Vancouver: The Canadian service production industry expects the U.S. Commerce Department to dismiss a petition asking for countervailing duties on U.S.-based runaway production by Dec. 24.

‘It’s more rhetoric than reality,’ says Tom Adair, executive director of the BC Council of Film Unions, referring to the high-profile campaign by the L.A.-based Film and Television Action Committee objecting to Canada’s tax-incentive programs. ‘The countervailing duty is not strongly supported [in the U.S.].’

The whole issue, he adds, is overblown. ‘The nature of the business and the money is mobile,’ says Adair. ‘In Vancouver, we took the dregs of production – syndicated television and cable, stuff the L.A. industry wouldn’t accommodate. Who knew it would be the fastest growing segment of the industry today?’

Brent Swift, FTAC’s chair, claims to have 150,000 signatures and endorsements on the petition filed also with the International Trade Commission Dec. 4. ‘Endorsements,’ such as the controversial support given by the Screen Actors Guild, allow FTAC to count every member as a signature. SAG has 118,000 members.

Five Teamster locals have also endorsed the petition. Only 12,000 individuals, it’s reported, have signed the petition.

The U.S. Commerce dept. has also told backers of the investigation that it requires more information on the signers of the petition, including emails and addresses, which, for fear of blacklisting, will not likely be provided.

The petition also has heavy opposition – specifically, the Motion Picture Association of America, the Directors Guild of America, the American Film Marketing Association, the American Federation of Television & Radio Artists, IATSE and the Film U.S. coalition of movie commissions. A rally at the Hollywood Bowl Dec. 2 attracted only 150 supporters.

‘We have no beef with the Canadian people, but the subsidies are illegal,’ says Swift.

He alleges Canadian subsidies conflict with NAFTA and the General Agreement of Trade & Tariffs. And because of Canadian subsidies and runaway production in general, up to 30,000 Americans lose their film jobs each year and the U.S. economy loses US$2.8 billion in production budgets and US$10 billion in overall economic activity each year, he adds.

According to a study conducted by the L.A.-based Center for Entertainment and Industry Data & Research, feature film production in Canada over the last three years has led to $1.8 billion in U.S. economic losses, including the loss of 22,400 jobs.

The survey, which does not cover TV work, also found that shooting in Canada saves 10% to 15% of overall budget.

Meantime, FTAC is also spearheading a class-action lawsuit against Canada on behalf of the caterers, props houses and other service providers Swift says have been adversely affected by runaway production.

‘With what [the U.S.] is going through – with war and the threat of recession – it’s unconscionable for the studios to send jobs outside the country,’ says Swift, an out-of-work production designer. ‘We need to take care of ourselves for a while. We feel our business is being stolen.’

The difference in the currency exchange is enough incentive, he says.

‘[FTAC’s campaign] has been successful in keeping some productions in the U.S. when the producers can justify it financially,’ says Adair, especially after Sept. 11. ‘[But] the greater financial threat will be new incentives in the U.S.’

Organizations that don’t support the countervailing tariffs do support the U.S. federal government bills proposing new financial incentives for U.S. producers. ‘If they put real money into these programs, that’s a real threat,’ says Adair.

As part of the petition filed in Washington, meanwhile, the International Trade Commission has circulated a questionnaire to U.S. studios and production companies to gather detailed information about their U.S. and Canadian operations, including proprietary information such as revenues, marketing expenses and profits.

‘The industry won’t want to divulge that,’ suggests Adair. ‘If the petition doesn’t go away, there will be a real fire fight. Not just from Canada, but from other countries that are threatened.’

Swift says that if he succeeds with Canada, FTAC will take aim at other countries such as Australia and the U.K. that also attract runaway production. If he doesn’t succeed, he’ll regroup and try again.

The global reality of the entertainment industry, however, will be FTAC’s undoing, says Adair. Fifty percent of box-office revenues come from outside of North America, he explains, and it’s those markets that offer the growth potential. The studios are not interested in rocking the political waters in countries they have yet to exploit, he suggests.

There are Canadians, however, who support FTAC’s initiative. Alberta Premier Ralph Klein wants everyone out of the subsidy business, he told The Globe and Mail. ‘We believe that is the right way of doing things,’ he said. Of course, Alberta offers its producers a grant program that has revived production there since the collapse of the Alberta Motion Picture Development Corporation.