Canada’s Race To The Bottom

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.

Soldier On.

4 Responses to Canada’s Race To The Bottom

  1. Jim corway says:

    Go USA!

  2. Ed says:

    “one group stands to win: US Studios.”

    -riighht because the US studios will bring back high cost productions rather than send them to Singapore, London,
    Sydney, NZ and India where there are also tax breaks and
    lower costs…

    • VFX Soldier says:

      I don’t think you understand by what I meant.

      It is not the vfx facilities that receive the subsidies, it is the US Production Studios. While countries and states spend taxpayer money to lure their projects over, the US Studios stand to win no matter what.

      Until this practice stops, the VFX industry will continue to suffer from this kind of volatility.

  3. […] week I posted some news about Canada’s Race To The Bottom. This week Producer Jerry Bruckheimer explained why he wants New Mexico to throw more subsidy money […]

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