Ottawa, 22 November 2005—Canadian Heritage needs a clearer overall strategy for its support to cultural industries, says the Auditor General of Canada, Sheila Fraser, in her Report tabled today in the House of Commons.
"Canadian Heritage and other organizations spend over $800 million a year on programs that support cultural industries," said Ms. Fraser. "The Department should have a better idea of what it's trying to achieve."
Canadian Heritage supports cultural industries—film, television, publishing, sound recording and new media—in order to encourage them to create, produce, and disseminate Canadian cultural products.
The audit found weaknesses in three main areas:
Strategic management. Without a clear overall strategy, Canadian Heritage risks having each Cultural Affairs branch set its own priorities, plans, and production schedules independently for the industry it supports. Further, the Department has not set targets by which to measure the results of its support activities.
Governance arrangements with other organizations. Support for cultural industries involves many federal players. The audit found the governance of the Canadian Television Fund program in particular to be complex and its administration cumbersome. The program is governed by two corporations—Telefilm Canada and the Canadian Television Fund Corporation—and approval by both boards is needed for budgets, business plans, and program guidelines. Moreover, Telefilm Canada is subject to a high degree of direction from Canadian Heritage. This leaves it little leeway to interpret its mandate and decide on the best way to carry it out, which makes it unique among Crown corporations.
Controls. Canadian Heritage, Telefilm Canada, and the Canada Revenue Agency do not apply their controls rigorously enough to ensure that requirements covering Canadian content, project selection, and eligibility of expenses are met.
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The chapter "Support to Cultural Industries" is available on the Office of the Auditor General of Canada Web site.
Information:
Julie Hébert, Communications
Tel.: (613) 952-0213, ext. 6292
E-mail: communications@oag-bvg.gc.ca
