CMPA Welcomes CMF’s Adoption of Terms of Trade

 

Ottawa, September 19, 2011- The Canada Media Fund (CMF) announced this past Friday that it would adopt changes to its Guidelines for all production programs in the Convergent Stream in order to address the current inconsistencies or conflicts between its Guidelines and the Terms of Trade Agreement that was reached by the Canadian Media Production Association (CMPA) and private broadcasters Astral Television Networks, Bell Media Inc., Rogers Broadcasting Limited, Shaw Media Inc. and Corus Entertainment Inc.

“We welcome and appreciate the CMF’s endorsement of this landmark agreement,” says Norm Bolen, CMPA President & CEO.  “Having Canada’s largest production fund on board further establishes Terms of Trade as an important new pillar of the Canadian broadcasting landscape.”

In its announcement, the CMF stated that it would respect the key provisions of Terms of Trade for those projects licensed by the private broadcast groups that have signed on to the agreement.   Key provisions include a five year licence term, retention by the producer of 25% of a project’s eligible tax credits, and a prohibition on producers deferring their producer fees and overhead.

“While we were happy to conclude a Terms of Trade agreement with the private broadcasters last spring, getting the deal done was only a critically important first step,” says John Barrack, Chief Operating Officer and Chief Legal Officer of the CMPA, “The real work involves implementing the agreement meaningfully and effectively.  We are committed to working with the CMF, the private broadcasters, and all industry funders and stakeholders to achieve this goal.”

The CMF indicated that while it will respect the agreement’s key provisions, there are certain areas where it will need to maintain its current policies, including its standard recoupment policy.
 
“The CMF is engaged in ongoing consultations with the CMPA and the rest of the industry regarding potential changes to its recoupment policy,” says Barrack, “In the meantime, we’d encourage producers to contact us and the CMF where they have concerns about recoupment or any other aspect of the CMF’s announcement.”

About the CMPA:
The Canadian Media Production Association (CMPA) (formerly the Canadian Film and Television Production Association) is a non-profit, national industry trade organization. The CMPA represents the interests of leading screen-based media companies in all regions of Canada that are engaged in the production and distribution of English-language television programs, feature films and interactive media content.

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For more information please contact:


Anne Trueman
Director of Communications & Media
1.800.656.7440 Ext. 227