Home > Publications > Studies > Shadows over the Canadian Television Landscape: The Place of French on the Air and Production in a Minority Context > Section II - The Operating Framework of the Canadian Television Production Industry

Section II - The Operating Framework of the Canadian Television Production Industry

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This section presents an overview of the main institutional players, laws and policies that govern the Canadian television industry, and of the mechanisms for supporting and funding production and broadcasting, in order to fully understand the scope of all the factors involved. The overview will highlight the various issues surrounding both the production of television content in a minority context and the factors affecting the presence and recognition of the French language in the production and broadcasting process in Canada. These two issues will be developed in the subsequent sections.

2.1 Institutional players in broadcasting

In Canada, film and television are perceived as cultural resources and modes of artistic expression that can reach a wide audience. By establishing a regulatory framework and creating institutions to ensure compliance, the federal government seeks to foster an artistic, technical and economic environment where Canadian creative talent from across the country can express itself on screen in both official languages.

Several key federal institutions are responsible for regulating or enforcing the rules of the game, funding production or complying with the Official Languages Act. These institutions include the following: Canadian Heritage (and CAVCO), the Canada Revenue Agency (CRA), Telefilm Canada, the CRTC and CBC/Radio-Canada.

Canadian Heritage

The Broadcasting Policy, to be further described later in this report, provides a framework for the activities of Canada’s broadcasting entities, such as CBC/Radio-Canada, the CRTC and the CTF. Canadian Heritage contributes to “the realization of Canadian social, cultural and economic objectives as defined by the Broadcasting Act, and enhances the production and exhibition of Canadian television and radio programming and its availability to Canadians.”14 Through the Broadcasting Policy and Programs Branch, the Department works with a variety of stakeholders, including broadcasting companies and owners, industry associations, guilds, unions and the general public.

The Broadcasting Policy and Programs Branch formulates policies, proposes legislation and designs and administers programs in relation to the Canadian broadcasting system.

CAVCO

CAVCO was created in 1974 and administers two federal tax credit programs and a subsidiary audit program. CAVCO is part of the Cultural Affairs sector of Canadian Heritage and is under the responsibility of the Film, Video and Sound Recording Branch.

CAVCO administers tax credits along with the CRA. The program supports the creation of Canadian programming and the development of a domestic independent production sector.15

The CRA

The CRA administers taxes, benefits and related programs, and ensures compliance with tax rules across Canada. With regard to broadcasting specifically, the CRA verifies the qualified labour expenditures used in calculating the Canadian Film or Video Production Tax Credit (CPTC). The CRA is responsible for the following:

As co-administrator of the CPTC program, the CRA ensures that corporations claiming this tax credit are eligible for it and that the amounts claimed comply with the Act and the Regulations.

The CRTC

The CRTC was established by Parliament in 1968 and is an independent public quasi-judicial authority. As an administrative tribunal, the CRTC, under its mandate, is vested with the authority to issue, amend, renew, suspend or revoke broadcasting licences. It is also responsible for establishing regulations and policies to regulate all aspects of the Canadian broadcasting system, through public processes leading to decisions. The CRTC reports to Parliament through the Minister of Canadian Heritage.

Telefilm Canada

Telefilm Canada is a Crown corporation reporting to Parliament through Canadian Heritage. With headquarters in Montréal, Telefilm provides services to the Canadian audiovisual industry from four regional offices located in Vancouver, Toronto, Montréal and Halifax. Telefilm Canada is a federal cultural organization dedicated to the development and promotion of the Canadian audiovisual industry.

Telefilm provides strategic leverage to the private sector and “supplies the film, television and new media industries with financial and strategic support. Telefilm’s role is to foster the production of films, television programs and cultural products that reflect Canadian society, with its linguistic duality and cultural diversity, and to encourage their dissemination at home and abroad.”17

CBC/Radio-Canada

CBC/Radio-Canada was created on January 23, 1936 as a Crown corporation under the Broadcasting Act and is subject to the Official Languages Act. Its mandate is to promote Canadian radio and television programming. It provides regular radio and television broadcasting in both official languages, a cable all-news channel in both languages and multilingual radio and television service across the North. As a Crown corporation, CBC/Radio-Canada operates at arm’s length from government. It is financed from both public funds and commercial revenues. All the public funds it receives must be approved by Parliament. The Corporation reports to Parliament through the Minister of Canadian Heritage and operates under the administrative authority of the CRTC.

2.2 Regulatory framework and Canadian policies

There are five main statutes governing the production and broadcasting of television programs in Canada:

1. The Canadian Radio-television and Telecommunications Commission Act, which created the CRTC in 1968 and established its modus operandi. This act was amended in 1958, 1968 and 1991.

2. The Broadcasting Act,18 which gives the CRTC the authority to regulate and supervise all aspects of the Canadian broadcasting system with a view to implementing the policy set out in section 3 of the Act. As the powers given to the CRTC by the Act are very broad, it exerts a strong influence on television-related activities in Canada and more specifically on the protection of the official languages on the air.

The Broadcasting Policy for Canada states the following:

(a) the Canadian broadcasting system shall be effectively owned and controlled by Canadians;

(b) the Canadian broadcasting system […] provides, through its programming, a public service essential to the maintenance and enhancement of national identity and cultural sovereignty; [...]

(d) the Canadian broadcasting system should

(i) serve to safeguard, enrich and strengthen the cultural, political, social and economic fabric of Canada;

(ii) encourage the development of Canadian expression by providing a wide range of programming that reflects Canadian attitudes, opinions, ideas, values and artistic creativity, by displaying Canadian talent in entertainment [...];

(iii) through its programming and the employment opportunities arising out of its operations, serve the needs and interests, and reflect the circumstances and aspirations, of Canadian men, women and children, including equal rights, the linguistic duality and multicultural and multiracial nature of Canadian society and the special place of aboriginal peoples within that society; [...]

(f) each broadcasting undertaking shall make maximum use, and in no case less than predominant use, of Canadian creative and other resources in the creation and presentation of programming […];

(i) the programming provided by the Canadian broadcasting system should [...]

(ii) be drawn from local, regional, national and international sources, [...]

(v) include a significant contribution from the Canadian independent production sector; [...]

(k) a range of broadcasting services in English and in French shall be extended to all Canadians as resources become available; [...]

(m) the programming provided by the Corporation [CBC/Radio-Canada] should

(i) be predominantly and distinctively Canadian,

(ii) reflect Canada and its regions to national and regional audiences, while serving the special needs of those regions, [...]

(iv) be in English and in French, reflecting the different needs and circumstances of each official language community, including the particular needs and circumstances of English and French linguistic minorities,

(v) strive to be of equivalent quality in English and in French,

(vi) contribute to shared national consciousness and identity, [...]

(s) private networks and programming undertakings should […]

(i) contribute significantly to the creation and presentation of Canadian programming [...].19

3. The Telefilm Canada Act, which states in subsection 10(1) that “the mandate of the Corporation is to foster and promote the development of the audio-visual industry in Canada.” The Corporation may

10(3)(a) invest in individual Canadian audio-visual productions in return for a share in the proceeds from those productions;

(b) make loans to producers of individual Canadian audio-visual productions and charge interest on those loans;

(c) make awards for outstanding accomplishments in Canadian audio-visual productions;

(d) make grants to audio-visual industry professionals resident in Canada to assist them in improving their craft; and

(e) advise and assist Canadian audio-visual producers in the distribution of their works and in the administrative functions of audio-visual production.20

4. The Copyright Act, which governs sole right to produce or reproduce a work or any substantial part thereof, including a cinematographic work (i.e., any work expressed by any process analogous to cinematography, accompanied by a soundtrack or not).

5. The Income Tax Act (section 125.4), which refers to the tax credit program.

Under the CPTC, CAVCO is responsible for estimating eligible labour expenditures as defined under section 125.4 of the Income Tax Act, and determining whether a production meets Canadian content requirements, as well as ownership and control requirements under section 1106 of the draft Income Tax Regulations. CAVCO may then recommend that the Minister of Canadian Heritage issue two mandatory certificates: the Canadian film or video production certificate (“Part A” certificate) and the certificate of completion (“Part B” certificate).

Canadian content and priority programming designation

Part of the regulatory framework’s purpose is to ensure not only the presence of Canadian programming content on the airwaves, but also the airing of this Canadian content during peak hours. The rules also ensure that a certain number of programs are “made in Canada” by Canadians.

According to the CRTC, a broadcast is considered Canadian if the producer is Canadian, the members of the creative team are Canadian and 75% of the production and post-production costs are paid to Canadians.

With regard to air time dedicated to Canadian programming, private television stations and networks (e.g., Global, CTV, TVA) and ethnocultural television stations must achieve an annual level of Canadian content of at least the following:

  • 60% of the programming over the course of one day, i.e., between 6 a.m. and midnight;

  • 50% of the programming during the evening broadcasting period, i.e., between 6 p.m. and midnight.

For their part, the public broadcasters CBC and Radio-Canada must also devote at least 60% of their total daily schedule, between 6 a.m. and midnight, to Canadian programming.

The requirements for pay and specialty services and pay-per-view vary and are set in the licence conditions. Broadcasters can obtain time credits of 125% to 150% towards Canadian programming requirements for each drama aired during peak hours, i.e., from 7 p.m. to 11 p.m.

Canadian Content Points

The Canadian Audio-Visual Certification Office uses the Canadian content points scale to certify films and television productions. A certified Canadian production qualifies as Canadian content; broadcasters can use it to meet their Canadian television exhibition requirements. It also allows the production to access the Canadian Film or Video Production Tax Credit. To be certified as Canadian content, the production must obtain six or more points on the ten-point scale. There are two separate point scales—one for live-action productions and the other for animation productions. For both scales, points are awarded for various key creative positions. In the case of animation, points are also awarded based on the location of certain animation fonctions. For more information on the Canadian content points scale, please visit: www.canadianheritage.gc.ca/cavcoGovernment site.

Source: Canadian Film and Television Production Association et al., Profile 2008, p. 44.
Designation of priority programs

Given the accessibility of the large number of American entertainment and drama programs broadcast during peak hours in Canada, the CRTC has sought to promote the visibility of Canadian content and ensure the availability of a sufficiently broad range of Canadian programs to attract Canadian audiences during peak hours. To this end, it has given priority status to certain programs. The designation “priority programming” is an expansion of the previous definition of the “Canadian programs under-represented during peak hours” category.

Programs produced in the regions have the designation “priority programming,” and, since September 1, 2000, the definition has included French-language programs produced in all areas outside Montréal.21 In the same Notice, the CRTC ruled that, from then on, peak hours would be between 7 p.m. and 11 p.m., Monday through Sunday, for the purpose of its peak hour requirements. The largest groups of stations must broadcast, over the course of one broadcasting year, an average of at least eight hours a week of Canadian priority programming during this time slot.

The types of programs designated as priorities for the purposes of the regulatory requirements applicable to peak hours are the following:22

  • Canadian drama programs: usually works of fiction;

  • Canadian music, dance and variety programs;

  • Long-form documentary programs: original works of non-fiction, primarily designed to inform but that may also educate and entertain, providing an in-depth critical analysis of a specific subject or perspective over the course of at least 30 minutes;

  • Canadian entertainment magazine programs: programs that devote at least two-thirds of their running time to the promotion of Canadian entertainment;

  • Regionally produced Canadian programs: Englishlanguage programs in which the principal photography takes place in Canada at a distance of more than 150 kilometres from Montréal, Toronto or Vancouver (with the exception of Vancouver Island) and Frenchlanguage programs in which the principal photography takes place in Canada at a distance of more than 150 kilometres from Montréal. News, analysis and interpretation, reporting and current events, and sports programs are excluded.

The policy of granting priority status to regionally produced programs in other categories, such as religion, education, game show, general entertainment and human interest, is meant as an incentive for smaller broadcasters and producers to stimulate production activity in parts of Canada where there is very little television production of any kind.23

Children’s and youth programming

Regarding programs for children and youth, in Public Notice 1999-97, the CRTC abolished the time credits it once granted for broadcasting these programs during peak hours. The rationale for this decision is the finding that the number of children’s programs broadcast by private and public broadcasters is sufficient and that Canadian children have access to a wide range of Canadian and foreign programs without the need for regulations to ensure such access.

However, the CRTC has indicated that it is aware of the risk of a decline in the production and broadcasting of children’s drama in the absence of an incentive such as time credits. For this reason, it has stated that it plans to “monitor the availability of Canadian children’s programming in the broadcasting system and, if necessary, consider the introduction of exhibition requirements for children’s programming for individual licensees at licence renewal.”24

Co-production agreements

Since 1968, the Government of Canada has entered into 49 official co-production agreements with 53 countries.25 These agreements are negotiated by Canadian Heritage, but Telefilm Canada’s International Coproduction Sector receives and evaluates applications for certification of projects and recommends to the Canadian government either approval or denial of official co-production status. Official co-production agreements enable Canadian producers and their foreign counterparts to pool their resources to co-produce television programs that have national production status in each of the countries involved. Co-productions are therefore a favoured means of breaking into new markets and of facilitating project funding.

However, with co-productions, Canadian producers lose a certain degree of control and decision-making power to their foreign partners, especially when the partners are in the majority. The production will have non-Canadian features in proportion to the extent of external funding. That said, when an official co-production is accredited as Canadian, its content is recognized as Canadian for broadcasting purposes. As a result, there has been some criticism that the content is not necessarily produced mainly by Canadians nor recognizable as Canadian.

2.3 Funding of the Canadian television industry

The CTF

The CTF is a private, non-profit corporation governed by a board of directors comprised of 20 representatives from different sectors of production and broadcasting, as well as the government. Its objectives are established through a contribution agreement between Canadian Heritage and the CTF.

The objective of this public-private partnership is to “assist the creation and broadcast in peak viewing hours of high-quality and culturally significant Canadian television programs in both official languages”26 as well as certain Aboriginal languages, and build audiences for these programs. The CTF focuses primarily on children’s and youth programming, dramas, documentaries and variety and performing arts programs.

Established in 1994 as the Cable Production Fund, the CTF was originally responsible for administering the contributions that the cable industry was required to pay to it under CRTC directives. In 1996, the federal government merged the Cable Production Fund and Telefilm Canada’s Canadian Broadcast Program Development Fund to create the CTF. During fiscal year 2006–2007, the CTF drew funding from two sources: the Government of Canada, which invested $120.4 million, and the cable and satellite broadcasting companies, which provided $150.6 million.27 In 2007–2008, CTF granted a total of $252.4 million through its funding streams.

The Contribution Agreement between the Department of Canadian Heritage and the CTF is an effective means of ensuring that government funding is used for the development of culturally significant Canadian programming and other special projects. Over the years, the CTF has funded programs across the country, including some that have been highly successful, such as Da Vinci’s Inquest, Shattered City: The Halifax Explosion, Little Mosque on the Prairie, Atomic Betty, DeGrassi: The Next Generation, Le Négociateur, Ramdam and Minuit le soir. Telefilm Canada administers the CTF funds in accordance with a service agreement with CTF. The CTF funds producers directly through two streams:

The Broadcaster Performance Envelope stream (BPE)

Over 90% of CTF funds are allocated to this stream, which is administered through broadcaster performance envelopes. The amounts allocated annually to the broadcasters are based on five calculation factors: the historic access, the above average licences, the leverage, the regional production licences and the audience success.28 Financial assistance may take the form of licence fee top-ups or equity investments.29

The Special Initiatives Funding stream

The remaining 10% goes to the Special Initiatives stream for French-language production outside Quebec (FLPOQ), Aboriginal-language productions and development projects, as well as dubbing and subtitling in the other official language. It is worth noting that 10% of the projected total funding for French-language production is set aside for FLPOQ. Aboriginal-language productions and FLPOQ are also eligible for the BPE, in addition to the Special Initiatives stream.30

Under the Special Initiatives stream, for the year 2007– 2008, the CTF supported 31 FLPOQs that comprised 24 documentaries, one drama, two children’s and youth projects and four performing arts and variety programs. In 2007–2008, the total budget for FLPOQs was $8.39 million, i.e., 10% of the $82.6 million allocated to French-language projects. An amount of $1,967,017 was also allocated to FLPOQs through the BPE, for a total of $10,204,017, or 12%.31

The CTF has no permanent funding stream for Englishlanguage production in Quebec. English-language producers in the province received 8% of CTF funding in 2007–2008. This represents a 31% decline over the previous five years (12%).32

As for CBC/Radio-Canada, “given its unique mandate as the public broadcaster and the CTF’s move to reward audience success, it was decided that CBC-triggered productions would have a guaranteed envelope from the CTF. This represents 37% of the Fund’s total contributions. Most of this funding goes towards drama productions.”33

Crisis at the CTF

In January 2007, a crisis shook the CTF. Concerns about its activities and governance expressed by Shaw Communications and Quebecor Inc. led these two licensees to suspend their monthly payments to the CTF. Payments by the major broadcasting distribution undertakings (BDUs) are required under sections 29 and 44 of the CRTC’s Broadcasting Distribution Regulations. To manage the crisis, the CRTC set up a task force in February 2007 to review issues related to the funding of Canadian programming and the governance of the CTF.

The Task Force released its report on June 29, 2007. Its key recommendation was to split the allocation of income in two: one component, targeting the portion set aside for the CBC and Radio-Canada and for the Special Initiatives Funding stream, would continue to conform to the Contribution Agreement with the Department of Canadian Heritage; the second, which would have a more commercial outlook, would use income from BDUs to fund profitable productions, in order to reflect the important role of the contributions of these undertakings in the funding of Canadian television productions.34

Response to the report of the CRTC Task Force

The APFC responded to the Task Force’s report by saying that it was reassured by the fact that the Task Force acknowledged the contribution of Francophones in a minority context to the expression of Canadian content. However, the APFC opposed the creation of a new private sector funding stream: “[translation] Up to this point, the coexistence of public policy objectives with the private sector’s profitability requirements has led to hybrid management models, such as the CTF in television or MusicAction in sound recording.”35 According to the APFC, Canada risks going against the principles it supported in the Convention on the Protection and Promotion of the Diversity of Cultural Expressions adopted by UNESCO in 2005, which states that the creation and dissemination of cultural works and products must not be treated as solely having commercial value. Finally, the APFC warned against the logic of ratings and profitability, which, if they come to carry more weight in the CTF’s choices, would deprive the Canadian public, “[translation] which will have access to fewer documentaries, fewer important series, fewer children’s and public affairs programs—genres that are more responsive to the logic of public policy objectives.”36

The Commissioner of Official Languages also expressed his views on the Task Force report. In a letter to the Secretary General of the CRTC, the Commissioner pointed out the vital role of the CTF in the development of quality programs in both official languages, as well as its role in regional production. He believes that the CRTC must look at ways to ensure stable funding for the CTF. He supported the recommendation of the Standing Committee on Official Languages that the minimum for French-language production in a minority context be increased to 15% of the total Francophone envelope in order to better reflect the demographic reality of the minority French-speaking community. As for the commercial outlook component, the Commissioner is of the view that clearly defined objectives that take into account the specific reality of OLMCs are essential, and he called for accountability mechanisms in this regard.37

Follow-up on the Task Force findings

The CRTC held public hearings from February 4 to 8, 2008, to study the Task Force’s recommendations regarding the creation of a two-stream (public and private) fund and the size and structure of the CTF’s board of directors. On June 5, 2008, the CRTC submitted its report to the Minister of Canadian Heritage.38 The CRTC’s main recommendations were in line with those of the Task Force:

  • That the CTF’s funding be split into two streams: a public sector stream, funded by contributions from Canadian Heritage, to support programming that fulfills cultural objectives; and a private sector stream, funded by BDUs, for private broadcasters. In the CRTC’s view, the private sector stream, being market-oriented, would support the production of commercially successful programming and would be reserved for private commercial broadcasters. Ratings would be a determining factor in the selection. The public sector stream would be set aside for CBC/Radio-Canada, educational broadcasters and other not-for-profit broadcasters;

  • That two boards of directors, one for each stream, be created but that they share the same administrative services;

  • That the CTF create a new funding stream to support the production of Canadian programs for broadcast on new media platforms.

The CRTC also agreed with the Task Force’s recommendation to make no changes to the BPE structure established by the CTF. The Minister of Canadian Heritage had not yet made his decision concerning the CTF public when this study went to print.

The APFC then reacted to the CRTC report. In a letter to the Minister of Canadian Heritage, it said that the failure to include a recommendation regarding French-language production in a minority context was unacceptable. It also said that “[translation] if the CRTC’s recommendations were implemented, French-language producers would not be guaranteed funding” and that it was unacceptable for a federal institution such as the CRTC to disregard Canadian reality.39

At almost the same time, on June 20, 2008, pursuant to section 15 of the Broadcasting Act, the Government of Canada requested that the CRTC examine broadcasting services offered to OLMCs, hold hearings and draft a report. This report would be a follow-up to the 2001 report entitled Achieving a Better Balance: Report on French-Language Broadcasting Services in a Minority Environment.40

 
Canadian Heritage and the Interdepartmental Partnership with the Official Language Communities (IPOLC)

Funding for some television projects also came from Canadian Heritage through the IPOLC. The IPOLC was launched in June 2000 to provide additional funding to federal institutions wishing to support the development of OLMCs. Interested federal institutions signed an agreement with Canadian Heritage, submitted a strategy for supporting the OLMCs and received annual funding tailored to the strategy.

This initiative made it possible for Canadian independent producers in minority contexts to produce drama programs in the regions (outside Quebec in the case of French speakers and in Quebec in the case of English speakers) and for OLMCs to be included on a permanent basis as part of the regular clientele of federal institutions. Once the IPOLC funds were transferred to the partnered federal organization, the funds had to meet the requirements of the partner organization’s programs, but did not have to meet the requirements of the Official Languages Support Program Branch at Canadian Heritage. 

Component 1 of the IPOLC program (2001 to 2004), sponsored by Radio-Canada in association with Telefilm Canada, provided training workshops for writers and directors at the Institut national de l’image et du son (INIS).

Each year for three years, the partners put out a call to French-speaking communities outside Quebec to recruit writers and directors who wanted to upgrade their skills by attending two sets of workshops lasting a total of approximately one month, at the INIS in Montréal. In total, 29 individuals benefited from customized training given by professionals.

Component 2 of the IPOLC program (started in 2004) consisted of a partnership between Telefilm Canada, Radio-Canada and the National Film Board (NFB). The result was a competition for the development and production of short television dramas.41 For this component, Radio-Canada paid for the broadcast licences of the dramas that were produced, valued at a total of $225,000.

Its initial objective was to have a lasting effect on the independent French-language production industry outside Quebec. The projects allowed producers to explore the drama genre and enhance their expertise. The majority of the artists who benefited from the IPOLC are active in the television production industry. By matching up writers, directors and producers from different regions, the Program seems to have opened the door to networking and fruitful cooperation in the television production industry outside Quebec.

As for the program’s ongoing impact, a Radio-Canada spokesperson claims that it is reflected in the production of programs in a variety of genres in partnership with regional stations and Radio-Canada networks (Télévision, RDI, ARTV).

Telefilm Canada

Telefilm Canada is a Crown corporation reporting to Parliament through Canadian Heritage. Headquartered in Montréal, Telefilm provides services to the Canadian audiovisual industry by means of four regional offices located in Vancouver, Toronto, Montréal and Halifax. It is a federal cultural agency dedicated to the development and promotion of the Canadian audiovisual industry.

The Corporation acts as one of the Canadian government’s principal instruments for providing strategic leverage to the private sector, supplying the film, television and new media industries with financial and strategic support. Telefilm’s role is to foster the production of films, television programs and cultural products that reflect Canadian society, its linguistic duality and cultural diversity, and to encourage their dissemination at home and abroad.42

In 2006–2007, Telefilm and its associates provided financial support through the IPOLC for the predevelopment of eight short drama projects. In addition, support was provided for the development of four of these projects and the production of two of them. During the same period, nearly $1.2 million in Telefilm funds were allocated to support projects in French outside Quebec (43 projects, or 15% of all projects in French), and $16.2 million was allocated for projects in English in Quebec (73 projects, or 17% of all projects in English).

In 2006, Telefilm conducted a detailed assessment of its participation in the IPOLC program and prepared a 2006–2009 action plan for the development of a new strategic framework with respect to OLMC-oriented initiatives.43

The Local Programming Improvement Fund (LPIF)

Recently, on October 30, 2008, the new LPIF was established by the CRTC in Broadcasting Public Notice 2008-100, Regulatory frameworks for broadcasting distribution undertakings and discretionary programming services. Under this regulation, the CRTC will increase the BDUs’ contribution to Canadian programming by 1%, thereby increasing gross revenues derived from broadcasting activities from 5% to 6%.

The 1997 Broadcasting Distribution Regulations require that distribution undertakings contribute 5% of their gross broadcasting revenues to Canadian programming. The way in which this percentage is divided remains the same. In the case of large-scale terrestrial distribution undertakings (those with more than 6,000 subscribers), 2% of the 5% from this contribution may be used to support their community channel, while the remainder must either support Canadian programming through the CTF (at least 80%), or contribute to independent certified production funds (up to 20%).

According to the CRTC, the Vancouver, Calgary, Edmonton, Toronto and Montréal metropolitan markets and the Ottawa–Gatineau Anglophone market must be exempt from the LPIF since the additional percentage point is strictly meant to help improve the quality of local programming in non-metropolitan markets.

Nevertheless, the fact that the CRTC seems to have forgotten this criteria means that OLMCs living in these urban centres are unable to benefit from this extra financial support, estimated at around $60 million over the course of the first year.

Production tax credits

As mentioned previously, CAVCO administers two main programs in collaboration with the CRA:

The CPTC

The objective of the CPTC is to encourage Canadian programming and to develop an active domestic production sector. This fully refundable tax credit is available at a rate of 25% of eligible wage and salary expenditures for a production. These expenditures may not exceed 60% of the costs of production and the tax credit itself may not exceed 15% of these costs.

Many provincial governments also offer this type of tax credit for television production carried out within their jurisdictions. To be eligible for the CPTC, a company has to obtain a Canadian film or video production certificate from the minister of Canadian Heritage (through CAVCO).

Film or Video Production Services Tax Credit (PSTC)

The PSTC is designed to promote Canada as a location of choice for film and video productions that employ talented Canadians as well as to strengthen the industry and secure investment. The PSTC is available at a rate of 16% of eligible Canadian labour expenditures.

In 2004–2005, data from CAVCO showed that 92% of certified productions were for television, and specifically the production of documentaries, which represented 43% of all certified productions. The television market received 85% of the funding.

Although most of the productions are in English, Quebec is the province with the highest number of productions. In 2005–2006, CAVCO’s activity report shows a 7% drop in television production. In 2006–2007, $22,767,538 in federal tax credits were obtained for 89 English-language productions in Quebec, which is 16.9% of the tax credits granted to English-language production in Canada. As for French-language productions in a minority context, 32 productions shared $2,543,455 in tax credits, which is only 4.7% of the $53,779,325 in tax credits for French-language television production, including production in Quebec.44

In 2007–2008, there were 63 English-language productions in Quebec receiving $12,501,288 in federal credits, which is 14.7% of the $85,260,697 in total allocated to English-language production. In that same period, 26 French-language productions in a minority context received $1,571,817, only 3.8% of the $41,376,006 in tax credits for French-language production in Canada.45

Government support for educational channels and cultural enterprises

The provincial governments of Ontario and Quebec own the French-language educational television channels TFO and Télé-Québec, respectively. In 2005–2006, the Quebec government handed out $57.5 million in grants to Télé-Québec. In 2006–2007, the broadcaster received $54.9 million.46

Formerly part of TVOntario, TFO, the French-language network in Ontario, became an independent organization on April 1, 2007. TFO is the only French-language Canadian broadcaster whose main operations are outside Quebec. Table 1 (see p.59) shows that, over the 2003– 2007 period, TFO’s share of broadcasting licences for the APFC was 38% ($6,210,949 out of $16,325,564). The Ontario government has committed to an annual subsidy to TFO of about $15 million to ensure that it meets the specific cultural and educational needs of the Francophone community, and that it fulfills its broadcasting and communications mandate. The total annual budget of TFO was $21 million in 2007 including federal funding and income from cable television subscribers.47

Independent production: An additional stakeholder

While some Canadian broadcasters themselves produce a certain number of programs (notably sports and news), they turn to Canadian independent producers for a large portion of their programming, especially in the priority categories subsidized by governments.

Canadian independent production has arisen primarily from three government initiatives:

The Broadcasting Distribution Regulations support independent producers by requiring cable distribution undertakings, direct-to-home satellite distribution undertakings and multipoint distribution system undertakings to contribute to Canadian programming in an amount not less than 5% of annual gross revenue from their broadcasting activities. More specifically, at least 80% of this contribution must be paid to the CTF; the rest can be paid to one or more independent production funds.

Summary

From this brief overview of institutional stakeholders, the regulatory framework governing the Canadian television industry and the programs and mechanisms that support the industry, the following points are worth highlighting:

  • The CRTC is the independent public body whose mandate is to regulate and supervise all aspects of the Canadian broadcasting system. It has created a set of measures, including designated priority programming, to promote the visibility of Canadian television material on the air in peak hours.

  • The Broadcasting Act stipulates that Canadian television should promote linguistic duality on the airwaves and foster programming in English and French to reflect the specific situations and needs of both official language communities, including minority communities.

  • The federal and provincial governments offer support for film and television production to give the Canadian public access to Canadian content.

  • Broadcasters and tax credit programs are the main sources of funding for Canadian productions.

  • CAVCO is responsible for estimating eligible labour expenditures and determining whether a production meets Canadian content requirements as well as ownership and control requirements under the draft Income Tax Act Regulations.

  • The CTF is awaiting the Canadian Heritage decision on new ways of allocating public and private funds in the television industry.

  • Canadian Heritage is requiring the CRTC to hold hearings to examine the broadcast services offered to OLMCs.

These points reveal that, with respect to the television industry, the regulatory framework, public policy and the various federal government programs do recognize linguistic duality and pay some attention to the OLMCs.

But what is the reality for Francophone producers outside Quebec, the recognition of English-language productions in Quebec and the place of television production from OLMCs when it comes to competition for resources and visibility?

What is being done to respect and preserve Canada’s identity, especially in French, through high-quality television products with Canadian content, given the ever-growing trend toward profitability, the competition among the big television networks and the ease with which American products are available on Canadian airwaves? Also, should we not be worried that the distinct Anglophone culture in Quebec will become diluted and basically invisible in the North American English-speaking world? The Commissioner’s interest in the production and broadcasting of Canadian television programs has arisen precisely from his awareness of the somewhat perilous situation of Canada’s cultures and official languages.

Notes

14. Canadian Heritage, Broadcasting Policy and Programs, www.pch.gc.ca/progs/ac-ca/progs/ri-bpi/index_e.cfmGovernment site (consulted July 16, 2008).

15. CAVCO, 2004–2005 Activity Report, p. 5-6.

16. See the CRA Web site at the following address: www.cra-arc.gc.ca/tx/nnrsdnts/flm/ftc-cip/menu-eng.htmlGovernment site (consulted July 16, 2008).

17. Telefilm Canada’s mandate is available online at the following address: www.telefilm.gc.ca/01/11.aspGovernment site.

18. Broadcasting Act, S.C. 1991, c. 11, http://laws.justice.gc.ca/en/B-9.01/Government site.

19. Broadcasting Act, S.C. 1991, c. 11, section 3, “Broadcasting policy for Canada,” http://laws.justice.gc.ca/en/ShowFullDoc/cs/B-9.01///enGovernment site.

20. Telefilm Canada Act, R.S. 1985, c. C-16, http://laws.justice.gc.ca/en/showdoc/cs/C-16/bo-ga:s_3::bo-ga:s_10//en?page=2Government site.

21. CRTC, Public Notice 1999-205, www.crtc.gc.ca/archive/eng/notices/1999/pb99-205.htmGovernment site.

22. As set forth in Schedule 1 of the Television Broadcasting Regulations, 1987, www.crtc.gc.ca/eng/legal/tvregs.htmGovernment site.

23. CRTC, Public Notice CRTC 1999-205.

24. CRTC, Public Notice CRTC 1999-97, paragraph 67; Public Notice CRTC 1999-205, paragraph 45.

25. For a list of countries and agreements, see Telefilm Canada’s Web site at the following address: www.telefilm.gc.ca/04/43.aspGovernment site (consulted August 11, 2008).

26. Canadian Heritage, Arts and Culture, www.patrimoinecanadien.gc.ca/pc-ch/pubs/2007/2_e.cfmGovernment site.

27. CTF, 2006-2007 Annual Report, p. 8, www.ctf-fct.ca/assets/annualreport0607.pdfExternal site (consulted June 18, 2008).

28. Ibid., p. 13.

29. Canadian Heritage, Arts and culture, www.canadianheritage.gc.ca/pc-ch/pubs/2007/2_e.cfm#h5Government site (consulted July 3, 2008).

30. In 2003, when the CTF Special Initiatives stream was being developed, the AFPC made a submission to the House of Commons Standing Committee on Official Languages in which the producers asked that funds be allocated to independent Francophone productions outside Quebec in proportion to the percentage of the target population, and that broadcasters, both public and private, be subject to a minimum of 15% outside-Quebec French content on all of their licenses for independent production.

31. See CTF, Special Initiatives Funding Results in 2007–2008, http://ctf-fct.ca/funding_special_en.htmlExternal site (consulted June 18, 2008); CTF, Approved Broadcaster Performance Envelope French-Language Applications 2007–2008, www.ctf-fct.ca/assets/funding/BPE-French-0708.pdfExternal site (consulted on June 18, 2008).

32. CTF, Annual Report 2007–2008: Adjust Your Set, www.ctf-fct.ca/assets/AR0708/en/pdf/ctf_annual_report_2007–2008_EN.pdfExternal site (consulted November 28, 2008).

33. Canadian Heritage, Canada’s New Government Supports Canadian Television Programming, news release, January 26, 2007, www.pch.gc.ca/newsroom/index_e.cfm?fuseaction=displayDocument&DocIDCd=CBO061311Government site (consulted September 8, 2007).

34. CRTC, The Task Force releases its report on the Canadian Television Fund, News Release, June 29, 2007, www.crtc.gc.ca/eng/news/releases/2007/r070629.htmGovernment site.

35. APFC, Rapport du groupe de travail du CRTC sur le modèle canadien de télévision : Le début de la fin du modèle canadien? July 2007.

36. Ibid.

37. Letter from the Commissioner of Official Languages to the CRTC’s secretary general regarding Public Notice CRTC 2007-70, July 24, 2007.

38. CRTC, CRTC Report to the Minister of Canadian Heritage on the Canadian Television Fund, June 5, 2008.

39. APFC, Letter to the Honourable Josée Verner – CRTC Report on the Canadian Television Fund: The CRTC must admit its mistake and amend its report, Ottawa, June 12, 2008.

40. Canadian Heritage, The Government of Canada asks CRTC to Report on Broadcasting Services to Francophones and Anglophones Living in Minority-Language Situation, news release, Ottawa, June 20, 2008.

41. In 2004–2005, the partners asked the writers and directors who participated in the INIS training to develop and produce two short dramas that would be broadcast nationally by Radio-Canada. In the following two years, the competition was extended to the entire production community and there were two phases: pre-development, followed by the selection of two projects for production. During the development and production of the dramas, the writers, directors and producers received support from INIS professionals, and the projects were monitored by the partners throughout the various stages. Radio-Canada did not receive any money from Canadian Heritage for this program. Any money invested went to the INIS and to the independent producers who trained these aspiring producers.

42. Telefilm Canada’s mandate is available online at the following address: www.telefilm.gc.ca/01/11.aspGovernment site.

43. See Telefilm Canada’s Web site at the following address: www.telefilm.gc.ca/03/311.asp?lang=en&fond_id=6Government site.

44. CAVCO, 2004–2005 Activity Report, p. 8-9, www.patrimoinecanadien.gc.ca/progs/ac-ca/progs/bcpac-cavco/pubs/2004-05/activ_04-05_e.pdfGovernment site; 2005–2006 Activity Report, p. 19.

45. Information obtained from a senior policy analyst at CAVCO, Canadian Heritage, August 19, 2008. 2007–2008 data may be incomplete.

46. Télé-Québec, Rapport annuel 2005-2006, www.telequebec.tv/documents/corporatif/rapportsannuels/rapport-annuel-2005-2006.pdfExternal site; Rapport annuel 2006–2007, www.telequebec.tv/documents/corporatif/rapportsannuels/rapport-annuel-2006-2007.pdfExternal site.

47. Since 2002, TFO has been available to 75% of Francophone homes in Ontario. It has been provided as part of basic cable service in New Brunswick since September 1996, and one million households in Quebec receive it via cable, digital television service or satellite distribution systems. In other Canadian provinces, TFO is offered via satellite. In 1997, the broadcaster launched its Web site. The site provides information on television programming as well as many activities and educational resources for all ages. It has become a world leader in educational French-language Web sites. See TFO’s Web site at the following address: www.tfo.org/cfmx/tfoorg/tfo/a_propos_de_tfo/External site.

48. Broadcasting Act, S.C. 1991, c. 11, www.crtc.gc.ca/eng/legal/broad.htmGovernment site.



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