Motion Picture Herald (Jan-Feb 1948)

SOLUTION OF BRITISH TAX IMPASSE NEAR, LORDS TOLD Quota Bill Passed; Official Says British Will Agree to Tax Modification I London Bureau The long-debated Cinematograph Films Bill — the Quota Bill — was passed by the House of Lords February 19. Having already passed Commons, it will become law officially when King George VI affixes his signature. It will go into effect April 1 and remain the law of the land for 10 years. Following the bill's passage, Lord Swinton, former president of the Board of Trade, assured the assembled peers that the solution to the Anglo-American impasse over the ad valorem tax would be reached shortly. That solution, he said, would be advantageous both to the U. S. and England. [In Washington, Tuesday, the Motion Picture Association of America announced that Eric A. Johnston, president, would fly to London Friday "to see if there is any basis for negotiation on the British tax." He will be accompanied by Joyce O'Hara, his executive assistant. MPAA officials said Mr. Johnston would undoubtedly confer with key Labor Party officials in an attempt to get the negotiations off the "dead center" position where they are now bogged down.] Shortly before Lord Swinton took the floor, Viscount Hall declared during the Quota discussions that the British government is prepared to agree to a modification of the tax if British films shown abroad achieved those dollar earnings required to better England's dollar shortage. The new Quota Bill abolishes the present renters' quota and makes substantial innovations in the existing exhibitors' quota. Among other things, the bill provides that in lieu of the present categories of long and short films, separate quotas be established for "first features" and "supporting program features." "First features" are calculable by the number of days of exhibition and "supporting program features" are calculable by footage. Future Uncertainty Is Basis of Resistance During the preceding House of Commons i debate, the Government made no fresh concessions, refusing to accept an amendment by Oliver Lyttelton in which he sought to write into the Bill the assurance given by the Parliamentary Secretary to the Board of Trade during the committee stage of the bill that the exhibition quota for British films, to be fixed next July, would be the minimum during the 10-year life of the bill. This amendment was resisted on the ground that no one could foretell the future ; that the mere writing into the bill of any CANADIAN MINISTER OPPOSES QUOTA Ottawa Bureau The special situation of the American industry in Canada "calls for a more imaginative and constructive approach" than application of quotas on film imports, C. D. Howe, Minister of Trade, informed Parliament Tuesday in revealing that official discussions being held with the industry on monetary exchange problems are progressing satisfactorily. Last year, the Minister reported, Canada paid $12,000,000 in rentals for American films, and American motion picture properties in Canada earned $17,000,000. figure would not mean the production of a single film. This hesitance to name a figure can be directly attributable to the ad valorem tax, which is upsetting England's customary balance between production and exhibition. The Cinematograph Exhibitors Association, recognizing this, envisages that by the end of the summer cinemas will be closing in considerable numbers and by September the production side of the industry will be in difficulties if the American embargo continues. The CEA's General Purposes Committee Report, released here last week, states that if discussions on the ad valorem tax are allowed to continue to drift, as they are now, exhibitors will soon find themselves in a serious plight. CEA Moves to Bring Matter To Public and Parliament The CEA also decided to prepare a pamphlet for circulation to every member, to give a resume of the whole situation and to suggest means whereby the seriousness of the situation could "best be emphasized to both Members of Parliament and the public. Wednesday J. Arthur Rank called a meeting of the leading distributors at his headquarters to decide on joint action against the ad valorem tax. Meanwhile, skilful left-wing propagandists slyly whisper that a Government theatre circuit wkh a complementary distribution organization would efficiently protect the independent showman from the alleged monopolist machinations. Indeed, this goes further. Tom O'Brien, M. P., general secretary of the National Association of Theatrical and Kine Employees, declared in a recent speech in Manchester : "Although the Government has no mandate to nationalize the film industry, the inescapable consequences of the muddled tax position on imported films will compel it either to stand by and see the entire industry disappear or take it over and save it from its oncoming paralysis." And George Elvin, secretary of the Film Industry Employees' Council, representing technicians, actors, and labor, admits that it is the intention of his organization to recommend state ownership of all studios and production equipment. Predicts Early Meeting Of Production Council That there is more the matter with the British industry than a Quota Bill can cure was recognized by Harold Wilson, president of the Board of Trade, who took the floor in the House of Commons Quota debate to declare : "The bill alone could not solve the problem of the industry. I assure members that, with the Chancellor of the Exchequer, I am looking into the matter of finance for films and that it was because of the need for full production that the Production Council has been set up. I hope to call an early meeting of the Council." As Quota was passing the House of Lords, the Film Industry Employees' Council called an emergency meeting to consider the growing production crisis, later issuing a statement citing disturbing examples of unmasterly inactivity. This statement, later discussed by the producers, included the following counts : No production is scheduled at MGM's studios and 91 employees have been dismissed. Only one production is on the floor at Pinewood and 103 have been dismissed. Pledges to reopen the Alliance Studios have not been implemented. Nettlefold Studio is closed and the staff in the craft grades laid off. British National Studios are reducing their program from seven to six pictures a year. Other smaller studios are idle. Claim British 1948 Output To Top 1947 Production The BFPA summed up its position by stating that "in spite of the difficulties and uncertainty. . . . British film production is being fully maintained and it is virtually certain . . . that the output of pictures by British producers in 1948 will show a substantial increase on 1947." Meanwhile, England is still spending $48,000,000 annually for U. S. fiilms, Sir Stafford Cripps, Chancellor of the Exchequer, told the House of Commons Tuesday. His estimate, he said, was based on the amount of dollars remitted for American film hire during November, December and January. MOTION PICTURE HERALD, FEBRUARY 28, 1948 17