Source : Minister of Canadian Heritage

Thank you, Mr. Mayson, for your kind invitation. Now, this is the perfect audience for someone who is as passionate and determined as I am about promoting Canadian culture and about protecting the interests of cultural artisans and creators.

You are the ones who give what it takes to create films and television programs that reflect and promote the values and interests of Canadians. So
we are natural partners. We must work together. I want to work with you! And
I am honoured to have been given the mandate and the privilege, by the Prime
Minister, to serve in the cultural sector, which is my passion and my life.
Let me assure you that, more than ever, my mission is that, as Canadians, we
recognize the tremendous and profound impact that arts and culture have on
our society, our economy, our communities, and the special role that they
play in defining us among the nations of the world.

Your invitation is a great opportunity for me to share with you some of my thoughts and plans regarding the future of audio-visual industries in Canada. Well actually, they also happen to represent the views of the Government of Canada but you know I like to take ownership of all things cultural!

Many of you know that, as soon as I became Minister of Canadian Heritage, I
made it a priority to get to know the people, for the few I did not already
know, who devote their lives and careers to promoting and fostering the arts
and culture in our country. In fact, my own fairly extensive experience in
the audiovisual sector has made me very much aware of the great passion and creativity it requires of many of you to persevere in this field.

I think I know your sector well. Over the years, I have learned a thing or
two about it. Throughout my political life, thanks to my many dealings with
many players in the field; and also on the job, between political gigs, I
have seen, I have listened.

I recognize, I know, the challenges you - we - have to face. Here and
abroad, competition is fierce. But I also recognize the strengths of the
industry and the opportunities for growth.

I dare say you won't challenge me on the following assertions: First: investing in culture strengthens the identity, well-being and economic prosperity of Canadians. Second: technological change, convergence and economic globalization are putting pressure on cultural industries to change. Fast. Constantly. Does this apply to the audiovisual sector? You know the answer. Third: you - we - can't sit back and relax. Ever. Act we must, and now. Or be left behind. Or worse: become irrelevant. An accident of history.
Let me expand on these themes a little.

SOCIO-ECONOMIC IMPORTANCE OF CULTURE

Culture is an eternal and universal human need. As such, it has been, still
is and will continue to be a key marker - and driver - of human-beings and
of socio-economic development.

Let me bore you - or perhaps not - with some numbers: a few weeks ago,
Statistics Canada released some impressive figures on the economic
contribution of culture. In 2002-2003, the Government of Canada spent 3.4 billion dollars on culture.

This investment helped generate almost 600 000 jobs and close to 40 billion
dollars in economic activity. Not bad. Will the Government of Canada continue to invest in Canadian culture? You bet. I am sometimes concerned that the Minister of Finance, who is currently preparing his Budget, must be getting tired of listening to me, to you, to our passionate pleas on behalf of the cultural sector but he keeps being graceful, responsive and attentive to our needs. After all, culture is good for the soul, but it is also good for the
economy.

As a great foreign politician once said, "I have understood you." That is why I did not hesitate to renew funding for Tomorrow Starts Today in 2005-2006 in the amount of 192 million dollars.

Tomorrow Starts Today was launched in 2001. This initiative represents the
Government of Canada's largest investment in culture since the creation of
the Canada Council for the Arts in 1957. This investment continues to benefit many artists and communities. And your industry will benefit as well, thanks to the Canada New Media Fund.

ECONOMIC GLOBALIZATION AND NEW TECHNOLOGIES

Yes, I know. I know that your industry faces tough challenges. We live close
to the most powerful maker and distributor of popular culture. Economic globalization, convergence and deregulation are making competition even more
fierce but they also offer us tremendous new opportunities.

The growing diversification of Canada's population, together with the
emergence of new and competing technologies, contribute to the fragmentation
of markets and audiences.

Your profile for 2005, that was made public today, shows that in recent
years, foreign financing of Canadian productions has declined. And so have
foreign film productions. This, obviously, worries me, worries us. In this context, our common objective must be to develop and implement strategies to make and distribute Canadian films and programs that reach and attract as many Canadian and foreign spectators as possible. The Government - I should say governments - is, are trying to help in several ways.

First of all, financially. The Government of Canada was the first to announce an increase in tax credits for films produced in Canada. And I am pleased that Ontario, Quebec, and British Columbia have recently followed suit.

As another example, let's take the Canadian Television Fund. It has proved
that investing in diversified, high-quality Canadian content is a recipe for
success. Who says that popularity and quality are mutually exclusive? Here are more statistics: since 1996, the Fund has invested 1.7 billion dollars in the production of 18 000 hours of programs in English, French, and Aboriginal languages.

The plan is now to ensure multi-year financing for the Fund and settle the
question of its governance once and for all. We need to streamline the various support programs for the film and television industries.

I intend to work closely with stakeholders in your industries, with the
agencies that are partners of Canadian Heritage, and with Mr. Clarkson,
Telefilm's new Executive Director, who is eminently familiar with what you
do and with the challenges that you face.

He will address you in a few minutes. I am very interested in what he has to
say. I am confident that his acumen and leadership will shine as always. One
thing I want to tell him and you right away: he can count on my support.

Mr. Clarkson knows well that the new technologies are not only challenging,
they are the key to success.

He recognizes - and I agree with him - that if we do not make the shift to digital formats, we will pay the price, both economically and culturally. Digital production is growing around the world, both for television and
film. More and more cinemas use digital format to show films. More and more
cinephiles are buying DVDs and downloading digital files from the Internet.

We have valuable assets that we can build on: the cities of Montréal,Toronto, and Vancouver are recognized as technological centres of excellence. They are highly regarded as excellent settings by the world's best filmmakers, and their skilled workers are in high demand.

Canada stands out in the creation of convergent Web products tied to successful television programs. Let me give you an example. "Degrassi.TV," a Web site created by Snap Media and associated with the hit television show, Degrassi, The Next Generation, has attracted more than 350 000 Canadian subscribers. It has also been adapted for and licenced to the U.S., Australia, and the United Kingdom.

Are we taking full advantage of our technological strengths in telecommunications, broadcasting and narrowcasting? I don't think so. Do
you?

Well here is an incentive to do more: the Government wants to encourage this
growing sector, and I have excellent news for you. Next year, we will increase funding for the Canada New Media Fund. An additional five million dollars will help support innovative projects. This will increase the total amount of the Fund to fourteen million dollars. Administered by Telefilm Canada, the Fund has played a key part in the many Canadian successes in this sector. It has helped our multimedia producers-many of whom are here today- to offer innovative products. Cameras . Action!

But investing in culture is not the only solution. We must also make sure
that our policies and regulations are adapted to new realities. We are
working on this. We must also defend the special nature and status of cultural industries against the indiscriminate use of international trade deregulation. Freedom of trade is good. But cultural products are not mere widgets. We are not alone in the world to think that way. And we are working on it.

We must talk some more and work better together to set objectives, priorities and a pragmatic action plan for the audiovisual sector. As a starting point, the Government is preparing a second response to the 97 recommendations of the Lincoln Report.

The Standing Committee on Canadian Heritage will hold public hearings over
the coming months in order to study the role of the Government of Canada in
the Canadian feature film industry. And my Department is now assessing the benefits of the Feature Film Policy, launched in 2000.

These complementary initiatives are meant to show us the way towards a modern, forward-looking film policy. Finally, a word about a thorny issue: in the digital world, it is vital to tackle the issue of copyright in an innovative manner.

In this regard, I am working in close cooperation with the Minister of Industry. Many factors complicate the longstanding challenge of finding a proper balance between the needs and rights of creators and those of consumers. Among them, the fast evolution of the regulatory environment and
the ease of uncontrolled access to intellectual property that the new
technologies provide. But we will succeed. We are expecting to introduce the
Bill this spring.

CONCLUSION

Canada's audiovisual industry is alive. We have the energy, the skills, the
talent and the creativity, from writers to actors to technicians to decorators to directors, etc. And producers, of course.

This year alone, two National Film Board productions have been nominated for
an Academy Award: Ryan, a animated short by Chris Landreth, and Hardwood, a
short documentary by Hubert Davis. So people, here and abroad, obviously
like what we do.

Congratulations also to the Robert Lantos and Serendipity Point Films production Being Julia on the Golden Globe awarded to Annette Bening and on
the Academy Award nomination she has received for best actress.

But the industry is vulnerable. And it is the duty of Government to create a
supportive environment for it and to ensure sustainability, so it can use
its potential to reach Canadian and foreign audiences with quality products,
including drama programs and feature films.

It is time to ensure that our policies and our institutions keep pace with
new technology and new trends. Or rather, that we anticipate them.

I invite you to work with me to strengthen the foundations of our country's
audio-visual sector. Together, let us ensure that Canadian films and programs are featured widely on both the large and the small screen. Across the country and around the world. Together, let's make sure that the film and television industry can make a strong contribution to the strength, visibility and longevity of Canadian culture.

Because it's good for business.
Because it strengthens our identity, sovereignty and influence.
Because it makes us feel good.
Because it's the expression of our passion, our creativity, our
expertise and our excellence.

Thank you.