Vancouver: Because Mainframe Entertainment jumped the gun and made production deals without the full knowledge of the new ctcpf guidelines coming into effect April 14, the Vancouver-based animator now has to scramble to find up to $8 million in new financing.

The third season of 13 episodes of Beasties (aka Beast Wars) is no longer eligible for funding because it is based on non-Canadian merchandise – this, despite receiving ctcpf contributions for the past two seasons. Also affected are the first two seasons of new series War Planets.

The ctcpf was to account for between 10% and 25% of the two shows’ combined budgets. As a result of the changes, Mainframe has to juggle the budgets to make up for the loss of between $5 million and $8 million that was to be the total ctcpf contribution.

Both shows were to go into production in April, with premieres on ytv and u.s. stations serviced by syndicator Summit Media Group in September.

Production will still go ahead, says Mainframe’s director of communications Mairi Welman, although the production schedules may be delayed by the last-minute restructuring.

Appeals by Mainframe netted no concessions. A ctcpf board meeting March 11 confirmed that no ‘grandfathering’ of renewed series that now fall outside of the more rigorously Canadian guidelines will be allowed.

State the new guidelines: ‘[If eligible series are based on] a currently merchandised toy or game (in any form), then such a toy or game must have been created and developed by a Canadian.’

Beasties is based on the popular Transformer toys, owned by Japan-based Takara and licensed to Hasbro in the u.s. War Planets, an animated series in the spirit of Braveheart in space, is based on u.s. action figures owned by Trendmaster.

‘We are really disappointed,’ says Welman. ‘There was no warning that this was going to be dumped on us and no consultation. It’s very frustrating when you think you’ve got the deals finished and they’re not, that you’re ready to go and you’re not.’

She adds Mainframe executives are mystified that the ctcpf doesn’t want to recognize the efforts of Mainframe, the only company in the world pioneering half-hour digital animation. Welman also suggests that with merchandising and animation so intertwined there may be few Canadian toys, games and books able to generate interest in a television series.

But Mainframe’s situation gets little sympathy from the ctcpf.

‘Unfortunately, the writing was on the wall,’ says ctcpf director of operations Michel Lozier, explaining that the fund is being steered toward being a truly Canadian cultural, versus industrial, fund.

‘Mainframe went ahead and made deals before they saw the guidelines,’ says Lozier. ‘They assumed it would be the same as last year. That was a mistake.’

Lozier maintains that the theme of the industry meetings in the past year centered on the more stringent guidelines required to ensure there was enough money to go around. The Licence Fee Program was oversubscribed within several weeks of being opened last year.

‘We were always clear about the direction,’ adds Lozier.

Mainframe’s situation casts doubt on the eligibility of other animated series in development or production.

Sheila Murray-Tateishi, treasurer at Nelvana in Toronto, says the exclusion of certain source material from ctcpf eligibility is ‘something we are looking at, but it is premature to comment.’

Nelvana has Donkey Kong’s Country, based on the non-Canadian video game, in production.

‘If you’re asking me whether we have any shows excluded from ctcpf funding this year, the answer is no,’ Murray-Tateishi adds.

Cinar has at least eight animated and live-action series in production and preproduction that might be considered ineligible under the new guidelines. (Because Cinar executives were unavailable at press time, it’s unclear how many of these shows are seeking ctcpf funding.)

Arthur, based on the u.s. books by Marc Brown, has 15 episodes left, while there are 26 episodes each of Country Mouse and City Mouse Adventures and The Little Lulu Show – both based on u.s. stories or comic strips – to be produced.

Believe It Or Not, an animated 13 episodes based on the Ripley’s museum, television series and books, and Mona the Vampire, based on non-Canadian source material, may face exclusion along with live-action series Lassie, The Mystery Files of Shelby Woo and Are You Afraid of the Dark?.