Members of the Canadian film and television industry appear unruffled by reports that a federal u.s. bill is in the works to curb runaway production. The response follows reports in the u.s. trade press that the Screen Actors Guild and the Directors Guild of America are crafting a federal bill, likely to be introduced early next year.

The Directors Guild of Canada’s Pamela Brand says the legislation is thought to be a federal tax rebate or labor credit to be matched by state programs which would offset foreign subsidies like those available to American producers shooting in Canada.

‘I doubt that it will have serious ramifications for our members,’ says Brand. ‘It’s the low dollar that brings the u.s. production as well as a good labor climate.’

California Reps. Howard Berman and Gary Condit are leading the federal legislative push and a draft proposal is reportedly still at the preliminary stage.

Attempts at similar legislation in the California legislature died earlier this month but will be reintroduced in January. Condit has stated he is working with the California Governor’s office to ensure the state and federal bills are well coordinated. One of the proposals brought before the California Assembly called for a 10% tax credit on labor or below-the-line costs incurred in California and the second suggested a 6% tax credit against the cost of production.

Arthur Evrensel, partner at Heenan Blaikie, Vancouver, says that like the previous California initiative, he anticipates any federal bill will also be defeated because it does not have studio support.

‘Whatever proposal is made, unless it has the backing of a substantial proportion of the American production community – the financial people, the studios, the intermediary production companies in l.a. – any such proposal will never pass because of the inherent economics involved in the calculation. The studios make no bones they are coming up here in droves because the quality of production is just as good and it’s cheaper to produce here. The sag and the dga have to lower their rates – which doesn’t make economic sense.’

Cheryl Binning