Cinema Canada (Mar-Apr 1975)

Committee which recommended the legislation to Cabinet. Thus, the only reference to distribution in the CFDC act is Section 101 (i) (e) “advise and assist the producers of Cana dian feature films in the distribution of such films and in administrative functions of feature film production.” Six years later and after the production of approximately 130 feature films in Canada, the time has come to tackle the distribution and exhibition of Canadian films in Canada and abroad on a systematic basis and by direct approach to the provinces which have jurisdiction in this area. The production of English-language feature films which could reach audiences of some significance in Canadian theatres now appears to be feasible. Despite the fact that the industry has little experience in this kind of film when the Corporation began investing in them in 1968, Canadian producers have come up with quite a few good films. One need only mention such titles as U-TURN, THE PYX, FORTUNE & MEN’S EYES, ACT OF THE HEART, BLACK CHRISTMAS, WEDDING IN WHITE and THE APPRENTICESHIP OF DUDDY KRAVITZ. The road has been difficult and the number of failures considerable, but after six years, we are convinced that we have the talent and the potential and we are in a position to feel confident of an output of 24 feature films a year for theatrical distribution. All countries of the world, except the United States, protect their national film industries by means of screentime quotas. The General Agreement of Tariffs and Trade prohibits interference with the free flow of information across the borders of member countries and motion picture films have been considered in this category. On the other hand, member countries have established quotas to make sure that their national product is shown on their screens. In the United Kingdom, France, Italy, Sweden and many other countries, quotas have existed from almost the beginning of the motion picture industry and certainly since American films began to make their mark internationally in the 1920’s and 1930’s. In the United Kingdom the quota calls for 30 per cent of the screening time in each theatre to consist of British films as defined in the United Kingdom Cinematograph Films Act. The definition of a British film does permit a small amount of foreign participation, mostly be stars and directors. To our knowl edge, the system is the same in France and Italy though the percentages may vary. The idea of protecting the national culture by means of control over the mass media is not new in Canada. The Canadian Radio and Television Commission, succeeding the Board of Broadcast Governors has the responsibility to make sure that Canadian radio and television stations broadcast a significant number of national programs. The licensing of motion picture theatres is a provincial responsibility and there has never been any attempt to establish a quota of Canadian films in Canadian theatres. There is, however, a precedent in Ontario which passed an order in Council in 1930 to compel U.S. producers to include two Canadian stories in the Canadian newsreels which were released in motion picture theatres up until the early sixties. Without going into precise details at this stage, we recommend that each province agree to a basic quota requiring each motion picture theatre to run a Canadian film for two weeks in each quarter. This would mean eight weeks a year and not less than four Canadian films. The quota would cover only Canadian feature films i.e. those with a running time not less than 75 minutes, and could be drawn from current productions or from films produced earlier. This basic proposal would be subject to modification as follows: (a) FIRST-RUN THEATRES Our definition of a first-run theatre is any theatre which normally programs new films and to our knowledge almost all of them are located in the downtown areas of the large centres of Canada and are owned and programmed by a limited number of companies. These companies would have to program 24 new Canadian films per year for not less than two weeks each spread evenly over the four quarters of the year. The figure of 24 would appear to be a reasonable target for English-language Canadian feature films to be reached by 1977 and maintained thereafter. Some of them might have to be French originals dubbed into English. The companies owning the theatres would determine which theatres would be used to meet the quota but they could not put them all in one theatre and/or release them in one quarter of the year. For instance, Winnipeg has twelve first-run theatres but could meet the quota by using only six theatres. We would expect the provincial regulatory agency to inform the theatre chains in their province of the titles of the films, which meet the national or provincial definition of a Canadian film to be shown under this scheme. (b) SMALL TOWNS There are many situations in Canada in which one motion picture theatre serves one small town. Our recommendation here is that these theatres should be obliged to show one Canadian film per quarter for not less than two days. This would appear to be an onerous obligation, certainly not one which they could use as an excuse to go out of business. (c) GENERAL The scheme suggested above would apply to all theatres in the province including driveins and 16mm situations which are playing to paying audiences. However, there would perhaps have to be exemptions for CineClubs and other organizations which use the subscription method as opposed to paying at the box office. The definition of a first-run theatre would have to be negotiated between the province and the exhibitors. There is also a problem of motion picture houses which are used exclusively for socalled ‘“‘soft-core’” pornographic movies. However we are advised that a number of these are owned by the major chains and could be classified as first-runs. There may also be Canadian-produced (but not CFDC assisted) films available. Similarly, the cities of Montreal and Toronto should be the subject of a special study since their theatres may not easily fall into the general classifi cation of first-run houses and all other houses which we have recommended above. Levy We have mentioned in the past that the imposition of a levy to be paid directly to the producer, based upon 5¢ and 10¢ per ticket sold in the province would be an excellent way of providing a better economic base for the feature film industry. We recognize that this may not be too acceptable to the provinces since some of them have either already given up imposing any kind of an entertainment tax on motion picture attendance or have passed on such taxes to the municipalities. The levy is not in fact a tax and could be included in any further increase in the cost of cinema tickets. In the United Kingdom, for example, an amount of 2 pence (5¢) is collected on every ticket sold and is shared in every quarter between the British films which are running in the same period. The sharing is done on an automatic basis depending on the certified distributors gross of the film. Each British film should get an additional 50 per cent of this amount. This system, known as the Eady plan, provides substantial sums of money to the producers of British films. In France and Italy a percentage of the gross box office of each national film is paid back to the producer without deduction by the theatre or distribution company. So far as we are aware, no attempt has been made to block or restrict any of the money taken at Canadian box offices (except the existing 10 per ‘cent withholding tax). In 1948 however, the Federal Government did consider freezing in Canada all or part of the royalties paid by Canadian ‘theatre owners to American distribution companies in order to save dollars. The Motion Picture Association of America proposed instead that it set up the Canadian Co-operation project through which they would increase the number of short films about Canada being circulated in the United States, arrange location shooting of American films in Canada and mention Canada and Canadian cities as often as possible in the scripts of American movies. This suggestion was accepted by the government of the day, presumably because there was no Canadian feature film industry which needed protection at the time, and the Americans continued to receive their royalty payments in U.S. dollars in full. Alternatives There are other ways which could be used to increase the showing of Canadian feature films but they all involve the expenditure of funds by governments, either provincial or federal in the form of buying or renting theatres and/or projection facilities. These methods have been rejected except for first feature films which usually have limited appeal and feature films of significant merit for artistic and cultural reasons for which the anticipated audience is extremely small. Conclusion Quotas, and if possible the imposition of a levy by the provinces, appear to be the next logical steps in the development of a Canadian film industry. The production facility Cinema Canada 9