Thank you, Mr. Chair.

I will skip over a few paragraphs, but I've timed myself out just to make sure I do that five minutes.

Good afternoon. As the chair said, my name is Michael Hennessy and I'm the president and CEO of the Canadian Media Production Association, known as the CMPA.

On behalf of the over 350 primarily English-language independent producers of Canadian film, television, and digital media, we appreciate the invitation to contribute to the committee's important work on implementing certain provisions of the budget bill, tabled in Parliament earlier this year.

Our sector has become a success story because of increased focus on audience in export markets, and equally important, due to the support of government over the past 20 years through its tax incentives and regulatory policies.

The success of that investment is measurable. We work with the Department of Canadian Heritage and the Quebec producers' association on “Profile”, an annual economic report that tracks the production sector. According to “Profile”, expenditure on Canadian film and television production in Canada is now just under $6 billion. Included in that figure is approximately $1.5 billion of spending by other countries in Canada, particularly Hollywood on U.S. shows shot here, like Suits, Covert Affairs, and Once Upon a Time. They shoot here not only because of the attraction of investing here, but because of the quality of our talent and crews, which have been developed under the regimes I talked about earlier. These productions not only attract investment, but help create over 30,000 jobs annually.

But the real success can best be measured by popularity with audience, and last year we hit home runs. According to the Canada Media Fund, over 26 TV shows had audiences of over one million. Original shows like Saving Hope, Orphan Black, Rookie Blue, and Murdoch Mysteries are just a few examples.

Canadian content is no longer just for domestic consumption. CanCon sells overseas and the export value of our works is now almost $2.5 billion annually. Over 127,000 full-time jobs, according to “Profile”, are sustained because of this system of private and public partnership.

Predictable tax incentives, such as the Canadian film or video production tax credit program, have helped create an industry that has gained international respect. The program-related amendments in Bill C-43 are important to further improve the efficiency of the current system. These progressive changes are the fruit of many years of dialogue between the sector and the government, and they will provide both clarity and guidance to Canadian producers when closing business deals and securing financing.

But in parallel, as the industry moves into more a globally competitive and consumer-driven model for broadcasting, anchored by pick-and-pay options and increased competition from the Internet, we will be working closely with government on further increasing the efficiency of the program to maximize its intended return to producers and to the economy at large.

From a broader perspective, we believe growth will come from exports and increased inward investment in the sector. Accordingly, we want to collaborate with government going forward to increase export opportunities and partnerships with other countries to better exploit the intellectual property that Canadians create.

We believe that in a global information economy film and TV are not merely cultural products but an economic opportunity to build new and global markets and trade in content. Just as government support was critical in building a world-class domestic system, we believe government, through its trade arm, could help facilitate access to international film, television, and digital media markets, and related financing opportunities. Through export and other dedicated international programs, government and its agencies could actively support and promote the efforts of Canadian producers in securing foreign financing and increasing their business potential around the globe.

All of this will lead to even more jobs in Canada, more business opportunities, and more business and investment revenues for the Canadian economy.

In closing, I'd like to thank the committee again for allowing me, on behalf of the CMPA, to appear before you today. But I would be remiss if I did not end with thanks to the government and the taxpayers it represents for its faith that the incentives it put in place two decades ago would deliver returns in terms of popular content, high-value jobs, and increased inward investment in Canada. A spinoff of this is a reputation that, when it comes to entertainment, Canada is a favourite destination to do business.

I'll be pleased to answer your questions at the appropriate time, Mr. Chair.

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