Federal funding for a new Canada Prize for the Arts has prompted angry reactions from arts groups across Canada.

The $25-million allocated in the federal budget for an annual prize for emerging artists from around the world was an idea proposed by David Pecaut and Tony Gagliano, the founders of Toronto's Luminato festival.

The backlash has been strongest in Quebec, beginning with a front-page story in Le Devoir, decrying the new award as a "Star Academy in Toronto" and a business opportunity to boost Toronto's Luminato festival.

Bloc Québécois MP Carole Lavallée attacked Heritage Minister James Moore in the House of Commons over the prize on Wednesday, saying the money should be used to restore international touring. The proposal is an indication of the minister's "lack of understanding of culture," she said.

Not just sour grapes

Jane Needles, president of the Quebec Drama Federation in Montreal, says the criticism is not just a case of sour grapes in Montreal over funding flowing towards Toronto.

"This is not about Toronto, and Toronto shouldn't have the money — it's wonderful that there is $25 million being put into the arts sector," she said in an interview on CBC's Q cultural affairs show on Friday.

"But to put it to international use when our own artists have trouble getting across the ocean now because of cuts to the Trade Routes program … this is a huge problem."

The Conservative government cut PromArt and Trade Routes, two programs that helped Canadian dance troupes, theatre companies and musicians take their performances to international markets, last September.

One aspect that has rankled artists across the country is that money went to the Canada Arts prize, but the budget contained nothing new for Canadian artists wanting to tour.

Artists decry lack of consultation

"That's for artists coming here to Canada. It's not saying our artists are going out on the international market. That is our big concern," Needles said. "There's about … 40 per cent of our artists here in Quebec [that] do a lot of their work on the international market."

Artists are also concerned about the lack of consultation on the prize program, which some say appears to be a perk for two Toronto-based businessmen, Needles said.

"There was no details of how it would be administered. Who would do the selection of the winners? What this was all about? It was a $25 million one-time award amount of money to be given toward this prize program," she said.

"This is taxpayers' money and the appearance is, this is going to the private sector."

Martin Knelman, an entertainment columnist with the Toronto Star, said it's a "total misconception" that the prize is a private-sector project.

"Again and again the point is made that the money is going into private hands because the people who came up with the idea are businessmen," he told Q."Yes, they're businessmen, but this is not a private enterprise in any way shape or form.

"The concept is a not-for-profit charitable foundation — nobody's making money out of this."

Papers 'full of hysteria and venom'

Coverage in the Montreal papers is "full of hysteria and venom towards Toronto. The idea that this is not about regional differences just doesn't wash," Knelman said.

"I think this reflects something that's been going on in this country for the last several years which is a lot of anxiety in the Montreal cultural world ... about what's happening in Toronto. There's kind of a sense that if it's in Toronto, it isn't really culture.

"There's been some concern about the cultural renaissance Toronto has had."

Knelman agrees that the cancellation of money for international touring is a concern, not just for Quebec artists but for artists throughout Canada.

But that's no reason to cancel the Canada Prize for the Arts, he said.

"This isn't an either-or situation. Rejecting this opportunity isn't going to bring back money for travelling artists."

Canadian artists say they are struggling and this prize will do little to help them.

Other needs 'more pressing'

"There was no need for that. That's what amazes us — other things have been identified ... that are more pressing matters," Simon Brault, the vice-chair of the Canada Council, told CBC News.

Knelman said arts groups should be consulted over how the prize is administered.

"I think there could be a valuable component for Canadian artists participating alongside international artists and making a lot of connections around the world", he said. "Also, the people who would be drawn here for such an event would also, while they were here, be exposed to the work of Canadian artists which would lead to other partnerships."

Moore defended the prize in the House of Commons, saying it will increase Canada's status as a cultural capital.

"It is going to make this country stronger on the international stage and that's why the Bloc Québécois is against it, because we're making this country stronger through arts and culture," he said.