Question Period Note: Proposed increased funding for Telefilm Canada

Budget 2021 proposed to provide $105 million over three years, starting in 2021-22, for Telefilm Canada to modernize its current suite of programs to provide better access to a diverse range of creators and producers, support green practices, and respond to increasing digitization in the audiovisual industry.

• The audiovisual industry in Canada is a major source of economic activity and jobs for Canadians across the country.
• Increase in Telefilm Canada’s funding will help the organization modernize its current suite of programs to provide better access to a diverse range of creators and producers, support green practices, and respond to the needs of an evolving audiovisual industry.
• As the economy recovers from the pandemic, this funding increase will also help to bolster the full return of this very important sector of our economy.

• 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 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. Therefore, the Minister of Canadian Heritage does not intervene in the daily operations of the corporation.
Funding for Telefilm
• In Budget 2021, the Federal Government announced its intent to provide $105 million over three years, starting in 2021-2022, for Telefilm Canada to modernize its current suite of programs to provide better access to a diverse range of creators and producers, support green practices, and respond to increasing digitization in the audiovisual industry. Funding is to be increased over the three years, with $20 million in 2021-2022, $35 million in 2022-2023 and $50 million in 2023-2024. Telefilm is seeking authorities to access the funding.
• Every year, Telefilm’s production-funding programs are significantly oversubscribed. Telefilm’s budget for film production activities has not increased since 2002-2003, and was in fact reduced by 10% between 2012 and 2015 as part of the federal government’s strategic review; despite growing demand, inflation, and the increase in production budgets necessary to compete globally.
• While the government has invested $29.5 million in additional funding over five years in Telefilm since Budget 2016, these funds were given to support export and international promotion and did not address production support shortfalls.
• In 2019-2020, Telefilm’s total allocation of government funding and Crown corporation revenues was $132.1 million. Of this amount, Telefilm received $109.4 million in parliamentary appropriations in 2019-2020.
COVID-19 Response
• The COVID-19 pandemic has adversely affected the Canadian film industry. On April 17, 2020, the Prime Minister announced $500 million in funding to establish a COVID-19 Emergency Support Fund for Cultural, Heritage and Sport Organizations, in order to provide financial support to organizations in these sectors and to complement the Government’s existing COVID-19 support measures for wages and fixed costs for organizations.
• On May 8, 2020, the previous Minister of Canadian Heritage provided details on how these funds would be distributed. Under Phase 1 funding, $27 million was administered by Telefilm, with fifteen percent of the $27 million set aside for underrepresented and/or underserved communities (approximately $4 million).
• The final components of Phase 2 funding was announced on July 7, 2020, including an additional $2.75 million to be distributed through Telefilm. This final component aimed to help movie theatres that show Canadian films and audiovisual training and development partners that had not already received financial support under the Emergency Relief Fund. In addition, Telefilm Canada, in collaboration with the Canada Media Fund, administered another $19 million in Phase 2 Emergency funding for Canadian Content producers who could not qualify under 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.
• On February 10, 2021, the previous Minister of Canadian Heritage announced that the STCF would be increased to $100 million.

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