Oda pledges $200M to Canadian Television Fund

Heritage Minister Bev Oda announced Friday continuedfederal support of $200 million over the next few years to the Canadian Television Fund, which became embroiled in a controversy after two major contributors withdrew their financial support.

The government's funding commitment, designated for the 2007-2008 and 2008-2009 fiscal years,"will allow for longer-term planning and provide stability for the sectors," Oda said in statement in the morning.

"I want to reassure Canadians that the government continues to support high-quality Canadian television programming."

For its $250-million annual budget, the fund usually receives $100 million from the government, as well ascontributions from Canadian cable and direct-to-home satellite providers, which are required by CRTC regulations to contribute a percentage of their revenues to support Canadian programming.

CTF controversy

Oda also spoke about thecontroversy surrounding the TV fund, reiterating her late Thursday announcement that she would be meeting with the CTF's principal contributors (BellExpress Vu, Shaw/Starchoice, Rogers, Vidotron and Cogeco) in Ottawa early next week.

The meeting was prompted by the recent decision of cable giants Shaw and Vidotron to suspend their CTF payments.

At a Parliament Hill news conference, Oda said she is interested in hearing any complaints, in particular about how the fund is governed.

"Obviously there's still some concerns and discomfort with the structure that was set up," she said. "I would like to hear what those discomforts are."

Created by the Liberal government in 1996, the fund was reviewed in 2001 and a new governance structure set up in 2005. Another review had been scheduled to take place in March, but could now be hastened because of the controversy.

"I'm confident that we can find a resolution," Oda said.

Together, Shaw and Vidotron contribute about $74 million annually to the $250-million fund, which financially supports TV productions across the country from Degrassi: The Next Generation to Trailer Park Boys.

Shaw and Vidotron have expressed growing dissatisfaction with the CTF. They have accused it of paying "little heed" to its main private-sector contributors and allocating too much funding to theCBC and its French counterpart.

The companies have called for a review of the fund's management systems.

CBC enters debate

However, on Thursday, CBC president and CEO Robert Rabinovitch issued a statement clarifying that no CTF funding is paid to the public broadcaster.

Both CBC and Socit Radio-Canada's television networks are dedicated to airing original Canadian content in prime time, therefore many productions that receive CTF funding end up on CBC/SRC airwaves, the statement said.

"It is in recognition of this fact that the government of Canada has set aside 37 per cent of the fund not for CBC/Radio-Canada but for independent producers who make programs for broadcast on CBC or Radio-Canada Television.

"Without the CTF, Canadians would receive fewer original high-quality Canadian programs,"Rabinovitch said.

"The CTF, and the independent producers funded by the CTF, play a critical role in supporting the distinctively Canadian nature of CBC/Radio-Canada's prime-time English and French schedules."

Earlier this week, CTF chair Douglas Barrett said the Canadian TV industry willhave a serious shortfall of more than $60 million because of the move by the two cable companies.

The fund has also called on the CRTC to take legal action against Shaw and Vidotron, and force them to respect their regulatory obligations to the fund.