CBC’s budget took two hits in one week, suffering its second $10-million budgetary cut in two years on Nov. 4 when the federal government tabled its estimates for 2004, and is now facing another $46-million cut, suggested by Minister of Canadian Heritage Liza Frulla a few days later, that could hit the network on April 1, 2005.

CBC spokesperson Jason MacDonald says the corporation knew of the $10-million hit and was able to plan to absorb it. However, he notes that it comes at a time of rising production costs, increasing healthcare costs, stepped-up contributions to the CBC Pension Plan, and lowered advertising revenues from the loss of Hockey Night in Canada so far this season. He suggests that the cut will also negatively impact independent production.

‘We were prepared for the possibilities of the cut,’ says MacDonald. ‘But with no stable multiyear funding, it impacts our ability to plan.’

He says there will be long-term ripples from the $10-million cut, which is permanent and drops CBC’s annual budget to about $919.4 million.

A four-year internal review recently generated $65 million in annual savings and $102 million in one-time savings. In a letter to employees, CBC said: ‘Faced with this latest cut, we must continue to seek efficiencies because the fact remains that our Parliamentary appropriation – in constant [2004] dollars and including the $60 million in additional funding – is still $415 million less today than it was in 1990.’

Like other federal departments, including Telefilm Canada and the National Film Board, CBC is also being asked to trim another 5%, or roughly $46 million (see story, p. 2).

Catherine Gagnaire, media relations officer at the Department of Canadian Heritage, says CBC will be asked to make a proposal of possible cuts by year-end that cabinet will consider prior to the next budget starting April 1.

‘It’s just an exercise,’ says Gagnaire. ‘We don’t know if, how or when it will happen. Everyone has to do the same thing.’

‘We have nothing left to cut,’ says MacDonald, adding that the CBC has not supplied a list of possible programs or services that might be sacrificed to the 5% cut. ‘We prefer them [government] to tell us how much we have to cut and we will have to make those difficult decisions ourselves. We’ll wait and see what happens.’

A 5% cut could lead to cuts to programs, services and jobs among CBC’s 7,460 permanent employees, says MacDonald.

-www.cbc.ca