Mr. Chair, members of the Standing Committee on Canadian Heritage, thank you for inviting the Association québécoise de la production médiatique, or AQPM, to take part in your review of the Canadian feature film industry.

My name is Marie Collin, and I am the president and CEO of the AQPM. Joining me today is Brigitte Doucet, Deputy General Director.

The AQPM is proud to appear today to discuss Canadian film, more specifically, Quebec's French-language film industry. Our productions are known the world over, receiving an enviable number of accolades and awards, from Incendies and Mommy to Gabrielle and Monsieur Lazhar, just to name a few. Films like these have positioned Quebec, and Canada, as formidable players in the industry.

Without government support and commitment, this level of exposure and success would not be possible. The Government of Canada has previously demonstrated its commitment to cinema through funding support, as well as through the Canadian feature film policy. The Standing Committee on Canadian Heritage reaffirmed that commitment in 2005 and now, 10 years later, is reviewing the Canadian feature film industry to determine how to achieve the objectives set out in 2005, in light of the changes the industry has undergone since then. Today, we will talk to you about the new challenges facing the film industry and the tools it needs to overcome them.

In 2000, the federal government refocused its support for the industry, announcing a new feature film policy. Under the policy, public investment in the industry should help build larger audiences for Canadian films and make them more accessible to Canadians. The challenge of meeting those objectives today is not what it was back then. No one thought at the time that the digital revolution would replace the silver screen experience. Today, however, it is clear that movie watching is happening less and less in movie theatres and more and more on other distribution platforms, mainly television.

According to a recent Telefilm Canada survey, 84% of films aren't viewed at the movie theatre, and a Department of Canadian Heritage study, released just this week, pegs that number at close to 97%. The Telefilm Canada study provides an overview of the changes in Canadians' film selection habits. The study also shows that Canadians are interested in watching Canadian films, as long as they are just as good as foreign ones.

I'm going to digress for a moment. It's important to make something absolutely clear: French-language films in Canada face just as much competition as their English-language counterparts. Francophone viewers, too, have access to the full range of foreign films, often choosing to watch the original or French dubbed versions, especially American ones, which are extremely popular. What that means, then, is that the challenge facing our industry in 2015 is not just to produce high-quality films that will appeal to audiences, but also to make them accessible to viewers on all distribution platforms.

If we are to make high-quality films on a par with our foreign competitors, the government must continue to fund film production and, ideally, enhance that funding. In 2000, the Canadian feature film policy pegged the average production budget of a Canadian film at $2.5 million. It sought to increase that budget to $5 million to improve the quality of Canadian feature films, in an effort to meet policy targets. And yet, in 2014, the average production budget of a Canadian fictional film funded through the Canada feature film fund was just $3.4 million.

Keep in mind that the tax credit is based on eligible labour expenses and that enhancing the tax credit would mean not just more funding for Canadian films, but also more jobs in Canada's film industry.

In our industry, tax credits are an integral part of production funding. Because of that, production companies have to borrow the money they will receive through tax credits from financial institutions before they can start production. They incur bridge financing costs until the Canada Revenue Agency pays out the tax credits. And those costs keep going up because of tax audit timeframes.

Consistent with our recommendation to the government of Quebec, which is currently considering its feasibility, the AQPM is proposing that, 30 days after applying for a tax credit, the production company receive payment of 75% of the amount receivable, with the remainder being paid out upon completion of the tax audit. The program would become more efficient and production companies would have greater access to funding.

The AQPM would like to highlight the great job that Telefilm Canada does administering programs. With a pulse on the industry's needs, the organization has ensured that programs and the success index have adapted. Despite budget cuts in recent years, Telefilm Canada continues to invest more or less the same amount in the development and production of Canadian films, roughly $75 million a year since 2006.

Transcript

Discussions (0)