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This bitch is not aimed specifically at the film industry but at the general practice of payroll rebate. The problem with this practice is that once you offer it to one industry that is portable (could easily move to another province or country) then more and more companies start to see it as a way of making extra profit. They start blackmailing governments with threats of moving jobs in manufacturing,
production, financial services, etc, to other jurisdictions. The governments usually feel they have no choice but to give in to this.
The net effect over time is that we now have two classes of workers -those who contribute to the tax base and those who effectively contribute little or nothing because their taxes are refunded to their employer. The problem with this is that the latter group still uses health care, education and all other government services but is now not paying their share of the cost. Those costs get shifted to the remaining taxpayers – those in non-exportable jobs such as the service industry.
The only answer is for provincial governments (and states as well) to stop refunding money to established companies and highly profitable industries. Otherwise, I fear we are on a slippery slope to greatly reduced health care, education and other services as the effective taxpayer base dwindles – all to the profit of corporations. —Not drinking the kool-aid.
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And it’s worse when we give payroll tax credits to an industry which abuses the system, as we have seen in recent weeks.
You know who you are…
Nova Scotia has bigger priorities than supporting the film community. Like how this province is broke.
A lot of folks are upset that film credits were cut while RBC got a good deal in the budget:
http://halifax.mediacoop.ca/story/not-my-b…
It’s hard to tell whether payroll rebates for corporations like RBC are ultimately good for the province or not. It raises a lot of questions. The numbers seem to say government won’t get much extra tax revenue over the first 10 years. http://www.halifaxpartnership.com/en/home/…
Does this mean that they are just happy to be creating jobs? Will the jobs stay here after the 10 year deal? Will the extra salary base create enough spin-off income to increase tax revenues and pay for the healthcare and other services used by the new RBC employees?
… but the real question is how did we get to a situation where the provinces compete against each other “like seagulls fighting over a french fry”.
Peon pay at RBC compared to enriching the high salaries of film people. Interesting choice for Mr. McNeil.
It’s turning into a “he said, she said” scenario:
http://thechronicleherald.ca/novascotia/12…
UNRESTRAINED CAPITALISM
“The problem with this practice is that once you offer it to one industry that is portable (could easily move to another province or country) then more and more companies see it as a way of making extra profit.”
Yes, that’s right. More companies see it as a way of making extra profit. It’s called unrestrained capitalism. Bright lad.
A pleasure as always,
Cheerio!
Running a government is a lot like herding cats. Speaking of which, this is, IMHO, the best television ad ever:
https://www.youtube.com/watch?v=Pk7yqlTMvp…
To the moron that posted this: One, you have no remote clue how the film industry works and how much it’s benefited you- and the province. Yes, the structure of it is shitty. Trying to change it by cutting thousands of jobs and inevitably ending the future of film in nova scotia is the worst possible way of ‘changing’ it.
Second; Blackmailing? It’s not a threat that should the Tax cut happen, people will be forced to leave to work in a place that offers them jobs; Most of the people protesting are hard working career driven professionals that want to keep the productivity in Nova Scotia. Industries and local businesses unrelated to film have also spoken out that their businesses will plummet should the film industry be cut.
Thirdly, $140 million annually goes back into Nova Scotia thanks to the film industry. This is accounting for travel, import, rent, construction, resources and tourism expenses from client companies and productions paying directly into the province, not including their own budget on the film production itself.
So, even with the current state of the tax credit being ‘too kind’ to Nova Scotian filmakers, it’s repaying the budget three fold.
But I’m sure you’ve heard of the 22 million going to RCB to set up call centers. At least there’s that for you.
To the moron that posted this; One, you have no remote clue how the film industry works and how much it’s benefited you- and the province. Yes, the structure of it is shitty. Trying to change it by cutting thousands of jobs and inevitably ending the future of film in Nova Scotia is the worst possible way of ‘changing’ it.
Second; Blackmailing? It’s not a threat that should the cut happen, people will be forced to leave to work in a place that offers them jobs; Most of the people protesting are hard working career driven professionals that want to keep the productivity in Nova Scotia. Industries and local businesses unrelated to film have also spoken out that their businesses will plummet should the film industry be cut.
Thirdly, $140 million annually goes back into Nova Scotia thanks to the film industry. This is accounting for travel, import, rent, construction, resources and tourism expenses from client companies and productions paying directly into the province, not including their own budget on the film production itself.
So, even with the current state of the tax credit being ‘too kind’ to Nova Scotian filmmakers, it’s repaying the budget three fold, and increasing the amount of work in Nova Scotia. It’s a successful investment, unlike the ferry fiasco which is what put the province so far into the black. Gutting a successful industry is exactly the opposite to taking austerity measures.
But I’m sure you’ve heard of the $22 million going to RCB to set up call centers. At least there’s that for you. It promises to generate around 150 jobs. A fraction to the thousands of jobs about to be lost based on a misinformed comparison on the film industry and how other industries work in the province. Please, educate yourself before bitching about it.
^^^ Two things:
– My reading of this bitch is that it is aimed at corporate businesses when it talks of blackmail. Myself, I seem to remember a number of times when large national and international companies have threatened to move manufacturing jobs elsewhere over the years unless government coughed up some dough.
– government has been taken by surprise by the negative reaction to changes to the film credit and I suspect that, in the end, all of this scrutiny and publicity may end up benefitting the film industry with a better long term plan and a funding model that works. I’d doubt that any government would want to be known as the one that killed the film industry in Nova Scotia. It wouldn’t play well when the next election comes around.
Despite the disclaimer that this bitch was “not aimed specifically” at the film industry, I suspect it was the inspiration for it. So:
“The problem with this practice is that once you offer it to one industry that is portable (could easily move to another province or country) then more and more companies start to see it as a way of making extra profit.”
That’s not a problem. That’s the point. Capitalism at work.
Also, the use of the word blackmail in this context is bullshit. Here are some handy definitions:
1. (Law) the act of attempting to obtain money by intimidation, as by threats to disclose discreditable information
2. the exertion of pressure or threats, esp unfairly, in an attempt to influence someone’s actions
3. (Law) to exact or attempt to exact (money or anything of value) from (a person) by threats or intimidation; extort
4. to attempt to influence the actions of (a person), esp by unfair pressure or threats
None of these apply. The film industry is not “blackmailing” the government. The simple fact is that if and when the people employed in this industry have no jobs available to them in this province, they will be forced to move. That is not a threat. It’s just a fact. A threat would be “Hey government, reinstate the tax credit or we will move out of province!” NO ONE HAS SAID THAT. The resounding cry has been “Hey government, you destroyed the tax credit without finding out how it worked and as a result the province is going to lose money and we will be forced to move in search of work. And we don’t want to move!”
The industry’s argument is that while not all of the money that the government has in the budget for the FTC comes directly back to the government as tax revenue, it comes back to the province in other ways. THERE IS A NET GAIN! And if the government had made their decision based on current and complete facts rather than some incomplete and outdated numbers, they would have come to the same conclusion. We in the industry keep asking for an independent review of their sketchy conclusions, and they have, to date, refused.
Oh hey, and you know what else dwindles a tax base? Driving out thousands of skilled workers from a province that has an aging population and a brain drain problem.
“I seem to remember,” “I suspect,” “I doubt,” – does it all come down to you? I guess in your mind it does. Any ego problems by any chance?
Bravo, Montrealman.
This Globe and Mail article is interesting. It raises the issue that, unlike a payroll rebate to a bank or a subsidy to keep a manufacturing job, the value of cultural industries goes beyond jobs and tax dollars.
” … an unmistakable aspect of Maritime and Atlantic culture has emphatically become part of the mainstream and, in comedy, perhaps the defining mode, method and style. “
http://www.theglobeandmail.com/arts/televi…
I’m just glad the feds haven’t axed CBC Radio service. Radio 2 is my whole day.
I guess that’s an example of 100% government supported industry that is deemed to provide an intrinsic value that merits it’s cost.
Where’s The Duke? How come he’s the “Top Commenter” when he hasn’t posted a comment since April 21st? Are you there Duke, are you there? Come in Duke, come in! We’re waiting for your words of gold! Don’t disappoint us, Duke.
So, the province pays out $24 million in tax breaks to the film industry and gets an additional $140 million in its GDP. If any company produced a return on investment like that, Warren Buffett would have that shit bought up before you could say “Berkshire Hathaway.”
I can’t conceive of any legitimate reason why any government, whose economy is boosted by nearly $5 for every dollar it gives to an industry, would kill that golden goose. But it looks like Stephen MacNeil’s government has, and that it can’t explain why it would do something so stupid. I know better in most cases not to attribute to malice what can’t be attributed to incompetence, but I have to wonder in this case.