Anti Canadian ?

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Posted by Dudley Do Right on August 25, 1999 at 13:51:24:

This article appears in Variety online. I think it clears up a few misconceptions. California tried to pass a 10% film rebate on taxes but because rebates on live action film are a red herring , it clearly failed. The reason for the runaway problem is totally clear to them . An exchange rate of 50 cents US for 1 dollar Canadian. That coupled lower wages makes the Canadian productions too seductive. Not rebates.

Whats funny is when free trade gutted the Canadian industrial sector, when US states were offing "free land", "no taxes for three years", "no union labor" to lure Canadian companies out of Canada, no one said a damn thing.

Fact is, once the currency exchange goes up Vancouver will be a film makers ghost town and you all know it. The productions only started heading north when the exchange rate dropped fom 65% to 50%.Sad.

Weak attempt

Producer Doug Claybourne, whose credits include ĂThe Mask of Zorro,▄ ĂRumble Fish▄ and ĂThe War of the Roses,▄ said the proposed tax legislation is Ănot even a pebble in the pond.▄

ĂIt┤s not going to turn the tide, but it┤ll make a difference for the smaller-budget movies,▄ Claybourne said.

For a TV movie budgeted at between $2.5 million and $3 million, shooting in Canada means a savings of about $200,000, he said.

Claybourne recently priced a motion picture two ways: As a U.S. shoot, he said, the budget was $44 million; in Canada, it was $39 million.

ĂThe actual saving was 26% in the production period, below the line,▄ he said. ĂYou have to match what the Canadians do.▄

And that is soley from the exchange rate.

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