Heritage Committee Report on the Canadian Feature Film Industry

The Standing Committee on Canadian Heritage recently released its report on its study on the Canadian Feature Film Industry. Over the spring a number of feature film stakeholders had appeared before the Committee or sent in submissions and this report is the result.
First a little context. Standing Committee reviews can be useful to study a sector within their jurisdiction, raise issues and make recommendations to the government. There is no obligation for the government to act on these recommendations or to even comment on them. These are the dying days of this Parliament and it is unlikely that the government will even notice this Report. However, it can also educate and inform Department of Canadian Heritage staff and help them to develop policies that could be implemented in the future.   As well, given that we are leading up to an election, this kind of a study could inform party platforms or future government proposals.

I recommend reading this report for a couple of reasons. If you are new to Canadian feature film policy it is a fairly accurate (not always the case) overview of the current state of the industry.   A wide selection of stakeholders appeared before the Committee and many topical issues and proposed solutions were presented. If this is your field then it is also interesting to see which issues the Committee as a whole, and the Opposition parties in supplementary proposals, felt worth recommending.

I found a couple of the recommendations of particular interest. A few of their recommendations went beyond government to other bodies, which technically speaking are outside the Committee and the government’s jurisdiction. In Recommendation 5 and 6 the Committee recommended that the CRTC include feature films as a separate category within PNI and that it review its PNI policy to specifically support feature film. As the CRTC is an arm’s length body this recommendation is like the Canadian government making a recommendation to the U.S. State Department on foreign policy. Further, there is a policy development process at the CRTC that is a great deal more rigorous than a Parliamentary Committee review. We might not like the current result of the process but the government cannot step in and make specific changes (there is a policy direction process but that’s more general).

Recommendation 10 is a recommendation asking the CBC to enhance its support of Canadian feature films, including on digital platforms but without a recommendation to increase the CBC’s budget to enable it to do so (which is in the government’s jurisdiction). The NDP expressed in their supplement the belief that the CBC should have sufficient resources to fulfill its mandate without a specific recommendation about what was needed to do that.

There were a couple of very specific recommendations related to the tax credits which could make a huge difference to feature film producers. For years the CMPA has been lobbying to eliminate the ‘grind’, where tax credits are reduced by the amount of assistance received from other levels of government (e.g. provincial tax credits). The Committee did not go so far as to recommend its elimination but that the problem should be studied. The Liberals in their supplement also supported the recommendation from witnesses that 75 – 85% of tax credit payments should be moved up to reduce the interim financing costs. This would be a great measure that would not cost the government anything but would create significant budget savings. I would only add that it should not be limited to feature film tax credits.

The final recommendation that interests me comes from both the NDP and Liberal supplements and was ignored by the main recommendations. Both parties recommended that OTT services should provide data to Heritage (or Heritage and the CRTC in the case of the Liberals) on consumer habits, Canadian films available, revenues and costs in order to assist policy development.  So this is a recommendation that the government MAKE Netflix and Google do what the CRTC was unable to make them do during the CRTC hearing. Nice thought but given that they deny that the CRTC has jurisdiction, I doubt that they would agree that the Canadian government has jurisdiction. I think it’s a lovely idea and yes it is data that the policy makers absolutely need to have for accurate policy development but it isn’t terribly realistic.

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