Yesterday it was announced that the Saskatchewan government has eliminated a key tax subsidy for the film industry – what the CBC is claiming is an $8-million-a-year program. Because of this cut, shows like "Insecurity," who film in the province, are considering moving elsewhere in the country.
"Should 'Insecurity,' season three, be renewed… we have to consider moving the series to another province," Virginia Thompson of Vérité Films told CBC News Wednesday. "We're generating money and it doesn't seem that's been understood. I can't begin to tell you how difficult this is to comprehend. We're not taking money from the province, we're generating money and it doesn't seem that's been understood. I don't think that the government has completely figured out, I guess, the revenue side of the equation."
Finance Minister Ken Krawetz said that the province can no longer afford the film employment tax credit, and it is being claimed that in the first year of the cut, Saskatchewan will have saved more than $3 million. They will then save $8 million annually once the cut is fully phased out by the end of 2014.
According to The Vancouver Sun, the Film Employment Tax Credit was initially introduced to help foster development of the province’s film industry. The FETC is a refundable corporation income tax credit equal to 45 per cent of eligible labour costs. There are also bonuses for rural productions and using Saskatchewan labour in key positions. Budget documents say the government has decided to “wind down” the credit due to the current level of investment, an overall decline in industry activity and the need for more subsidization to stay competitive, which has been indicated by industry representatives.