Source : Montreal Gazette

Videotron, Shaw balk at program funding

The Conservative government has summoned two major cable television companies to Parliament Hill because of their decision to stop millions of dollars worth of payments required for Canadian programming.

Under federal broadcast regulations, the companies are expected to contribute a small percentage of their annual revenues to the Canadian Television Fund. But Videotron and Shaw Communications have suspended their contributions, complaining that they want more control over management of the money collected.

The decision has created a $63-million shortfall in the fund that invested $264 million in Canadian programming last year.

"In light of the seriousness of this and the impact on the Canadian production and broadcasting industries, I am calling a meeting with the principal funders of the CTF, in Ottawa, next week," Heritage Minister Bev Oda said. "I look forward to working together with this industry to ensure the continuation of our strong and vibrant production and broadcasting industry in Canada."

But opposition parties are blasting Oda for not responding sooner to protect the fund since cable company officials indicated last month they were thinking about suspending payments.

"It doesn't seem to reflect the seriousness of the situation," Liberal heritage critic Tina Keeper said. "The support that the funds give to Canadian production is critical, and I think that's part of how we preserve the integrity of our own industry."

Videotron has complained that the CBC and Radio-Canada are getting too much money from the CTF because of a requirement that reserves nearly 40 per cent of production funding for the public broadcaster.

© Montreal Gazette