Cinema Canada (Dec 1981)

|| || industry -¢ MONTREAL Various elements of the federal budget, tabled on November 12 by Minister of Finance Allan MacEachan, have dealt a serious, if not mortal, blow to the Canadian film industry. In a move which was applied to all tax shelters, MacEachen announced that “taxpayers will be permitted to claim only one-half of the normal fullyear’s capital cost allowance in the year of acquisition.” This effectively reduces the CCA for Canadian films to 50% in the first year and 50% in the second, applicable on January 1, 1982. In other measures, the budget reduced the top income tax bracket from 68% to 50% — reducing the incentive for the use of tax shelters— and will no longer allow the interest on loans taken out to finance shelters, to be tax deductible. The effect of the measures on the already fragile film industry is the subject of a serious debate. Although most producers admit that they can live with the reduced CCA, the abruptness of its applications is thought to be wholly inappropriate. “The CCA system may not be the best system,” comments Stephen Roth of RSL, “but the government has no business removing it until something else is in place.” Alternative methods of government support must be forthcoming, according to Roth, if an independent production sector is to exist in Canada. In an effort to convince the government to postpone ap plication of the half-year convention for film investment Contents see page 6 TRADE NEWS until 1983, a meeting was held on November 18 at the National Film Board in Montreal, which brought together representatives of the film organizations in Canada. Federal reps were present, including James Domville, film commissionner and president of the NFB; Andre Lamy, executive director, and David Silcox, president of the Canadian Film Development Corp.; Ian McLaren, director of Cultural Industries for the Department of Communications; and several members of the Minister of Com udget wreaks havoc with film ne year delay sought munications’ staff. The meeting resulted in representations to the Minister Francis Fox by a de!egation comprised of Jack Gray, president of ACTRA, Roth, director Robin Spry and producer Joseph Beaubien. “We have every -hope that the government will hear our arguments,” reported Beaubien. There is no doubt that industry reps have got the message through to the Minister of Communications. What is not clear is whether he can reach the (cont. on p. 20) Filmplan phases out, David on move MONTREAL ~ Pierre David has announced the creation, in 1982, of Mutual Productions U.S.A. based in Los Angeles, and the simultaneous closing down of production functions by Filmplan International. Filmplan’s affairs will continue to be administered by Mutual Films Corporation Ltd., a wholly owned division of Civitas Corporation Ltd. David, president of Filmplan and of Montreal-based Mutual Productions Ltd., told Cinema Canada that the new arrangement will allow him to “structure projects in the U.S. or Canada outside of the limits of the tax shelter,’ and says that he has already been hired by Universal in L.A. to produce a film next year which it will fully finance. Since 1979, Civitas and Jillian Film and Investment Corporation, owned by Toronto lawyer Victor Solnicki, have shared an interest in two companies, Filmplan International which produced six features (Dirty Tricks, Hog Wild, Scanners, Gas, The Fright and Comics) and Filmplan International If which has made two more this year (Dreamworld and Videodrome). Claude Heroux has been line-producer for all shoots. “I've enjoyed working with Solnicki,’” comments David, “but with Mutual Productions in Montreal and L.A., I'll be able to work without a partner. Mutual will be fully owned by Civitas.” Increased mobility, and a willingness to work in L.A. are crucial, according to David, for continued success in the feature sector. Guy Desmarais of Geoffrion, Leclerc, an officer of Filmplan International and the broker who handled its public offering in ’79 and '80, told Cinema Canada that recoupment on the ‘79 package had now reached 50% and that last year’s offering had already brought in 40%. “We're still missing the revenues on major sales to Home Box Office and the networks, and we expect to fully (cont. on p. 4) GROUP FILM HOUSE 22 Front St West Toronto, Canada (416) 364-4321 QUINN LABS 380 Adelaide St West Toronto, Canada M5J 1C4 MSV (416) 869-1781 QUINN SOUND 409 King St West toronto. Canada 1R7 MSV 11 (416) 869-1781 Open skies policy a threat to Cdn pay TV TORONTO — The federal Department of Communications is expected to reverse its present policy and permit the private reception of U.S. satellite television signals by individuals, federal sources say. Federal Communications Minister Francis Fox is expected to announce the new policy November 28 in Toronto. It is anticipated the new policy will permit only the private use of earth stations by individuals or families using their own antennas, and that Ottawa. still would prosecute anyone bringing in the signals and retrans mitting them for commercial gain, such as cable companies, or owners of apartment blocks. Earth stations — bulky satellite dish antennas about eight to twelve feet in diameter and costing close to $6000 — enable users to receive television signals direct from. satellite transmissions, bypassing such conventional carriers as public broadcasters or cable. Federal sources say the estimated number of known earth stations in Canada is around 300, with the actual figure possibiy around three of four times higher. If private use of earth stations is permitted, users would be able to receive foreign sig ADVERTISING MOTION PICTURES IS OUR ONLY BUSINESS 1407 YONGE ST. © Product Reels © Theatrical Trailers ® Teaser Trailers © Audio-Visuals @ Television Commercials ® Radio Commercials @ Print Advertising TORONTO, ONTARIO M4T 1Y7 Michael Goldberg/ Joel Reitman (416) 964-7539 — .. 2 1 nema Lanaca Vecenmoc nals, such as pay -TV's Home Box Pe ro several ‘superstations’, without feat of prosecution. At issue for some time has been the individual's right to receive satellite TV signals, as persons are entitled by law to receive all conventional TV and radio broadcasts, versus the ability of the satellite antennas to steal! pay-TV signals. Apparently, Ottawa will come down on the side of the free right of use for individual reception. The federal government has lost two important court cases concerning the reception ol satellite signals in recent months. Charges of operating an illegal earth station were dismissed against Shellbird Cablevision Lid. of Cornerbrook, Newfoundland, on Oc tober 29, after Newfoundland Provincial Court Judge Gordon Seabright ruled that satellite reception and redistribution did not constitute broadcasting as defined in the Broadcasting Act. The company had been receiving and rebroadcasting the signals of the U.S. Public Broadcasting System, and has resumed broadcasting the sig nal even though the Canadian feont, on p. 4) &t-January 82/3