Speech notes for address at event to celebrate the introduction of the New Screen Production Incentive Fund. Civic Theatre, AUCKLAND

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Welcome and thank you for coming tonight.

As Minister for Arts, Culture, and Heritage I am very pleased you can be here to help celebrate the introduction of the Screen Production Incentive Fund.

As you know, our government recognises the value of New Zealand’s cultural industries, and has long identified the screen industry as a fast-growing sector worthy of government support.

We have demonstrated this support through funding via the New Zealand Film Commission, NZ On Air, Te Māngai Pāho and Creative New Zealand, and to our broadcasters TVNZ and Māori Television.

We have also introduced a range of specific initiatives, including the New Zealand Film Fund, which brought us some of New Zealand’s most successful films in recent years, including Whale Rider, River Queen, and World’s Fastest Indian.

Last Thursday I opened the Auckland International Film Festival's 40th season here at the Civic Theatre. Who could have envisaged 40 years ago that the programme would include 14 New Zealand feature length films and 10 short films – many with significant support from the Film Commission and other government agencies.

The opening film, Apron Strings, was the first film to result from an initiative in our last manifesto for what was called "signature television". Apron Strings was supported by the Film Commission, New Zealand On Air, and Television New Zealand.

We have supported the development of Film New Zealand to work as the national film office for domestic and international projects. Last year Film New Zealand secured funding from the Ministry of Economic Development to build on its important work.

Some of the most successful aspects of the government’s Cultural Diplomacy International Programme in Asia have been the screening of New Zealand films in film festivals in these countries.

We have been able to use the festivals to leverage tourism, trade and enterprise, education and diplomatic objectives.

We have signed four new film co-production agreements – [on top of the existing five]. The new ones with Spain and Ireland came into force this year following those signed with Germany and Singapore. The Tattooist was a Singapore – New Zealand co-production under that new agreement.

I am delighted to see that there are two official co-production projects underway at present : Vintners Luck and Dean Spanley.

Negotiations are continuing with the Republic of Korea, South Africa and India on further co-production agreements.

And I am very pleased to announce that we have just begun formal negotiations on an agreement with the People’s Republic of China.

As you know, the Large Budget Screen Production Grant was introduced to attract large-budget film and television productions to New Zealand. These projects have brought considerable economic benefits to the country.

In July 2007 there were a number of changes to the Grant, including:

• an increase from 12.5 per cent to 15 per cent of qualifying New Zealand production expenditure;
• the ability to bundle productions in applications for grants; and
• the creation of a new post-production, digital and visual effects incentive – and I understand that one production has already taken advantage of this new incentive, with others in the pipeline.

I am pleased there has been such good demand for the Grant. The Film Commission expects to approve over $26 million dollars for 10 projects in the coming financial year.

Now, the establishment of the new Screen Production Incentive Fund from 1 July represents a major step forward for the New Zealand screen industry.

It will assist New Zealand film-makers to develop their projects, and will significantly boost opportunities for domestic production.

As you know, the Fund has been established particularly in response to concerns that we could lose valuable talent and projects offshore, especially since the advent of the Producer Offset in Australia last year.

Internationally, we know that competition for film finance is intense. We have to make sure that we can compete effectively by having comparable arrangements.

The Fund will especially help medium-to-higher budget New Zealand productions, which currently could fall between the funding which is available through our agencies and the Large Budget Screen Production Grant.

We want to make sure that our domestic screen industry is sustainable and continues to grow. We want it to employ local talent, use New Zealand's state-of-the-art facilities, and tell the stories our people have created. The Fund will help this happen.

It will boost domestic production through a government grant of 40 per cent of qualifying New Zealand production expenditure for eligible film projects, and 20 per cent of qualifying New Zealand production expenditure for eligible television and other screen production projects.

The grants will be available to New Zealand productions certified by the New Zealand Film Commission as having significant New Zealand content. Guidelines have been released as to how the Commission intends to make these assessments for access to the Fund, to provide clarity for the screen sector.

We believe we New Zealanders should be able to see ourselves reflected on screen, and so the requirement for significant New Zealand content will ensure that these films reflect a New Zealand perspective.

I am confident that this Fund will create new investment opportunities and further industry growth and development. This is an important step towards a strong and sustainable industry.

The Ministry for Culture and Heritage consulted with the screen industry on the draft criteria for grants in June, and I would like to take this opportunity of thanking you all for your helpful feedback.

In June Cabinet agreed to the criteria and a five-year pool of funding of $68.5 million. Funding is baselined at 14.75 million dollars in out years, of which over eight million each year is new money and the remainder each year has been re-prioritised from existing Film Commission funding. The funding has been structured in a pool over multiple years so that fluctuations in demand can be managed to ensure that all eligible projects receive a grant.

I know that the New Zealand screen industry will seize the opportunities the fund presents. I wish you well with your projects, and I look forward to seeing the fruits of New Zealand creativity on our screens in years to come.