PREMIER WALL TO MEET WITH FILM INDUSTRY TO DISCUSS TAX CREDIT

Premier Brad Wall will meet today with representatives of Saskatchewan's film industry to discuss the government's decision to discontinue the Film Employment Tax Credit (FETC).

"The government made a number of difficult decisions to ensure it could balance the budget and maintain the Saskatchewan Advantage," Wall said. "This meeting will allow us to discuss the budget measure and ways the government and industry can work together to support filmmakers in Saskatchewan."

As of April 1, 2012, the government will no longer be accepting FETC registrations. The government will honour productions already registered and issue tax credits accordingly.

The FETC has cost the province $100 million since its introduction in 1998. Total government assistance to the film industry exceeds $200 million during the period representing a 30 per cent subsidy.

Eliminating the tax credit will save Saskatchewan taxpayers up to $3 million in 2012-13 and $8 million once it is fully phased out by December 31, 2014.

During the last few years, the operating environment for the film industry has changed significantly, with production concentrating in the Vancouver and Toronto areas.

In Saskatchewan, production volume has fallen nearly 70 per cent during the last four years, from $74 million in 2007-08 to $24 million in 2011-12. Employment in the industry has declined 54 per cent during the period. No new productions have been scheduled for 2012-13 even with the FETC in place.

In 2011-12, the government expects to spend $6.2 million on the FETC to assist an industry that directly employs 330 people. That amounts to an $18,788 subsidy per position.

"The industry told us they needed additional financial support to be viable," Wall said. "But given the current trends in the industry, we decided to focus on other priorities, such as other ways of supporting the film industry, affordable housing, supporting people with disabilities and improving health care, while balancing the budget."

Wall noted the provincial government continues to support culture in many ways.

Funding for the arts and culture sector increased by $21 million under the Saskatchewan Party government, a 35 per cent increase compared to the last four years of the previous NDP government. This funding supports hundreds of individual artists, musical groups, theatre companies, professional arts organizations, indigenous arts, project assistance and scholarships.

The government is also providing significant support to allow Saskatchewan to host several major events, including the 2012 Canadian Country Music Awards and the 2013 Juno Awards.

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For more information, contact:

Kathy Young
Executive Council
Regina
Phone: 306-787-0425
Email: kathy.young@gov.sk.ca
Cell: 306-526-8927