It can’t be the climate or the food. It could be, as the u.s. trades suggest, that Canadian producers are building bridges with the Brits to help ward off the u.s. culture vultures, as per Minister Copps and this month’s mission to France. But more likely it’s the $352 million for independent feature film financing which is luring at least three Canadian production companies into competition for a share of the largest indigenous film initiative in the history of the u.k.

Alliance Communications, Paragon Entertainment, and Mayfair Entertainment are among companies from England, the u.s., and greater Europe scrambling to finish applications before Feb. 28, the deadline for applications for four u.k.-based film production ‘franchises.’ Word has it Nelvana is also contemplating participation. President Michael Hirsh refused comment.

The pseudo studios, to be sanctioned by the Arts Council of England in May, will each have access to up to $88 million (£40 million) in production and development financing over a six-year period. The funds will be available through the National Lottery, which began taking an equity position in Britflicks on a case-by-case basis in 1995 and has to date invested more than $49.7 million (£22.6 million) in independent features.

Motivating the initiative is a desire to bring smaller production companies together into clusters which will more capably attract private investment, and like the Canada Cable and Television Production Fund, to foster a greater quantity of homegrown product. Eligibility requirements dictate that although foreign-controlled companies cannot lead applications, companies registered or controlled outside the European Union may act as minority shareholders, which is bringing the immigrant contingent out of the woodwork.

With 170 companies and/or individuals filing an advance notice form in December, mergers and dropouts are expected to result in between 20 to 30 applications at the end of the month, among them consortiums with Canadian partners in tow.

Whom is onside with whom is being kept tight. Mayfair exec Daniel Weinzweig, founder of Norstar Releasing, verifies only that Mayfair is filing an application, and confirms that the need to prove expertise in production, sales and distribution, as well as an ability to work with the smaller indies, is making for strange bedfellows.

‘People who wouldn’t otherwise want to spend 10 minutes in a room together are looking at partnerships.’

Alliance has gone public with the news it’s backing a bid led by former head of bbc on-off drama, George Faber. Paragon will be acting through HandMade Films with a u.k.-based distributor, a u.k. prodco and a number of individual indies including Richard the Third producer Stephen Bayly and Sam Taylor who produced Sweet Angel Mine.

Gareth Jones, vp of HandMade, says discussions are in process with equity financiers based in Canada and London to provide the balance of funding for its proposed production slate. Plans are for HandMade to act as both producer and sales agent for the franchise.

While u.s. majors including Fox Searchlight and Sony are thought to be stepping up to the plate via their classics divisions, Mayfair is rumored to be in talks with Miramax, the second most active u.s. backer of feature film in the u.k.

While the eligibility requirements are flexible, key to the bids is proving that films the group will produce will be released theatrically in the u.k. and are commercially viable. The ace’s Carolyn Leech also points out that foreign companies or not, ‘films produced must satisfy all the requirements of the British Film Act.’

London-based Peter Armstrong, a partner with the international law firm Theodore Goddard which is working with some of the applicants, reiterates that despite eligibility requirements with ample latitude, the overriding criteria will be making films reflecting British society.

‘Although groups may have films with a u.k. cast and crew and financing, what they’re looking for are franchises loaded with producers who have a good track record, development team, and projects on the go which are about British culture. The Alliances, the HandMades, the Mayfairs are more a part of our British orbit than most foreigners, but it’s going to be a battle.’

$4.4 million per project

What’s in it for the Canadian contingent, should one or more of their joint initiatives be successful, is an envelope of money which caps at $4.4 million (£$2 million) per project. Although the volume of feature film production would theoretically increase for Paragon, Alliance and Mayfair, the number of Canada/u.k., coproductions would likely remain on par.

Of 37 international coproductions that the u.k. housed last year, six were Canada/u.k. coprods with a total budget of $47.5 million, according to the British Film Institute. Films that qualify for financing under the terms of the franchises include Canada/u.k. coproductions, but will likely not increase the number of shoots in Canada, says Jones.

‘The lottery will only put money in to the extent the money is spent in the u.k. Most of the filming then, must take place here, although where appropriate, post might take place in Canada.’

As per Britain now, each project will need the approval of the ace, but projects through the franchises will be fastracked. The ace will take a small recoupment position. Most regularly they would contribute one-third of the budget, in no case more than half.

In Paragon’s favor is the HandMade name which is, says Armstrong ‘as British as they come.’ Working against them is a hiatus in production activity prior to 1994. Paragon has gone the distance to jumpstart production since it assumed control. Last year HandMade produced six features of which one ­ the $11 million Wrong Guy ­ was a Canada/u.k. coprod.

According to Jones, the allure of the franchise is the guaranteed financing and the fact that the studio franchises will attract the kinds of independent films HandMade wants to produce. The value of the HandMade library could profit by association.

Mayfair has location onside, and a five-year focus on the feature film sales business in Britain. A publicly traded Canadian company since 1995 when it was acquired in a reverse takeover of TMN Corp., the Mayfair Group is a u.k.-based entertainment company which owns a chain of cinemas, live theaters and has investments in a film studio and a facility house. It ventured into film and television financing in exchange for international rights (excluding North America) for the first time last October.

In Alliance’s case, its albatross is the perception of being seen outside the feature community as more a producer of television product (Due South, in particular in Britain) than of feature films, although Armstrong says the Crash u.k. distribution saga gained them ground.

What may also work for Alliance is the reputation for distribution expertise. Although u.k. film output reached its highest level in 15 years last year with a total of 114 u.k. productions and coproductions and a total investment of $995.7 million, the distribution environment is w’efully inadequate, and in Canada’s case, recognizable. In 1994, only 27% of British theatrical releases received widespread distribution in 1994, compared to 50% in 1985.

There are very few British independent distribution companies left, says Armstrong.

‘Mainly you have to go through the majors which want to show their American product. The lottery has given rise to a huge explosion of films since it started in 1995. The irony is most of them end up on tely because there’s no distributor.’

Also in the Alliance court could be its new coproduction deal with BBC Films. Through its feature film production division Alliance Pictures, the prodco has inked a two-year partnership which reportedly plans to produce five films during the first year with budgets in the $5 million to $7 million range.

Successful applications will receive notice May 21.

One final tidbit on Mayfair: speculation is large that Mayfair is looking to buy out Cambium Entertainment. Weinzweig will confirm only that the two are contemplating a ‘coventure.’

‘They’re people we like and want to do business with, but there’s bridges to cross.’ An announcement may be forthcoming within the next month.