The Hollywood Reporter has an article on film subsidies and the race to the bottom in Canada:
The latest activity report from British Columbia Film + Media indicates foreign, mostly Hollywood producers spent $778 million locally in the westernmost province in 2010, the last year surveyed.
That’s well down on the just under $1.1 billion in foreign production activity in 2009 in B.C.
The steep fall follows B.C.’s labor-based tax credit failing to keep pace with a more generous all-spend tax credit in Ontario and Quebec, and the impact of a rising Canadian dollar in comparison to the American greenback.
While BC may be losing production work to other provinces, I suspect it is gaining post production work due to the increase in subsidies for VFX and animation.
However, it’s a bit harder to crew VFX facilities than traditional production crews and I wouldn’t be surprised if it would be prudent for BC to rethink the subsidies for VFX if they continue to lose production crews to the east.
I’ve said that in a race to the bottom, the biggest loser is the last one left standing. No matter who loses in Canada’s race to the bottom, one group stands to win: US Studios.