Media Centre > Columns > June 2003

TELEVISION PROGRAM FINANCING - A FIX NOW, FOR THE LONG-TERM

By: Glenn O'Farrell, President and CEO, Canadian Association of Broadcasters

This year's unexpected federal cut to the CTF, coupled with the increase in the tax credit for foreign production clearly showed our industry three important realities. First, that the Government of Canada does not fully understand how different pools of money are stacked together to create the television shows Canadians watch. Second, that the economic contribution of our sector to the Canadian economy is also not understood or, I dare say, appreciated. Third, that government's contribution to indigenous Canadian programming has to be reactive to the change in market dynamics namely the market fragmentation that the multi-channel universe created.

While the federal government's latest budget praised the cultural sector for its contribution to Canada and the CRTC has called for more "Canadian voices in Canadian spaces" there is a disconnect between these objectives and the operational realities of making Canadian shows.

Canadian programming has been caught in the middle of a struggle between two political wills: the will to ensure Canadian voices in Canadian spaces, and the ability to fund them. The broadcast, distribution and production industries cannot realistically thrive in an environment where, year after year, its stability and viability are threatened. The uncertainty and doubt faced on an annual basis by the industry about funding availability is detrimental to the creation of a successful national television programming system that includes successful dramatic series, documentaries and children's programming.

The government has ordered a variety of reports on Canadian programming that will all recommend some strategies to ensure the "health care" of Canadian programming. But these reports only address some parts of a complex puzzle. There is a need for a comprehensive financing strategy to produce uniquely Canadian programming. A "band-aid" solution is not adequate here.

As a first step in bridging the gap, funding should be restored to the CTF to the $100 million level. The second is a strategy that the CAB has been calling for since its appearance before the Standing Committee on Canadian Heritage in March 2002. A broadcast industry Task Force, with participants from the Departments of Finance and Canadian Heritage, needs to be established. This Task Force would urgently look at current support mechanisms (the CTF, Telefilm, tax credits/shelters, etc.) and see the development of a long-term, multi-year funding strategy that provides stability and predictability to the broadcast industry. This Task Force has a small window of opportunity to find a long-term solution between June 2003, when the various reports are released and November, when the new Prime Minister is chosen.

The broadcast sector needs to operate within a framework of public policies that are flexible, market-driven and responsive to opportunities and challenges within the broadcasting system. Without a strategic approach, the problem of financing successful productions, faced most recently by our cousins in the Canadian film industry, will only persist and perhaps worsen.

The industry has shown its willingness to work with the Government on this issue. A cooperative solution is essential; insuring long life to indigenous Canadian programming is in everyone's interest. It's what's right for Canadians and for Canadian television.