Address to the Film Industry News Conference
by the Minister of Development and Rural Renewal,
Judy Foote
Delta Hotel, St, John's, NF.
February 5, 1997 at 10:30 a.m.
It is clear from the remarks made thus far, and the interest
demonstrated by the industry itself in hosting this event, that
the film and video industry has a bright future in this Province.
It is also evident that partnerships are crucial to taking
successful advantage of economic and employment opportunities
related to this industry. In this regard, I would like to
acknowledge, in particular, the contribution made by two of my
provincial colleagues, the Honourable Charles Furey, Minister of
Industry, Trade and Technology, and the Honourable Sandra Kelly,
Minister of Tourism, Culture and Recreation. While I stand on
this stage today as Minister of Development and Rural Renewal,
the Province's approach to development of the industry has been a
collaborative effort within the provincial government, as it has
been with the federal government and the local industry.
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% of a project's budget being spent in salaries
and fees for creative and technical workers.
A typical feature movie or television production, such as
"Gullages", can employ 50 or 60 full time cast and crew
members.
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.
The film industry is also a very efficient job creator.
Independent production companies create one job for every $36,000
received in gross revenues, compared to one job for every
$114,000 for the 50 most dominant North American industrial
sectors.
Substantial new investment also flows to the Province through
this industry. For each dollar invested within the Province, an
additional $4.75 is leveraged from external sources, such as
Telefilm Canada and private production companies.
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.
The profile of economic benefits accruing from this industry,
as I have just outlined, speak for themselves. In this context,
we view government's financial support for the Film Development
Corporation as a strategic investment in the future of this
Province.
As Minister of Development and Rural Renewal, I am encouraged
by the prospects offered by this industry and the potential for
communities throughout the Province to share in the economic and
employment benefits that are so clearly evident.
In closing, I am pleased to inform you that the Board of
Directors of the Film Development Corporation will be announced
within the next week to 10 days.
Thank you.
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