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Film, TV industry seeks changes to tax credits

By: Bruce Owen

Posted: 03/2/2010 1:00 AM | Comments: 0 (including replies)

MANITOBA'S film and TV production industry is appealing to the Selinger government to help them prevent their work from fading to black.

On Screen Manitoba chairwoman Phyllis Laing said Monday the group is meeting with Finance Minister Rosann Wowchuk next week to lobby the province to change its film and video production tax credit to help lure American productions back to the province.

On Screen Manitoba, which represents the industry, is also encouraging its members to lobby MLAs and cabinet ministers about why the change is needed in advance of the March 23 budget. Laing, president of Buffalo Gal Pictures, said over the past year the industry here has lost potential work as larger productions have picked Ontario, which last year started offering a 25 per cent rebate on every dollar spent on film production. Manitoba's tax credit only rebates 35 per cent of approved Manitoba labour expenditures up to a maximum of 22.5 per cent of eligible production costs.

While still competitive, Laing said if Manitoba doesn't adjust its tax credit to compete with Ontario, there is a fear much of the behind-the-scenes production talent will move out of province to follow the jobs.

"It is time to stand up and make some noise for the industry in Manitoba,''

Laing and former chair Kim Todd of Original Pictures wrote in a recent On Screen newsletter in a bid to get members to lobby government.

"We have proven we can make great shows but if we cannot marshal political and financial support we will lose everything we have all worked so hard to build.

"It is a critical political time as we cannot count on the new premier and his new cabinet understanding or supporting our industry. We have to let them know all over again what we bring to the province."

Laing also said the industry recognizes the tough position the province is in as it confronts a $592-million forecasted budget deficit for 2009-10.

But, she added, a new "all-spend" tax credit would put Manitoba back on the map of big American and other productions. It would also put more people to work locally and have spin-off benefits for hotel bookings, car rentals and catering. Production activity has slowed over the past two years and has further fell victim to the economic downturn and high Canadian dollar. Production in the year ending March 2009 dropped to its lowest since 2001, to $68.4 million from $133.3 million the year before. The peak year was 2005-06, with $145 million.

bruce.owen@freepress.mb.ca

Roll the credits

Economics 101 for TV and film production in Manitoba:

Fastest-growing film and television production industry in Canada between 1998-99 and 2007-08

Total film and television production volume of $685 million over five years between 2003-04 and 2007-08

Offshore production volume of $328 million or 48 per cent of Manitoba's total production volume

Co-production volume of $157 million

$378 million of private investment financing for Manitoba productions or 63 per cent of total financing

$506 million in financing originating from outside Manitoba over the last five years

Total direct and spin-off Gross Domestic Product of $365 million for Manitoba's economy over five years

Creation of an average 1,600 full time equivalent jobs each year

An estimated 50 production companies employing 200 Manitobans

78 per cent recovery rate for provincial-government investments and 137 per cent recovery rate for federal-government investments in Manitoba productions over the past five years

-- Source: On Screen Manitoba

Republished from the Winnipeg Free Press print edition March 2, 2010 A6

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