Question Period Note: Audiovisual Industry Concerns about Telefilm Canada’s funding formula

On November 19, 2020, with Telefilm Canada in the midst of a cross-country consultation to revise its "Success Index" - that is, the performance measure that determines which films the federal funding agency supports - the Independent Filmmakers Committee of the Directors Guild of Canada released a "Directors Manifesto" urging massive change in the system. In other media articles, the media is calling on changes at Telefilm Canada to change its focus on movie theatres and adopt a multi-platform approach to reach audiences.

• Telefilm Canada is consulting film industry stakeholders to ensure that its programs remain relevant in light of demographic and technological change and continue to support the success of Canadian filmmakers at home and abroad.
• The audiovisual industry in Canada is a major source of economic activity and jobs for Canadians across the country. Our Government is proud to support the Canadian film industry as they play an important role in the social and economic development of our country.
• The Canadian film industry has been severely affected by the COVID-19 pandemic.
• The government also recently announced an investment of $50 million for the creation of the Short-Term Compensation Fund (STCF) to compensate for the lack of insurance and allow the resumption of audiovisual production activities. This measure will help keep tens of thousands of workers and artisans at work and generate hundreds of millions of dollars in economic activity.

• Created in 1967, Telefilm Canada’s (Telefilm) mandate is to foster and promote the development of the Canadian audiovisual industry. Telefilm administers the Canada Feature Film Fund, the Canada Media Fund (under an agreement with the Canada Media Fund Corporation) and the Canadian audiovisual coproduction treaties.
• Telefilm is a Crown Corporation that operates at arm’s length from the Government. It is exempted from the majority of the articles of Part X of the Financial Administration Act, including section 89 that normally allows the designated ministers to give instructions to Crown Corporations. The Minister of Canadian Heritage and Multiculturalism therefore does not intervene in the daily operations of the corporation.
• In 2016, the Government increased Telefilm’s budget by $29.5 million over five years. In 2018-2019, Telefilm’s budget was $110.9 million.
• The COVID-19 pandemic is adversely affecting the Canadian film industry. Movie production sites are shutting down all across the country; Movie theatres and festivals are also closing to prevent close contamination. Due to these unexpected cancellations of festivals and cultural events, as well as the closure of facilities, many organizations, their workers and their families face important financial pressure.
• On April 17, 2020, the Prime Minister announced funding of $500 million to establish a new COVID-19 Emergency Support Fund for Cultural, Heritage and Sport Organizations. The Fund, which is administered by Canadian Heritage and its portfolio organizations, is intended to provide financial support to organizations in these sectors that complements the Government’s existing COVID-19 support measures for wages and fixed costs for organizations.
• The objectives of the fund announced on April 17, are to maintain jobs and ensure business continuity for organizations whose cash flow and short-term operational viability have been negatively impacted by COVID-19, as well as to stabilize a sector which is a major driver of the Canadian economy.
• On May 8, 2020, the Minister of Canadian Heritage provided details on how these funds would be distributed, of which $27 million were administered by Telefilm as part of the first phase (Phase 1) of delivering the emergency funding. Of note, fifteen percent of the $27 million was set aside for underrepresented and/or underserved communities (approximately $4 million).
• On July 7, 2020, the Minister announced the Final Components of Phase 2 of the Emergency Fund, which included an additional $2.75 million to be distributed through Telefilm. The final components of the second and final phase of the Emergency Relief Fund aim to help movie theatres that show Canadian films and audiovisual training and development partners that have not already received financial support under the Emergency Relief Fund. In addition, Telefilm Canada, in collaboration with the Canada Media Fund, administers another $19 million in Phase 2 Emergency funding for Canadian Content producers who could not qualify to Phase 1.
• In addition to the Emergency Fund, on September 25, 2020, the Government announced the creation of the Short-Term Compensation Fund for Canadian Audiovisual Productions (STCF) to compensate production companies for the exclusion of risks associated with the pandemic on production set from insurance policies. Administered by Telefilm Canada, the STCF was launched on October 28, 2020.
• Telefilm’s Success Index was introduced in 2011 as a more complete measure of success than theatrical box office alone, which had been the industry’s standard since 2000. The index measures commercial, critical/cultural, and industrial (i.e. private funding leveraged for each feature film) success. An index, composed of several components, continues to be a more comprehensive and decidedly relevant measure in the cultural realm. As the marketplace and consumer behaviours continue to evolve, Telefilm is prioritizing modernizing the index and the success scores associated with projects funded, to continue to offer an insightful measure of performance and a proactive management tool.
• The Directors Guild of Canada (DGC) is a national labour organization, representing key creative and logistical personnel in film, television and digital media industries. It was established in 1962 and today has over 4,800 members. The DGC negotiates and lobbies extensively on issues of concern for members including Canadian content conditions, CRTC regulations and funding for Canadian film and television programming.
• The DGC committee urged Telefilm to replace Telefilm’s Success Index and focus on three areas: Replace the Success Index with a rotating, inclusive and representational jury to judge the creative elements of productions seeking funding; make inclusion a priority by adopting specific targets for gender, race and region, both in terms of Telefilm staff and applicants; and shift the funding model from treating production companies as "clients" to a more collaborative effort with a project's creative forces.

None