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Canadian artists scored a victory Tuesday after Stephen Harper abruptly pulled the plug on a controversial clause in Bill C-10 that would have given government free rein to censor film and television projects it found morally offensive.

The Conservative Leader's about-face comes as Tory hopes of a majority fade, and support for the party is sagging in the crucial battlegrounds of Quebec and Ontario.

The move appears to be aimed at appeasing voters incensed at the censorship provision in C-10, and at the nearly $45-million in recent cuts to a swath of other arts and culture programs. Reaction from some of the most influential voices in Canada's cultural sector was swift.

“It's the first arts cut that he's made that's actually good,” said director David Cronenberg. “It's obvious he thought he was playing to a major constituency when he was talking about the cultural elites and the rich galas, and all that nonsense. He realized there are a lot of people of every so-called ‘class' – working or middle class – who depend on their arts for their livelihood and for their intellectual well-being.

“He tried to play the dumb-it-down game and it didn't work because Canadians are not dumb.”

Mr. Cronenberg was referencing comments made by Mr. Harper at a recent campaign stop in Saskatoon, where he said he did not believe that “ordinary working people” were sympathetic to “a bunch of people, you know, at a rich gala all subsidized by taxpayers claiming their subsidies aren't high enough.”

Reached at the Vancouver International Film Festival, director Atom Egoyan said he felt “relief.”

“Now we're waiting for other reversals of decisions,” he said. “I think our message might be getting across. And that's great news.”

The incendiary clause in C-10, as well as the $45-million in other cuts, has galvanized the arts community, sparking rallies and news conferences across the country. Many critics have charged the cuts were ideologically motivated by the Conservative government.

But Mr. Harper and his officials have repeatedly maintained they were simply implementing necessary reviews designed to identify inefficient or ineffective initiatives.

Actor, writer, and director Sarah Polley said Tuesday: “It's good news that this ridiculous clause has been thrown out, but it's only a start and doesn't negate the harm this government has caused to culture in this country.”

The C-10 hoopla first reared its head in February after The Globe and Mail reported there was a little-known provision – at third reading before the Senate banking committee – that could cut off tax benefits for film and TV productions that contain graphic sex, violence or other content that the government finds offensive. It applied only to Canadian TV and film projects, while Hollywood and other foreign productions applying for tax credits would get a free pass.

In his platform – called The True North Strong and Free: Stephen Harper's Plan for Canadians – the Tory Leader said that while “these proposals were approved unanimously by the House of Commons, we will take into account the serious concerns that have been expressed by film creators and investors.

“A re-elected Conservative government … will maintain financial support for arts and culture at or above existing levels, while continuing to improve the effectiveness of allocations wherever possible.”

All four opposition parties have pledged to reinstate the $45-million in axed programs.

With a report from James Bradshaw