FUNDING ANNOUNCED FOR FEASIBILITY STUDY FOR FILM PRODUCTION STUDIO IN SASKATCHEWAN

Natural Resources Minister Ralph Goodale and Saskatchewan Economic and Co-

operative Development Minister Janice MacKinnon today announced funding of

$60,000 cost-shared under the Canada/Saskatchewan Western Economic Partnership

Agreement (WEPA) for a feasibility study on the development of a film

production studio in Saskatchewan.



The Regina Regional Economic Development Authority (RREDA), along with

Saskatchewan film industry representatives, has led the drive for a detailed

study, which would include a complete business plan and the development of

financing options. The authority's background work has determined there is both

sufficient existing activity and growth potential in Saskatchewan's film sector

to justify the estimated $140,000 study.



The feasibility study will determine variables such as the current and future

demand or need for a sound stage and post-production facility serving the

Saskatchewan film industry and other related users.



The authority envisions a facility comprising a film production studio

building, post-production facility totaling an estimated $9 million to $11

million. There is also interest in a film industry incubator office complex.



"The Government of Canada is pleased to partner with the province and the

Regina Regional Economic Development Authority on a project that could

strengthen Saskatchewan's existing film industry, creating employment

opportunities and economic spin-offs with a significant impact for both rural

and urban areas," said Minister Goodale on behalf of Ron J. Duhamel, Secretary

of State for Western Economic Diversification. "We're helping build an

infrastructure and add value to an innovative industry that has tremendous

growth potential."



"Saskatchewan's young film and video industry has seen incredible growth in

recent years, thanks in large part to WEPA support of industry labour needs and

the Saskatchewan Film Employment Tax Credit our government introduced,"

MacKinnon said. "The industry is appropriately now looking at next steps – the

facilities and training needed to create even more jobs and opportunities for

some of our most creative and talented people."



"We are pleased to be playing a role in this significant initiative.

Saskatchewan has an industry and host of locations that puts Saskatchewan in a

globally competitive position," said Marty Klyne, Regina Regional Economic

Development Authority President and Chief Operating Officer. Klyne went on to

say, "Saskatchewan has the crew capacity and producer credibility to undertake

large production projects. We want these projects to happen at home in

Saskatchewan – currently local producers are using soundstages and post-

production facilities outside our province."



The WEPA contributions are in addition to a $7,500 contribution from Western

Economic Diversification Canada and $7,500 from Saskatchewan Economic and

Cooperative Development to help the RREDA complete background research in a

$15,000 pre-feasibility study.



The film sector in Saskatchewan is one of the fastest growing industries in the

province. Generating $6 million in revenues in 1991, the industry has grown

eight-fold over the last seven years and was worth $50 million to the

Saskatchewan economy in 1998.



From 1998 to 2002 the Canada/Saskatchewan WEPA, administered by Western

Economic Diversification Canada and Saskatchewan Economic and Co-operative

Development, will direct $40 million toward initiatives that support new

economic infrastructure, tourism products, export and marketing initiatives,

and new economic opportunities, including rural and northern economic

development.



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For additional information, contact:



Joanne Mysak

Manager, Consultations, Marketing and

Communications

Western Economic Diversification Canada

Saskatoon, Saskatchewan

(306) 975-5942

WD Toll-Free No.: 1-888-338-WEST (9378)



WD World Wide Web site:

English - http://www.wd.gc.ca

French - http://www.deo.gc.ca



Bob Ellis

Manager, Corporate Affairs

Saskatchewan Economic and

Co-operative Development

Regina, Saskatchewan

(306) 787-1691



Marty Klyne

President and COO

Regina Regional Economic

Development Authority

(306) 522-0227