With a firm commitment on a tax credit likely absent from an impending Saskatchewan budget, Prairie producers continue discussions with provincial governments toward sustaining local production levels and industry infrastructure.

Saskatchewan Motion Picture Industry Association president Ron Goetz says it is unlikely a tax credit initiative will be announced when the budget comes down on March 20, but that the tax credit issue is not dead. ‘My sense is that they have not made a decision one way or another and will take more time to review the issue,’ says Goetz.

The government is expected to continue to examine the issue over the next several months, with a possible interim announcement at budget time. What is expected in the budget is an announcement concerning increasing the resources of provincial funding body Saskfilm. The government is also expected to form a committee to study the film and tv industry and possibly make its own announcements this summer.

Goetz says the government is aware of the possible advantages of regional incentives in the newly issued Canada Television and Cable Production Fund guidelines and is still keeping communication open with the production community.

‘I think the government is aware we have a lot of opportunities on the federal level, and for us to be involved we need not only strong broadcasters but we need our investment agency to make up some of the difference,’ he says. ‘Without that we can’t take full advantage of the new regulations and they are aware of that.’

According to Goetz, the provincial government is also mindful of the status of a proposed tax credit in Manitoba, which apparently is being well received by that government, as well as of the potential of production companies relocating to a more favorable production climate if a Saskatchewan tax credit is quashed.

Manitoba optimistic, Alberta devastated

Manitoba Film and Sound gm Carole Vivier says the prevailing feeling about the proposed tax credit in the province is one of great optimism and a decision is expected later this month.

In Alberta, tax credit discussions have been put on hold while the government mobilizes for a May election, and many feel only a drastic reduction in provincial production and production resources will prompt government reaction.

Margaret Mardirossian, head of the Alberta Motion Picture Industries Association, says Alliance’s North of 60 series is the only ongoing major production still located in Alberta and estimates the province has lost close to $40 million worth of production activity in the last few months.

‘It’s been devastating,’ says Mardirossian. ‘It seems that with this government things will have to get really terrible before they will pay attention. We had such a strong year last year and produced so much that it’s difficult for them to believe things could fall apart so quickly. They don’t realize how mobile our industry is – people will go where there is money.’

Mardirossian says the organization is still hopeful and that there is an indication of ‘political will’ from the provincial government. The Alberta Economic Development Authority has created a tax policy task force which will make recommendations to ministers by the end of May that will include the film and tv industry. ampia will make a presentation to aeda in April and is continuing a dialogue with government officials.

Andy Thomson, head of Edmonton-based Great North Productions, says only the company’s smaller, less labor-intensive projects will remain in the province while major productions will relocate.

‘If we’re going to hire 150 people we’re going to hire them in a jurisdiction where there’s a tax credit,’ says Thomson. ‘If we’re mounting a major dramatic project it wouldn’t make a minute’s sense to do that in Alberta, so we’re looking at doing those kinds of shows either offshore or in other provinces.’

In addition to the Great North miniseries Voyage of the Naparima, to be produced in Quebec with Productions la Fete, Thomson says the company has at least two other mows which will be filmed out of the province.

Without a broadcaster yet on board for the Great North/ Nelvana series Jake and the Kid, Thomson says financing another season of the show will be a struggle. Since moving Jake to another province would require rebuilding the $1.2 million ‘town’ constructed for the series, Thomson says Jake would likely cease before it would move. ‘It will be a question of either we can afford to shoot it in Alberta without a tax credit or we can’t afford it,’ he says.