REGINA – Add the Writers Guild of Canada (WGC) and the International Alliance of Theatrical Stage Employees (IATSE) to the list of stakeholders opposed to the Saskatchewan government’s decision to drop the Saskatchewan Film Employment Tax Credit in favour of a non-refundable tax credit program.
The two organizations sent letters this week to provincial premier Brad Wall stressing the importance of provincial tax credits in supporting the domestic film and television production industry.
“The WGC was disappointed to learn of the decision of the government of Saskatchewan to rescind the Saskatchewan Film Employment Tax Credit because we know that this will have a significant impact on domestic production in Saskatchewan”, reads a letter signed by WGC executive director, Maureen Parker.
“We were heartened to learn of the announcement that the government was willing to replace the Film Employment Tax Credit with a new program. However, it appears to us that the government does not have a full understanding of the business and distribution models behind film and television production as the proposed non-refundable tax credit is unlikely to be accessible to any producer in Saskatchewan.”
The WGC is a professional association representing over 2100 English-language screenwriters in Canada.
IATSE, which has 16,000 Canadian members, called the province’s new non-refundable tax credit program “ill-suited to deal with the funding structure under which the industry works”.
“Production companies need capital up front to finance development and pre-production. Banks and other lending institutions do not recognize non-refundable tax credits as collateral for the loans necessary to undertake most projects”, reads the letter signed by John Lewis, IATSE's international VP and director of Canadian affairs. “A non-refundable tax credit will damage the viability of the province’s film industry. As productions leave the province, Saskatchewan will lose thousands of jobs and millions of dollars in tax revenue.”
The Director’s Guild of Canada has also opposed the move, as Cartt.ca has reported.
– Lesley Hunter
