OTTAWA – The CRTC said today that while many things should change about the Canadian Television Fund, Shaw Communications and Quebecor Media should not be able to opt out of paying into it.
As reported today by Cartt.ca, The Commission today submitted its report on the CTF to the Minister of Canadian Heritage. It contains 11 recommendations relating to the CTF’s mandate and governance structure. (Click here to follow the links to the full background of this story.)
“It is our hope that the recommendations we have put forward will assist in resolving the issues surrounding the CTF,” said Konrad von Finckenstein, chairman of the CRTC. “The Fund plays a vital role in fostering a strong domestic television industry through its support of independent productions. Its effective operation is vital to the creation of high-quality, Canadian-made programs."
The key recommendations are:
* The CTF’s funding be split into private- and public-sector streams. The private-sector stream would support the production of commercially successful programming and be accessed by private commercial broadcasters. The public-sector stream would be set aside for the CBC, educational broadcasters and other not-for-profit broadcasters.
* Two separate Boards of Directors would be established, with one having oversight of the private-sector funding stream and the other being responsible for the public-sector funding stream. However, both streams should share the day-to-day administrative services of the CTF to reduce operating costs.
* Increased emphasis will be placed on audience success as a criterion for access to the new private-sector funding stream.
* The CTF maintain its current practice of funding productions that score 10 out of 10 points on the scale developed by the Canadian Audio-Visual Certification Office (the CAVCO scale).
* The proposals by two companies (Shaw and Quebecor-owned Videotron) that distribute broadcasting services to opt out of their contributions to the CTF, as required by the Broadcasting Distribution Regulations, be rejected.
* The CTF establish a new funding stream to support the production of Canadian programs for broadcast on new media platforms.
While the majority of the report’s recommendations require action by the CTF board and other government entities, the Commission is able to act in certain areas. Among other things, the Commission will amend its policy to allow tangible benefits stemming from ownership transactions in the broadcasting industry to be directed to the CTF.
Also, the Broadcasting Distribution Regulations will be altered to make mandatory the monthly contributions of companies that distribute broadcasting services, once the Department of Canadian Heritage has resolved the major issues. These are the payments which Shaw and Videotron stopped in late 2006, saying the regs only say payments must be made, not that they be made every month.
In February 2008, the Minister of Canadian Heritage announced that the government had asked the CRTC to prepare a report and make recommendations on the Canadian Television Fund, in accordance with section 15 of the Broadcasting Act.
This request followed a public hearing on the CTF held by the Commission from February 4 to 8, 2008, at which interested parties expressed their views. The Commission had previously created a Task Force to provide a detailed analysis of the issues concerning the funding of Canadian programming and the CTF’s governance.
Now the ball is in Heritage Minister Josee Verner and the Conservative government’s hands.
