MONCTON, N.B. - No decisions have been made on funding to help private broadcasters cope with the downturn in the economy and the long-term problems faced by the industry, says Prime Minister Stephen Harper.
"We are certainly aware of the difficulties that are affecting this sector," he told a news conference at an infrastructure announcement Wednesday in Moncton.
"We are aware of the problem, we are looking at options, but the government has not taken any position."
The federal cabinet is considering a $150-million fund for the country's private broadcasters to help rescue local TV stations and their newscasts, The Canadian Press has learned.
Sources say members of the cabinet priorities and planning committee met Tuesday to discuss their options for helping broadcasters.
Canwest (TSX:CGS), CTVglobemedia (TSX:BCE, TSX:TS.B) and Quebecor (TSX:QBR.A, TSX:QBR.B) have all been lobbying Harper's Conservative government to come up with both short- and long-term assistance.
Harper has met with Canwest's CEO Leonard Asper and Quebecor's Pierre Karl Peladeau in the last few months.
The $150-million local programming fund would be tied to news and current affairs programming, and would favour smaller urban centres. A formula would be worked out to ensure that big cities such as Toronto and Montreal did not swallow up the lion's share of the cash.
Whether the CBC would be eligible is still unclear, although the private broadcasters have been lobbying vigorously against it. The CBC is facing a $170-million shortfall this year and is planning 800 layoffs.
Last month, Heritage Minister James Moore confirmed that the government was considering the issue but he would not reveal the details.
