Montreal: A report by outgoing sodec president Pierre Lampron into alleged irregularities in the public financing of Quebec film and tv productions includes a long list of recommendations, many of them very tough.

While the Lampron report says the problems facing the industry are short of endemic, the recommendations have been forwarded to the Quebec Department of Revenue.

On the federal side, an rcmp investigation into fraud allegations related to Canadian content tax claims made by production house Cinar, and possibly other producers, is ongoing, as is an expanded investigation and review coordinated by Canadian Heritage and including the Ministries of Revenue, Justice and Finance and the Treasury Board. Those departments have established a high-level committee to examine all government programs in the a/v sector.

While all the press headlines point almost exclusively to Telefilm Canada, the review includes all federal programs, including those managed by Revenue and the cavco certification office.

According to Heritage Minister Sheila Copps, the inquiry is ‘not a witch hunt,’ but is aimed at ‘assuring the transparency and high quality of our programs.’ The review should be completed by late December.

Meanwhile, apftq interim chair Denise Robert says the entire production industry ‘is paying the big price.’

‘Right now the whole industry is being accused, yet Lampron, who had a chance to interview many of the people involved, has said [the abuses] are limited to only a few.

‘Look at the stock market,’ says the producer. ‘All the publicly traded companies have lost an incredible amount of their value. And those companies [are a reflection of] the health of the production community. Now we’re hearing that some producers who were supposed to receive their tax credit were told by the federal government that it’s been put on hold, they’re waiting for the reports. When you go to the bank they look at you and are saying, ‘Hey, wait a minute, we’re not sure we can do this.’ So, of course, the whole industry is being paralyzed.’

Robert says the apftq ‘totally supports the [Lampron] report with no reservations whatsoever.’

Tough recommendations

The Lampron report (available with appendix at www.sodec. qc.ca) calls for full disclosure of public monies invested in productions and production companies, disclosure of advanced tax credit rulings and ‘an appropriate verification’ by Revenue agents of practices of suppliers of production services.

The report further suggests sodec and Telefilm formalize aspects of their verification programs, and that a Revenue agent be assigned permanently to the funding agency.

Robert says it’ll take years for the industry to fully recover.

And now that the whole business has taken on a definite political bent, the scandal is having a direct effect on the timetable for new money for a badly needed consolidated feature film fund, and indirectly is affecting the even more fundamental issue of renewal for the Canadian Television Fund.

Robert says the industry ‘has been seriously punished, and the fact that there seems to be no end to this is absolutely troubling. I think if the government believes in this industry, they should come to a quick resolution so that confidence is restored and we can all get back to work. That is so essential. It’s enough with the finger-pointing. It’s about time people named names, and the proper authorities deal with those [companies] so the rest of the industry can finally get back to work.

‘Double-billing is absolutely unacceptable,’ she says. ‘I’m not aware of these practices, but if they do exist they should be examined and corrections made as soon as possible.’

The apftq has set up a committee (composed of producers Jacquelin Bouchard, Luc Wiseman and Jacques Blain, and a person outside the association) to review and update its code of ethics, specifically implement a measure which would allow non-members (screenwriters, directors, etc.) to file grievances.

The apftq also intends to set up a mechanism to discuss industry practices and problems with the various unions and associations to find solutions that work for everybody, says Robert.

‘The authorities should do what they think they need to do,’ says the producer. ‘But please do it as soon as possible because this industry needs get back to work with confidence and respect for one another.’