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February 5, 1997
(Development and Rural Renewal)

 

The following is being distributed at the of the Film Producers' Association of Newfoundland:

Film Development Corporation formed

The provincial film industry is playing a key role in a collaborative approach with the federal and provincial governments to spearhead development of the local film and video industry through the formation of the Newfoundland and Labrador Film Development Corporation. Through the Canada/Newfoundland Agreement on Economic Renewal, there will be an investment of $1 million over the next five years for the start-up and operation of the Newfoundland and Labrador Film Development Corporation. The formation of the corporation is a significant step in positioning the province as a fully-acknowledged player in the national and international marketplace.

The announcement was made today by Fred Mifflin, Minister of Fisheries and Oceans, on behalf of Lawrence MacAulay, Secretary of State for the Atlantic Canada Opportunities Agency and Veterans' Affairs, and Brian Tobin, Premier of Newfoundland and Labrador, during a news conference at the Delta Hotel in St. John's. Also participating in the event were Judy Foote, Minister of Development and Rural Renewal, and Bonnie Hickey, Member of Parliament for St. John's East.

The Newfoundland and Labrador Film Development Corporation is a not-for-profit body formed to direct the growth of the indigenous film and video industry, and to market the province, both nationally and internationally, as a place for on-location shooting of films and videos. The undertaking is the result of a strategy developed by the Film Producers' Association of Newfoundland (PAN), the Newfoundland Independent Film Makers Cooperative (NIFCO), the Film Crew Association of Newfoundland (FilmCan), and the federal and provincial governments to promote the film sector and identify a sound approach to its full development.

Minister Mifflin said: "The formation of the corporation is the first step in a focussed, cooperative effort to establish the film industry of Newfoundland and Labrador on a firm footing through access to technology, establishment of basic infrastructure, and training of a skilled workforce to support telefilm development, production and post- production activities. This approach promises to bring growth to an already vibrant sector that now has the tools to facilitate further development. The film industry offers enormous potential in terms of employment and economic growth."

Premier Tobin stated: "The establishment of the Film Development Corporation will help the industry reach a new plateau of achievement. It will bring together all the players involved in the local industry in an effective partnership that will take advantage of the growing economic and employment opportunities that exist in this international industry. As a relatively new sector of the provincial economy, it offers exciting new prospects for diversifying the economic base of our province, attracting new investment, and generating significant new jobs within the private sector for the people of Newfoundland and Labrador."

Ken Pittman, President of the Producers' Association of Newfoundland, said: "The formation of the Film Development Corporation marks the start of an exciting period in the province's film industry. As an industry, we can accelerate our growth and become full participants in the global industry as well as make a sustained contribution to the province's economy and to our cultural expression."

In addition to funding for the Film Development Corporation, approximately $90,000 has been allocated through the cultural industries component of the Canada/Newfoundland Agreement on Economic Renewal to support a number of specific film industry initiatives. This includes support for the purchase of a digital editing system for the Newfoundland Independent Filmmakers Cooperative Ltd. (NIFCO), professional development and marketing support for film crew members and participation by film producers to attend MIPCOM, Europe' major international film and television trade fair.

The areement is a $100 million, five-year, federal-provincial program designed to diversify the economic base of the province and generate long- term employment benefits for the people of Newfoundland and Labrador.

Contact:

  • Ken Pittman
    President
    Producers' Association of Newfoundland
    (709) 739-1711

    Cathy Dornan
    Office of the Premier
    (709) 729-3564

    Ellen Alcock
    Canada/Newfoundland Agreement on Economic Renewal
    (709) 772-5116

    _______________________________

    BACKGROUNDER

    Film and video industry in Newfoundland and Labrador

    • - Film and video production in Canada has shown a 225 per cent increase in total revenue earned since 1982. It employs 30,000 people in Canada and makes an annual contribution of more than $2 billion to Canada's gross domestic product.

      - Film industry partners in Newfoundland and Labrador have been working closely with governments to encourage specific steps in the development of the local film and video industry. A committee consisting of representatives of ACOA, Canadian Heritage, Industry Canada, the Department of Tourism, Culture and Recreation, the former Enterprise Newfoundland and Labrador (ENL) and Human Resources Development Canada together with local industry organizations, the Producers' Association of Newfoundland (PAN) and the Newfoundland Independent Film Makers Co-operative Limited (NIFCO) was struck to devise a development plan.

      - This committee completed a study entitled: A Profile of the Newfoundland and Labrador Independent Film and Video Industry and made a number of recommendations for action as a means of realizing the full economic potential of the industry. The four main thrusts critical in supporting this strategic direction include: marketing support, industry development support, access to industry financing, and the establishment of a Newfoundland and Labrador Film Development Corporation.

      - Most jurisdictions in Canada have established Film Industry Development Corporations to coordinate a strategic approach to development, with positive results being shown from the public investments made in such organizations. The market outlook is considered to be very strong with significant opportunity for substantial future growth.

      - In Newfoundland and Labrador, industry has generated a modest $10 million in total revenues and created approximately 200 jobs since 1988. Using the Statistics Canada multiplier for this sector (2.07), the direct and indirect impact on the provincial economy is almost $21 million. In addition, for each dollar invested within the province, $4.74 are levered from outside the province. Approximately 60 per cent of a project's budget is wages. A typical feature movie or television drama can employ 50 or 60 full-time cast and crew members.

      - According to Statistics Canada in its analysis carried out for the Arts and Cultural Industries Sectoral Advisory Group on International Trade (SAGIT), independent production in Canada generates one job for every $36,000 of gross revenues, compared to one direct job per $114,000 of annual gross revenues for the 50 most important North American industrial sectors.

      - Some examples of locally produced titles include: The Adventure of Faustus Bidgood, Undertow, Finding Mary March, No Apologies, The Bouregois Legacy, Nothing to Do, Secret Nation, Multiple Choice, The Great Divide, Changing Minds, The Vienna Tribunal, Anchor Zone, The Elf, as well as the currently being produced Gullages.

      - These local productions have been viewed by hundreds of thousands of Canadian television and movie viewers. In recent years, writers, actors, musicians, and technicians who learned much of their craft on Newfoundland independent productions are making a mark for themselves and for the province on the national and international scene.

    NEWFOUNDLAND AND LABRADOR FILM DEVELOPMENT CORPORATION

    • - The Newfoundland and Labrador Film Development Corporation will be an arms length non-profit corporation accountable to the Government of Newfoundland and Labrador through the Minister of Development and Rural Renewal. The corporation's mandate will be to foster the growth of the Newfoundland and Labrador film and video industry and establish Newfoundland and Labrador in the national and international film and video market as a competitive location for on-location shooting.

      - The corporation will be charged with the following responsibilities:

      • - to support, assist and develop the growth of the private sector film and video industry using sound business principles in the areas of funding, marketing, promotion and infrastructure development;

        - to promote the province within the worldwide film and video industry as a location for film, video, television and commercial productions;

        - to serve as a focal point of liaison between industry and all levels and sectors of government in support of industry development;

        - to ensure that appropriate pools of investment and equity capital are available to assist in the growth of the indigenous industry.

      - An initial five-year mandate will be set for the board with a review at the end of three years to ensure adequate progress towards the policy objectives is being achieved.

      - The corporation will be led by a board of directors of public and private representatives. Appointments to the board will be made in the near future.

       

      1997 02 05 11:20 a.m.

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