Montreal: Heritage Minister Liza Frulla left many in Montreal’s film community scratching their heads on Nov. 9, after her first major speech addressing issues surrounding the national film and TV business. Frulla praised Canada’s creativity while also confirming that three national film and TV funding bodies, Telefilm Canada, the CBC and the National Film Board, had been asked to look for ways to trim 5% of their overall budgets.

Frulla delivered her mixed message at a benefit luncheon for the Academy of Canadian Cinema and Television at a downtown hotel. Much of her speech was worded in vague generalities, arguing that ‘creative people must be at the heart of our efforts,’ and that ‘our broadcasting system is noted for its diversity, and we must make use of it.’

When asked about the cuts in a post-luncheon scrum, Frulla argued the cuts were not actually a done deal. The NFB, CBC and Telefilm had been asked to see if 5% cuts were feasible, she said, and to submit their plans about the possibility of such cuts. Frulla and her press secretary Donald Boulanger argued that the cuts were not actually cuts but rather ‘reallocations,’ allowing the government to use that money for healthcare and other priorities.

Despite some comic relief from Quebec actor Patrick Huard, who approached the microphone after Frulla’s speech for a brief stand-up routine, members of Montreal’s film community appeared to be in no mood for laughter. Attendees expressed serious unhappiness about the idea that a government reporting healthy fiscal surpluses would cut cultural organizations that are still reeling from decades of slicing and chopping.

‘There is no doubt, five percent cuts will have an effect on the industry,’ says Celine Pelletier, director of communications for the Quebec producers association (APFTQ). ‘We are quite surprised that the federal government, reporting a budget surplus of $9 billion-plus, would suggest more cuts to culture. It should be the reverse, especially in our industry.’

Pelletier argues that no cuts at all would still constitute a real cut for the industry. ‘Costs are rising, there is inflation. That means that things are getting more expensive for people in the business, not less. This will affect the CBC and NFB as well, and that in turn has an effect on our members.’

Laurie Jones, director of communications for the NFB, says any new cuts will be ‘difficult’ for the Crown corporation. ‘The NFB was severely cut in 1996, a cut that was 30 percent of our budget. We haven’t had any new programs or new injections since. We have another budget cut of $500,000 this year, that is permanent. We are cash strapped, and where additional cuts will take place is difficult to figure out.’

If there was any good news in terms of firm commitments to arts funding, it was that the Canadian Television Fund will not be affected by the cut. The government remains on board for $100 million for the next two years. But Telefilm also pays in the CTF, so it’s unclear if its annual contribution will be altered.

‘The NFB is working to incubate new talent,’ says Jones. ‘It’s difficult to look at new ways of doing this. We are already stretched. If the government stops investing in cultural capital, Canada will suffer economically in the long run.’