Film industry, government have differing opinions over outcome of film tax credit meeting

HALIFAX – Film Industry and Finance Minister meet, confusion follows.

After more than a week of aggressive campaigning, the film industry in Nova Scotia said they were feeling slightly more hopeful following a meeting with the province’s Finance Minister early Tuesday morning.

The province announced they were cutting the Film Tax Credit from 100 per cent to 25 per cent in the 2015-16 budget, unveiled last Thursday.

There has been widespread outrage from the decision, with the industry saying it will destroy them. Members of Screen Nova Scotia had a private closed doors meeting with Diana Whalen to discuss their concerns.

Marc Almon, with Screen Nova Scotia said the meeting was “productive,” although the industry is still very concerned. “They have agreed that what they put forward is not workable so we do consider that considerable progress,” he told Global News.

Scott Simpson, who owns a production company in Halifax, said the industry is worth over $100 million annually and they need time to implement any changes the government imposes. Despite that, Simpson said he felt good that the government was going to work with the industry.

“I’m confident that they are willing to meet us in some middle ground. We are in discussions. We met today for two hours and we’ll meet again this week, so there is definitely optimism on both sides that we can meet in some middle ground,” Simpson said.

The Finance Minister wouldn’t comment following the meeting, but when she spoke to reporters at the legislature a few hours later, there was a different perception. Whalen said the meeting with Screen Nova Scotia was good and that “a lot was accomplished.”

She said government is willing to work with members of the film industry but stopped short of saying what the film industry said, which was that the McNeil government agrees the changes they made to the film tax credit don’t work. “They have a problem with this, we do not. It works for government, it works for other industries to have incentives tied to taxes.”

Whalen said she hears what the industry is saying, but won’t say if there could be any changes to the film tax credit, or if the deadline for the new changes to take effect, July 1st, could be amended.

“They met and that’s a good thing, but they can’t even agree on what the results of the meeting were,” Jamie Baillie, NS PC Leader said. “We’re going to continue to fight for this industry because it’s an industry full of young, talented Nova Scotians, exactly the kind of things we need more of, not less.”

Whalen says the province has a fiscal envelope and a fiscal responsibility. A sentiment echoed by the premier, who said there would be no more money. “We don’t have any more as you know, I’m actually in deficit $97 million now, even with all the tough decisions that had to be made leading into this budget,” McNeil said.

NDP MLA Lenore Zann, who is also an actress, said the meetings between government and the film industry are good, but that the protest planned for tomorrow in front of the Nova Scotia legislature is still going ahead.

“It’s sort of government speak. It’s, ‘we’re having another meeting.’ Is this to try and tone down the rhetoric of the industry? I mean, we’re going to have a rally here and it’s going to be the mother of all rallies,” Zann said.

For their part, the NS NDP introduced legislation Tuesday ensuring mandatory industry consultation before any changes can be made to the film tax credit. Leader bill would not only apply to the changes the McNeil government introduced in the 2015-16 budget, but any potential future changes as well.

“It’s clear the McNeil government does not understand the impact its decision to slash the film tax credit will have on Nova Scotia’s vibrant film, television and digital media industry,” said NDP MLA Maureen MacDonald. “This bill will give the Premier and his Finance Minister an opportunity to take a step back, to meet and consult with industry, and reconsider a bad decision that places thousands of good jobs at risk.”