A major player in Burnaby's film industry was happy to hear the recent NDP announcement about increasing tax credits if elected to power next month.
Peter Leitch, president of Mammoth Studios in Burnaby and North Shore Studios, said Adrian Dix, leader of the NDP party, is a champion for the industry after Dix announced he would expand tax credits to spur on B.C. film.
If elected this May, Dix promised an NDP government will increase both domestic and foreign-production tax credits to 40 per cent of labour costs. Current tax credits are 33 per cent for foreign productions and 35 per cent for domestic.
"I think it's great news for the industry," Leitch told the Burnaby NOW. "We think it's a great industry for the province; it generates lots of employment, it generates business for small businesses in our community and it's an innovative industry."
Leitch said he was present when Dix made the Tuesday announcement, and that it will help close the gap between B.C.'s film industry and Ontario's.
"We're just excited about somebody who understands the value of the industry and supports it, and sees it as an important industry for B.C.," he added. "It made us feel good about that policy coming from the NDP."
According to an NDP press release, B.C. lost 3,500 direct and spinoff film and television production jobs last year, while Ontario's industry gained 8,000 jobs in the same period.
The incremental cost of the increased tax credits is estimated to be $45 million annually, based on a projected increase in activity, estimated at $93 million of direct and induced economic activity.
"It's something we have to stay engaged in," Leitch said. "Stay competitive."
Leitch said Dix recognizes film is a "great industry for B.C."
"And he said, 'I'm supporting it,'" Leitch added. "That was great news."
On April 9, Dix said the tax credits put in place by his party in the 1990s and increased by the Liberals helped the film industry grow but suffered a decline when Ontario introduced its new film tax credits.
"To rebuild and grow the industry, we will take steps to ensure its competitiveness and restore our position as the pre-eminent production centre in Canada," Dix said.
Pete Mitchell, president of Vancouver Film Studios, said these changes will come at a good time, when other competitive jurisdictions have negatively impacted the industries.
Payroll figures for the first 14 weeks of this year show a drop in 32 per cent of production activity compared to the same period last year, according to the release.
"These changes, along with our other competitive advantages will level the playing field, driving film and TV production to new heights," Mitchell said in the release. "Plus, with this announcement coming in early April, we can expect film and TV productions to be approved in time to shoot for 2013."
