Uh oh. Looks like what I’ve been posting about all along came true:
Bennett said government numbers now show the province loses revenue for every job created in the film industry, making it hard for the industry to make a case for any significant increases to the tax credits.
Of course the Minister caveats the news with the idea that he thinks the numbers are wrong. Funny how they never had an issue with the math when it showed supposedly positive numbers. This is sort of what happened in New Mexico when independent studies showed they were losing money on their film subsidy program, so film officials hired Ernst & Young to come up with their own report showing dubious big returns.
Premier Christy Clark is ruling out an Ontario-style “race to the bottom” of tax breaks for the B.C. film industry, insisting her province’s taxpayers are being generous enough with the current $285-million per year.
“The comparison is often with Ontario, which is engaged in a race to the bottom to try and provide these tax credits,” Ms. Clark told reporters during a news conference to announce government support for a new campus for Emily Carr University.
The question remains: Just how much more money do BC film advocates need? From what I understand they will try to exempt the film industry from the recently re-instated sales tax by designating the film industry as a manufacturer.
After all, this is what the studios internally asked for:
A point that should be added … is that industry will be asking for the following amendment to be made to the PST definition,” said Lora Carroll in a note to Alec Tully of the ministry’s government communications and public engagement department. “When B.C. reverts to PST, define digital/film, TV production and post-production as ‘manufacturing’ for the purposes of calculating PST
Oh, that would be interesting wouldn’t it?