Heritage Minister Bev Oda will sit down Tuesday with reps from Shaw Communications, Videotron and other stakeholders to address the current fracas at the Canadian Television Fund.
Montreal-based Videotron last Wednesday sided with Shaw and suspended its payments to the CTF, taking issue with its structure and governance. Combined, the cable outfits contribute around $70 million a year to CTF.
‘In light of the seriousness of this and the impact on the Canadian production and broadcasting industries, I am calling a meeting with the principal funders of the CTF,’ said Oda in a statement.
Oda also reaffirmed Ottawa’s commitment to the fund by announcing on Friday that Stephen Harper’s government has renewed its annual $100-million CTF contribution for the next two years.
‘I want to reassure Canadians that the government continues to support high-quality Canadian television programming,’ said Oda.
The actions by Shaw and Videotron have caused turmoil in the TV production sector. CTF board member Claire Samson told Playback Daily in an earlier interview that the lack of funding will have a colossal effect on production.
‘If nothing is being done between now and the end of March there will be a shortfall of $25 million of funding to Canadian programs. Some shows will not be done, others in production will be cancelled,’ she said.
CBC president and CEO Robert Rabinovitch also defended the CTF, noting that ‘without the CTF, Canadians would receive fewer original high-quality Canadian programs’ in a recent press release. Both Shaw and Videotron have complained about the fact that 37% of CTF funds are earmarked for productions that air on CBC.
Meanwhile, CTF chair Doug Barrett expressed his appreciation over the continued support of cable companies including Bell ExpressVu, Cogeco and EastLink.
‘Their confidence and commitment to follow the prescribed CRTC regulations and recognition of the unique role of the CTF permits Canadians to watch engaging television reflecting our own distinct, Canadian stories,’ said Barrett in a statement.
The CTF has retained legal counsel to determine its options and is hoping the CRTC will take steps against the two companies – which are mandated to contribute 5% of revenues to the CTF – in order to recover funds. But a CRTC spokesman says it’s not clear what action the regulator might take, noting it will become clearer once new CRTC chair Konrad von Finckenstein assumes his position today.