A new study is taking the government to task for axing the film tax credit.
The study commissioned by the Saskatchewan Chamber of Commerce and Sask Film says the decision to cut the program “had many flaws.”
“Key facts were missing, and no consultations were done before the announcement of what some thought would be a simple program cut,” said Steve McLellan, CEO of the Saskatchewan Chamber.
“This decision affected real people and real businesses, whose commitment to growing the film sector was shattered as the lifeline to the industry was cut.”
Projects generated $6.5-million in taxes resulting in a net cost of $1.3-million to run the program.
“We believe these numbers are an accurate reflection of the facts,” said Susanne Bell, CEO of Sask Film.
“Our study demonstrates both high economic value of one sector, and also the moderately low net cost to the government.”
The government cut the FETC in the Spring 2012 budget and estimated it would save the province between $3- and $8-million annually.
“This decision represents a substantial lack of sector-specific knowledge and policy transparency on the part of the provincial government,” said McLellan.
“This government can and must do better in the future.”
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