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Village Squire, 1979-05, Page 42P.S. How's this for a bargain: it cost 5100, 000 to make and sells for 560. BY KEITH ROULSTON If you were a shoe maker trying to make a living making and selling shoes and suddenly someone from the country next door started selling shoes that cost $20 to make for $5 and taking away your business, you'd be angry. If you were a farmer and were raising cattle and suddenly somebody in the next country started selling cattle that cost $700 to raise for $100, you'd complain to the government. Such practices of selling something for far less than it costs in another country is called dumping. There are international regulations 'against it. It usually happens when through some miscalculation in the marketplace far more of some product or commodity is produced than the domestic market can handle. Rather than have the law of supply and demand knock the bottom out of prices at home, a company, sometimes aided by the government, will ship the surplus off to another country to sell it for whatever it can get. Usually the company gets caught with international repercussions, although sometimes dump- ing does succeed. At least dumping in most areas of industry is recognized as bad and moves are made to stop it. But there is one area where dumping is not an under-the-table operation. What would you say if you were making somthing in Canada and found out you had competition from a foreign country that produced something at a cost of $100,000 and was dumping it into your own local market for as little as $60. Sounds impossible doesn't it. But it is true. I recently had occasion to do some research into television production in Canada, particularly by local television stations. During that research I was told by someone who should know that a half-hour situation comedy from Hollywood could be bought by a station in a small, rural market for as little as $60 for a larger market, say the size of London, the price might be $250. Now I haven't heard any figures about Hollywood production costs recently, but 1 do recall a few years ago before the Mary Tyler Moore show was cancelled that Miss Moore was earning a cool $25,000 per episode. The budget for the show was more than $100,000 for a half hour show at that time. The difference between show business and other forms of industry is that the cost is in the initial production. It costs a lot of money to make the initial copy of a 40 Village Squire, May 1979 film but once that's accomplished, the cost of producing prints of that film for sale around the world is so small in relation to overall cost that it is relatively insignifi- cant. Costs in the U.S. are based on the money that can be made back in the U.S. market. Every show down there is designed to make money. Sure $25,000 per episode for a single star of a television show seems absurd, but if the show's a hit it's going to make a pile of money and the star might as well pocket some of that as the network bosses. But once the Americans have produced the show for their own audiences, once they've met their costs there, then they can look at other foreign markets. To them, anything they get on top of their U.S. income is gravy. Thus, selling a show for $60 to a small Ontario station is $60 the makers wouldn't get anywhere else so why not? And who can blame them? Wouldn't we do the same thing if we could? The problem is not so much with the Americans as with our own people with letting them away with it. In any other industry in Canada it would be outlawed, but not in television. Instead we let people like John Bassett make a fortune by buying U.S. television series cheap (a heck of a lot more than $60 to be sure but still a lot less than the real cost of production) and selling advertising at the same rate he could in an equal city in the U.S. He produces virtually no shows of any quality himself and pockets all the profits he makes from cheap U.S. programing. Of course things are even worse when it comes to cable television. Here the cable companies pull in American programing at absolutely no cost whatsoever and sell it to local suckers who buy cable television subscriptions. In any other business this would be called theft, but not in the television business. One can't really blame the government in this area because every time the government's agency in such matters, the Canadian Radio -television and Telecommunications Commission tried to do something about this by saying that Canadian channels came before American channels on cable setups, householders reacted as if the government was forcing their eldest daughters into white slavery. The result is that we have very little Canadian programing left on television. Once nearly every Canadian television station had its own programing. One local Continued on page 39 Spring Seuiing Cefre The latest Spring fabrics are here. Sew your way into fresh Spring fashion with new woolens, cot- tons and polyesters. ':. A full selection of new Butterick patterns can put sunshine into your wardrobe for the warmer weather. Also a complete new line of buttons, lace, zippers and thread can make your sewing re- quirements complete. ri Larone's Where shopping is a pleasure. SEAFORTH 527-1960