Motion Picture Herald (Oct-Dec 1956)

British Industry Gets Look at 10-Year Plan . . . Government's new bill would provide for statutory Eady levy and remove some restrictions on NFFC lean powers by PETER BURNUP LONDON : The government’s 10-year plan for the production industry here has been revealed in the Cinematograph Films Bill presented last week in the House of Lords. It is understood that the bill will be given a second reading in the House of Commons December 20. Provides Fund for 10 Years The bill provides for a statutory British Film Production Fund for the next 10 years with an estimated first year’s yield of £3.75 million and not less than £2 million nor more than £5 million in successive years. The loan making powers of the National Film Finance Corporation are extended for a further 10 years. The quota provisions for the existing Acts of Parliament are also renewed for 10 years. The section of the bill relating to the Production Fund — i.e., the so-called Eady Levy — is what is known as an “enabling” measure. That is to say that it is framed in flexible form and leaves the practicalities of the levy machinery to be laid down in regulations subsequently made by the Board of Trade. IF ill Designate Exemptions The Board, for example, will have powers to provide for exemptions from payment of the levy and in an accompanying memorandum it is stated that every attempt will be made to devise rules in that regard which are as fair and as acceptable as possible. The levy will be collected by the Customs and Excise Department. Failure to pay will not be a criminal offense and the Customs and Excise will seek to recover unpaid levies as simple contract debts. But the bill gives considerable power nevertheless to the Excise authorities, including the right to enter an exhibitor’s premises. They are entitled also under the bill to summons an exhibitor failing to comply with a request to show records of business and, unless the exhibitor proves that he has a reasonable excuse for the failure, to enable a prosecution to take place leading to a fine not exceeding £100. An exhibitor could also be fined £100 and imprisoned for three months if he were found guilty of providing a deliberately false document in connection with his returns to the Excise authorities. The bill provides for the Production Fund to be administered by an agency which will have some three to five members, none of which will have a financial interest in the film industry. The Fund hitherto has been controlled by a body nominated by the industry itself. l\etv Powers for Film Bank The provisions in regard to the Film Bank — the National Film Finance Corporation— include powers which will remove the present restrictions to loans to persons unable to obtain money from other sources. In other words, the corporation is empowered to make loans to producers in competition with banks, insurance companies, or other financial institutions. The corporation is enjoined in the bill, however, “to exercise and perform their functions so as to avoid defaults in respect of loans.” Provision is made also for the Board of Trade to dispose of the corporation as a going concern if that should be practicable and desirable. The section of the bill relating to the new statutory Eady Levy and its “enabling” form is greeting with satisfaction particularly by exhibitors. CEA’s officers anticipate being asked into consultation with the Board of Trade before the regulations— which will be “as fair and as acceptable as possible” — become law. There are those optimists, too, who see in the exemption clauses a bright promise of early entertainment tax remission. For, so their argument runs, there would be an immense number of theatres legitimately entitled to exemption if substantial tax remission is not forthcoming; so large a number indeed that the whole levy fabric would be in jeopardy. But no matter how heavy a burden the levy places on exhibitors, producers have now a Government pledge of a subsidy of up to £5 million annually for the next 10 years. That is far beyond the hopes of a majority of hard-pressed producers. FILM PRODUCTION FUND ISSUES 1955-56 REPORT The sixth report of the British Film Production Fund, released two days before the Film Bill was read, shows that in the year to July 28, 1956, exhibitors paid into Fund under the Eady Levy £2,562,263. Total exhibitor collections since the inception of the scheme, in 1950, now total £14,790,451. In the sixth year a total of £2,318,197 was distributed to producers and/or distributors and of this sum £2,052,053 was paid to 45 recipients in respect of 609 applications relating to feature films. £266,144 was paid to 84 recipients in respect of 738 applications relating to films of 3,000 ft. and under. Payments in respect of individual features have ranged between £111,741 and £1 and to individual shorts, excluding serials, between £8,210 and £2. A further distribution of £104,774 remains to be made. As previously announced £427,747 was paid during the sixth year to British subsidiaries of the major American companies here and British companies were allocated £1,796,046. RANK MAKES DEAL WITH BIG BRAZILIAN CIRCUIT In a message from the Latin American headquarters of the Rank Organisation it is announced that John Cowan, head of the Organisation there, has concluded an important deal with the Ribeiro circuit of Rio de Janeiro for the early release of their initial line-up. The Ribeiro circuit of 56 theatres in Rio de Janeiro and 150 in the whole country is one of the leading circuits in that part of the world. The deal, it is claimed, will provide the Rank Organisation with a first-class outlet for its product in Brazil. Further indication of the steady expansion of the Rank Organisation’s distribution activities in South and Central America is seen in an announcement that the Organisation will open its own branch in Havana early in December. The office will be in the care of Ralph Alexander who was recently appointed manager. • Anthony Downing has been appointed publicity controller for J. Arthur Rank Overseas Film Distributors. He will succeed Geoffrey Martin who will leave for the United States shortly in charge of publicity and public relations for Rank Film Distributors of America, Inc. Mr. Downing was European director of publicity for five years at Selznick. FRENCH INCREASE BRITISH DUBBING LICENSES TO 30 The following is a summary of the agreement reached between the Centre National de la Cinematographic and the British Film Producers’ Association in regard to the issue of French licenses for dubbed British films: The number of dubbing licenses for the 12 months October 1st, 1956 to September 30th, 1957 for all British films shall be increased to 30. The number of licenses for the three months July 1st to September 30th, 1956 will be increased to 10, making 40 for July 1st, 1956 to September 30th, 1957, which will be regarded as one period. Of the 40 licenses not less than 90 per cent shall be given to films made by British film producers as determined by the B.F.P.A. In addition, licenses will be granted for British films entered for the Cannes Film Festival, 1957. 18 MOTION PICTURE HERALD, DECEMBER 15, 1956