A producer warns provincial policies could see fewer films coming to the North Okanagan.
Victoria is reducing the film tax credit for foreign movie and TV productions shot in B.C.
“It will certainly impact the number crunching,” said Rick Dugdale, president of Hollywood-based Enderby Entertainment, which brought Blackway to the North Okanagan.
“The problem is that some of these films are tax credit driven so when you’re choosing between B.C. and Georgia now we are going to be in a position where Georgia will be superior even with the currency difference.”
The basic production services tax credit drops from 33 to 28 per cent and the government says changes were necessary because the taxpayer subsidy was unsustainable.
“We think we’ve arrived at a place that will ensure the industry itself continues to grow and enjoy the success that it has but also there is fairness for other sectors of the B.C. economy,” said Mike de Jong, finance minister.
The province’s payout to the industry through the tax credits was forecast to reach $491 million for 2015, up more than 50 per cent from an average of $313 million in the previous three years.
Subsidies refund between $33 and $71 out of every $100 spent by a film company on eligible labour — equivalent to an average of $25,000 for each B.C. worker in the sector.
De Jong says the credit changes were implemented after consultation with the film industry.
However, Dugdale, who is planning on bringing another film to the North Okanagan, isn’t pleased with the government’s actions.
“I think it’s a knee jerk reaction to the government having to pay out film incentives recently,” he said.
“But that’s because of how busy it has been. Look back just two years ago when the industry was up in arms, holding rallies and asking for help from the government to stay competitive with the rest of the world because so many were out of work.”
Greg Kyllo, Shuswap MLA, defends the government’s decision.
“There has been considerable consultation with the film industry and they are largely satisfied with the outcome,” he said.
“We need to be respectful of the total cost to taxpayers.”
— with files from Jeff Nagel, Black Press
