Axium International, a Los Angeles-based payroll services company with film and television branches in Vancouver and Toronto, capitulated to threats from anti-runaway lobby groups and canceled a Canadian tax-credit information session in L.A. Nov. 14.

The event, which had attracted 250 delegates, was supposed to feature tax-credit specialists from across Canada providing information and updates on Canadian production incentives. However, the protectionist Film and Television Action Committee and Teamsters Local 399 in L.A. threatened to picket the event’s venue, The St. Regis Hotel in Century City.

‘We believe that it is [an] outrage that Axium is bringing the Canadians here, in our very backyard, to help them steal even more jobs!’ says Leo Reed, secretary-treasurer of Teamsters Local 399, in his written invitation to members to attend the rally. ‘These NAFTA-violating incentives are an effort to lure even more American productions to Canada.’

‘We know that at this time our state and federal governments cannot assist us,’ he says. ‘However, we cannot stand idly by while this is going on under our very noses.’

Axium representatives did not respond to calls for comment about the event’s cancellation.

However, in an open letter dated Nov. 11 and published in Daily Variety, Axium chair and CEO John Visconti asked new California Governor Arnold Schwarzenegger to implement measures to protect ‘the legendary cradle of the motion picture industry.’

‘As a member of this vibrant, vital industry, we urge you please to exert your utmost, through the California legislature, the Governor’s office or the federal government to enact legislation ensuring that the entertainment production business remains, for now and ever, in California,’ he writes. Axium’s Vancouver office employs five and the Toronto office employs about 16.

Colin Robertson, consul general for Canada in L.A., says he’s disappointed in the response by Axium, saying there was nothing to fear from the picketing. ‘The Teamsters hold peaceful demonstrations here at the residence,’ he says. ‘I don’t share their perspective, but I support their right to demonstrate.’

But an internal consul memo obtained by Playback puts it more strongly, stating: ‘By cancelling the event, Axium appears to be buying into and, worse, perpetuating this gross misconception’ that Canadian tax breaks are in the wrong.

Canadians may attract $2 billion in location shoots, but they consume $4 billion in entertainment product, says Robertson.

Organizers had no choice but to cancel, says Vancouver-based accountant Neal Clarance, a presenter from Ellis Foster. ‘Delegates weren’t going to cross a picket line,’ he explains. ‘The Teamsters may have won the battle, but not the war. Most studio executives attending won’t look favorably on people who try to tell them how to conduct their business. It’s annoying, but not a deterrent.’

In related news, Washington lawmakers were reportedly ready last month to grant Hollywood some tax concessions. The draft American Jobs Creation Act proposes to lower corporate income taxes for manufacturers. Under the proposed act, filmmakers would be classified as manufacturers and be eligible for the tax break. The draft bill also cuts the taxes studios pay for exhibiting films overseas, says Daily Variety.

‘This could have quite an impact on the amount of work that stays in L.A.,’ says Peter Leitch, vice-chair of the Motion Picture Production Industry Association of B.C. ‘We’ll just have to work that much harder to stay competitive.’