The Cinar imbroglio is having a trickle-down effect on other Canadian animation houses, say some members of the industry.

Diane Craig at Ottawa’s Dynomight Cartoons says it’s going to make her life tougher.

‘It’s hurt everything, the amount of paperwork we’re going to have to go through to determine that we are not cheating – we’re going to have to go through affidavits. People are getting really jaded, banks are getting more suspicious and post-production companies that generally would have come in on projects are now saying, ‘No. We’re too nervous. Go to the bank.”

Adam Shaheen at Cuppa Coffee Animation in Toronto says the scandal has ‘troubled me to no end. I think it has tarred the industry in general.’

Shaheen, who does the majority of his work in the States, claims the global reputation of the Canadian animation industry has been tarnished.

‘It’s incredible how many conversations with new business acquaintances start with ‘You’re not affiliated with you know who, are you?’ It’s a bit of a joke – but it’s all over the u.s. Somehow we’re lumped in with the, sort of, naughty boy in the class.’

Cuppa’s president continues: ‘People still talk about Cinar, about doing business with them. But I think it’s outrageous and actually quite disturbing.’

At Nelvana, co-ceo Patrick Loubert is more reserved with his comments. However, he admits, ‘I’m sure there will be a tightening of the rules. And I think when something like this happens, it’s a natural phenomenon. Everybody’s pretty much aware of the rules and the intent of those rules, and I guess it’s everybody’s job to stay within those.’

Cinar’s Cassandra Schafhausen, executive vp, creative affairs, says she understands the smaller companies’ anger.

‘I think it’s human nature to hit the big guys when they’re down. I don’t know what the upshot will be, but the bottom line is, as a production company, we have produced terrific product. And I think you can’t fault us there.’