Controversy stormed across the industry this month when a secret deal was revealed between Telefilm Canada and Creative Artists Agency to find stories and absentee Canadian talent for domestic movies. Telefilm exec director Richard Stursberg outlined the plan to the Hollywood mega-agent in a private memo leaked to the press.

‘The relationship with CAA will not be announced publicly until all these arrangements have been put in place,’ writes Stursberg. ‘In the interim, please keep the contents of this letter confidential.’

Critics blasted the idea of sending taxpayer dollars to Hollywood.

‘[Telefilm’s] secret deal is a slap in the face for the talented performers, writers and directors who have chosen to stay and work in their own country,’ says Stephen Waddell, ACTRA’s national executive director. ‘It’s completely insulting to Canada’s professional creative community – not to mention Canadian taxpayers.’

Adds Waddell: ‘We need to make films that Canadian audiences will pay to see – films that tell unique, interesting Canadian stories, written by Canadians, directed by Canadians, and starring Canadian performers.’

Stursberg was not available for comment by press time, but defended the move in a statement, insisting that the deal ‘complies fully with Canadian content rules’ and will ‘expand the pool of distinctively Canadian stories with broad appeal for audiences.’

‘Contrary to ACTRA’s fears, this initiative will create exciting new job opportunities for Canadian residents,’ he added.

At least one Canadian producer also thinks the plan has merit. ‘I can’t imagine anyone is outraged by this,’ says Wendy Hill-Tout of Calgary-based Voice Pictures, which is in post-production with the Chevy Chase-starring, $11-million feature Goose. ‘It’s ridiculous and narrow-minded. Features are internationally financed. We already send money to the U.K. and to Germany through coproductions. The last concern anyone should have is a packaging fee.’

Producers like Hill-Tout aren’t concerned that Telefilm’s CAA deal will threaten the Canadian-ness of Telefilm’s future projects or undermine Canadian employment.

‘It’s a good idea to have star-cast films,’ says Hill-Tout. ‘I personally don’t need CAA to package films, but it’s an option for a producer who wants to use it.

Blue Eden, Hill-Tout’s new $30-million Trilogy Entertainment coproduction about a boy raised by dolphins, is not a candidate for a packaging deal, she adds, but doesn’t rule out the option for other projects.

While packaging fees can vary depending on the deal, a packaging fee might cost a producer’s budget in the neighborhood of 3% of the value of the agency’s actors’ contracts, not including other back-end bonuses based on profits and distribution.

-www.telefilm.gc.ca