Vancouver: The brief era of free money for b.c. production companies is over as British Columbia Film says good-bye to its Market Incentive Program and switches back to loans from grants.

Specific guidelines on new programs were to be available to producers at the B.C. Film office and its Website (www.bcfilm.bc.ca) Feb. 1.

Key to the return to a recoupable, discretionary system of investment in b.c.-made production are the substantial growth in indigenous production that overwhelmed the agency’s resources in 1998 and a budget-cutting political climate that threatens to shrink B.C. Film’s funding yet again.

For the year ended Dec. 31, B.C. Film’s payouts increased 28% to $5.4 million from $4.2 million, which in turn stimulated a 35% increase in b.c.-based production expenditures to $62 million from $45 million. In addition, the total number of domestically produced programming hours jumped 44% to 156 hours from 108 hours.

And as b.c. heads toward a new provincial budget in March, the local industry (including the b.c. branches of the cftpa and Canadian Independent Film Caucus) is gearing up lobbying efforts to ensure that B.C. Film’s budget is maintained.

‘Our limited budget can no longer support the market-triggered, automatic funding model that B.C. Film has been using since 1995,’ says Rob Egan, president and ceo. ‘As a result, we are returning to a selective, recoupable financing model for production applications.’

Egan says there has not yet been any indication from government regarding funding for 1999, but the new programs are meant to make B.C. Film ‘efficient within budget limitations.’ That means introducing programs that recoup all or some of the agency’s investment in a production so that B.C. Film has longer-term viability.

* The new Production Financing program takes the form of non-interest-bearing recoupable advances or equity investments and, unlike previous programs, will be available to filmmakers during production to alleviate interim financing charges.

Funding is discretionary and is capped at $200,000 per project for feature films and tv movies, $300,000 per project for tv series, and $30,000 per project for programming under 75 minutes.

Evaluation criteria, similar to Telefilm Canada’s, includes the producers’ track records, recoupment potential and marketing plans. Eligible television projects must have a guarantee of a primetime broadcast in b.c. from a licensed Canadian broadcaster.

Also, applications must be made before a project is completed and delivered. However, requests for completion funding will be considered.

* Development Financing will comprise two ‘envelopes’ – a market-triggered program and a selective program with deadlines. The market-triggered program, a holdover from the old Market Incentive Program, matches eligible cash commitments (up to funding maximums) from a broadcaster or distributor on a first-come, first-served basis until the program kitty is spent.

In 1998, market-driven development used $630,000 of B.C. Film’s budget, which Egan hopes to maintain or increase in 1999.

Under the new rules, development funding applicants cannot apply to both ‘envelopes’ for the same phase of development. There is a project cap of $40,000 (or $60,000 for a television series) and a corporate cap of $100,000 in development assistance.

* Industry & Skills Development Financing is the training and outreach component of B.C. Film. Programs include professional internships for new producers, writers and distributors and financial support for festivals, awards, workshops and professional development.

Budget willing, Egan hopes to enhance these programs with increased funding.

Sheila Mombouquette of the b.c. branch of the cftpa says the new guidelines represent the best B.C. Film could do given its budgetary reality.

‘They’ve looked for the best use of their money,’ she says, remarking that the rationale behind the new guidelines makes sense to her.

‘On the surface they [the guidelines] look workable But nobody’s going to know for certain for a couple of months.’

B.C. Film’s outgoing mip was introduced by the agency’s former chief Wayne Sterloff in 1995 as a way to capitalize production companies with proven market support. And Egan says stronger companies have emerged with the assistance of mip, including Forefront Entertainment, Omni Films, Yaletown Entertainment, Force Four Productions, Paperny Films and Avanti Productions.

However, Egan adds, mip has more often been used as a source of production financing – a source that has been unsustainable (in the absence of an unlimited bank account) in keeping up with production. The big jump in production expenditures and programming hours in 1998 was sparked by a 71% increase in the number of television series to 12 from seven.

Among the series supported by B.C. Film are Da Vinci’s Inquest (Chris Haddock/Barna-Alper), Cold Squad (Keatley MacLeod/ Alliance Atlantis), Double Exposure (Cullen Robertson/Soapbox Productions), animated Adventures of Nilus the Sandman (Delaney & Friends/Cambium Entertainment), Scoop and Doozie (Queen Bee Productions), Champions of the Wild (Omni Film), Cosmic Highway (Hit The Highway Productions), Pacific Profiles (Walter Daroshin), Pet Friends (soma), Walking After Midnight (Jonathan Kay), Weird Homes (Yaletown Entertainment) and You Me & The Kids (Force Four Productions).