June 2, 1998
(Development and Rural Renewal)

The following statement was issued today by Beaton Tulk, Minister of Development and Rural Renewal. It was also read in the House of Assembly:

Progress of the Newfoundland and Labrador Film Development Corporation

I want to update Members of the House of Assembly on the activities of one of the strategic initiatives undertaken by the Department of Development and Rural Renewal. The Newfoundland and Labrador Film Development Corporation was incorporated in January 1997 to spearhead development of the local film and video industry. The intent is to diversify the economic base of the province and generate long-term employment benefits for the people of Newfoundland and Labrador.

The film and video industry clearly 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 workers.

The mandate of the Newfoundland and Labrador Film Development Corporation is:

• 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;

One of the ways the provincial government is supporting the activities of the Newfoundland and Labrador Film Development Corporation is by introducing a Telefilm Tax Credit. The tax credit will be an important tool in attracting investment to this sector, targeted by the government as an economic and employment growth opportunity. In Nova Scotia a similar program helped increase the size of the industry in that province from $15 million to $50 million in two years. My colleague the Minister of Finance has tabled enabling legislation on this tax credit.

The corporation has been active in promoting the province in the telefilm industry. The corporation has coordinated scouting visits by senior officials of various companies in the industry. The corporation participated in Locations '97 and Locations '98 in Los Angeles as well as several other industry gatherings and trade shows.

A good example of the kind of productions being attracted to this province is a joint Canada-Norway movie project tentatively entitled "Misery Harbour". The story is based on the novels of Danish/Norwegian writer Axel Sandemose, and portrays the adventures of a teenage boy in the early 1900s who boards a schooner in Oslo, and sets sail for Newfoundland where he jumps ship. Shooting for the production will take place in Scandinavia, Tilting on Fogo Island, Gander, and St. John's.

There are other examples I could elaborate on such as The Devine Ryans, Dooley Gardens, or Extraordinary Visitor.

In fiscal 1995/96 and 1996/97, five productions occurred in the province which resulted in total project expenditures of $3.3 million in Newfoundland and Labrador.

In fiscal 1997/98, the first year of the corporation's mandate, there were 22 projects completely or partially produced in Newfoundland and Labrador with total production expenditures of $9.7 million in Newfoundland and Labrador.

Early indications are encouraging for this coming year as well. In the first two months of fiscal 1998/99, four productions have been confirmed with total project expenditures of almost $7 million. Eight additional projects are also under development, which if pursued, could bring total production costs up to $16 million for this year. And we are just three months into this fiscal year.

At this rate, total industry investment associated with Newfoundland and Labrador for fiscal 1998/99 will far exceed previous years. Clearly, we are on the right track in growing this relatively new industry.

1998 06 02                    3:40 p.m.