B.C. NDP vows to increase tax credits for film and television production

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      In their first major platform announcement of the provincial election, the B.C. NDP announced today (April 9) that if elected this spring, they would increase tax credits for the film and television industry to 40 percent of labour costs for both foreign and domestic productions shot in B.C.

      “It sends a strong message, this announcement, to the domestic and international industries, that B.C. intends to be a major centre for years to come,” NDP Leader Adrian Dix told reporters at Vancouver Film Studios. “It reflects the level of support of British Columbians for the industry. These jobs are important, and we think this announcement sends a signal everywhere that B.C. is open for business.”

      Currently, B.C. tax credits are 33 percent of local labour costs for foreign productions, and 35 percent for domestic productions. Both Ontario and Quebec currently offer tax credits of 25 percent on all eligible production spending and labour.

      According to Dix, increasing the tax credit in B.C. will translate to incremental costs of $45 million annually. He said the policy would generate “immediate” benefits in terms of job creation. The tax credit would apply to B.C. residents’ labour only.

      “We want to make sure our workers have a chance to compete,” Dix told reporters. “And given the I think remarkable lack of success of the government’s jobs plan, these kind of family-supporting, high-paying quality jobs in communities across B.C. is something that we’re very interested in, and I think the government ought to be as well.”

      The NDP say the increased tax credit would translate to estimated net revenue of $93 million, based on economic activity.

      Peter Leitch, the chair of the Motion Picture Production Industry Association of British Columbia, called the proposal “great news”. He noted the industry has not been asking for B.C. to match the incentive in Ontario, but to be competitive.

      “This is going to be bring us closer if it happens, and that’s good news for us,” he told reporters. “Because that’s really what we’ve been asking for, is just to get a little closer. We’ve got fantastic crews, fantastic cast, great infrastructure, and a world of looks here in British Columbia. We do this business very well, and the opportunities in the creative sector going forward…we want to participate in that, and we want to participate in the innovation that it’s going to bring to this province.”

      Wayne Bennett, a production manager and producer, and the spokesperson for the Save B.C. Film campaign, also praised the announcement.

      “They’re listening and they’re realizing that this business is a huge boost to the provincial economy, and that we are not competitive on a global market, and we’re losing not only the business, we’re losing jobs, and we’re on the edge of losing infrastructure,” he said.

      “This is something that we can take to our clients, our customers, no matter where they are in the world, even here at home, and in Ontario where the bulk of the production has started, and say B.C. is open for business, and we want to bring the work here and bring the projects here.”

      The NDP’s announcement follows appeals from motion picture industry leaders, and the grassroots Save B.C. Film campaign, for B.C. to increase its tax incentives following increased unemployment in the local sector.

      According to a report from the Canadian Media Production Association, B.C. lost 3,500 film and television productions jobs during the year ending March 31, 2012. B.C. dropped to the fourth largest North American film and television production centre in 2011, with Ontario surpassing the province to become the largest Canadian production centre.

      Data from the British Columbia Film Commission indicates the number of domestic productions in B.C. grew last year, while foreign production spending decreased by nine percent.

      The B.C. Liberal government has previously said that it has no plans to increase the $285 million it provides in tax credits for film production. The government announced  a new agency in January that combines the programs of the B.C. Film Commission and B.C. Film + Media under one body to oversee the development of B.C.’s creative industries.

      Comments

      12 Comments

      The film industry benefitted immensely from the HST

      Apr 9, 2013 at 3:12pm

      Days after gloating about his role in increasing taxes for every small business across BC, including the film industry, he's now gloating about giving tax breaks to multinational corporations. Are they or aren't they essential to economic development? It would be nice if all businesses were afforded the same opportunity for success. I guess only businesses handpicked by Dix are deemed valuable to the economy. Where do we send the brown envelopes? No wonder he's scared to debate Christy. Some defender of small business. It's going to get ugly in this province.

      John Smith

      Apr 9, 2013 at 5:44pm

      Interesting math thay have going there. An increase in the tax credit allegedly will cost an additional 45 million of costs. THose are costs borne by taxpayers. But the new net revenues, of 93 million, those are not revenues for the government, those are revenues for the industry to take as profits or pay out in high salary jobs. In short, the secretary making 35K per year pays taxes to subsidize some teamster truck drivers inflated salary. I thought the NDP was supposed to be looking out for the little guy?

      Truth BOMB

      Apr 9, 2013 at 5:55pm

      Things are already ugly in this province. Especially if you work in Film&TV which the BC Libs have decimated. Tax credits for film productions put people to work; mostly union workers with excellent wages (crew, performers, etc.). They can make a good living IF there is work to be done. We're talking about British Columbians getting work, paying taxes, and spending money. Right now their poor and broke. Is that your idea of success? The industry doesn't need HST. And it certainly doesn't need Christy and her cronies. In fact, during the hey-day of the industry (the 90s and early 00s) we did just find with solid tax credits and smart management. Gordo, and then Christy, went out of their way to break something that was very much fixed and didn't need their meddling. The HST didn't help the industry at all. During two years of HST we've dropped to third place for film production behind Ontario and Quebec. Explain to me how that helped us?

      colleen moore

      Apr 9, 2013 at 6:32pm

      That is right, jobs for BC and not cheap labor for corporations and banks that receive large tax breaks. The reason unemployment is up is because of foreigners and also another reason for youth unemployment. At least the movie industry will hire local people and buy from surrounding businesses. While BC banks get that extra special tax credit thanks to Carol Taylor and BC residents who have to the slack along with faulty mortgages. The banks would rather not hire from BC when India has such cheap labor. Carol Taylor kills taxes for Canadian banks but who knew the Liberal finance minister was also killing jobs.

      spinning the story

      Apr 9, 2013 at 6:57pm

      Unemployment is up in BC because of the elderly taking all the jobs, dauh! Or because big companies bottom line is finding cheap labor from other countries? Harper makes it easy for banks and corporations by creating a loop hole for big business to squeeze out of as prime minister checks out cheap labor in neighboring countries. Harper attends the Iron ladies funeral and soon enough he will be attending his own, political that is. Christie compares herself to the Iron lady while Dix sees Clark more as Silly Putty.

      bobo

      Apr 9, 2013 at 10:45pm

      When you promise one section of the business community that you will increase their bottom line just before an election that you are running in, it kinda smells like buying votes.

      skeptic

      Apr 10, 2013 at 8:43am

      I'll preface this by stating that I am voting NDP but...

      I Do Not agree with super special Tax breaks for any ONE Industry and certainly not the Hollywood Film Industry (the majority of production based on Dollars spent here).

      This is simply not Economically sustainable nor is it feasible for BC a much smaller by GDP vs larger Provinces & States to be in a Check writing contest to the BOTTOM!

      It's simple Corporate Welfare for multi-national media corporations who will go where ever they get the biggest subsidy.

      Lets not play that game it's a losers game.

      Hey bobo is that buying votes or jobs

      Apr 10, 2013 at 9:32am

      BC Liberals give banks huge breaks increasing there bottom line while having made a bundle on ballooned real estate. Leaving many way over their heads, especially in BC which taxpayers have to pick up loses in the billions while bank looks to other countries for cheap labor.

      And Bobo

      Apr 10, 2013 at 9:39am

      I didn't know Hollywood was able to vote in the next election? Buying votes from Americans isn't going to get the NDP into office but it will create jobs. It is to bad the banks didn't have any loyalty because they sure know how to screw with Canadian resources.

      colleen moore

      Apr 10, 2013 at 10:16am

      All this talk about vote buying is silliness when the NDP already had the industries workers support. It was the Liberals who didn't care the party had the support of the working stiff. The Liberals had a different strategy targeting the ethnic vote using tax payers resources and that is as about as ugly as it gets.