Ontario and Quebec’s  film production tax breaks are taking business away from B.C., according to a report released last week by British Columbia Film + Media.

Total spend in B.C.’s film- and TV-production industry spend was down to $1 billion from $1.3 billion in 2009 – a reduction that is in part due to the increase in provincial tax credits in central Canada, according to the British Columbia Film Annual Activity Report for 2010/2011.

While the rising value of the Canadian dollar is also, in part, to blame for last year’s loss, as well as a slowdown in production thanks to the Olympic Games in Vancouver and Whistler, the decline is mainly a symptom of a “deeper competitive problem” writes Michael Francis, chair, board of director of British Columbia Film.

“It is more difficult to develop and finance scripted drama and feature films in BC than it is in Ontario,” writes Francis in the report, blaming: “the absence of equity funding in BC, the more lucrative production incentives available in Ontario and the fact that broadcasters, who commission content, are based in Toronto and are increasingly relying on Ontario-produced product.”

This past year, the B.C. government responded to the competition from other provincial governments by increasing incentives available for service productions; raising the Digital Animation or Visual Effects Credit.; and introducing an Interactive Digital incentive program. This helped stabilize service production, writes Francis.

It also may have contributed to the growth in service animation projects, which totalled 25 in 2010 compared to just nine the year before. In 2010, 94 service productions were shot in B.C. – including 36 feature films, 14 TV series, the 25 animation projects and 19 other projects – compared to 84 in 2009, the report states.

But the changes “did not provide additional benefits to B.C. producers,” writes Francis.

Domestic production experienced a slight increase, growing to $244 million in 2010 from $218 million the previous year. The total of domestic productions was 152 last year compared to 166 in 2009.  While the number of domestic feature films shot in the province  was up to 33 from 19 the year before, television productions seems to have taken a big hit.

Just 29 television series were shot in B.C. in 2010 compared to 34 in 2009. There were also 78 other TV projects (such as miniseries) filmed compared to 90 the year before. The number of domestic animated projects remained the same with 12 productions.

Photo: Vancouver / Wat Peace, Flickr Creative Commons