Minister to promote new Film Development Corporation in Los Angeles

On the heels of the formation of the Newfoundland and Labrador Film Development Corporation, Minister of Development and Rural Renewal, Judy Foote, announced today that she is meeting in Los Angeles this week to pursue a number of new opportunities for film production in this province and to promote the recently established corporation.

"I am excited by the opportunities in major motion picture production," said Ms. Foote. "Government has strategically targeted film and video production as a sector of the economy which holds a great deal of potential for Newfoundland and Labrador. Consequently, this province is positioning itself in the marketplace as a competitive location for the shooting of major film productions.

"The film and video industry has a bright future in this province. It offers significant economic and employment possibilities for the people of Newfoundland and Labrador. Film and television productions are labour intensive, with approximately 60 per cent of a project's budget being spent in salaries and fees for creative and technical workers.

"There are also significant spin-off benefits to local communities where productions are actually shot, through the purchase of goods and services from local business establishments. Depending on the size of individual projects, these spin-offs can amount to millions of dollars for local economies. For every dollar spent directly on film and video productions in the province, Statistics Canada estimates that an additional dollar is generated in spin-off benefits.

"External productions being shot in the province also provide opportunities for skilled local crew members to find additional work, practice and improve their skills, and augment their income. Furthermore, these production companies often utilize the facilities and services of local production firms, thus generating new corporate revenue for them and strengthening their competitive position even further," concluded Ms. Foote.

Government recently announced the formation of a Newfoundland and Labrador Film Development Corporation, with an initial investment of $1 million over the next five years from the Canada-Newfoundland Agreement on Economic Renewal, for its start-up and operation. The corporation has been charged with the responsibility to direct the growth of the indigenous film and video industry and to market the province, both nationally and internationally, as a competitive place for on-location shooting of films and videos.

Contact: Susan Laite, Director of Communications, (709) 729-4570.