The new federal budget was kind to the arts – earmarking more than $800 million for the five-year cultural program Tomorrow Starts Today – but made only passing mention of the film and TV industries, leaving many stakeholders unsure what to make of Ottawa’s plan for 2005/06.

The budget, tabled by Finance Minister Ralph Goodale on Feb. 23, spared federal agencies from a 5% budget cut, suggested last year by Heritage Minister Liza Frulla, and handed CBC its usual $60 million top-up to ‘help ensure that Canada’s stories… find their way into Canadian homes.’

But the 400-page document was silent on tax breaks for producers and on the Canadian Television Fund, which is due to expire in 2006.

CBC has received the same $60 million every year for the past four years, a mixed blessing, according to spokesperson Jason MacDonald, noting that the net needs stable funding to develop quality shows. The $60 million is ‘great in the short term, but what about next year or the year after that?’ he says. ‘Multi-year stable funding is key.’

There was no mention of the $80 million sought by CBC boss Richard Stursberg for increased regional and dramatic programming, a proposal still under consideration by Frulla and the Heritage committee. Stursberg called for the boost at parliamentary hearings last month, but a decision is not expected until next year’s budget at the earliest.

The budget quashed a faint hope that the feds would extend their current commitment to the CTF, putting off additional calls by lobbyists and producers for stable year-to-year funding.

Ottawa’s $100-million per year contribution is set to run out next year – putting CTF’s future back to its usual state of uncertainty.

‘We’re very anxious about the lack of mention of film tax credits and the Canadian Television Fund,’ says ACTRA national executive director Stephen Waddell. ‘The Liberal government is making it near impossible for Canadians to see their own stories on their TVs.’

Pamela Brand, CEO of the Directors Guild of Canada, also notes that even a modest hike to the federal tax break, ‘would have given the industry a great shot in the arm.’

Goodale is also calling for changes to the Telecommunications Act that would give the CRTC authority to fine broadcasters – an apparent response to last year’s debacle at Quebec radio station CHOI – and for an across-the-board review of telecommunications policies aimed at increasing Canadian competitiveness.

ACTRA is worried the review could lead to a loosening of foreign ownership restrictions, and is already warning Ottawa against opening ‘a Pandora’s box to fix the system.’

-www.fin.gc.ca/budtoce/2005/budliste.htm