Montreal: A new CFTPA report on the impact of the Canadian Television Fund projects near-total devastation of the high-content Canadian production sector if the $245-million annual fund were eliminated.

The 104-page update report, ‘Assessment of the Economic Impact of the Canadian Television Fund 2002,’ prepared by PwC Consulting, says CAVCO production, the largest component of the independent Canadian production sector, would decline by between 26% and 31% if the CTF were eliminated, wiping out an estimated $520 million to $622 million in annual independent Canadian production, and between 13,700 and 16,500 direct and indirect jobs. The report estimates $456 million in foreign financing would be required to maintain current production levels generated by the CTF. Overall, the loss in distinctly Canadian programming would be in the order of 2,100 to 2,500 hours a year.

And while CTF renewal has been year to year, with a current expiration date of March 31, 2003, the industry says stable, multiyear funding is also essential.

Canadian Heritage Minister Sheila Copps will make the case for multiyear CTF funding to Cabinet in the 2003/04 round of budgetary appropriations. New CTF guidelines are expected by late November or early December, possibly before.

CFTPA EVP Guy Mayson says predictability is a decisive business factor for broadcasters planning schedules and for producers who need to do corporate development planning.

Unlike the year-to-year CTF allocations, the actual production process is multiyear, and typically includes an extended development period followed by an intense production and post-production period, says Mayson.

And while CTF decisions can’t be predicted, ‘as least one wants to know that the financing environment will be stable for the production process, a two- or three-year period.’

Mayson says the industry also needs more stable or predictable CTF selection criteria.

‘Each year we’ve been seeing significant changes in selection criteria and it makes for a situation where the industry is continually off balance. Ideally we want to see a more predictable environment for broadcasters and producers, and frankly the CTF board and staff. And to do that you need a multiyear approach.’

The demand for CTF funding continues to greatly exceed available resources. In 2000/01, only 58% of the Licence Fee Program and 57% of Equity Investment Program applications were accepted. This is not expected to have changed in 2002/03.

In 2001/02, pay and specialty TV services accounted for 47% of the broadcaster licence fees contributed to CTF-supported projects, an increase from 18% of licence fees in 1997/98.

In respect to program genres, CTF-funded production represents a significant portion of production in each of the major genre categories: 37% of children’s, 66% of documentary, 32% of drama, and 32% of performing arts and variety.

CTF contribution by province in 2001/02 is as follows: Alberta, $15.2 million; B.C., $27.6 million; Manitoba, $4 million; New Brunswick, $3.6 million; Newfoundland and Labrador, $350,000; Nova Scotia, $16.9 million; Ontario (regional), $11.3 million; Ontario (Toronto), $62 million; Prince Edward Island, $1.8 million; Quebec (regional), $3.6 million; Quebec (Montreal), $90.5 million; Saskatchewan, $4.2 million; and the Northwest Territories, $150,000.

The CTF’s budget was approximately $245 million in 2001/02, of which $241.4 million was disbursed through the LFP, administered by the CTF, and the EIP, administered by Telefilm Canada. CTF funding sources included: cable, $67.4 million; DTH, $32.5 million; Canadian Heritage, $100 million; and Telefilm, $45 million.

-www.cftpa.ca