While the loonie’s dive against the U.S. greenback injected much-needed hope into the beleagured B.C. film industry, current dollar fluctuations leave the future uncertain.

Over the past year, the strong Canadian dollar, combined with the U.S. screenwriters strike and increased competition from other film juridictions, resulted in decreased film and TV production spending in B.C. Spending sank from over $1.2 million in 2005 and 2006 to $943 million in 2007, according to the British Columbia Film Annual Activity Report 2007/2008 released in mid-October.

Following the Canadian dollar’s decrease to the current 80-cent range, Ernst & Young Canadian media and entertainment leader Neal Clarance told the Straight by phone that he had noticed increased inquiries about current tax credit levels and savings estimates. He added, however, that the dollar’s volatility makes longterm planning difficult for smaller, independent clients. “Most of the companies that are inquiring about shooting are looking at shooting”¦in some cases, a year down the road. So while they can lock into dollars now, they may not be in a position to lock into dollars now, for a show that far off.”

However, Canadians need to bring the new exchange rate to the attention of Americans. Clarance noted that while Canadians are constantly monitoring the American dollar, the reverse isn’t necessarily true. “In Canada, we live and breathe in U.S. dollars. We’re constantly thinking about the exchange rate”¦Those American companies that have traditionally come to Canada, they are generally pretty cognisant of where the dollar is. But even then, it’s not on their radar every day. They’re not inundated with it as to how the Canadian dollar is performing”¦,. So in many cases it’s up to us to make sure that they’re aware those additional savings are available.”

In addition to the lower Canadian dollar, tax credit increases introduced earlier this year remain in effect.