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.