Why are we financing films in the first place?
1 May 2008
News today that the Conservative government is going to make the passing of Bill C-10 a confidence motion. Which means that if the opposition doesn’t like the bill we can go to the polls over it. Hardly worth an election so the “Go ahead, make my day” politics of this minority government will likely prevail on this issue. Notwithstanding the protests of Sarah Polley and David Cronenberg.
How about we ask this question: Why is a conservative government spending $200 million a year financing films in the first place? (Necessary defensive statement here: I like Cronenberg’s movies. Except Crash which was never one of J.G. Ballard‘s great novels to start with, and Naked Lunch which even Cronenberg said was an effort in filming the un-filmable).
Take a look at the budget details. On page 28 you’ll find the spend for the “Canadian film or video production tax credit” is expected to be $200 million for 2007.
Now look at page 20, about half way down. Yes, there where is says “Labour-sponsored venture capital corporations credit.” That is the credit investors get for buying labour sponsored funds and the cost is expected to be $120 million for 2007. Double that for the provincial portion (which may be on the high side, but let’s keep this easy) and the total cost isn’t that far off what the federal government is investing in film production.
Now ask yourself this: Which industry (film or tech) is going to create and maintain long-term, stable, high value jobs? Probably not film. Not when Toronto is chosen as the stand-in for any American city you can name when our dollar is at 60 cents. Not when the production of the X-Files can pack up and leave Vancouver because David Duchovny‘s wife wants him to live in LA.
The labour-sponsored tech investment money is going to try to build more great stories like Platespin, Cloakware and Sandvine to name a few companies that have created jobs and given investors a great return.
Wouldn’t it be nice to see a policy of investing that helps Canada can create sustainable competitive companies rather than an industry that provides contract work and moves to the lowest cost jurisdiction at a moment’s notice? But no – we get no real ideas, just more work for bureaucrats. And that from the conservatives.
CWN
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