Nancy+Tam



The Arts: Government Funding in Canadian Films

The Background Story Since the silent film era in the 1920s, Canada’s film industry has thrived in producing quality films and professionals. Despite their southern neighbour’s popularity, Canadian filmmakers have been recognized internationally by obtaining more than 5000 awards including twelve Oscars ( NFB, 2009). However, not many Canadians recognize their local filmmakers unless th  ey are celebrities. The media does not frequently mention other contributors besides actors, such as producers and directors. On the other hand, Canadians are more familiar with the issue of government funding for the arts. This endless dispute over the lack of government funding for the film industry has sparked headlines across television screens and newspapers. 

 Criticism on the government’s support for the arts, specifically film, is not new in Canada. Filmmakers argue that the government is eroding Canadian culture by cutting by funds and tax credits; whereas, all levels of government deem themselves sufficient in supporting the arts (Bradshaw, 2008). The world economic crisis has dramatically affected Canada. In this time of chaos, all industries look towards the government for a stimulating action plan, including film. Since the budget has been presented on January 27, 2009, debates have brewed (Finance Canada, 2009). The age-old debate on funding for Canadian films continues, now more intensely than before.

The History More than forty years have past since the federal government initiated the Canadian film policy, a series of organizations and initiatives to benefit filmmakers (Canadian Heritage, 2009). In 1939, the National Film Board was established to provide a Canadian perspective on film productions, ranging from documentaries to animations (NFB, 2009). Canadian productions braced theatre screens for almost thirty years before the federal government began aiding the film industry (Canada Heritage, 2009). The Department of Canadian Heritage commenced its film policy. In 1967, the Canadian Film Development Corporation, today known as Telefilm Canada, was established as a source of federal funding to promote and aid Canadian filmmakers (Canada Heritage, 2009). Over the next thirty years, the government has introduced various policies, such as the Feature Film Fund, the Canadian Film Tax Credit and the Film Services Tax Credit (Canada Heritage, 2009). These programs were set up to provide financial support and to protect Canadian productions from foreign companies (Canada Heritage, 2009). The Canadian Film Policy is still in effect today, but each year changes are made based on the federal budget. Thus, the government’s efforts are put into question by the film industry.

The Process One must understand how government funds work in relation to a film production before analysing the debate. Filmmaking can be divided in to four stages: development, production, marketing and distribution (Canadian Filmmaker, 2009). Once the filmmaker has completed scripting in the development stage, he/she can move on to the production where financing must be immediately addressed (Canadian Filmmaker, 2009). At this stage, funding options are examined and financing must be secured in to ensure success in film production, marketing, and distribution. On average, most feature films cost between one to three million dollars (Martinelli, 2009). Most Canadian productions rely on at least four to five sources of financing, unless they have significant financial backup from a personal contributor (Martinelli, 2009). Funding from programs, such as the Telefilm Fund and Federal Tax Credits are not easy to obtain, especially for young filmmakers (Martinelli, 2009). A list of professional and legal requirements must be met (Martinelli, 2009). The most important factor is the creative value and cultural relevance to Canada (Martinelli, 2009). Applications are sent with a complete outline of the film’s production, including a budget, script and shooting schedule (Martinelli, 2009). Members of the team, such as the director and the producer, are also closely examined for their experience and reputation (Martinelli, 2009). The application process may take a long time because applications from various films are compared (Martinelli, 2009). The competition is fierce for without funding a film cannot be made. The Current Situation Since last year, much debate has stirred around the 2009 budget and Bill C-10. In early 2008, Bill C-10 launched a national battle between the Canadian film industry and the Conservative government. If the bill passed, federal tax credits would not be granted to films that are deemed “obscene” to mainstream Canadian content by the ministers (Martinuk, 2008). Bill C-10 is still in process of being passed in Parliament. By August 2008, much of the commotion surrounding the bill was overshadowed by the news of the government cutting $45 million from the arts (Martinuk, 2008). However at the same time, the Conservatives announced $4 billion dollars to be funded for the arts in 2009 (Martinuk, 2008). On January 27, 2009, the federal budget was revealed before Parliament (Finance Canada, 2009). The government established new funds and modified others. For example, $60 million will go to cultural infrastructure, $20 million to national arts training, $20 million to print media, $28.6 to digital media, $200 million to television, and finally $25 million in prizes in dance, music, visual arts, and drama (Finance Canada, 2009). The film industry was not specifically mentioned in the 2009 budget (Finance Canada, 2009). The Film Industry

Professionals within the industry have been voicing their concerns to the government for a long time. Since the emergence of Bill C-10, heated debates have frequently embraced headlines. Bill C-10 is opposed by “Canada’s creative community, including the producer’s associations, the performer’s union ACTRA, the Writer’s Guild of Canada, the Canadian Civil Liberties Association, and all opposition parties” in Parliament (Noakes, 2008). One of the main concerns is that Bill C-10 will restrict the flow of creative content, hence only certain types of films can only shown in Canada (Noakes, 2008). According to the Writer’s Guild, writers will be forced to self-censor in order to obtain tax credits (Noakes, 2008). Creativity and cultural value will be forsaken for financial benefits. In addition, the ministers in Parliament will be gatekeepers of content since all content must be approved by them in order to obtain funding (Noakes, 2008). One of the much feared side-effects of Bill C-10 is that filmmakers will take their business elsewhere, such as the States (Smith, 2008). As a result, Canada’s national film culture will erode. Furthermore, financing for films will become even harder to find. A large source of funding will be cut from a number of filmmakers and films cannot be successful if money is not secured before production (Noakes, 2008). Granted tax credits take around eighteen months to arrive, thus, Bill C-10 will only delay the process and reject more productions (Noakes, 2008). Borrowing from the bank will not be possible for banks examine tax credits before issuing loans (Noakes, 2008). An average feature film costs between one to three million dollars, hence significantly less films will be produced (Martinelli, 2009). The 2008 cuts in funding for the arts have also stirred concerns amongst filmmakers. Actors, such as Colm Feore and Gordon Pinsent, have publicly opposed the Conservative government. “'Stephen, arts is th e economy, stupid,'” states Karl Pruner, president of ACTRA Toronto (Canadian Press, 2008). The film industry is a producer of knowledge-based workers. Thus, it is crucial in Canada’s information society by producing a $5 billion contribution to the economy (Canadian Press, 2008 & Noakes, 2008). The $45 million cut is not acceptable because the government promises $40 million annually to the Telefilm Fund and millions of dollars to other film funds (Canada Heritage, 2009). How can the government continue to fund filmmakers with these cuts? The 2009 budget is also put into question by the film industry. The $4 billion stimulus package will be shared amongst various industries in the arts. “The arts” is a board term. Since no programs were specifically set up to aid the film industry like those for television and print media, filmmakers are at a disadvantage in establishing sufficient funding (Finance Canada, 2009). Other arts, such as theatre, print, and television have been addressed, but the financial problems within the film industry still remains unsolved.

The Government The Conservative government defends its actions and states that its decisions are made based on the well being of its citizens. Heritage Minister Josee Verner notes that “’Bill C-10 has nothing to do with censorship and everything to do with the integrity of the tax system. The goal is to ensure public trust in how tax dollars are spent’” (Noakes, 2008). With the economic crisis at hand, the government is ensuring every penny of taxpayers’ money goes towards projects that benefit Canada as a whole. Unnecessary spending must be cut. Bill C-10 ensures that all content in Canadians films does not violate the guidelines pertaining to violence, hatred, and sex (Noakes, 2008). Women rights, children, religious organizations and other groups will be protected from obscene and offensive content (Noakes, 2008). Filmmakers have the responsibility to adhere to cultural and legal guidelines before any fund is granted (Martinelli, 2009). In response to the $45 million cut in arts funding, Prime Minister Stephen Harper notes that Canadian Heritage is already 8% over its budget (Canadian Press, 2008). The government has provided over $77 million in funding for the arts (Finance Canada, 2009). Programs for television, visual arts, print and other media are given between $20 million to $40 million of funding over the next two years (Finance Canada, 2009). Previous measures in the Canadian Film Policy set by Canadian Heritage are still in effect (Canada Heritage, 2009). In addition, the Conservative government has been more financially supportive of the arts compared to the previous Liberal administration (Bradshaw, 2008). In 2006-07, Conservatives spent 3.2 billion dollars on arts versus the Liberal’s $2.9 billion in the previous year (Bradshaw, 2008). In the fiscal year of 2008, the Conservative government funded 3.3 billion in arts compared to Liberal funding of $3 billion in 2004-05 (Bradshaw, 2008). Overall, the $77 million in funding for 2009 is a boost for the arts, not a cut (Finance Canada, 2009 & Martinuk, 2008). Despite the Conservative government’s explanations, the Ontario provincial government opposes the $45 million cut. As Premier Dalton McGuinty stood in the lobby of the Royal Ontario Museum to promote the Dead Sea Scroll exhibit, he responded to Stephen Harper’s decision (Gillespie, 2008). McGuinty states that art is valued as a significant contributor to the economy and Canadian culture (Gillespie, 2009). Similarly, in response to Harper, Ontario Cultural Minister Aileen Carroll notes that artists are no different from other Canadians who work hard long hours (Gillespie, 2009). The municipal government of Toronto also presents its reaction to the lack of funding for films by sending Mayor David Miller to Los Angeles on a mission to promote Toronto studios (Richard, 2009). Since the building of the new “mega-studios” in Toronto’s waterfront, Toronto is losing business exponentially due to a lack of clients (Richard, 2009). Toronto, along with other Canadian cities, has been a popular shooting location for Hollywood, but the lack of funds combined with a lack of business has left the Toronto Film Industry losing both money and professionals (Richard, 2009). “We want you back. Use your talent in Toronto,” urged Miller (Richard, 2009). The Future The age-old debate on government funding for the arts persists well after the release of the federal budget. The film industry has sought after online sources to promote awareness on their situation. Networking tools, as blogs, forums, Facebook and Twitter, are used daily to fuel an ongoing discussion between citizens and artists. A social effort is needed in order for voices to be heard by the government. The film roll spins round and round. Problems remain unsolved and both sides continue to seek possible solutions. Works Cited Bradshaw, James. “Study reveals erosion in arts funding.” // Globeandmail.com //. 19 Sept. 2008. 2 Feb. 2009. [|<] http://www.theglobeandmail.com/servlet/story/RTGAM.20080919.wbudget20/BNStory/Entertainment/home >. Canadian Filmmaker. “Canadian Filmmaker Home.”  // CanadianFilmmaker.com. //   2009.   2 Feb. 2009. < http://www.canadianfilmmaker.com/ >. Canadian Heritage. “Canadian Film Policy: History of Federal Initiatives.”  // Canadian Heritage. //   05 Jan. 2009. 02 Feb. 2009. < http://www.pch.gc.ca/pgm/em-cr/evaltn/2008/prt3-eng.cfm >. Canadian Press. “Film and TV Stars blast Conservative arts cuts.”  // CTV.ca //. 24 Sept. 2008.  2 Feb. 2009. [|<] http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20080924/election2008_arts_protest_080924/20080924?s_name=election2008 >. Finance Canada. “Chapter 3: Action to Support Businesses and Communities.”  // Canada’s Economic Action Plan: Budget 2009. //   27 Jan. 2009. 2 Feb. 2009. < http://www.budget.gc.ca/2009/plan/bpc3e-eng.asp >. Gillespie, Kerry. “Premier defends arts funding.”  // TheStar.com //. 24 Sept. 2008. 4 Feb. 2009. < http://www.thestar.com/article/505081 >. Martinelli, Gabriella. “Producing a $1 Million to $3 Million Canadian Feature Film.” // CanadianFilmmaker.com //. 2009.  2 Feb. 2009. < http://www.canadianfilmmaker.com/content/view/44/11/ >. Martinuk, Susan. “Arts funding flip-flop won Harper no friends.”  // Calgary Herald. //   10 Oct. 2008. 4 Feb. 2009. [|<] http://www2.canada.com/calgaryherald/news/theeditorialpage/story.html?id=8558cc0c-ebd9-4e7c-b694-1f3c6a62e218 >. National Film Board. “About the NFB.”  // NFB.ca //. 29 Jan. 2009. 2 Feb. 2009. http://www3.nfb.ca/about/news.php >. Noakes, Susan. “In depth: Bill C-10 and Canada’s film industry.”  // CBC.ca //. 10 Apr. 2008. 4 Feb. 2009. < http://www.cbc.ca/arts/film/billc-10.html >. Richard. “Toronto Mayor David Miller in LA trying to bring Hollywood back to Canada.” // HoundsTV.com //. 22 Jan. 2009. [|<] http://houndstv.com/wp02/1016/toronto-mayor-david-miller-trying-to-bring-hollywood-back-to-canada/ >. Smith, Charlie. “Bill C-10 is Canada’s new culture war.”  // Straight.com //. 12 Jun. 2008. 4 Feb. 2009. < http://www.straight.com/article-149268/canadas-new-culture-war >. Pictures Courtesy of Picture of Colm Feore. Courtesy of: [|<] http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20080924/election2008_arts_protest_080924/20080924?s_name=election2008>. Consulted on February 4, 2009.

Picture of Dalton McGuinty. Courtesy of: . Consulted on February 4, 2009.

Picture of Jim Flaherty. Courtesy of: . Consulted on February 4, 2009.

Picture of Mary Pickford. Courtesy of: . Consulted on February 4, 2009.