VANCOUVER: Canada’s West Coast province is extending its current 30% tax credit into 2013 to ‘help ensure B.C. remains competitive, and keep B.C. top of mind with producers,’ according to Premier Gordon Campbell.

Kicking off British Columbia’s first Motion Picture Industry Week with a bang, the Oct. 19 announcement was hailed by stakeholders as a crucial boost to B.C. at a time when the industry is threatened by the U.S. greenback on par with the loonie.

Motion Picture Production Industry of B.C. chair Peter Leitch lauds the government’s early announcement as ‘fantastic.’

‘This makes sure we’re on a level playing field to compete with U.S. states and other countries who are aggressively going after this business,’ says Leitch.

Vancouver Film Studios head Pete Mitchell says the bold move bodes well for future business deals. ‘It gives us something stable [and] concrete to negotiate with,’ he says.

The B.C. tax credits include a 30% break on qualified labor costs, a regional credit of 12.5% for productions filmed outside the designated Vancouver area, a tax break for approved training programs, and a 15% credit for digital animation or visual effects.

A news release specified that B.C. ‘intends to’ extend its film tax credits. Asked about the cautious wording, the premier’s press secretary told Playback that the proposed five-year extension must be presented as part of the provincial budget in early 2008 before it can be passed into legislation for 2008-2013.

Campbell made the announcement standing on the set of the ABC drama series Men in Trees at North Shore Studios in North Vancouver. And while he couldn’t promise that his proposal would go through, the premier’s message was clearly that his B.C. government was in for the long haul.

‘It’s important for this industry to have a sense of confidence, a sense of stability,’ he said.

Campbell was preaching to the converted at the event, but was clearly aiming his media message at foreign producers as well.

Underlining the importance of longevity in the business and financing structures struck the right chord with the B.C. industry players.

‘Now I know all those private investors that have invested over $1 billion in infrastructure in this industry are going to open their wallets,’ says Leitch. ‘This is what we were hoping for.’

Yet the question remains whether or not a stable provincial tax credit will be enough to combat the rising loonie. Players in B.C. say a resounding ‘yes,’ pointing to current production standards in the province.

‘The rising dollar is an issue,’ concedes B.C. Film’s Richard Brownsey, ‘but not the same issue it was five to seven years ago. We’ve matured. We’ve moved well beyond being a location.’

Leitch points to factors giving B.C. a competitive edge, including quality crews, the province’s proximity and shared time zone with L.A., and Vancouver’s purpose-built studio facilities. He also notes that the industry’s Reel Green B.C. initiative (environmental sustainable industry practices) now plays an attractive role with decision-makers.

VFS chief Mitchell believes that a solid business record is also strategically important. ‘We’re more than just the low dollar and location,’ he says. ‘What we’ve found is that delivering quality, on time, on budget is more important. We have a track record now to go to L.A. and make those promises.’

Transition is also a word that comes up a lot as service providers are shifting their production schedules to also include proprietary work.

Rainmaker Entertainment CEO Warren Franklin says that in the animation and VFX business, they’ve been preparing for the change. ‘We’ve been moving into a balance of service and creation for a long time. The rising dollar benefits us, getting us stronger value in foreign sales.’

Brightlight Pictures partner and producer Shawn Williamson approaches the topic more cautiously, pointing out the rising loonie can be a double-edged sword.

‘As a Canadian, the dollar going up – it is wonderful,’ he says. ‘But as an exporter, it takes away our competitive advantage. We have to look within to become more competitive. We can’t sustain ourselves solely as a service, location provider. We need to be financial partners at the table. We need to be producers, producing.’

But Christine Haebler, coproducer of the feature Nightwatching, summarizes the immediate situation by saying that, with the loonie as strong as it is, ‘Without [tax incentives], you can say good-bye to this industry.’