Special Report on Production in Quebec: New risk capital fund for ’96/97

As Quebec budgetary provisions for 1996/97 became known in late March, Culture and Communications was one of a handful to be spared. Its budget actually rose $18 million to $434.2 million.

It now seems more than likely the allocation for Societe de developpement des entreprises culturelles (sodec), Quebec’s one-stop cultural funding and certification agency, will stay at current levels, although the detailed budget will be determined by Culture and Communications Minister Louise Beaudoin.

Just prior to the release of the budgetary provisions, Beaudoin, former second in command at Telefilm Canada, announced the creation of a $15 million high-risk investment fund for cultural industries, Fonds d’investissement de la culture et communications.

sodec was launched just over a year ago under the presidency of Pierre Lampron, former director of Telefilm’s office in Paris. The new agency took over the functions of sogic and the Institut quebecois du cinema.

And, considering the rancor between the industry and the old sogic administration, producers and filmmakers have responded rather well to the new administration.

Since its inception, sodec’s overall selective aid budget for cultural industries has held steady at $21 million, $10.5 million of which went to the film and tv sector in ’95/96. About $7 million was invested in production and $1.5 million in the Jeunes Createurs program for filmmakers aged 35 and under.

The agency offers industrial loans and annually injects some $70 million into Quebec cultural industries.

$51 million in tax credits

sodec administers what many in the film and tv production industry consider to be the country’s most farsighted and ambitious tax credit program. Quebec’s approach has been largely consistent over many years now.

The agency authorized $51 million in preliminary credits through to March 31, 1996, fueling $286 million in certified Quebec production. Interim loans to producers (based on the credit and guaranteed by the agency) totaled $26 million.

Bernard Boucher, the agency’s director general of planning, research and international affairs, says no review is planned for the refundable tax credit program.

‘Producers are all very responsible and appreciative,’ he says. ‘The working philosophy of sodec and the government is not to unilaterally impose our point of view. And anyway, ultimately the minister of finance is in charge. If there were recommendations to be made to the finance minister, it’s very obvious sodec would do it after carefully evaluating the industry’s position.’

Boucher says the program is well balanced with its current six-on-10-point requirement, creates worthwhile employment, and effectively generates revenues for government via direct (salary) and indirect (service) taxes.

Boucher says sodec hopes to launch a $3.5 million selective aid program for multimedia production, if funds are allocated.

In other news, sodec recently changed its export-assistance program by investing $375,000 in Horizon Quebec, a private-sector umbrella export corporation headed by Filmoption International president Maryse Rouillard.

On the export issue, Boucher cites Cinar Films and Cite-Amerique as examples of successful strategies, but adds conditions for French-language product are generally tough. He says over the long term, producers must be even more present on the international scene, and develop deeper export and production relations with partners.

sodec actively supports Quebec feature films in a number of international festivals, including the Montreal World Film Festival, and more particularly the Festival de Blois in France and the Festival du film francais de Namur in Belgium.

Some dozen Quebec feature films were showcased in the Muestra de Cine de Quebec at the 17th Latin American Film Festival in Havana in December.

Conseil national du cinema et de la production televisuelle is a consultative body within the sodec structure composed of film and tv industry representatives. It replaced the iqc and advises sodec as well as the minister.

cnct president is Lorraine Richard.

Many of the prime movers in the Quebec production and broadcasting industries sit on cnct commissions. LRB