The cftpa has taken a firm position on a proposal to eliminate the federal production services tax credit. The producers association does not support the measure which was suggested in an advisory committee report to Heritage Minister Sheila Copps’ Feature Film Policy Review.

Citing an article in the Feb. 22 edition of Playback, which reported that a group of service producers were considering forming an association to lobby against the proposal among other issues, cftpa president and ceo Elizabeth McDonald sent a memo to all voting members conveying the cftpa’s stance.

‘In order to make our position clear, all members should note that the cftpa does not support the elimination of the production services tax credit,’ said McDonald’s memo, dated Feb. 23.

A previous memo dated Jan. 7 stated only that the cftpa had not been involved in any lobbying effort to eliminate the tax credit.

The most recent memo also urged members to voice any concerns over the cftpa’s current negotiations with actra, the Writers Guild of Canada and the Directors Guild of Canada with cftpa board members – and presumably not with the press.

‘We are at a critical stage in collective bargaining undertakings and we must all be careful not to de-stabilize our bargaining position,’ writes McDonald.

The cftpa president’s pleas for a press blackout were followed up at a recent conference in Toronto where she lamented the infighting in the industry and said that had all parties presented a united front at last fall’s crtc television policy hearings, the commission would be better able to come to a decision that suits all.

McDonald said her association approached ctv with the proposal of forming a common position for the hearings, ‘but when details of those meetings ended up on the front page of Playback, we were forced to go our separate ways’

Quoting the philosopher Pogo, McDonald said: ‘I’ve seen the enemy and it is us.’

Along with the cftpa, two powerful film unions – actra and the dgc – also oppose the elimination of the foreign production services tax credit.

In a letter sent last month to Heritage Minister Sheila Copps, dgc president Allan King writes on behalf of his 3,000 members expressing support for most of the recommendations contained in the Feature Film Policy Advisory Committee Report released on Jan. 21: ‘The dgc does, however, have serious concerns with one recommendation, namely that the foreign production services tax credit be removed,’ writes King.

‘We urge that this recommendation not be acted on and that the tax credit be continued.’

King’s letter praises proposals such as a $150-million per year fund, increased feature support from Canadian broadcasters, and that the tied sale of u.s. and Canadian distribution rights for non-proprietary films be prevented.

‘The dgc cannot, however, support the Committee’s recommendation to remove the production services tax credit. The Report. . . had assumed that in the absence of this credit, u.s. productions will continue to shoot in Canada because of the strong u.s. dollar,’ says the letter. ‘However, the dgc’s District Councils are concerned that there will be a significant decline in foreign production if the tax credit is eliminated. Our understanding is that the tax credit has increased the volume of foreign production in Canada.’

actra, too, urges the government to establish a $150-million fund. The performers union, which represents 13,000 members, supports the recommendation to apply a 5% levy on the distribution sector. Because this measure would raise almost $100 million, actra says it believes that discussions about the proposed elimination of the foreign services production tax credit should no longer be part of the review of film policy.

‘In practice, this tax credit applies primarily to television productions not movies,’ says an actra statement. ‘actra would be concerned if its elimination has the effect of reducing work opportunities for Canadian performers. Work on service production is an important component of the professional career of many performers in Canada, not to mention thousands of other craft and technical personnel.’