Draft Letter for Discussion Only

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DRAFT LETTER FOR DISCUSSION ONLY The Honourable Kathleen Wynne Premier of Ontario Room 281, Main Legislative Building, Queen’s Park Toronto, ON M7A 1A1 Dear Premier Wynne, As Chair of the Toronto Film Board, I met recently with representatives of FilmOntario, representing Ontario’s film, television and digital interactive sector. I want to take this opportunity to share with you some issues raised in that meeting and to ask for your support moving forward. Premier, at the City of Toronto we are proud that, since 1990, this sector has grown to be one of the most vibrant, high-quality screen-based industries in the world. It tells our stories, contributes to Ontario’s vibrant culture, and has become a pillar of the provincial economy contributing: • $1.6 billion in annual economic activity; • $290 million in annual direct local and provincial tax revenue; • 27,000 jobs supported throughout Ontario; and • production activity flourishing inside and outside of Toronto. While Ontario has the talent, infrastructure and training to compete globally, competition from other jurisdictions is stiff. Sadly, our industry took a significant blow and was destabilized by a cut to the Ontario Production Services Tax Credit (OPSTC) from 25% to 21.5% in last year’s budget. DRAFT Premier, I understand that the assumption behind the decision to cut the OPSTC was that recent currency fluctuations would provide the industry with a competitive boost to offset your government’s rollback. Unfortunately, while currency fluctuations play a role in sales cycles, they play no role in investment decisions. Our industry investors have affirmed as much. Further, FilmOntario has confirmed this in a new study completed by Nordicity. I am told that you heard this directly from investors on your recent visits to Los Angeles. There’s no question the OPSTC cut was the wrong signal at the wrong time. It has left investors – both here in Canada and abroad - questioning when the next shoe will drop. Film Ontario has presented my office with a proposal that I support wholeheartedly, and present to you for your consideration: • The Ontario government should restore the cuts to the OPSTC and OCASE. • The province’s film tax credits should be maintained – at these restored levels – for a minimum of five years, through the signing of a Memorandum of Understanding or appropriate changes to legislation. Premier, let’s work together to support and nurture this important industry. A commitment to stability and predictability will provide our storytellers with the investment horizon they need to win production dollars for Ontario. I urge you to work with the Ontario screen-based industry to restore the 3.5% cut to the OPSTC and OCASE and secure the tax credit system for the next five years in the upcoming provincial budget. Yours truly, Councillor Paula Fletcher Chair Toronto Film, Television and Digital Media Board cc. Honourable Charles Sousa, Minister of Finance [email protected] Honourable Brad Duguid, Minister of Economic Development, Employment and Infrastructure [email protected] Honourable Deb Matthews, Treasury Board Secretariat, Deputy Premier and President of the Treasury Board [email protected] Honourable Michael Coteau, Minister of Tourism, Culture and Sport [email protected] DRAFT.

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