Nova Scotia film industry demands Liberals reconsider tax credit change
Pressure is continuing to grow for Premier Stephen McNeil's government to reconsider its decision to slash the Nova Scotia film industry tax credit.
Industry members are vocal in their insistence that film and television production companies are not a drain on the province's economy.
A meeting is scheduled Tuesday for the province to meet with industry representatives to discuss the impact of the change.
"What we resent here is being painted as a problem," said Tim Hogan, co-owner and producer at Dream Street Productions of Halifax.
He said the province's message seems to confuse rebates with subsidies.
Tax credit applies to local spending
The tax credit in question can only be applied to money spent in Nova Scotia on Nova Scotia residents, he said.
In its spring budget, the provincial government announced that the film industry tax credit will only cover 25 per cent of eligible costs, allowing film companies to claim the other 75 per cent of the credit against taxes they owe to the province.
Productions already underway will qualify this year for 100 per cent of the tax credit; it costs the province $24 million per year. Next year, the province expects to pay out only $6 million.
"They keep talking about $24 million in savings. What I can't seem to understand if people leave province, what are they going to save money on?" Hogan said.
"Every production dollar that comes into this province comes from outside the province. It comes in the form of licence fees, distribution advances, private equity investments, all that.
"When they take away the means of tapping into that money, not only are we not gaining that money in the province, we are giving it to all the provinces in the country that still have that tax credit."
Consultation needed
In 2013-2014, the Canadian Media Production Association said film and TV productions in Nova Scotia generated a total of $122 million, including $39.4 million in wages.
At The Postman Post-Production Studio in Halifax, which handles television, film, sound and digital content, the feeling is the industry and the government need to talk about what can be done to save the industry.
"It is incredibly concerning for both ourselves and our employees," said Peter Giffen, the vice-president and senior editor at The Postman Post-Production Studio.
"Last year, 60 to 75 per cent of our revenue was derived from the film side of the business. That is a major amount of revenue. Without that, it is going to be difficult for our company to continue."
He is frustrated by the lack of consultation with industry that led to the change.
"Why can't we figure it out together?"
Hogan said he went through a similar ordeal in New Brunswick when that province decided to reduce its film tax credit, watching the industry dwindle and eventually disappear.
'We are an export industry'
"If nothing changes, I'm done. I can't compete. Twice in three years is enough," he said.
Hogan said content creation is a tangible, export industry.
"We are an export industry. We get a raw material and we make it here and we export it around the world. You can go to Walmart in any state in the United States and see something that was made here in Nova Scotia," he said.
Allan Scarth, a re-recording mixer at Postman, accused the McNeil government of misrepresenting the tax credit and what it accomplishes.
"There is benefit that comes to the province. I find it distressing that the provincial government hasn't done an analysis of the business," he said.
"Film and television is not failing, it is doing extremely well. We can all benefit from it greatly if we offer an incentive."
