In the last issue of Playback, I suggested that Telefilm’s mandate of creating a system whereby Canadian films account for 5% of the domestic box office by 2006 was unrealistic.

Those thoughts were put to paper in Playback’s annual Toronto International Film Festival issue. It occurred to me as I was reviewing my notes that some of our American guests visiting the festival who may come across a copy of Playback might be surprised to read that Canadian films are having difficulty achieving such a modest goal.

It also occurred to me that this was a point worth expanding upon (since this issue will also be making the rounds during TIFF), particularly in light of growing calls out of the U.S. to stem so-called runaway production. It is an issue that both California Governor Arnold Schwarzenegger and Democratic presidential candidate Senator John Kerry have put on the political agenda.

But here’s the thing. Last year, Canadians spent $947 million at the box office in this country. Of that, only 3.8% was spent watching Canadian features. Most of the rest – over $900 million – was spent on U.S. films. That figure is roughly equal to the value of foreign location feature film shooting that came to Canada from the U.S.

It’s a stat worth pointing out to actor Ben Affleck and anyone else made ‘sick’ by the reality that American producers occasionally find value in shooting north of the 49th parallel. Affleck, who shot The Sum of All Fears and Paycheck in Canada in recent years, spoke disparagingly of runaway production to reporters at the Democratic National Convention in August.

While all the necessary figures are not yet available for 2003, according to data compiled by the Canadian Film and Television Production Association, in 2002, the total value of foreign feature films shot in Canada was $842 million. According to data compiled by exhibition monitoring agency, The Lightning Group, Canadians spent $956 million at the box office in 2002. That represented about 10% of the North American box office. Meanwhile, Canadian broadcasters spent about $500 million on acquiring U.S. programs, which completely dominate the primetime schedule in this country. That same year, $1 billion worth of foreign TV production came to Canada.

By my count, it’s pretty much a wash. The Canadian public pours close to $1.5 billion into U.S. studio and network coffers while virtually ignoring productions developed in its own backyard and $1.9 billion in U.S. shoots come north and help stimulate an entire cultural sector. No big deal. Less so when you consider that much of the spending on U.S. productions goes to salaries of American talent and, in many cases, crew that come north.

Why Canadian production – specifically English Canadian – is so overshadowed by that of the U.S. is an incredibly complex problem. But some of the factors are related to a common culture and language with the U.S., chronic funding shortages and an unceasing southward flow of the nation’s best writers, directors and actors.

The bottom line, however, is that Hollywood has for years been enjoying the advantages of an uncompetitive Canadian domestic production industry to the tune of a billion-plus dollars a year.

But no one should be complaining. That accounts for an awful lot of jobs on both sides of the border.