Montreal, Canada-based LE JOURNAL DE MONTREAL reported Friday, October 15
that Cinar, producer of such shows as PBS' ARTHUR, THE BUSY WORLD OF
RICHARD SCARRY, ARE YOU AFRAID OF THE DARK and WIMZIE'S HOUSE, substituted
the names of Canadians for work done by non-Canadians to become eligible
for tax credits that were intended to help Canada's film industry. Although
the film company was not named in the newspaper story, the Canadian
Broadcasting Company (CBC) reports that on Friday, in the Canadian House of
Commons, Bloc Quebecois Member of Parliament Stephane Bergeron identified
the company as Cinar Films Inc. To qualify for Canadian federal tax
credits, the producer of any film or television show must be Canadian. This
also applies to the director, screenwriter and lead actors. Radio-Canada,
the CBC's French network, interviewed a screenwriter in the United States
who said he contributed to a Cinar TV show, but never received credit.
According to a statement released by Cinar, "The allegations in the media
appear to pertain to episodes produced several years ago and have no
relation to the current operations and activities of the company. Based
upon its review to date, Cinar believes that such allegations will not have
any material adverse impact on the financial position or results of the
company. Nonetheless, the Board of directors has given a special mandate to
members of the Audit Committee of the Board, composed only of outside
directors, to review the various issues associated with the allegations.
The Committee has been instructed to report its findings and
recommendations to the Board of directors at the earliest possible date.
The Board reaffirms its intent to cooperate with all competent
authorities." Cinar was founded in the 1970s by Micheline Charest and her
husband, Ronald Weinberg.

For more about Cinar read Deborah Reber's "All in the Family: Rated 'G' Animated Programming" in the December 1998 issue of Animation World Magazine.