Quebec cable company Vidéotron is prepared to resume payments to the Canadian Television Fund (CTF), Quebecor chief Pierre Karl Péladeau said in a statement Tuesday night.

The change of heart came after strong words from Heritage Minister Bev Oda and CRTC chair Konrad von Finckenstein on Tuesday, who said Vidéotron and Shaw Communications of Calgary must begin making payments again before any changes to the CTF can be considered.

Both Oda and von Finckenstein promised to consider a Vidéotron proposal suggesting alternate ways of funding Canadian television production.

"We are prepared, in good faith and as quickly as possible, to undertake discussions with the federal authorities," Péladeau said in reaction to Tuesday's developments.

At a news conference critical of the CTF held on Monday, Péladeau had outlined his own plan for financing Canadian production, pledging $109 million over the next three years.

He said he wanted to put the money, including $30 million this year, into a private Quebecor fund, which would have a board controlled by Quebecor appointees.

Oda told a parliamentary heritage committee on Tuesday she would write letters demanding resumption of payments by Shaw and Vidéotron, who have both stopped supporting the fund because they don't like the way the CTF is run.

There is a need to "restore stability" to the industry, she said. When that is accomplished, she added, proposals such as that put forward by Vidéotron can be considered.

Later in the day, the Canadian Radio-television and Communications Commission issued a statement saying it would be looking into enforcement of the rules regarding CTF funding.

"By the same token, all stakeholders must play by the rules and operate within the context of the regulatory system. The commission is confident that Shaw and Quebecor will heed the minister's call and resume monthly payments," the federal regulator said.

The CTF applauded the statements by Oda and urged the CRTC to demand payment from the cable firms as soon as possible.

"In order to minimize disruptions to the 2007-2008 production and broadcast cycles, it is critical that the CTF be able to announce funding allocations to the industry by the end of February as it had committed to," said Valerie Creighton, CTF president.

Projects postponed

Producers in Ontario and Quebec say projects are being postponed or dropped because of the uncertainty over CTF funding.

The trade associations representing English Canadian producers welcomed the CRTC  statement as "an important signal." 

"The commission's recognition of the importance of independent production, along with its commitment to reducing the uncertainty surrounding our sector, is critical to solidify independent production at the heart of the broadcasting system," said Ira Levy, chair of the Canadian Film and Television Production Association.

In another development Péladeau has filed a lawsuit in Montreal against a Radio-Canada executive who called him a "hooligan" over his stance on the CTF.

Péladeau is claiming $2.1 million in damages over published comments made by the public broadcaster's executive vice president of French services, Sylvain Lafrance. CBC president and CEO Robert Rabinovitch and Radio-Canada are also named in the suit.