SPADA Welcomes Screen Production Incentive Fund
Thursday 22 May 2008
SPADA Welcomes Screen Production Incentive Fun
The Screen Production and Development Association of New Zealand (SPADA) welcome the Government’s announcement today that it is introducing a Screen Production Incentive Fund (SPIF).
“We are very pleased that the New Zealand Government has recognized the need to invest in industry development,” says SPADA CEO Penelope Borland. “This is a watershed in empowering the industry and will stimulate growth. The Production Incentive will help to retain talent and stabilize and strengthen New Zealand’s screen production infrastructure.
“New Zealand has been facing a drain of talent to Australia. With the Australian producer offset in place since last year, this has given its producers an edge in the international financing market, and some production companies have been considering moving to Australia take advantage of its scheme. This will help to retain screen production companies in New Zealand and enable them to build businesses here. It is heartening to see the New Zealand Government adopting incentives which have been introduced internationally,” says Borland.
SPADA believes the introduction of the Production Incentive Fund will create new investment opportunities, which in turn will to lead to industry growth and development. The Production Incentive targets medium to higher budget productions with significant New Zealand content, budget levels which sometimes fall between the funding available from government agencies and other Government incentives such as the Large Budget Screen Production Grant.
The production incentive rebate is calculated on actual qualifying New Zealand expenditure: 40% of total qualifying New Zealand production spend over a $5million threshold for films and 20% of total qualifying expenditure for television over a variety of thresholds. It will only be available when a production is completed, producers having to cash flow it during the production. Therefore, economic benefits will affect not only production companies, but also the numerous industry-related businesses that comprise the sector’s infrastructure and the significant New Zealand content criteria will contribute to New Zealand’s cultural development.