HALIFAX – Stephen McNeil said Wednesday that he is willing to hear a counter-proposal from the film industry over changes to the film tax credit, but only if it makes sense for the province’s finances.
The comments came as supporters for the film industry held a loud rally outside Province House.
McNeil said the changes work for the province’s current financial situation and the film industry needs to communicate what works for them so the two sides can try and reach a common ground.
“This industry has to be sustainable. This province has to get back to fiscal balance,” he said.
“If this doesn’t work for them, tell us what works. We have a certain amount of money on the table. Tell us how to divide it. If they believe there’s a better way of doing it than what we presented then let us know.”
The credit, worth $24 million, previously was fully refundable but, in last Thursday’s budget, the province slashed that amount to 25 per cent. Filmmakers would have access to $6 million along with $6 million from a fund for the creative sector.
McNeil said the tax credit was too lucrative.
“At the end of the day, this credit is too expensive for the people of this province,” he said.
“We have to do what’s right for the people of this province. That’s what this decision is about. This decision is not about my political future.”
The last economic study on the industry was done in 2004.
“They’re dealing, using and relying on very limited tax data out of the tax department. That is not the same thing as an economic impact assessment,” said NDP Interim Leader Maureen MacDonald.
She said she would support changes over a five-year transition period.
“It’s time for the premier to hit the pause button, get good data, sit down and realistically negotiate a settlement that will keep this industry in the province.”
Jamie Baillie, leader of the NS PC Party, said it is problematic that an assessment was not completed prior to the changes.
“You have a government that wants to make cuts but they don’t do an analysis of the benefits, the other side of the equation. The business case for the film industry in Nova Scotia is very, very strong,” he said.
He said he would cut administrative costs in government to keep the industry.
“There are departments where the administrative costs go up. The senior offices spend more every year. And yet we tell a young dynamic growing industry they have to lose out. I think that’s upside down.”
The province said the credit, which uses taxpayer dollars, subsidized wages of $42,000 for a full time film position. The average income, according to figures from 2011 from the government, for Nova Scotians is $35,400.
“We could argue numbers but to me what this is really about is 2,700 young, energetic and creative people wanting to make a future in Nova Scotia and they deserve our government support.”
The changes come into effect July 1 and, despite talks with the industry Friday and continued discontent with the changes, McNeil said he has no plans to budge from that date.
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