The British Columbia film industry had its best year ever in 1998 with a record high of $808 million spent on production, a 28% increase over last year’s $630 million total. Two months into the new year, 17 feature films, tv movies and series are in production, suggesting 1999 is already shaping up to be a strong year for b.c. Threats of taxation upheaval and changes in funding at B.C. Film appear to have little impact on upcoming indigenous and foreign production.

‘It’s been business as usual these days and that means the industry is going like crazy,’ says Peter Mitchell, director of the British Columbia Film Commission.

In 1998, 117 domestic and 54 foreign projects shot in the province, but in terms of production dollars spent in the province, foreign projects accounted for $445 million and indigenous $363 million. b.c. is now the third largest production center in North America, coming in behind Los Angeles and New York.

According to the B.C. Film Commission, the industry directly employs 25,000.

Mitchell says that no foreign producer has backed off shooting in b.c. because of the Feature Film Advisory Committee’s recommendation to rescind the 11% tax credit provided for foreign production.

‘We certainly had a lot of questions about the advisory committee’s report and it remains as such. It hasn’t been adopted as policy,’ says Mitchell.

‘I haven’t had anyone disappear as a result.’

Peter Leitch, vp and gm of Lions Gate Studios, says ‘all systems are go’ in terms of production coming up to Canada in 1999, and Lions Gate Studios in North Vancouver is going ahead with construction of a seventh soundstage, to be completed by this September.

Revenue Canada’s plan to fully tax foreign actors’ income met with instant concern early this year. Mitchell says Revenue Canada has reiterated support for the foreign production tax credit. When attending the Locations Expo in l.a. last month, representatives from Revenue Canada assured him that the program wasn’t in jeopardy at this time.

On the domestic side of business, Mickey Rogers at Forefront Entertainment forecasts a busy season ahead. The company heads into its 10th year with the renewal of The Adventures of Shirley Holmes, a new bbc coproduction series to be shot in b.c. called The Magician’s House, a new Phil Savath series with the cbc titled These Arms of Mine, and a feature film based on the book of the same name, The Concubine’s Children.

Rogers doesn’t anticipate any major fallout from the funding regulation changes at B.C. Film that eliminated the Market Incentive Program with a return to recoupable loans. As opposed to automatic funding, the program will disperse money based on subjective and competitive criteria.

Rob Egan, president and ceo of B.C. Film, says the changes were necessary to maintain ongoing support for b.c. producers.

‘What we recognized was that, based on our current allocation from the province, we no longer had the financial capacity to meet the demand for an automatic non-recoupable program,’ says Egan.

For Egan the focus is on the future for indigenous production and doing the most for b.c. filmmakers with fewer dollars.

‘By getting a return through equity investment,’ he says, ‘B.C. Film will be financially viable over the long term and can essentially get back into creating a revolving fund for b.c. producers by capturing a return on our investment.’

The provincial government first introduced the Film Incentive B.C. Program, a domestic tax-credit initiative, last April to complement B.C. Film funding programs.

‘What we are trying to ensure is that our program does the things that the tax-credit program doesn’t do,’ says Egan.

‘We’re ensuring that we’re providing additional funding for development. We’re providing support for professional and skills development opportunities for people who are working in this industry in b.c. as well.’

Michele Marko is a Vancouver-based journalist.