cuts on

the way

Ottawa is sharpening its ax again, and Telefilm Canada and the National Film Board are among those targeted for a shave.

The federal government is asking all federal agencies to participate in an ‘exercise’ to assess internal operations and determine how best to handle cumulative cuts of 5% to 8% over the next four years.

The news was delivered to the agencies two weeks ago and they have until the end of the month to hand in their recommendations to the appropriate ministries. Consultations will begin in October and the final word will be delivered with the next federal budget in February. Changes will be implemented starting in April of 1995.

The government’s priorities are service to the public and deficit reduction. Wherever programs overlap or are not effective, cuts are suggested.

For Telefilm, the best-case scenario – a 5% cut – would mean a drop in parliamentary allocations of approximately $34 million, from $122.3 million next fiscal year to $88.3 million in 1998/99.

Peter Katadotis, Telefilm interim head, sees the cuts as having potentially ‘severe effects on the Canadian film and television industry’ and promises that ‘every effort will be made to minimize or even avoid such effects.’

nfb chair Joan Pennefather says the situation is still being assessed, but whatever reductions are in store for the board will have to be tacked on to the existing four-year, $6.3 million cut handed down last February.

Kevin DeWalt, chair of the Canadian Film and Television Production Association, warns this latest round of cuts ‘would have major ramifications in terms of the growth of our industry. The fact that our industry has grown over the last few years has been a direct result of federal programs that have triggered production. Parts of the country and of the industry that have not had the advantage of support over the last 25 years may be the most vulnerable.

‘There has to be some consultation (with the industry) as to what the intentions of the government are because we are in business,’ DeWalt stresses. ‘Long-term planning is as important to us as funding.’

Which areas of Telefilm and the nfb are the most vulnerable remains a question mark. However, there is speculation that Telefilm’s Feature Film Fund could be trimmed (based on low theatrical numbers), and that with documentary production by the private sector on the increase, the nfb’s role as a documentary producer could come under scrutiny.

Canadian Heritage Minister Marcel Dupuy could not be reached for comment.