KEY POINTS:
The Government is offering better incentives, including a larger grant, to get big budget films here.
The Large Budget Screen Production Grant has been increased to a 15 per cent (from 12.5 per cent) rebate on production expenditure of more than $15 million.
Economic Development Minister Trevor Mallard
said the Government was also moving to make "bundled" films eligible. This meant several productions costing a minimum of $3 million each would be able to "bundle" together to qualify for the grant by meeting the requirement for expenditure of $30 million.
He said since the grant was introduced in July 2003 nine major productions had come here, receiving grants totalling $90.41 million.
"However, grant spending has dropped recently and we are facing increasing competition as a location for large budget films," he said.
The changes were aimed at keeping the country "ahead of the game" while keeping the grant format and payment process simple.
Other changes included removing the requirement for at least 70 per cent of the production expenditure to be spent here for productions of between $15 million and $50 million.
There was also an incentive - a 15 per cent rebate - for those spending between $3 million and $15 million on locally based, post-production digital and visual effects services.
Large productions will also be able to access their grant every time their expenditure goes over the $50 million mark.
Mr Mallard said he believed allowing a bundle of productions to qualify for a grant would bring more quality work here, providing greater work continuity and certainty.
Officials had been asked to report back on the implications of the changes for the domestic film industry and the impact of the changes would be tracked through an annual report to Cabinet. There would also be a full review of the grant at the end of 2011.
Film New Zealand, which helps facilitate access to this country as a location for international film-makers, is also getting additional funding of $4.8 million until 2012/13.
Chairman David Madigan said the moves were a "concrete boost" for the industry.
He said the grant increase reinforced the country's competitive advantage while the introduction of the 15 per cent incentive on post-production work would stimulate business expansion and provide new jobs.
Removing the requirement for 70 per cent of a production's spending to be here eliminated a hurdle that excluded productions looking to do part of their work here. In terms of the "bundling" opportunity, Mr Madigan said the minimum qualifying expenditure opened the door to lower budget projects, providing greater continuity of work.
- NZPA
