|
Public Notice
|
|
Ottawa, 30 January 1987
|
|
Public Notice CRTC 1987-28
|
|
RECOGNITION FOR CANADIAN PROGRAMS PRODUCTION PACKAGES
|
In a Public Notice dated 23 July 1986 (CRTC 1986-179), the Commission sought comments on the "Production Packages" section of its definition of a Canadian program dated 15 April 1984. The section reads as follows:
|
|
PRODUCTION PACKAGES
|
|
For the present purposes, a "production package" means two or more co-productions or coventures, undertaken by a Canadian production company together with one or more non-Canadian production companies, where a production that qualifies as a Canadian production, with minor foreign involvement, is matched with a foreign production, with minor Canadian involvement. (Emphasis added)
|
|
The production packages may be accepted as Canadian, where a Canadian production company is involved and the co-production partners are the same for all the productions. The role of the Canadian production company is as defined for co-ventures. In assessing a production package, the Commission will examine it in its entirety and may qualify it if, on an overall average, the minimum requirements for coventures are met. Furthermore, a licensee will not receive credit for the production with fewer Canadian elements unless it also carries the production with the larger number of Canadian at equitable times.
|
|
All other considerations for recognition for Canadian programs apply.
|
|
The Commission will follow closely the extent to which licensees make use of co-venture productions or production packages to meet Canadian content requirements. It will review before April 1987 the suitability of continuing to accept production packages for the present purposes.
|
|
The Commission stated in its Public Notice of 23 July:
|
|
Although there has not been extensive use made of this provision to date, the Commission is aware of a number of co-ventures that are currently being developed by Canadian producers. Several of these involve the participation of Telefilm Canada which has actively encouraged the concept of production packages. Recently, Telefilm Canada has also developed a new type of production arrangement, referred to as "twinning". It is the Commission's understanding that the concept of "twinning" as suggested by Telefilm Canada, would involve matching a fully Canadian production with a foreign production, with virtually no Canadian involvement other than a financial one.
|
|
The purpose of the present Public Notice is to seek comment from broadcast licensees, program producers and other interested parties on the overall question of production packages, and in particular the interpretation of the phrase "minor involvement".
|
In Public Notice CRTC 1986-179, the Commission posed specific questions, including whether the current provision for production packages should continue, whether production packages should include "twinning" arrangements as funded by Telefilm Canada, and whether there should be minimum requirements with respect to "minor Canadian" involvement.
|
|
Respondents were generally in favour of continuing the provision for recognizing "production packages" as Canadian productions, and for including the "twinning" arrangement in that category.
|
|
The Commission notes the objection by l'Union des Artistes that such arrangements could cause a dilution of Canadian content by counting as Canadian certain productions produced outside of Canada with minor Canadian involvement.
|
|
On the other hand, broadcasters, producers and others argued that this provision will not be used to such a degree as to affect substantially the quantity of Canadian production. At the same time it makes possible the development of some high quality Canadian productions which would not be possible without the production package concept.
|
|
The Commission has concluded that it should retain the "Program Packages" provision, and that the "twinning" concept falls within the definition of a production package.
|
For the purpose of clarification of section IV "Production Packages" of Public Notice CRTC 1984-94, the Commission will be prepared to accept as Canadian, production packages on the following conditions:
|
|
1) The Canadian production company must, as described in the Public Notice dated 15 April 1984 under co-venture requirements, be owned or controlled by Canadians;
|
|
2) The Canadian copyright for both productions must be held by Canadians;
|
|
3) The budgets of both Canadian and foreign productions must be approximately equal;
|
|
4) Co-production agreements between the Canadian and foreign producers must be submitted to the Commission with the applications;
|
|
5) The Canadian producer must have equity interest and profit sharing in the Canadian and foreign productions;
|
|
6) The Canadian and foreign productions must be licensed to the same Canadian licensee. Canadian program credit may not be claimed by any Canadian licensee for the production with the minor Canadian involvement, unless and until the Canadian production has been broadcast;
|
|
7) All productions in a production package must fall within the same program category;
|
|
8) Production package programs are acceptable only in the categories of drama, variety, documentary and children's. Animated productions are excluded;
|
|
9) Matched (or twinned) productions must be approximately equal in duration;
|
|
10) Matched (or twinned) productions must receive equitable scheduling on the same Canadian station or network; and
|
|
11) Ten-point productions in production packages will not also qualify for the dramatic programming credit of 150%.
|
|
While these conditions do not contain a requirement that the production with major Canadian involvement receive exposure in the other country involved, the Commission would expect that the Canadian co-producer would include such an arrangement in his agreement with the non-Canadian coproducer.
|
|
Fernand Bélisle Secretary General
|
|
|