Cable firms demand review of TV production fund

Two of Canada's largest cable companies have suspended payments to the Canadian Television Fund (CTF) and are demanding a review of the fund by Heritage Minister Bev Oda.

Vidéotron Ltee, a unit of Montreal-based Quebecor, suspended its monthly payments to the fund on Tuesday, the company announced in a public statement.

Calgary's Shaw Communications Inc. announced its intention to stop supporting the fund in December.

The CTF, created in 1996, supports Canadian productions for television and has helped fund shows such as Degrassi: The Next Generation, Naked Josh and This is Wonderland.

Private broadcasters are required to pay monthly fees for the fund and all productions can apply for funding, though about 37 per cent of funding is allocated to the CBC.

Pierre Karl Peladeau, Quebecor's president and chief executive, has written to CTF chair Doug Barrett expressing his "deep dissatisfaction with the fund's governance, performance and direction."

Among his complaints are that the fund fails to consider productions sold through video on demand, does not consult with its private-sector contributors and gives too much to the CBC/SRC.

"Fund managers pay little heed to the main private-sector contributors to the fund and give little consideration to their point of view in decision-making," Peladeau said in excerpts of the letter released on Tuesday.

Peladeau pointed out that the CBC receives a parliamentary allocation and carriage fees from cable companies for Newsworld, RDI (French-language all-news station)and ARTV (French specialty channel).

"We fail to understand why the public broadcaster CBC/SRC should, in addition, receive a significant contribution and guarantee from the Canadian Television Fund, which is funded primarily by the private sector," he said.

Vidéotron and Shaw have demanded a meeting with Oda to discuss the CTF, saying there should be a review of the fund's management and membership structure.

"We fully intend to continue being a leading contributor to the financing of Canadian production but we have decided to withhold our monthly contributions to the Canadian Television Fund until significant changes are made to its management and direction," Peladeau said.

The CTF has an annual budget of $250 million, which is divided among French, English and aboriginal language production.

Cablefirms are required to submit about five per cent of their gross revenue to the fund.