When the federal Conservatives came to power two years ago, there was no immediate cause for the film and TV sectors to be alarmed. But based on recent reaction from the industry, that time has most certainly come.

Back then, the theory went, the new government would need time to find its footing, and, holding onto a minority, it wouldn’t want to scare away moderates with what could be perceived as an anti-culture agenda.

Well, more recently, the Tories sat comfortably ahead of the Liberals in the polls with an election looming, and, almost all at once, what many feared to be the feds’ true colors emerged.

Last month, Heritage Minister Josée Verner informed attendees at the CFTPA Prime Time in Ottawa conference that the feds would be wresting control over the future of the Canadian Television Fund from the CRTC. While this news came out of the blue, it is actually in keeping with Prime Minister Stephen Harper’s style of keeping power as centralized as possible.

This bombshell was followed by the federal budget, in which the film industry struck out, despite the likes of Telefilm Canada and the APFTQ lobbying for a new $30-million coproduction fund. But the fact that there was no new money for domestic film creators should also not come as a surprise.

Just a couple of days later, a multi-party Heritage report recommended increased funding to the CBC. But a dissenting report filed by the committee’s Conservative members demanded instead that the Ceeb produce an itemized estimate of its future spending before any increases are greenlit. Some read this to mean that the government really does not want to provide any additional resources to the pubcaster.

This coincided with the revelation of the proposed Bill C-10, which aims to award Verner the power to deny crucial production tax credits to Canadian films and TV shows the feds find offensive due to content they deem overly sexual, violent or hateful.

This one has been the capper, setting off the industry in a major away. The mood at this year’s Genie Awards was so virulently anti-government over this issue that Verner was a wise no-show. Not only are those in creative industries very touchy about the smell of censorship, but there is also great fear this bill would scuttle the financing model that most producers know. Investors would think twice about backing a production if they thought there was a chance the feds could turn around and cancel its tax credits.

Although Verner sits on the hot seat right now, her hands seem to be tied. One senior film executive who has met with the minister believes she does care about this industry, she does listen, and she is pushing an inattentive cabinet on the matter of increased funding.

Regarding C-10, sources indicate that the catalyst to the introduction of this amendment to the Income Tax Act was Harper’s fury over the fact that Martin Gero’s comedy feature Young People Fucking received a high-profile premiere at TIFF last fall, including a launch party at a local swingers’ club replete with a bevy of topless females.

As in the case of the impending call on the CTF, decisions with far-reaching repercussions are being born out of the personal stand of the one man – or the few – at the top.

The case of Young People Fucking, if true, is particularly troublesome. After all, here is a film that a government body – Telefilm – gave the green light to; was produced by Copperheart Entertainment, earlier involved in the Academy Award-winning short Ryan; was picked up for distribution by ThinkFilm and Christal Films; and was selected by the internationally renowned Toronto festival.

For the government to feel compelled to take a stand against a film like this would hardly be in keeping with its economic philosophy of letting the market decide. Sometimes a low-budget film will go the edgy route as its best chance at attracting attention. (This film has done exactly that, and now Christal is looking to milk the current controversy with a suddenly announced April 18 theatrical release across Canada.)

The irony here is that YPF is not the pornographic smutfest some imagine it to be. It’s just a Canuck comedy with a 500-year-old vulgarity in its title.

One could argue that often films that push the boundaries of taste limit their chances at mainstream exhibition, broadcast, and audiences. Either way, I’d sooner let the market decide. I don’t want Prime Minister Harper to be involved in what movies do or don’t get made, just as I wouldn’t have wanted Paul Martin or Jean Chrétien to be similarly involved.

In early March, a Canadian Press-Decima survey had the Tories’ popularity dipping to only one percentage point ahead of the Liberals. The lost ground is attributed to the federal budget and allegations of bribing the late independent MP Chuck Cadman.

The feds’ recent actions and non-actions towards the domestic film and TV business might not be top-of-mind for most Canadians, but they might be just enough to sway some fence-sitters who have suspected this government of a hidden agenda – a prospect that right now the Tories can ill afford.