Public Notice
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Ottawa, 21 December 1995
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Public Notice CRTC 1995-222
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Proposal to amend the "8 out of 10" point count criterion for funding from the Cable Production Fund, in respect of its application to treaty co-productions
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Background
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In Public Notice CRTC 1994-10 dated 10 February 1994, the Commission announced the guidelines that would govern the operations of the Cable Production Fund (CPF). This notice followed a call for public comment on draft guidelines dealing with such areas as the appropriate guidelines for program eligibility, access, specific funding mechanisms and administration of the production fund.
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The Commission indicated that the main focus of the CPF should be to ensure the production of high-quality Canadian programs in under-represented categories for broadcast during peak viewing periods. Among the criteria used to determine whether a program would qualify for funding was that its production be controlled by Canadians and that it earn 8 of the 10 points used by the Canadian Audio Visual Certification Office (CAVCO) and the CRTC to define a program as being Canadian. The notice also established the mechanism to be used in determining the extent of the fund's participation in programs, the allocation of funds between independent producers and broadcaster affiliate companies, and the allocation between English- and French-language productions.
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In addition to the "8 out of 10" criterion, a program's eligibility for funding depends on receipt of a licence fee from Canadian broadcasters. The size of the licence fee required depends upon the
category of production.
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In March 1995, following consultations with the Canadian production and broadcasting industries, the Board of the CPF requested modifications to the fund's guidelines addressing the licence fees necessary to trigger the CPF's participation and the appropriate level of participation in eligible programs. These modifications were subsequently approved by the Commission, as announced in Public Notice CRTC 1995-89 dated 2 June 1995.
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The Proposal
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In November 1995, the CPF undertook further consultations with the production and broadcast industries. Subsequently, in a letter to the Commission dated 5 December 1995, the CPF requested that the criterion requiring that programs meet 8 of 10 points in order to be eligible for the fund's participation be amended in a manner that would better accommodate official treaty co-productions. Specifically, the CPF proposed that:
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...the 8 out of 10 Canadian key creative point requirement for international co-productions [be replaced] with a new provision whereby 65% (or more) majority Canadian treaty co-productions, approved as such by Telefilm Canada, would qualify for access to CPF funding.
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Under this proposal, the licence fee required to trigger CPF participation would be based on a minimum of either 65% of the production's total cost or the Canadian portion of the budget, whichever is greater.
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The CPF's rationale for the proposed changes
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The CPF submitted that the 8 out of 10 requirement is too onerous in its application to treaty co-productions, and is not consistent with the criteria used by Telefilm Canada, which is the body delegated by the Government to negotiate and implement co-production treaties. The co-production office of Telefilm Canada examines all aspects of a project to determine its eligibility. Telefilm Canada has advised the CPF that the source and amount of financing can influence significantly how projects are carried out, and that a production, 70% of whose financing originates in Canada, will most likely have a very high degree of Canadian participation in key creative areas, compared to a production with Canadian financing of 50% or less. The CPF also noted that: "administratively the [proposed] method is more in keeping with CPF's expedient, objective process".
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Call for Comments
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For its part, the Commission notes that, since the inception of the CPF, it has received a number of letters from independent producers who consider that the 8 out of 10 points criterion makes it difficult for treaty co-productions to have access to the CPF.
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At the same time, the Commission notes that the criteria governing eligibility for programs were developed after an extensive public consultation. Concerns were expressed by many interveners that the CPF should place priority on identifiably Canadian programs. The 8 point criterion originally adopted as a prerequisite for funding by the CPF was proposed by the Canadian Association of Broadcasters (CAB), Telefilm Canada, the Directors' Guild, the Canadian Cable Television Association (CCTA) and BC Film, as well as others in the industry.
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In light of the above, the Commission considers it in the public interest to call for comments on the proposal by the CPF.
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Comments on the proposal should be addressed to Allan J. Darling, Secretary General, CRTC, Ottawa, Ontario, K1A 0N2 and should be received no later than 8 February 1996. While receipt of submissions will not be acknowledged, they will be considered by the Commission and will form part of the public record of the proceeding.
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Allan J. Darling
Secretary General
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