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Canada Stealing US Film Jobs?

By Stuart Wood: 2007-09-07 04:13:11
Canada Stealing US Film Jobs? First, they were ludicrously blamed for 70% of world piracy, it now seems that certain elements of Hollywood are trying to dump all their other ridiculous movie related issues on Canada's doorstep.

The Film and Television Action Committee (FTAC), a group lobbying to keep film-making jobs in the US, has started a bitter row by accusing Canada of stealing American jobs. The FTAC has filed a 301 petition with US Trade Representatives claiming that Canada's film subsidies violate trade agreements and constitute "unfair trade practices".

The Canadian group, the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA), has hit back at the FTAC claims, rubbishing it's "facts" and pointing out that the group has no support from the Directors Guild of America, the American Federation of Radio Television Artists or the infamous and all-seeing MPAA who we already know have no love for their northern cousins. Or math.

FTAC is claiming the U.S. lost 47,000 jobs every year and and around $23 billion in economic benefits due to film-making defecting to Canada. They cite data from the Center for Entertainment Industry Data. However, ACTRA disputes this, pointing to their own figures which say overall employment in the US film industry has risen since 2000 and a study by Film Ontario in 2004 which estimated economic losses to Canada in 1998 to be more in the region of a significantly smaller $1.69 billion.

Stephen Waddell, national executive director for ACTRA, also wryly points out a possibly unforseen downside to the FTAC's arguement; "One of the ironies is that if it was found that Canadian subsidies did violate NAFTA, then that would make [films] into goods and services. Then we could take action against the U.S. networks for dumping their products into the Canadian television market."

ACTRA's national president Richard Hardacre also took a swipe at the move; "The bitter irony in this dispute is that we are drowning in U.S. product on TV and in the movie theatres. It's difficult to find a Canadian film in a Canadian theatre with all the U.S. blockbusters dominating our screens. Yet this upstart organization has the nerve to insist we stop filming in Canada."

Quite what the FTAC are up to is anyone's guess. It's pretty clear they have no case to fight and are possibly just another minority lobby group trying to justify their existence and getting a bit of press by picking a fight with the big boys. The FTAC arrogantly asserts that by giving US citizens the jobs Canadians are doing, the end result will be a better product as only the best work in Hollywood. Well sorry that's bullshit. Just because your the biggest doesn't mean your the best. Just look at the box office winners this year for prime examples of that. Life isn't fair and maybe if the FTAC want to increase the number of jobs in the US they should be lobbying the government for better incentives at home instead of attacking other nations for having the audacity to be actively encouraging their own industry.

I don't get to go up and punch the guy living off a trust fund with the fancy car and the hot girl and take his spoils for myself. I have to put the work in to get it myself. And if I find myself at a disadvantage because I'm on minimum wage or look like Clint Howard, then yes it's going to be harder for me to get the fancy car and the hot girl, but that doesn't mean the other guy deserves to get penalised for my disadvantages.



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  1. Donna A. Says:

    What a bunch of cry babies! The US need to realized they are not the only fish in the sea.
    Donna A.

  1. Trey Graham Says:

    This rant made no sense. Canada's subsidies are deliberately designed to exclude US Citizens from productions. That is their whole purpose. It's not simply that companies are offered money to shoot in Canada. The money is tied to a promise you will exclude US citizens. That is why it's called "stealing jobs." If you're (that's how it's spelled by the way) convinced it's okay for one party to offer a bride to a second party in exchange for doing harm to a third party, then there's a whole lot of laws we'll have to get rid of to accomodate you. I guarantee you'd know this was wrong if the end result were different. If you heard somebody offering bribes to companies in exchange for a policy of refusing even to consider hiring Canadians, you'd scream bloody murder. And rightfully so.

  1. LuCiDFoX Says:

    Yea, that’s right, stealing, uh-huh.

    Lets look at American distribution of Canadian films that were perfectly Viable (Recently: "Fido" for one) and see who is actively working to kill who and for how long it's been going on. Lopsided one way / lopsided the other. I'm not saying that everything we make is viable, but c'mon, you'd think we'd have gotten lucky more than a few times over the years considering our understudy of your extremely talented industry.

    So we fight to have our government help fight to keep your willing production money here, what the deal? Now your lobby group fights to fight to keep your money there. It's all good in its way, but it's really just more of the same extremists bullying each other politically.

    I wonder how many people who signed this petition were (and are and will be again) involved with the ones who were taking advantage of the Canadian dollar at 30% of yours with big brilliant smiles on their faces all the while pocketing cash by the handful. But now that your dollar is moving around a little we add a subsidy to equalize (in labour) what employers prefer, and it's "unfair"? Numbers-wise it's the same darn thing as before, just achieved a different way and it’s not even equal; it falls short.

    You can’t keep everything internal AND expect to be able to head overseas and over borders to achieve your own ends. Work on what you can from the inside and if there is a REAL demand for "American" films to be made by "American" crews and "IN America", then the "Americans" will stay in "America" and you will have created a real demand. But if "Americans" want to come to the lowest bidder and make an "American" production for "American" consumption and it makes both the producers and the consumers HAPPY, then where’s the bloody problem?

    Can't we all just make films and be brothers? We never tried to call ourselves "better than Hollywood" many of us are OK being the backlot now known as "Hollywood North".

    The subsidy isn't designed to "put Americans out of work", it's designed to keep Canadians working. How would you respond down there to a corporation moving in to make a Multi-Million dollar film, flying in 80% of it's crew and leaving just P.A. work to the lowly locals and in the end only spending less that 5% of the budget there (on studio rentals and *some* equipment only, maybe a few hotel rooms and meals) while ensuring that the other 95% went home with them along with 100% of the profit? How would you like to be Mexico? And in the end the corporation wants to move all of its interests out the second THEIR dollar fluctuates just pull up tents and move on leaving fertile soil with no seeds; just left to erode...? Holy b*tch slap guys, thanks a lot.

    BUT: that being said, go ahead and fight, I'm OK with it. We have skilled crews (knowledge, skill and artistic ability aren't an American commodity after all), we have some equipment of our own here somewhere and with the worldwide distribution markets opening up and away from an antiquated system you'll just force us to fight harder to make viable productions. I, for one, look forward to that.
    We're OK with being #2, or #3, or #4, really. Just check our stats in every other category and it's my intention to make films in Canada for Worldwide consumption so your not really affecting me except when I go to get an American distribution deal on my 11Million dollar perfectly viable film and then it gets released on 4 screens first weekend and pulled immediately to 2 after American political pressures gets to it...

    Seriously though, the subsidies are designed not to TAKE American jobs, they are designed to ensure that Canadians work when people come in to take advantage of our structures here. If you want to come here and use the studios and the equipment and NOT use our crews, you still get somewhat of a subsidy still in the dollar just not the entirety of the extra. As it's based on a point system and it only represents a percentage of the labour salaries, you can always meet the minimum and use the rest to make your "American film" (on Canadian soil).
    The other purpose of the incentives is to give us a chance to build our own productions to develop viable products that actually release to market against some odds.

    Just my opinion.
    -CLG.
    ---------------------------------
    From http://www.bcfilmcommission.com/production/tax_incentives.htm
    1. The basic PSTC tax credit is 18% of accredited qualified BC labour expenditures effective January 1, 2005.
    2. The new REGIONAL tax credit is 6% of accredited qualified BC labour expenditures.
    3. The new DIGITAL ANIMATION or VISUAL EFFECTS tax credit is 15% of accredited qualified BC labour expenditures.
    4. The Canadian Federal Tax Credit - The Canadian Federal Government's Film or Video Production Services Tax Credit (PSTC) is primarily for foreign production and is 16% of Canadian labour costs.
    (Read up on what qualifies and how to qualify)
    [yes, we spell it "labour" :) ]
    ---------------------------------

    (and nothing personal, but if your going to correct someone on "you're" then you might want to reconsider giving someone a "bride")

  1. michael Says:

    The Canadian production subsidies are most definitely aimed at shifting film jobs from the U.S. to Canada and has been fully documented in the petition. All you have to do to confirm it is visit any industry trade show in the U.S. and you will find Canadian representatives of the various provinces hammering away on how much U.S. productions can earn in subsidies by running to Canada. Or you can attend one of the Hollywood seminars on how to take your film to Canada and how to profit in the process.

    Both Canada and the U.S. have signed trade treaties that forbid this and related practices that interfere with 'free' trade. It is under rules embodied in these trade treaties that American film workers are requesting our Trade Representative to investigate, and if found to be illegal under our trade agreements, to cause them to be removed.

    I haven't seen a Canadian film in years, but I would if one came around. Probably the last was "Decline of the American Empire," or "Jesus of Montreal." They were great films, but that seemed to be the end of them. That's your fault, not ours. Maybe your focus has shifted to servicing the U.S. film maquilladoras that have sprung up on your border, or maybe your most talented film makers have emigrated to the U.S.

    Just about every Canadian post whines about the penetration of U.S. films, TV, magazines, and music. I don't like much of it either, but if that's what the audience wants, under our system, that's what they'll get. Down here we take freedom of speech very seriously, and we're not about to censor or limit cultural expression on the basis of national origin or anything else. Your argument is not with us, but with your own audiences who demand U.S. cultural product over Canadian product.

    I'm sorry your film failed on U.S. screens, but I find it hard to believe it failed due to political pressure. Take a look at the documentary features doing so well on U.S. screens and then ask yourself why political pressure hasn't shut them down. The truth is this is a capitalist country run on the greed principle and if an exhibitor thought they could make a profit from your film, I guarantee it would play as long as audiences wanted to see it, regardless of its content.

    I'm sorry Canadian film workers might loose their jobs, but not that sorry. You should have seen this coming long ago. You built a multi-billion dollar industry based on the flimsiest of foundations: a favorable exchange rate, and subsidies that from day one have been subject to challenge under our trade agreements. You should have realized that exchange rates aren't written in stone, and that your subsidy programs were subject to challenge under rules of the WTO. We've been working on this for the past seven years, and it certainly was no secret.

    michael,
    santa monica

  1. LuCiDFoX Says:

    Thanks Michael, for your salient and balanced response.

    Let me start by saying that I am not in any way related to the production of "Fido". I used it in example off the top of my post and referred to having a "11Million dollar film" later, it was just accidental that these numbers should appear to match. I certainly didn't want to give the impression that this was my work and I mention this in case someone confuses later.

    But I still see, from my perspective, that you’re not hearing my point in that "runaway" productions don't have to use Canadian crews to shoot in Canada. But if you do you get rewarded by our system (which is not like your system). And, seriously, don't we have a right to govern ourselves and business within our boundaries, ...ourselves?

    In a way this model should be seen as a triangle in which our government feeds into the needs of your producers who come here and take advantage which in turn makes the jobs not adjacent to you... which in turn make you fight our system. While we attempt to retain what you brought, it's really your producers that are saving money on a percentage of Canadian OR Provincial labour ONLY.
    Are your producers really going to be happy paying 30% more on labour to make a film, are they smart enough to know that this is due to "homegrown" pressures? I think they might be. Will this matter ultimately? ...of that I don't know.

    I wish you could see my point in that the rebates are designed to keep Canadians working and has nothing to do with putting Americans out of jobs. Really, my "Mexico" stance had validity that I wish you had addressed. When a production comes to Canada, they are no longer on American soil and, truthfully, don't we have a right to protect our industry here as well (even if it is a service based industry for the most part)? A right to our solidarity and our own governance? A right to protect our people on our own soil, just as you have so successfully done for years on your own?

    FTA! Oh goodness, I could talk on the pressures that were made on us back in the day to sign that, or to sign this, the softwood argument, the electricity bills owed to Canadian interests, the blah, and the etc... But I won’t.

    We didn't take your jobs, we assisted the producers when they came and when they went to leave we asked them what would make them stay and they said "less cost" so we gave it to them.

    I think I'll walk down to Bridge Studios and poll how many of the people there, with the real money (the producers) are American and how many are Canadians. I will ask these Americans why they aren't helping their brothers down in California and then I will ask them if they want the rebates to stop instead. Seriously though, this is a 3-way fight. Lets not vilify one opponent to avoid upsetting the other.
    -CLG.

  1. Odd Says:

    Runaway Production??

    Is that like Runaway Casinos from Los Vegas, or Runaway Theater from London, or I know... Runaway Olympics from Greece maybe Runaway Wine, from France or Runaway Pasta from Italy, lets try Runaway Chinese food, from China. Runaway Hydro from British Columbia, Runaway Softwood from British Columbia, Runaway Oil from Alberta, Runaway Cod from Atlantic Canada, Runaway Canola oil from Saskatchewan, Runaway Salmon from British Columbia, Runaway Gas from Alberta, coming soon... Runaway Oil from Newfoundland, Runaway Diamonds from NWT.

    It all makes sense now, doesn't it?

    If you don't mind we would love to give the US our Prime Minister, he's almost as stupdid as your President ~ but lucid.

  1. marcia richard Says:

    I feel that any production either in the USA or Canada can pick
    who they want to work on their project.
    It is disapointing when people in either country can't watch a tv show
    or movie filmed in either country.
    I am a fan of a Canadian actor who should have more coverage
    on his work either in Canada or the USA. He has worked in both
    countries and does very well.

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