[Satellite News 10-18-11] The Canadian government established its Local Programming Improvement Fund in 2008 through a 1.5 percent levy on the gross broadcasting revenues of larger cable and satellite distributors to issue approximately $100 million a year in financial support for conventional television stations in small markets that were affected by the recent economic downturn. That program, however, is about to be audited by the Canadian Radio-Television and Telecommunications Commission (CRTC), Commission Chairman Konrad von Finckenstein confirmed Oct. 18.

   Speaking before a Canadian Parliament privacy and ethics committee, Von Finckenstein said the CRTC would begin its exploration of the funding program in Spring 2012. “The LPIF program was born in the middle of the financial crisis when there was a danger of a lot of stations going dark. It’s a temporary program. We are going to re-evaluate it this coming spring with a goal to determine whether the fund should continue to exist.”

   Von Finckenstein said the CRTC’s ultimate goal was to give small stations the support they needed to thrive and that the agency would examine whether it made sense to continue, changed or abolish the funding program while considering wide differences of opinion that exist in the market.

   “One side thinks it’s too little and that we need more. The other side says you don’t need it at all, get rid of it. The fund has been in operation for three years now. Canadians really value local television for what it is – local. It brings you the news and what is happening in your local area. But for television stations, local programming doesn’t pay for itself. Therefore, you commoditize and you try to have general news for the whole region or for the whole country, rather than just local news in one area,” Von Finckenstein said.

   Last year, Candian broadcasting stations received $34 million of the $100 million issued under the Local Programming Improvement Fund. Satellite and cable broadcaster Bell Canada/CTV received a majority of the funding at $23.5 million, while Quebecor received $6 million, V Interaction received $2.1 million and Shaw Media received $8.7 million. The remaining $26.8 million was shared among various small licensees.

   Von Finckenstein said the funding program has issued a total of $300 million in its three years of operation, and that the CRTC wants to acquire information on how effective the financial support has been.

   “We want to know if the funding has had the desired effect. We have several questions related to this issue. Has local programming stabilized? Has the Local Programming Improvement Fund met the receptivity of the viewers? Has there been increased viewership and is it appreciated? We’d also like to know if some of these local stories, which otherwise wouldn’t be reported, have been picked up and broadcast nationally,” Von Finckenstein said. “Since this is key for local television and it isn’t obviously self financing, let’s make sure that it gets improved – that there is sufficient money because it starts with things like having decent equipment, having enough reporters, being on the scene and doing a professional job – not just an amateur video camera.”