Canadian Heritage Committee on June 3rd, 2010

[Jon Feltheimer]

The enterprise value is probably about $1.25 billion.

[Brian Masse, NDP, Windsor West, ON]

There are changes happening to the legislation right now. The threshold is being increased, and there are two clauses. The current threshold is around $300 million, and it's going to go up to $600 million eventually. I think it's important to talk about those numbers, because Canadians need to realize that this is really what's at stake here.

The other clauses regarding security—that would be the review—are automatically triggered by the Minister of Industry, not by Heritage.

Once again, there have to be elements that show the net benefit to Canada. So your coming to the Hill and doing this actually is helpful, because Canadians don't need to be confused about the fact that there's going to be a corporate raider or a hostile takeover or whatever, and that there's no role at all for this democracy to be involved in this discussion. The rules need to be clear there.

You haven't really detailed your future in terms of Canada. I think it would help. You've talked about an extensive library platform that you have.

Is there any guarantee or commitment to look at expanding the production in Canada through Telefilm or some other type of distribution or production element? I think that would help: the assurance that Lionsgate has a business plan for Canada that includes Canadians. I think that's what you're missing here today: our understanding where your company is steering towards and what role it will play. That's why I asked about production values in Canada versus the United States and so forth.

If you don't have that here today, I guess my advice is that you say, and what I'm hoping to hear is, something about what the next step is for Lionsgate and Maple in Canada, to be able to understand it.

[Jon Feltheimer]

Without spending too much of the committee's time, we certainly would have no problem following up with a compendium of all the Canadian talent that we are in business with. You would find it very extensive.

I've tried to put this in buckets for you, in a sense. I've talked about what we are currently producing in Quebec and our partnership with SGF. I talked about a recent production in Vancouver. You mentioned--I forgot, but thank you for reminding me--that Saw VII, which we're shooting in 3D, is actually shooting right now in Toronto. On a production scale of television and film, we just keep doing it. I haven't picked a number, partly because in television you mostly have to have shows ordered by networks in order to commit to a production, so there is a variable that one really can't put a finger on.

In terms of our ongoing commitment, I would also say that in connection with the expansion of Maple Pictures as opposed to the contraction of Maple Pictures, I perhaps inelegantly have not explained the connection between the financing of movies in Quebec and English Canada with their distribution. We are involved very often not with just finished films but with providing a piece of financing through our distribution apparatus at Maple Pictures to support the actual production of those films. Without a strong distribution partner, those films would not get made. It is a very extensive list. I can certainly supply that list for this committee. I'd be happy to do it.

I mentioned as well being involved with Paul Haggis from the theatrical point of view and also in developing television with him. If you're looking for a number, it would be very difficult to give to you, other than to say that $800 million is something you might want to focus on.

[Brian Masse, NDP, Windsor West, ON]

You've outlined a series of things here in your submission. It's a little bit clustered, but the interesting thing to conclude with, and what I think is really stark in this, is that Mr. Icahn has been able to change the discussion. At this committee hearing, a lot of what's been taking place was Lionsgate having to defend its Canadian footprint versus his having to explain the net benefit to Canada. That is an interesting pattern of behaviour out there, and today we've again spent a lot of time discussing what somebody else's agenda really is.

[Jon Feltheimer]

Yes. Thank you for noticing that.

[The Chair, Conservative, Gary Schellenberger]

Thank you for that.

I thank our witnesses very much for your presentation and for your candid answers today. Thanks for the good questions from my committee.

The meeting is adjourned.