I agreed with most of what you said regarding the potential silver lining in a higher dollar, except for the last paragraph (Playback, Nov. 8, p. 14). I see the potential for a slightly different and darker picture.

It’s the year 2007 and different levels of government finally get around to dealing with our industry in whatever way they eventually choose: increased tax credits, revised investor policies, copyright policy reform, etc. The Canadian dollar is back down to a manageable US$0.70 – that’s the good news. The bad news is that in the years that it took for any concrete response to the current problems, the following has happened:

1. The U.S. states which have recently set up ‘Canadian style’ film incentives have, by 2007, established themselves with solid, experienced crews and infrastructures as a result of the productions diverted away from Canada because of our higher dollar and lower incentives.

Keeping productions in the United States has been made even more attractive as a result of the U.S. federal legislation passed in October 2004, which specifically targets so-called ‘runaway production.’

2. Other nations, which long ago saw the benefits of a strong Canadian film industry – a highly skilled and modern workforce, solid economic returns and the ability to promote our culture – established and fostered their own programs to lure production and build their own film industries.

These programs, in certain countries, are already mature and compete with Canada on every level to lure productions, if and when they actually leave the U.S. In 2007, even more nations have recognized the net economic benefits of attracting productions and set up their own competing incentives.

3. The once-strong film and television infrastructure in Canada, which has taken decades to build, has by 2007 eroded significantly as a result of the depressed conditions over a number of years – experienced people in every area of the industry have simply left for industries providing a more stable paycheque, or perhaps to countries which place a higher value on their skills and services.

I can’t see the future – and I hope that the scenario set out above never materializes. The point I want to make is that a lower Canadian dollar, while always an important consideration, may not be enough to make a significant difference if other important external factors continue to work against us, and quick action is not taken by our government.

Ken Dhaliwal, Toronto