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Film sector discouraged by budget

The Saskatchewan film industry was certainly among the losers in this year's provincial budget, taking a major hit in terms of financing projects in the province.


The Saskatchewan film industry was certainly among the losers in this year's provincial budget, taking a major hit in terms of financing projects in the province.

The budget announced the Film Employment Tax Credit will be wound down, a move said to save up to $3 million this year and $8 million annually after existing credits are paid out.

Yorkton MLA Greg Ottenbreit said the decision was one of the tough ones in the budget, but added the film industry was already showing a decline in the province even with the tax credit.

"I know it was a very difficult decision that was made," he said, adding it came down to every ministry being asked where they could trim costs, and the film tax credit was one expenditure the government felt it could make.

Ottenbreit pointed to the stronger Canadian dollar as a factor in that since American productions no longer find shooting in Canada beneficial based on the dollar.

"Last year there was another 18 per cent decline in the industry," he said.

Ottenbreit said he sees the issues from the viewpoint of both government and industry, adding "both sides have valid discussion points.

However, with the move Saskatchewan is the only province without some tax credit support for film.

"I've heard that we're the only province," he said.

Lee Kolenick grew up in Saltcoats and went to High School at the YRHS. He graduated from the Film Production program at the University of Regina and has been working in the film industry since 2004 currently being employed at Film/TV production company Angel Entertainment, as development coordinator.

Kolenick is now pushing a petition against the loss of the Film Employment Tax Credit. He said the loss of the program will have dramatic effects.

"As the only province in Canada that will be without a Film Employment tax credit, it will take us out of the game in terms of production," he warned. "The multimillion dollar feature film service productions from the States that were shot in this province were here largely because of the rebate on the salaries of Saskatchewan labour. It is a key component to making a budget work and to entice foreign companies to spend in Saskatchewan."

Saskatchewan productions will also take a hit, warned Kolenick.

"Even Saskatchewan-produced features and television rely on the tax credit to make their numbers work.

"Canadian Film/TV is not driven by private investment as in the U.S. Next to nothing gets made in Canada without the financial support of the Canada Media Fund and Telefilm - regardless of the province it is produced in. The entire country is in competition for those funds, so how can a Saskatchewan producer compete with other provinces when a major portion of their funding has been stripped?

"How does a Saskatchewan producer pitch a TV show to a National broadcaster, knowing that when it comes time to produce the show that a major piece of the financing is missing?"

With the tax credit gone Kolenick said a significant part of the Saskatchewan film industry is likely to go with it.

"If the tax credit goes away, it will be the end for many of our province's producers," he said. "The scale of productions that will scrape by will be so diminished in terms of quality that they won't be able to compete on an international stage. Our crew base will be forced to uproot themselves and their families and move to a province where their skill set is marketable."

Kolenick said he's not even sure of his own future in the industry.

"We're hoping at Angel Entertainment that we'll be able to ride this out and thrive in the future. If not, I guess I should learn how to weld," he said.

While Ottenbreit cited a decline in production last year in the province, the Best of Saskatchewan category at the Yorkton Film Festival (YFF) this year suggests films are being made, with 50 entries, out of a total of 300 film entries, said YFF manager Randy Goulden.

Goulden said the loss of the tax credit and its resulting impact on the province's film sector could impact the long-running festival too.

The festival relies on the Saskatchewan industry in multiple ways, said Goulden, citing sponsorship dollars, donations of services and equipment, and even the expertise and national and international contacts they use to help attract top panelists and speakers to keep the event relevant.

"We're waiting to see how it's going to affect us both in the short term, and the long term," she said.