Cinema Canada (Jun 1982)

O TRADE NEWS JUN 2 4 1982 SAniETY @ MONTREAL ~ Canada is counting on increased collaboration from the major American film studios, collaboration which will be reflected in increased activity in all sectors of the Canadian industry. This was the message the minister of Communications, Francis Fox, carried to the presidents of the Majors in a five-day visit to Los Angeles, May 28-June 1. “We didn’t go with a ‘get tough’ attitude. What we want . ed to communicate was simply that things are going to change in Canada, and we'd like to know what the Majors are prepared to do to further these changes,” said Yvon Desrochers, senior policy advisor to the minister. Asked about the timing of the visit, Desrochers responded that it was important. “The minister has consulted with everyone in the industry, and the Majors are aware that studies are being prepared, task forces are at work and that the results of the Cultural Policy (Applebaum-Hébert) Committee will come down next fall. We thought it was impor tant to meet with the studio heads before the results of the various studies are made public, so that they have time to give us some indications of Federal OK needed by foreign actors TORONTO — Regulations have been broadened so that now Employment and Immigration Department authorization will be required for any foreign performers hired to work in Canadian television drama, the .department announced May 6 in Ottawa. Previously, authorization was needed only for performers working in theatrical feature films and _ television commercials. Validation of employment now will be granted only after consultations between employers, employee unions and professional associations have determined that employment and career opportunities for Canadian citizens and permanent residents are not adversely affected. The department will act as arbitrator in any, case where a consensus between employers and unions cannot be reached. Association of Canadian Television and Radio Artists (ACTRA) representative Ste phen Waddell expressed his organization's pleasure at the Immigration Department move, saying ACTRA had lobbied the government for years to improve its regulations. their willingness to adjust their stance in Canada. The meetings were held in a genuine spirit of consultation and collaboration, not as a threat.” Desrochers continued to say that the minister invited the Majors to consider Canada asa location for future shoots, noting that the current exchange rate would give Americans 20 cents back on each budget dollar. The activity so generated would be welcome by the crews and support services in Canada. The principle of coproduction with the Americans was considered; “co-productions needn't be written into treaties,’ commented Desrochers, aware that the United States has no co-production treaties with any foreign country. “This subject was not pursued. We will wait to see how they react,” he said. . On the subject of distribution, the Canadians seemed to have pressed harder. “The Majors are aware of the Canadian context, and of the amounts of money which they remove from the country each year. This must change. Canada must be looked upon as a foreign market and not a domestic one. Repeatedly, the Astral/Columbia/20th CenturyFox example in distribution came up as the sort of jointventure which might work well for everyone involved,” he continued. It was suggested that the increased activity in the Canadian industry which might be generated by a different policy on the part of the Majors was, of itself, an interesting trade-off for such a change. The meetings constituted the beginnings of a gentle negotiation, and the minister's office expects to have responses from the Majors in short order, during the summer. The Fall is the target date to implement changes in the Canadian production and distribution sec tors, and the policy-makers in Ottawa want to have in hand the positions of the Majors. Knowing which gestures the Majors are prepared to make spontaneously, the DOC will better know how to meet the challenges of the recommendations, contained in the various reports from the committees and task forces, studying the situation at present. The minister, accompanied by David Silcox (president of the Canadian Film Develop ment Corporation), Desrochers, Ian McLaren (director, Cultural Industries Branch, DOC), Ronald Cohen (head of the distribution-marketing task force, DOC) and Harold Greenberg (president of Astral Bellevue-Pathé and executive producer of Porky’s) were accom Minister meets Majors, talks of cooperation and change panied by David Novek, who made the logistical arrangements for the various meetings. In all, the presidents of five companies met with Fox, Sik cox and Desrochers. Greenberg was present for the meeting at 20th Century-Fox, Cohen was on hand for the meeting at U.A., and Pierre David, who is presently living in L.A. and making a film for Universal, was pres ent at that studio. The group also met with Columbia and Warner Bros. Producers suggest guidelines for survival MONTREAL As promised, the Producers Council of Canada has presented the minister of Communications, Francis Fox, with a brief outlining its position on the state of the industry, and suggesting some steps which the government might take to bolster it. Despite the current box-office success of several Canadian films, the Council warns that the industry is in serious jeopardy, and that the infrastructures created in recent years is being dismantled, due to poor performance of films at the outset of the capital cost allowance, investor and broker indifference, and the downturn of the economy, It urges government action. A three-chapter document addresses itself to production financing, distribution and governmental agencies. Various suggestions are made to turn the current situation around. The producers suggest a three-tiered capital cost allowance system. For entirely Canadian films which can muster10 Cineplex Beverly Centre opens LOS ANGELES ~ Cineplex Corp. is scheduled to open its first theatre located outside Canada, a 14-screen cinema in the Beverly Center Shopping Complex, July 16 in Los Angeles. The 25,000 sq. ft. theatre, to be known as Cineplex, Beverly Center, will contain the largest number of screens under one roof in the United States and will have a total seating capacity of 1,650. All 14 rooms will use 35mm projection equipment, with one room having 16mm capability to accommodate specialized programming, and several rooms will have Dolby Sound capability. The theatre will feature first-run, subse quent-run, foreign, art, and specialty programming, including retrospectives and children’s films. Price of adult admission will be $5.00. Special features will include a computerized ticket system which will permit advance sales for same day screenings and a synchronous projection system which will allow the same film to be screened in as many as six rooms at once. In the lobby, one wall will permanently display a mural created and painted by international ly acclaimed Canadian artist Gerald Gladstone. Cineplex Corp., a Toronto based company founded and operated by N.A. Taylor and Garth Drabinsky, presently operates 150 screens across Canada. U.S. expansion plans include Denver, Houston, and other Los Angeles centres, and the company expects to be operating 200 screens across North America by the fall of 1982. points out of 10, 150% would be allowed in the first year. For films which meet the actual requirements for certification, 100% would be allowed in one year. For films which provide a significant economic benefit to Canada but which fail to fulfill either of the above definitions, 50% over two years would be allowed. The c.c.a. would be strengthened by the creation of a production fund, to be administered by the Canadian Film Development Corp. Monies for the fund would be generated at the box-office and might come from a levy on foreign films imported to Canada, a tax on cable operations or a tax on revenues of Canadian distributors if those distributors could be guaranteed exclusive rights to the distribution of Canadian films. The fund would be ventilated three ways. A third of the monies would be distributed by the CFDC as it sees fit, going to script development and the encouragement of promising film projects of national interest, Objective criteria would be established for the distribution of another third of the monies to demonstrably commercial projects. The CFDC would administer the distribution of these monies according to guidelines made jointly with the producers. The last third of the fund would be divided between producers and distributors, awarding the success of their performance. A separate envelope would be created for each individual, and he would be free to spend that money on the Canadian project of his choice. All disbursements from the: fund would be made as equity investments, and revenues, after recoupment, would be divided 50%-50% between the fund and the producers envelopes. A producer would be required to exhaust the monies in his envelope before return ing to the CFDC for additional funds. Although the fund would be self-sustaining after an introductory period, the Council suggests an injection of $50 million immediately. In other measures to bolster production, it is suggested that revenues guarantees should not reduce the risk of the pro ducer or the capital cost allowance, that revenues from a film in excess of the capital cost be treated as capital gain, and that a tax holiday be considered on such returns. Also, some guarantee must be fund for foreign pre-sales and revenue guarantees to allow a producer to bank such guarantees. Either the CFDC, the Export Development Bank or the Federal Development Bank could be used to this end. : Concerning distribution, the producers ask that all exhibitors be required to acquire product from Canadian companies. This would affect theatres, free and pay-television, etc. If government funds are used for production (c¢.c.a. or production fund), a producer would be prohibited from sell ing distribution rights to a nonCanadian company. To allow Canadian distributors to increase their activity, access to the ¢.c.a. Is proposed along with access to the production fund 4s mentioned above. The document deals with all government agencies, insisting that competition with the private sector must end, and that private sector representation on the boards of the agencies must be implemented The CFDC’'s role would be limited to administering the production fund according to criteria established with the private sector, having a free hand only in the disbursements made for script development and films ofnational interest It would also support the private sector at international festivals, though it is suggested that. after (cont on p. 1D June 1982Cinema Canada/3