The film and television industry in Quebec is looking at a tough year of change in 1996/97 following last year’s record investment in production.

The apftq, the Quebec producers association, is starting a new round of collective agreements with virtually all the professional and craft associations while the tv production industry is casting a wary eye on the proposed CFCF Inc. takeover of Tele-Metropole.

For the moment, tv production appears stable, but there seems to be a consensus the state of French-language feature production is reaching the critical point, and well-placed sources in the business say its future is at real risk.

In response, producers and distributors in Quebec have established a committee to examine the issue.

Louise Baillargeon, president and director general of the apftq, says there has to be an annual minimum critical mass of all kinds of French-language feature films.

‘What’s important is increasing the Feature Film Fund or finding financing alternatives for features, but not to the detriment of television,’ says Baillargeon.

One potential source of additional feature funding is broadcasters, virtually absent as investors.

As for the always contentious issue of content analysis and whose film gets made, the producers want Telefilm Canada’s decisional role reduced, presumably in favor of market forces, producers and distributors.

Louis Laverdiere, Telefilm’s Quebec operations director, says the agency has ‘no alternative’ but to assume a role in content analysis.

‘We have to read these screenplays, we have a duty to read them in order to evaluate their potential, even if we sometimes make mistakes.’ The alternative, he says, is ‘to set up a jury of people from the milieu, and that will create other problems.’

Cinemaginaire president Denise Robert, producer of Robert Lepage’s Le Confessionnal, says government must carry through on its stated long-term goal of creating an internationally competitive film and television production industry.

Robert says the Canadian feature film industry is making inroads in major markets, and ‘you cannot pull the plug at a time when people are looking to us as serious filmmakers, as good producers. We are now being asked to work with some of the top people in the world.’

Robert says ‘serious money’ from the international audiovisual market is at hand but the future is being jeopardized. ‘Our partnerships with the Europeans are very important, but we won’t be able to find partners with only $7 million (in the Feature Film Fund) except for small countries. We will not be considered as serious.’

Allegro Films president Tom Berry says the danger for Telefilm is standing in the middle, neither being just an investment bank nor assuming responsibility for the success or failure of feature slates.

He says it’s essential any criticism of the agency be constructive, but the name of the Telefilm executive active during development should be known and that person should assume a role throughout the production cycle.

‘Telefilm should probably exercise even more authority, but at the same time take more responsibility for the success or failure (of films it backs). They should live or die by it.’

Reducing the agency’s role to an investment bank is a dangerous course, he says. ‘Does the industry really need another automatic fund?’

If the agency was not active in content decisions, its raison d’etre would be seriously undermined, says Berry. ‘Occasionally it has to hold up a gem like Le Declin (The Decline of the American Empire). Maybe half the films are immediately forgettable, but there should be one or two memorable movies each year.’

Demand high

In feature films, Laverdiere’s office has received some 50 requests for funding representing about $35 million. The grim reality is that there is only $7.5 million available for French-language features this year.

Demands on the agency are high, as is the frustration level of a growing number of filmmakers whose projects are being turned down, says Laverdiere.

1995/96 Telefilm-funded Quebec features include Gabriel Pelletier’s Karmina, $3.2 million; George Mihalka’s L’Homme Ideal, $3.3 million; Richard Roy’s Caboose, $2.7 million; Gilles Carle’s Pudding Chomeur, $2.6 million; Roger Cantin’s La Vengeance de la femme en noir, $3.4 million; Pierre Gang’s Le Sous-sol, $2 million; and Robert Lepage’s Le Polygraphe, $3.8 million. Caboose and Le Polygraphe were coproductions.

Max Films’ Cosmos and Cinemaginaire’s Le Seige de l’ame from director Olivier Asselin are also considered as ’95/96 productions as are certain minority coproductions including features from cfp and Cinemaginaire.

Other changes also have to be worked out.

Feature film coproductions with the nfb have come to a halt, with the possible exception of first-time efforts, and Laverdiere says features coproduced with France have been ‘greatly unbalanced’ in Quebec’s favor. He says French partners are demanding a redress.

Laverdiere says the Quebec and French markets are so different in terms of size and funding sources for features that the entire coproduction relationship with France should be re-evaluated.

Not only is the market 10 times greater in France, broadcasters like Canal+ play a major role in feature funding. Here, broadcasters contribute as little as 3% to feature film budgets, he says.

CFCF/Videotron swap

Perhaps the biggest issue facing the industry is cfcf’s takeover of Tele-Metropole.

Says Baillargeon: ‘What’s sure is that for us it is very important to maintain the two television networks.’ She says producers would support the takeover on two conditions: that both networks remain in operation and that both make a massive commitment to independent production.

Television Quatre Saisons’ sked is already pretty much entirely made up of indie-produced shows, but support for the takeover would require an increase in the current buying level at Tele-Metropole, Baillargeon maintains.

‘We met with tqs and we’ve asked them to give us their purchase submission before it’s deposited with the crtc. We haven’t received it yet, but we understand the legal situation they are in.’

Baillargeon says the apftq has written two letters to Culture Minister Sheila Copps asking for a meeting, especially in light of the last federal budget.

‘What especially disappointed us was that in the throne speech the government said it is important to safeguard the industry’s health and its desire to support the industry and Telefilm Canada over the long term. And several days later in the budget they did the opposite. So we’re asking questions, even if the budget has an asterisk saying that there’s a possibility Telefilm’s budget might be reviewed. That’s the reason we’d like to meet with Mrs. Copps.’

In its letter to the minister, the apftq underlined the fact that a $1 million investment by Telefilm generates $3.5 million in production, 50% of which goes directly to pay salaries.

Baillargeon adds the association is pleased with the recent decision by Finance Minister Paul Martin to calculate the federal tax credit in a manner which does not double ‘penalize’ producers who receive the Quebec tax credit.

Baillargeon says it is essential the entire creative and production community get behind the export potential of French-language productions. She says the droits de suite (foreign royalties) has to be paid as a percentage of a program’s gross export revenues.

‘Foreign markets are developed, built over time. Maybe at the beginning those sales will be less, but over the years, as long as the foreign public becomes familiar with our productions, this will grow,’ she says.

At the moment, she says exports are being hampered because royalty payments to artists are based on a percentage of the production fee.

It seems the apftq is backing the reorganization plan for the nfb, mainly because of the board’s stated intention to reduce permanent staff and produce only animation, documentaries, first-time features and dramatic works in coproduction with the private sector.

‘We’ve always maintained that the private sector should be supported, and for us, the closing of the laboratory does that,’ says Baillargeon.

Laverdiere says $17 million was injected into French-language production in the 14-month 1995/96 period by the Cable Production Fund.

‘The fund’s first-come, first-served policy is posing a real problem this year because everybody wants their decision letter by April 1. That’s an irritant and it would be helpful if we could find a solution,’ he says.

The point being, says Laverdiere, broadcasters aren’t necessarily fully decided by April 1. ‘As a result, we have to proceed very, very quickly. ‘

He says the cpf’s top-up application (12.25) meant most broadcasters paid the strict minimum licence fee, 22.75% of the budget, while the cpf’s minimum 15% licence fee had a positive impact on raising fees for documentaries.

Laverdiere says the federal tax credit was worth $6 million to $7 million to French-language Quebec productions in ’95/96.

The injection of new funds ($23 million from the federal tax credit and cpf) triggered additional acquisition spending by broadcasters and from other sources. For example, the ‘automatic’ sodec-administered tax credit program was worth $51 million in ’95/96, up from $38 million a year earlier.

sodec certified $286 million in Quebec production in ’95/96.

Adding in location shoots and filmed commercials, the apftq estimates indie production in Quebec was between $370 million and $400 million last year.

Less in ’96

But funds will be tighter this year.

Telefilm faces a 17% cut worth $18.5 million in ’96/97, and even if efforts are made to safeguard the main production funds, executive director Francois Macerola says the cutback could lead to as much as a $62 million reduction in high Cancon production.

Furthermore, this year’s 12-month cycle will see a reduction in the cpf’s French-track allocation to $13 million, with even less money available to indie producers as a result of an anticipated increase in demand (up to a maximum of one-third) from broadcast affiliate producers.

And although Telefilm intends to pay attention to the Juneau Report’s call for ‘cultural’ production, the agency has no choice but to do what it can to maximize its recoupment level.

TV production

In tv, last year’s five major drama series and three or four miniseries represented an unprecedented level of production, says Laverdiere.

The 1996/97 drama series production lineup includes sda’s Omerta 2, Prisma’s Urgence 2, Telefiction’s 10-07 (#2) and Sovimage’s Lobby.

Cumulative budgets for these productions are in the $30 million range.

Upcoming (’95/96) tv series currently in production include the Neofilms/Modus tv drama Ces Enfants d’ailleurs, coproduced with Poland, and Cite-Amerique’s conquest drama saga Marguerite Volant. One or two other miniseries are waiting for confirmations.

According to sda president Francois Champagne, ‘quality pays’ and broadcasters do good business with ‘heavy drama’ series like Omerta, which draws two million on Radio-Canada.

However, like many others, sda is also exploring international financing and coproduction options for its new tv movies and upcoming documentary series. Champagne says too many producers are making excessive demands on limited public funds, while the cpf is being capped at $1 million for serial production this year.

‘In children’s programming the situation is becoming catastrophic,’ he says.

Increasingly, Montreal-based feature film producers see the world as their market.

The export potential for films, other than genre films produced without international stars, has largely vanished.

Filmline International producer Nicolas Clermont says opportunities in the world market are immense.

‘For commercial projects, projects with marquee value, there is growing acceptance. Therefore there is access to more revenues. And frankly, the Royal Bank of Canada is becoming a very important partner,’ says Clermont.

Adds Monique Mallette, an executive with Transfilm: ‘With one or two stars you can sell your film outside of Canada.’

Major shoots underway include the $22 million Allegro Films action thriller Jackal.

New production companies such as Shostak/Rossner, Industry Entertainment and Blackwatch Films also plan to shoot features and mows here in ’96.