The Saskatchewan film industry is up in arms because on March 21, the provincial government announced the annual average $8 million film tax credit was getting chopped. Over the next week, you could tell these people work in drama, because the world is now going to end.
There's been a six to one ratio of spending, according to advocates like actor Kim Coates, who spoke on John Gormley Live March 26. For the $100 million spent by the provincial government over the last 10 years, over $600 million has been generated, resulting in people staying in hotels, eating at restaurants and the like.
"If you give a little, you get a lot back in return," said Coates, adding the industry will essentially die, and, "1200 people will move from the province."
The previous Friday, CBC interviewed an instructor who works in education side of the film industry. He explained that for a million dollar project, half of which was spent on labour costs, there is up to a 55 per cent tax rebate (depending on where it shot). The result is a $275,000 rebate.
From other sources it has been reported up to half of the film or TV show's budget can be covered.
The business case for these productions is apparently largely contingent on these forms of rebates or tax credits, not just here, but anywhere. Ever wonder why they use Toronto or Vancouver to fill in for some American city? Why not just go to the actual spot and film there? A very large factor is how much money producers can squeeze out of the local government.
Let's call this what it is: film tax credits are supporting corporate welfare bums, and are one of the worst examples.
Let's look at another labour intensive business - restaurants. What if we said restaurants required a 50 per cent tax credit on all their labour to stay in business? Does anyone think that would be sustainable? Open a restaurant and get half your labour costs covered? Claim it is impossible to run a restaurant without a tax credit?
The sad thing here is it is those very restaurants, and grocery stores, and hotels, and all other businesses as well as individual Saskatchewan taxpayers who are propping up the unsustainable business model the film production industry has created.
The irony here is that it is usually left-wing types who are the biggest supporters of the arts. They are also often the first to decry corporate welfare (as well they, and everyone else for that matter, should). But put the two ideas together - corporate welfare considerations for the arts, and they sputter, "Oh, we must support the arts! We can't live without it!"
We forget these are business ventures. They always are. They always will be. They may claim to be making art, but really, they are all about making money. Corner Gas would not have been made if it was not making money.
Consider what else could have been done with that $100 million? That's probably enough money to have twinned Highway 39 between Weyburn and Estevan, or build a couple high schools. This is what government is supposed to be doing with tax money - building infrastructure, not propping up unsustainable businesses suckling off the public teat.
If a TV show or film can't sustain itself without my tax dollars, take it elsewhere and let someone else pay for it. As for the 1,200 who will have to run away from Saskatchewan - there's lots of other jobs to be had here, and they aren't all waiting tables.
- Brian Zinchuk is editor of Pipeline News. He can be reached at [email protected]
