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Axing TV fund will hurt local programming, Guild warns

Today's decision by the broadcast regulator to scrap a fund financed by cable and satellite companies will harm local TV programming and deepen budget cuts at the CBC, says the Canadian Media Guild.

The CRTC, which created the Local Programming Improvement Fund (LPIF) in 2008 to help broadcasters in non-metropolitan markets during the recession, says it is no longer needed and will be phased out by August 2014.

The Guild notes the LPIF's disappearance coincides with the third and final year of federal budget cuts to the public broadcaster, with the result that CBC will have lost a total of $155 million or nearly 15 per cent of its funding.

The CBC has received $40 million a year from the $100-million fund, using the money to improve service in small markets, many located in official-language minority communities.

Hubert Lacroix, CEO and president of the public broadcaster, says elimination of the LPIF "will negatively impact local television programming in smaller markets. For us, it will mean adjustments in terms of level of service, how we deliver service and the territory that our journalists can cover."

The CMG, which argued in favour of the fund before it was introduced, says it is disappointed with the decision. The CRTC, it says, now must use the CBC's upcoming licence renewal hearing to examine what other regulatory means can be used to support programming that meets the objectives of the Broadcasting Act and serves the needs and interests of Canadians.

When the fund was set up, cable and satellite firms were ordered to pay into it, but passed the charge on to customers, who shelled out less than a dollar a month on average.

Bell Media says the decision to scrap the LPIF is a "major concern" and puts at least six of its smaller stations at risk if the programming subsidy is reduced.

In 2010, 78 stations received $100-million from the LPIF; 80 received $106-million last year.