Production industry concerned about uncertainty of CMF budget

The dissolution of Parliament and the failure to pass the federal budget has left the Canada Media Fund (CMF) without guaranteed government funding of $100 million. The issue is causing concern among the broadcasting and production community, which says some producers now have to wait in a period of uncertainty before new projects can move forward. “It is going to be a blow to any competitive advantage that we might otherwise have enjoyed on a global basis, given that the digital economy waits for no one,” Martha Fusca, a broadcasting expert and president and CEO of Stornoway Communications, said in an interview. With fewer funds available, many small production companies depend upon program funding, she said, and even a small drop in CMF program funding could come as a blow to the broadcasting and production community. “It’s going to be a serious blow to all broadcasters, but particularly small independent broadcasters,” Fusca said. “Any time funds are decreased, even by a small amount, it can actually have ripple effects … And at a time when there’s a lot of pressure globally to produce Canadian content, this makes it even more difficult for them to compete on a global basis.” Fusca said she is disappointed about the dissolution of Parliament for an election campaign, calling it “incredibly disruptive.” Anne Trueman, a spokeswoman for the Canadian Media Production Association (CMPA), also expressed disappointment that the CMF's funding will be held up. “We are disappointed that an election has come along to put those funds into limbo until the dust settles,” Trueman said. The CMPA said it is monitoring the situation closely and hopes that not too many projects are delayed. In the federal budget released this month, the Conservative government announced $100 million in funding for the CMF for the year. But before the budget passed, a confidence vote triggered the dissolution of Parliament. A federal election is now scheduled for May 2. “We’re very confident that we will receive it ,” Stéphane Cardin, the CMF's vice-president of industry and public affairs, said in an interview. “If for any reason the amount is different or inferior, the impact will be more on the production and broadcasting community than ourselves. We’ll continue to administer the same programs through the year, but we’re quite confident that the amount will be there.” For now, the CMF will release a preliminary program budget for 2011-2012, but it will not be including the $100 million in program funding, the CMF said in a release. The CMF's revised budget will include projected monthly contributions collected from broadcasting distributors and $34.6 million allocated through Canadian Heritage. “The CMF can only release a program budget based on confirmed sources of revenue,” the CMF said. “In the event that the CMF receives a further allocation of funding as a result of the adoption of a federal budget later this year, the CMF will release a supplementary program budget shortly thereafter.” The CMF said that in an effort to assist the industry with licensing and production planning, the fund’s performance envelopes will be calculated on the basis of the anticipated full program budget previously approved by the CMF, which included $100 million in funding from the government. “We plan to put out the same percentage of funding,” Cardin said. “We put out roughly 70 per cent of the envelopes now and the other 30 per cent would flow once the budget is approved, assuming the budget will, as it has in the past decade, contain that $100 million.” The Conservative government's budget, or a similar version of it, could pass before summer if the party is re-elected to government. A notice in the Canada Gazette this week said the House of Commons is scheduled to resume sitting May 30, soon after the election. Cardin was also quick to reassure the broadcasting and production community, saying that he does not expect projects to be directly affected by a change in allocated funding. dgrenier@thewirereport.ca

Production industry concerned about uncertainty of CMF budget

Broadcast | March 30, 2011

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