Posted by The Non-union Boss on June 16, 1999 at 07:46:40:
In Reply to: Re: Anonimouse. Or what nonunion bosses say to each other. posted by Dave on June 16, 1999 at 03:00:43:
Gads, Dave ... you've got such a funny laugh.
Re: the FTC, savings on Canadian-content shows, any rebates they get are more than US animators get. Do we get rebates on "American content"?
Re: the Canadian FTC, there are no content stipulations. It just needs to be PRODUCED by Canadians. To quote the news release:
"Minister Dhaliwal indicated that foreign film production activity in Canada brings significant benefits to the Canadian economy
and that the government recognizes that this activity has the potential to grow. In 1996, foreign film production in Canada
exceeded $800 million.
"'This program will help Vancouver and Toronto remain major North American film production centres. It will be a more
efficient way to attract foreign film production to Canada than the privately promoted foreign film production service tax shelters
that were popular in the past', said Mr. Dhaliwal."
So in other words, previously they had a program that was being abused by hucksters. The new one is designed for real, viable *FOREIGN* production (i.e. non-Canadian). Could this be clearer, Dave?
The conclusion remains unaltered. They can produce Canadian shows and make money from the government, OR they can win contracts outside of Canada and get rewards from the government for keeping Canucks busy. The best way to manage this, from a business point of view, is to make money on the US TV contracts, then fill in with Canadian-content (small budget) cartoons to fill cracks. In the current crisis, we are "filling the cracks" with "spec work" - producing unsold segments. We'll never make our money back on some of these, but it's better than laying people off. This means a lot when you count your bottom line at the end of the fiscal year.
Again, nobody's calling the Canadians liars or cheaters. Australia had the same kind of government programs; when they announced them (back in the early 80's - yours truly was there), they cited the Canadian model (imperfect as it was back then). It's a great way to bring money into their small economies.
Somewhere I talked about StarToons "stealing" work from overseas' studios. My point was that if WE weren't doing it, an Asian studio would be (possibly getting it from a Canadian studio, no?). But I'm not implying WE'RE doing anything immoral taking their work. That's business.
In the end, this whole discussion on Canadian law is only to illustrate ONE of the challenges that SOME U.S. STUDIO (from LA or wherever) has to overcome; namely, that its competitors may not only have the advantage of cheaper labor, but also, in some cases, government incentives (which are not "BAD" or "EVIL" and certainly good for studios within those countries).
Incessant in-fighting is obviously another challenge.
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