recording is available from Parliament.
Liberal
Andy Scott Liberal Fredericton, NB
I have, very quickly, one question.
I still don't understand, given the structural tension that probably has been long-standing, what has happened. Could it be that the industry felt that the government was not as committed to this as perhaps it had been in the past, and that they could make this play at this time and be successful?
Chair of the Board, Canadian Television Fund
I don't think it's appropriate for me to speculate on the timing or why. The support we've had from the federal government over the years has been steady, and the minister's announcement, from our perspective, was timely. In fact, it's very much appreciated because in some previous years we've had to wait until the budget. We've been on tenterhooks waiting until the budget period, so we do appreciate very much the early announcement, and we very much appreciate the two years. This is a big difference for us because we've been on a year-to-year basis.
From our perspective, we see no change or diminution in the support of the government for the fund. This is business as usual for us, and we would now go to the negotiation stage of the contract and sign in the ordinary course.
Conservative
Bloc
Maka Kotto Bloc Saint-Lambert, QC
Could you tell us more about the repercussions of Shaw and Videotron withdrawing their contributions to the fund, in terms of the number of projects that risk being put on ice in Quebec and in Canada?
Member of the Board of Directors, Canadian Television Fund
Perhaps I could refer you to the financial section. There we mention that for the year 2007-2008, the total shortfall could be as much as $72.6 million, which equals a loss of production on the order of $246 million in total for both the French and English markets. That is very substantial. That represents a reduction of 27% of the Canadian television production for 2007-2008.
Bloc
Member of the Board of Directors, Canadian Television Fund
Yes, it is a very serious crisis.
Chair of the Board, Canadian Television Fund
And the loss, for the French market, of one-third of that amount.
Conservative
The Chair Conservative Gary Schellenberger
I'll go to Mr. Fast, and then I'm going to go to Mr. Angus.
Conservative
Ed Fast Conservative Abbotsford, BC
Thank you, Mr. Chair.
I'm always concerned when I hear alarmist remarks made. We heard some reference to those from Mr. Angus, on the fact that the industry has declared that the fund is dead. To me, Mr. Angus implied that he was in fact adopting that line of reasoning. To paraphrase Mark Twain, my feeling is that the rumours of the death of this fund are greatly exaggerated. I think you would agree with me that there are ongoing discussions with Shaw and Vidéotron.
You've had an opportunity to meet with the minister. Has the minister indicated at all that the fund is broken and beyond repair?
Conservative
Ed Fast Conservative Abbotsford, BC
Has anyone on the Conservative side of this table suggested to you that the fund is broken?
Conservative
Ed Fast Conservative Abbotsford, BC
So these suggestions are simply coming from the two main industry players that had stated what I, at least, believe to be merely bluster that the program is dead.
Conservative
The Chair Conservative Gary Schellenberger
You have one very short one, because then I have to get to Mr. Angus.
Conservative
Ed Fast Conservative Abbotsford, BC
Are you confident that with the $200-million commitment over the next two years, our government is committed to continuing that fund? Is that correct?
Chair of the Board, Canadian Television Fund
Yes. We have an operational crisis. We have a fund. The question is whether we will be able to do the job we've been asked to do at the level we've been asked to do it, but we have a fund and we're going to do our job.
By the way, the twenty people on our board of directors are the most senior, experienced, and skilled people that this country has to offer across the spectrum in the broadcasting, production, and cable industry. Our independent directors are substantial individuals, and we are a team. We know our job, we intend to do our job, and we won't be swayed from it, but we do have a resources crisis for sure.
Conservative
Charlie Angus NDP Timmins—James Bay, ON
Thank you, Mr. Chair.
Again, I'm trying to get a full picture of the nature of this operational crisis, as you call it. The fact is that your two main contributors have publicly stated, after meeting the minister, that their understanding from that meeting is that this fund is now dead. Are they refusing to pay their monthly contributions? Will they pay their contributions for this year? Are they saying they're going to step out completely at the end of the year? What exactly is the nature of their financial position with the fund right now?
President, Canadian Television Fund
They have stopped monthly contribution payments as of the date of the letters that were issued by both individual BDUs. They are currently not making monthly contributions. We don't know what they will do in the fall. As the chair has said, the regulations require them to pay in the fall after the broadcast year. Right now we have an immediate deficit problem. We have those contributions in the budget, but the impact on next year's budget and the industry will be severe. We can't go forward as an agency and strike a budget with revenue that is uncertain and speculative. That's the crisis we're facing.
Conservative
The Chair Conservative Gary Schellenberger
Thank you very much.
Thank you for your answers today and thank you for coming before us. I'm sorry we don't have more time, because I'm sure there are a few more questions around the table.
Again, all the best, and let's look positively towards the future.
Thank you.
We'll pause for five minutes.
Conservative
The Chair Conservative Gary Schellenberger
Let's get back to business.
Welcome to the second half of our meeting today.
I'd like to welcome the CFTPA and the APFTQ. My French vocabulary isn't very good, so we went to the acronyms instead of the full name. But I do welcome both of our new delegations here today.
I'd ask that you keep your presentations short. We have only until 11 o'clock. Whoever wants to proceed, please go ahead.