Canada's TV fund disputed.

Significant changes could be in store for the Canadian Television Fund (CTF). Following protests from cable operators Shaw Communications and Quebecor, the Canadian Radio-television Telecommunications Commission (CRTC) has created a task force to review how the C$250-million TV production-financing arm is managed. The CRTC mandates that, as a condition of operating in Canada, all cable companies must contribute annually to the CTF.

But earlier this year, Jim Shaw, Shaw's vocal CEO, said he would suspend his necessary monthly payments to the fund until his concerns were addressed. Fellow cabler Quebecor also withheld payments. Among the companies' biggest concerns are the find's governance, the private sector's lack of influence in operations and the fund's investment performance. In fact, according to Shaw, the fund has spent C$2.3 billion over the last decade on programming, with very few success stories to show for it. Shaw would like to see the fund operated more like an investment fund. Quebecor accused CTF funding of flailing to take into account new media, the flastest-growing element of the broadcasting sector. Both companies could have caused CTF a C$75 million annual loss of revenue.

But by the end of February, after several MPs accused the firms of breaking the law by withholding their payments, both Shaw and Quebecor announced that they would resume payments in an attempt to end their almost two-month battle. Shaw said he felt confident that the government and CRTC were committed to mending the problems.

Following that announcement, new CRTC chairman Konrad von Finckenstein (who had met with Shaw the night before announcing he would resume payment), said he'd resolve his inherited crisis through co-operation rather than confrontation. While giving testimony in front of the House of Commons heritage committee, von Finckenstein put the CTF on notice that it must come to the table and work toward addressing the concerns.

The CRTC-created task force (which is headed by CRTC vice-chairman Michael Arpin) will gather evidence, meet with fund stakeholders and work toward a consensus on how to address the firms' concerns. If a consensus can't be reached, the group's report (to be published at the end of this month) will make recommendations to resolve shareholders' concerns. The CRTC could then decide to hold public hearings.