c I N E M A Ci • T R A DEN E W 5 • \ Distributors crucial for Feature Fund I Tax changes endanger shoots MONTREAL - A month had prove investment, production productions with the private TORONTO - Strictly enforced The regulations, outlined in not passed since her appoint­ and distribution prospects for sector and Telefilm. She federal t<LX regulations could the U.S.-Canada tax treaty, will ment as federal Minister of French- and English-language explained that this ar­ drive many American film pro­ probably not effect short-term Communications and already Canadian films destined for rangement, previously dis­ duction companies planning or current American films al­ Flora MacDonald was wooing commercial theatrical release allowed, will enable the NFB work in Canada south of the ready booked to be shot in the Canadian film industry in Canada and overseas. "to contribute to the creative border, industry experts say. Canada, Prior said. But the long with the July 17 unveiling of MacDonald said the fund and production facilities of the But Revenue Canada says it term could be more of a prob­ the annual S33 million feature­ represents part of a continuing industry from its own excel­ will collect a 15 per cent with­ lem, he explained. mm fund. effort by the Canadian govern­ lent resources." olding tax on out-of-pocket "There are hundreds of mil­ The former Employment & ment to counter the foreign expenses as well as taxing ' lions of dollars spent on One greatly welcomed as­ Immigration mmlster and domination of Canadian movie salaries of non-resident perfor­ foreign production in Canada." pect of the fund, according to long-time political stalwart of screens where only three per mers working in Canada. Prior said many American Kathy Avrich, executive direc­ the Progressive Conservative cent of films shown in Canada As the groups involved work companies consider Canada an tor of the Association of Cana­ party, officially set-forth the in theatrical venues are Cana­ to gain a better understanding excellent location for film pro­ dian Film and Television Pro­ Feature Film Fund guidelines dian. of the issues, a committee of duction for several reasons, ducers (ACFTP), long-term at a gala gathering of Canadian The five-year Feature Film entertainment and tax special­ but now face being required to loan plan in which eligible dis­ film industry representatives in Fund will provide $30 million ists has been formed to keep collect a witholding tax on per tributors can defray marketing Montreal and Toronto. Follow­ annually and $3 million for abreast of efforts ,to collect the diem expenses, such as hotel expenses with loans of up to a ing a lunch-time address in To­ dubbing and SUbtitling will be witholding tax on out-of-poc­ bills, food and air fare. It means m<Lximum of $500,000 as a re­ ronto, MacDonald flew to available through a Versioning ket expenses or per diems nN only a loss of money, but it volving line of credit. Montreal for a repeat, French­ Assistance Fund. given non-resident performers also acts as an irritant, he said. Av rich, whose association language performance at the Feature projects that meet and other film industry work­ Prior said many American together with distributors Ritz Carlton Hotel where she eligibility criteria, including a ers. producers look at the 1 5 per drew up guidelines for the fea­ also introduced the Prix Fr­ Canadian distributor'S guaran­ Committee member Mark cent witholding tax as a "slap ture fund in an effort to allay ance-Canada to be awarded tee of release in Canada within Prior, president of Bulloch in the face." He said they won­ frustrations while having to every two years as a $10,000 one year of completion and a Disc Inc. of Toronto, a com­ der if this is what is being done wait for the July announce­ or 50,000 Fr. prize for a "par­ national distributor'S plan for pany that provides payroll ser­ today, then what plans are ment, explained that earlier ticular contribution" to both language markets, could vices to the film industry, said being made for the future. this year, producers seeking Canada- France co-productions receive up to $2 million in the group was formed to Brian Villeneuve, executive­ Telefilm investments were told in film and television. equity investment, loans or ad­ clarify the impact of the regu­ director of marketing fo r the to wait for the feature film­ Sharing the spotlight with vances per project for produc­ lations on the film industry. Ontario Film Development fund guidelines. The ACFTP the new Communications tion costs. Telefilm funding "It is very tricky and very Corporation, said American decided to get a consensus Minister in the Ritz's Oval will not ex ceed 49 per cent of complex," Prior said of the reg­ film producers view the tax with the distributors on ap­ Salon was Canadian artist total production costs. ulations. He said the commit­ regulations as not only having propriate guidelines and the Charles Daudelin, who pre­ Staying true to its mandate tee, which consists of tax a financial inlpact, but also as extent of Telefilm involvement sented a maquette version of to encourage private-sector in­ lawyers, the province's film de­ an infringement. It is not a wel­ in administering the fund. the Prix Canada-France vestment in Canadian produc­ velopment corporation and come sign, he said. "There are many definite dif­ sculpture, and Jean Sirois, tions, Telefilm will, in adminis­ others, wants to develop a re­ The OFDC, responsible for ferences and similarities. We newly appointed chairman of tering the feature-film fund, sponse to the regulations and attracting foreign films to On­ did not have the corporate Telefilm Canada (see story), give special attention to first present them to Revenue tario, is very concerned, he loan in our guidelines and we the administering body of the works, projects with particular Canada. Prior said the commit­ said, Attracing film shoots is were looking for stricter Cana­ Feature Film Fund. relevance to Canadians and tee hopes to find areas in the highly competitive and Canada dian content regulations," Av­ Tn her brief address, Mac­ projects with participation regulations that are open to in­ stands the chance of losing rich commented. Donald emphasised that the from other federal and provin­ terpretation and outline con­ productions in the future to The overall view, she said, is fund - established after a re­ cial government agenCies, not­ cerns to Revenue Canada. U.S. states hungry for film dol­ that the guidelines are fair if commendation of the Report ably the National Film Board. Although it is difficult to lars, Villeneuve explained. of the Film Industry Task Force MacDonald announced that judge the total impact at pre­ Villeneuve said the new t<LX (December, 1985) - will im- the NFB can now join in co- cant. on p. 50 sent, Prior said some American regulations wouldn't mean all film producers are now exa­ American-based productions mining more closely the pros­ would be lost, but he added it pects of filming in Canada. could be a large number. Le Permanent and Cinevideo for$ 5 million '"They are saying they are re­ In 1985 about $"t6 million considering shooting their was spent by U.S. film produc- MONTREAL - Cinevideo, the The first project is the tele­ cast, Le Permanent is also sup­ projects up here," Prior said. Montreal-based producers of vision broadcast of Le Matou porting the production of two cant. on p. 64 the popular feature Le Matou, on Radio-Quebec this Nov­ theatrical films produced by and Le Permanent, one of the ember, followed by the mini­ Cinevideo - the movie version largest real-estate brokers in series of the same story on of Anne Hebert's novel, Les Cite funding on back burner Quebec, have joined forces to Radio-Canada in early 1987. Fous de Bassan, in produc­ create a multi-million dollar MONTREAL Although Legault said that with close tion through July to mid-Au­ According to the Canada­ mm and television production reasons for the delay are still to 1,000 agents, 16 kiosks and gust, and Flagrant Delit in De­ Quebec Subsidiary Agreement package. uncertain, a spokesperson for 37 branches across Quebec, cember. Both films are Canada! on Cultural Infrastructure, it is the Quebec Ministry of Cul­ Paul Legault, vice-president the real-estate broker can ef­ France co-productions with the Quebec governement tural Affairs Told Cinema and general manager for Le fectively promote a film or Les Films Ariane. which is responsible for imple­ Canada the government con­ Permanent in Quebec said mini-series. It is the increased Producing all three projects menting the jointly financed tract to build a $20 million "serveral million dollars" will exposure that Le Matou, seen is Justine Heroux who, under project. Cite du Canada film studio be spent over the next five by more than 1.5 million the Cinevideo umbrella, has In early May, Cinema complex will not be awarded years on three Cinevideo pro­ people in Quebec cinemas, several strong credits to her Canada was told by an assis­ on the date previously dis­ jects. will bring to Le Permanent that name including Le Matou, Les tant to the deputy minister in closed by the same ministry. makes the arrangement feasi­ Plouffe and Le Crime the Quebec Ministry of Cul­ Unable to give specific dol­ ble, Legault said. d 'Ovide Plouffe. The spokeperson said the tural Affairs that a call for pub­ lar figures, Legault said a large In an interview with Cinema Quebec government is cur­ lic tenders would be adyer­ "Some companies sponsor portion of Le Permanent's $4 Canada, Heroux said the assist­ rently evaluating the feasibility tised in June and tllat the con­ sports events, we're support­ million annual advertising ance from the private sector is of the project and that reasons tract would be awarded on budget will go towards spon­ ing Quebec Cinema," said for delay could be related to Aug.