Canadian Heritage Committee on May 6th, 2010

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

I would correct one thing. I never considered what I did there to be local radio; I would call it community radio.

When I started, though, it was more of a university thing. I got experience. My degree was in something entirely different from broadcasting, but I ended up getting a career in broadcasting because of that station. A lot of us did. I'm from the same station as...well, a whole bunch of broadcasters. I won't get into that, but it launched a lot of careers.

What was transitioning with this station was that it was becoming a station for community involvement, and more people from the community came in. Right now, this particular station that I mention is doing a community concert every year, which is very popular, called “Stereophonic”.

The whole point of it is this. You make some valid points, I think, about copyright, but it really comes down to the fact that you need that revenue. A lot of stations are in that position where they always relied solely upon the university, but now you're becoming much more than that. You seem to be filling a niche.

I like the examples you brought about how you're getting involved in digital media, but it's expensive to do.

For just a short answer, what are some of the best ways you've seen thus far to actually create revenue by what you do?

[Shelley Robinson]

To create revenue? It depends on the station. For campus stations, a major chunk of their funding is often by student levy—CHMA, for instance. This means that the students give so much out of their tuition towards it.

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

Yes, I understand that, but let's go beyond that now and see what in the community is available for them. Are they buying into this?

[Shelley Robinson]

Yes. We have funding drives. CHUO, here in town, had a funding drive, and they are almost at $40,000. CKCU, also in town, raised $108,000. CJSW, in Calgary, raised $200,000 from their community in 10 days—just people calling and saying, “Yes, I'll give you money.”

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

Okay, but I guess the biggest thing is that as you enter the digital age and you try to be as relevant in light of satellite radio and things like that, you really need a lot of your cost structures reduced. In other words, you need to put yourself in a different category than what standard commercial broadcasting is through satellite or other local radio. Would it be fair to say that?

[Shelley Robinson]

I'm not sure I totally understand your point. We need to be in a different category...?

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

In other words, you have to be put into an exemption status in certain areas.

[Shelley Robinson]

Oh, yes, that's true.

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

All right. Thank you.

You say:

Telefilm, along with our departmental and industry colleagues are working to align the existing international coproduction certification guidelines with current global realities.

I'm a fan of a lot of co-productions, particularly when it comes to the ones filmed in my area, which would be Newfoundland and Labrador. We've had a few successful ones. I'm also a fan of a current co-production television show, The Tudors. But I don't wait to see it on the television broadcaster on a certain night when it's considered a broadcast. I'm an e-caster. It shows up in my inbox the next day.

In regard to the certification process for co-productions, how involved are you in this, in distributing this material? If a producer or creator is worried only about a good story, it must be hard for him or her to grasp what digital realities are out there.

There are two questions in there. I apologize. The first one would be about the certification process; the second part is, how hands-on are you about distributing the material of a particular creator that you're involved with?

[Carolle Brabant]

At Telefilm, we are administering the certification process for the Department of Canadian Heritage. That's our involvement in the certification process. We're responsible for the guidelines, and we're responsible for recommending the decisions to the Department of Canadian Heritage on the co-production.

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

Tell me about a typical roadblock in the certification process.

[Carolle Brabant]

I will pass the microphone to Dave for that.

[Dave Forget, Director, Contracts and Certification, Telefilm Canada]

Essentially the 53 or so bilateral treaties that Canada has with other jurisdictions call for a certain balance between the creative contribution in front of and behind the camera and the financial contributions from the participants, and those can include third-party financing as well.

Essentially we're going back to the treaties and administering the guidelines to ensure eligibility vis-à-vis projects complying with those balances. So we're looking for a partnership between our Canadian producer and our international producer that respects the specifics of the treaty, depending on the country we're dealing with, vis-à-vis the balance between the financial contributions of both sides. For example, there are minimum contributions. To give a short answer to your question, in the U.K.-Canada treaty, the minimum would be 20%. So if the Canadian contribution were less than 20%, it would be offside. There's a balance between the financial and talent--call them contributions--on both sides, and that's essentially what we're looking at. That has to do with the key positions creatively. That has to do with the financing structure, and it has to do with making sure there's a genuine collaboration in partnership. The notion is that the partners combine to bring more to the project, whether that be more financing, more creative talent, or any of those things.

[The Chair, Conservative, Gary Schellenberger]

Thank you.

We've gone a little over time here. Mr. Simms always does that to me. He asks a big question right at the end.

Mr. Pomerleau, go ahead, please.

[Roger Pomerleau, Bloc, Drummond, QC]

Thank you, Mr. Chair.

Thank you all for coming and making your presentation today.

I would like to make a comment intended for you, Ms. Robinson. I share your love for community radio, I have community radio in my riding as do nearly all my colleagues here. I can see that these are hardworking people. They often learn a trade. They serve a clientele that cannot be served otherwise and they are always pulling their hair out when it comes to money. I am convinced that we need to deal with this issue. I am very sympathetic to the idea of providing all the stations in Canada with annual funding, but I am not the one making the decision.

However, when it comes to royalties, I really liked the example that my colleague gave when she talked about cutting off your own oxygen supply. Here, we must stick with the assumption that, that if we do not allow our creative people to make a living, if we cut off their source of revenue, which is not very big—most of them are more or less in the same situation as you are—they will all die. Unfortunately, this is not an option; we are going to have to come up with another solution, but I do not know what it is. That being said, I agree with you—we have to do something.

I have a question for Ms. Brabant or Mr. Forget.

Many groups have come here to discuss the problems they have in obtaining funding for their activities. I would like to hear your opinion and your suggestions on the subject. That is my only question.

[Carolle Brabant]

We have an environment that provides many opportunities. We have a very active industry. We have producers who are active entrepreneurs who have brought this industry to the point where it is now. So, right now—our colleagues from the CFTPA may have provided you with the exact number—a large number of producers in Canada engaged in significant activities. I am not surprised to hear you say that these people have come here to make their case that they do not have enough funding.

I would like to make one comment. At Telefilm, we are very pleased that, in the latest budget, the government has kept funding for organizations that work in the cultural sector, including Telefilm in particular. This is a very important issue for us.

As the Executive Director of Telefilm, I have a duty to ensure that I administer these funds as efficiently and effectively as possible. The key, in my opinion—and this is part of my priorities—is to try to find partners in order to do more with what we have, to be a better financial lever in order to seek out international partners, in particular, and national partners as well.

In fact, Telefilm is very active internationally in order to try and increase the number of co-productions. We have specific activities in the television market, for example, where we match Canadian producers with international ones in order to encourage new co-productions.

We always have ways to measure our involvement. Last year, every dollar invested internationally in the MIP market yielded $13 in sales internationally. I think that this really is one way to have better financial leverage.

[Roger Pomerleau, Bloc, Drummond, QC]

Thank you.

[The Chair, Conservative, Gary Schellenberger]

Last question, Mr. Wallace.

If you can you keep your questions short and concise, that would be great.

[Mike Wallace, Conservative, Burlington, ON]

I will be very quick because I know you're out of time. Thank you, Mr. Chair.

I'm not normally part of this committee. I'm filling in today. I'm normally on the industry and finance committees, and at the industry committee we're talking currently about opening up the telecom business to allow for foreign investment and so on, and there are some issues about culture and copyright and those kinds of things. There will be a copyright bill coming, I'm assuming to the industry committee, but it might be coming in conjunction with this committee. I'm not sure.

Can you just tell me now, as a not-for-profit radio station, how is copyright handled under the present system?

[Shelley Robinson]

Our stations pay SOCAN fees.

[Mike Wallace, Conservative, Burlington, ON]

Is that the full amount?

[Shelley Robinson]

I'm fairly confident that we have a reduced rate, but I would have to check.

[Mike Wallace, Conservative, Burlington, ON]

You don't know for sure? You know it's a reduced rate--

[Shelley Robinson]

This is my first week as executive director.

[Mike Wallace, Conservative, Burlington, ON]

Congratulations on your new job.