Film NZ welcomes enhanced Screen Production Grant

Film New Zealand welcomes enhanced Screen Production Grant
Embargoed until 1:30pm Monday 16 July 2007

“Today’s announcement by Trevor Mallard, Minister for Economic Development (MED), is a concrete boost to New Zealand’s screen production industry,” said Film New Zealand (Film NZ) Chairman David Madigan. “The enhanced value of this incentive combined with more flexible and broader coverage reflects the advice Film NZ provided to Government on behalf of the industry. This puts New Zealand and the country’s industry capabilities in a very favourable position.”

Commenting specifically on the changes announced, Film NZ Chairman stated:

- The Grant’s increase from 12.5% to 15% effective immediately reinforces New Zealand’s competitive advantage.

- Removal of the 70% requirement for eligible productions spending between $15m and $50m eliminates one hurdle that only served to exclude productions looking to do part but not all of principle photography or PDV work here.

- Introduction of the new 15% incentive for post-production, digital & visual effects work known as PDV is most welcome. International PDV work is mobile. This incentive will stimulate much-needed business expansion and new employment opportunities within New Zealand’s acclaimed PDV sector.

- Grant administration changes all contribute to the incentive’s certainty by enabling exchange rate to be locked in and reinforcing its much-valued efficiency. As ‘time is money’, interim or ‘on completion’ application provisions added to New Zealand’s 3 month turn-around from time of application to Grant payment reduces the cost of cash-flowing the Grant within the production budget thereby adding on screen value.

- New ‘bundling’ provisions to a new $30m threshold over 24 months represents a very new concept on the type of ‘bundling’ that has been debated within the screen production industry. The minimum qualifying New Zealand expenditure of $3m opens the door to lower budget projects that when bundled together should provide greater continuity of work for the industry.

“New Zealand’s capacity to service international production is grounded on the talented members of our industry. The enhanced benefits being offered should translate into more consistent production activity, more sustainable employment for crews and for those working in the PDV sector, and expanded business opportunities for facilities and suppliers,” David Madigan concluded.

Film NZ is the independent industry-led national film office, supported by Government with core operating funding from MED, supplemented by the New Zealand Film Commission, project funding from NZ Trade & Enterprise/Investment NZ, and contributions from key sponsors and screen production industry members. Its services are employed by New Zealand filmmakers as well as those from overseas.

“The annual operating budget increase announced today by the Minister gives Film NZ certainty for its future. There will be room now to respond to international interest more proactively, while continuing to work with the industry and government to build New Zealand’s reputation as a safe, expert and ’ film friendly’ filming environment”, said Film NZ CEO Judith McCann.

ENDS

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