Plea left on cutting-room floor

By KEVIN TAYLOR

Calls for tax incentives to support local film and television appear to have little chance of a sympathetic hearing from the Government, despite warnings of an exodus of talent.

But Industry and Regional Development Minister Jim Anderton has effectively ruled out the backing that the screen production industry taskforce seeks.

The taskforce report, launched in Wellington yesterday, is the second of four to spring from the Government's growth and innovation framework, launched with great hoopla in February last year.

It is also the second report to call for tax incentives. In November the information and communications technology taskforce sought changes to the tax system to encourage investment, research and talent-retention.

One of the screen production taskforce's key recommendations is for incentives to stimulate private investment in film and television.

"The screen production industry cannot grow without investment from the private sector, both foreign and local," the report says.

There was substantial international evidence that government-assisted incentive schemes prompted major growth in the domestic industry and in international co-productions.

But Anderton said that in general terms the Government was not looking at taking the tax incentives route and was reluctant to "buy business" that way. If it started to offer incentives, other countries could offer more.

If the Government did offer incentives to foreign companies, it would equally have to offer them to New Zealand firms.

The report will be open for submissions until April 22. Anderton said Government decisions on action should be taken by mid-year.

Taskforce chairwoman Julie Christie, founder of Touchdown Television, said she wanted action from the Government in three to four months.

She was determined that the report should not gather dust, especially considering the amount of valuable and unpaid time she and other taskforce members had devoted to it.

The report laid the foundations for breaking the "cycle of dependence" the industry traditionally had on government funding.

The report proposes that the industry aim at doubling foreign-exchange earnings to $400 million within five years, and establish an environment in which at least 10 companies achieve annual turnover of more than $50 million and another 20 achieve turnover of $10 million.

Christie said continued reliance on public funding was constraining the industry, both financially and culturally.

"This growth must be market-led and based on entrepreneurship, independence and innovation.

"Private investment and the international marketplace are the only real sources of substantial increases in income."

A tough-talking Christie said that if nothing had been done in a year's time, she and several other members of the task force would probably not be living New Zealand.

Key taskforce recommendations are:

* Setting up a Screen Council to advise the Government, provide industry leadership, and oversee implementation of the report's strategies.

* Review the legislation and the role of industry players and government agencies in the exploitation of intellectual property rights in productions.

* Investigate removing the right of the Ministry for Culture and Heritage to recoup its investment in cultural projects.

* Introduce incentives to stimulate private investment.

* Require foreign productions to use and develop New Zealand's capability and infrastructure, as a prerequisite for any future Government incentives.

* Create a clear, stable and responsive tax regime.

* Form a body to oversee industry training.

Anderton said some of the recommendations, including the national provision of broadband in the regions and an Inland Revenue one-stop shop for film taxation, were already being implemented.

Ministers would await final submissions on the report before starting work on the recommendations, which would get careful attention.

Anderton said the screen industry was already worth $1.3 billion annually, with television contributing $711 million, and film and video $575 million.

The remaining two taskforces, biotechnology and design, would report within two months.

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