Criteria for Screen Production Rebates Confirmed

The Labour Progressive coalition government has today confirmed the final details of its screen production development package with the release of the criteria for the Large Budget Screen Production Grant scheme.

The scheme, announced in July of this year, will provide a rebate to major film and television productions of 12.5% of their New Zealand based expenditure.
Major productions are defined as those spending at least $15 million in New Zealand.

Economic development minister Jim Anderton, who convened the coalition government’s screen production sector taskforce, says the rebate scheme adds to New Zealand’s attractiveness as a location for major productions.

"Our creative edge, our technological innovations, our skills base and scenery already make an attractive package as a film production location. While there are no guarantees in this world, the government believes this scheme will increase the chances that major productions will choose New Zealand as a film production location," Jim Anderton said.

"Major productions are important to the sector because they provide an opportunity for continuity of employment, for accelerated skills development and for technology transfer. They are the means by which we’ll develop a strong film industry and sustain investment in the sector.

"The local and regional economies associated with these productions can reap benefits as well. As we’ve seen with The Lord of the Rings, major productions can have a significant impact on tourism and contribute to the New Zealand’s brand as a beautiful, innovative and creative country," Jim Anderton said.

Jim Anderton said the criteria were developed after consultation with the sector and a review of international experience with similar schemes.

"We’ve decided on a scheme very similar in effect to the Australian one but delivered as a grant scheme not through the tax system. It’s at the modest end of the international spectrum for interventions of this kind and is a useful addition to New Zealand’s marketing effort. We’re not interested in getting into a bidding war for these productions but we do want to make our film production package as attractive as possible," Jim Anderton said.

The government had set an indicative cost for the scheme at $40 million expenditure per year.

"The beauty of this is that it’s a rebate. If there’s no spending on major productions in New Zealand, there’s no cost to the taxpayer."

Mr Anderton said the scheme complemented the initiatives the government had taken in response to the Screen Production Taskforce. These were: start up funding for a Screen Council; the development of statistics on the sector; a review of the government involvement in the sector; an increase in funding for Film New Zealand, the sector’s international marketing arm; and an increase in the New Zealand Commission’s annual baseline funding of $10 million.

"Taken together, these measures strengthen the domestic base at the same time as we attract international productions. We’re building up a strong film industry and taking advantage of all the opportunities that come with exposure to international experience."

The LBSPG will be administered by the New Zealand Film Commission. Claimed spending will be verified by the Inland Revenue Department.