Banff, AB: Heritage Minister Liza Frulla gave industry stakeholders what many had hoped for when she kicked off the Banff World Television Festival by announcing an overhaul of the governance and administration of Canadian TV funding, although details remain sketchy.

The changes will see the Canadian Television Fund’s board take on all responsibility for governance, while Telefilm Canada will administer the fund, in what Frulla describes as a ‘contractual relationship’ with the CTF.

In a late afternoon speech to delegates prior to the official opening of the festival June 12, the minister also announced a one-year renewal of the federal government’s $100-million contribution to the CTF for fiscal 2006/07. Also addressed was the need for the CRTC to review its 1999 Television Policy, as well as the matter of a dedicated envelope devoted to the CBC.

The CTF announcement provided an upbeat start to what many are saying is a renewed and revitalized Banff, following a sluggish 2004 edition. Last year’s Banff festival was overshadowed by bankruptcy proceedings and sparse attendance. Organizers were hopeful that this year’s fest would mark a turnaround, and early reactions were encouraging. (Playback went to press on day two.)

Under the new TV funding system, Telefilm will be solely responsible for the administration of the fund through a contract with the CTF’s board of directors. The board will be made up of representatives from Heritage, Telefilm, producers, broadcasters, BDUs and talent.

‘Clarity and accountability will come from one board of directors being in charge, in place of two – namely the board of directors of the Canadian Television Fund,’ Frulla told delegates. ‘Clarity, efficiency and simplicity will be served if there is one administration, in place of two. I believe that Telefilm Canada can and should be given the opportunity to do this.’

Previously, funding came through a complicated partnership between the CTF and Telefilm that saw the boards and administrators of both organizations responsible for various aspects of the public-private fund. This meant that broadcasters and producers were required to file separate applications to both organizations in order to access funds for any one show.

‘The role – the essence itself – of Telefilm is not changing. What is changing now is the nature of the relationship between the CTF and Telefilm,’ Frulla said. The CTF board will periodically review the contractual agreement, she added.

The minister also announced a one-year renewal of the government’s contribution to the CTF and vowed to push for a long-term commitment to the fund in the 2006 federal budget, something industry groups have long called for. Producers say that without consistent and predictable funding, it is impossible to properly develop projects, as the process can take years.

‘We’ve always wanted a single board. We like the public-private board. We like the idea of a single administrator, too,’ said CFTPA president Guy Mayson following the announcement. ‘It’s going to clear the air as to who is doing what.

‘We’re also really encouraged about the endorsement of an extra $100 million, and we’re looking at maybe more money down the road long term in the 2006 budget.’

Union representatives also expressed approval of the new setup. ‘I’d say it’s a positive development,’ said ACTRA executive director Stephen Waddell.

The Canadian Association of Broadcasters likewise applauded the initiatives. ‘Long-term, adequate and sustainable funding is needed for this fund, and the CAB is pleased to hear from the minister that this will be considered in the context of the 2006 federal budget,’ said Glenn O’Farrell, CAB president and CEO. ‘The early announcement of the $100 million is a very encouraging signal from the minister.’

The broad strokes of the new arrangement are based on a proposal Telefilm put forth in a round of consultations earlier this year. In that proposal, Telefilm estimated $5 million in annual savings, thanks to the elimination of duplicated administrative costs, such as human resources and communications.

‘I think it’s a decision that is in the best interest of public policy, the industry, Telefilm Canada and the CTF,’ said Telefilm executive director Wayne Clarkson. ‘The process of deliberation has gone on. We all put our models forward, [and] in the inimitable Canadian way, compromises were made. The end result is something that’s very good for the industry.’

While Frulla’s announcement sparked the expected buzz among the festival’s estimated 12,000 attendees, many questions still need to be resolved, including what happens to redundant positions among CTF administrative staff, and the exact nature of the administrative relationship.

The original Telefilm proposal also called on the CTF’s independent committee to ensure the appropriate balance of cultural and industrial objectives is maintained and prevent conflicts of interest that may arise from the fact that many board members – producers, broadcasters and talent – are also beneficiaries of the fund. Such detail was absent from Frulla’s address.

Frulla also announced that the CRTC will begin reviewing the 1999 Television Policy next year, as broadcasters’ licence renewals are brought before the regulator. Producers and union groups have been lamenting the policy as the major factor in the decline in drama production in Canada.

Frulla also told delegates that a separate CTF envelope of 37% of the fund will be devoted to the CBC, far short of the 50% CBC brass have been pushing for. While CBC representatives expressed dismay over the shortfall, Frulla said the 50% target was too ‘ambitious.’

‘We have to leave space for others,’ she told reporters afterwards. ‘We have to leave incentives for the private broadcasters. In order to have a good Canadian broadcasting system, the other [networks] have to carry good Canadian programs. We’re trying to balance here.’

-www.banff2005.com

-www.canadiantelevisionfund.ca