Coalition promises $60m fund for mid-range films
Shadow Minister for the Arts Steven Ciobo announced a $60m temporary film production fund to encourage distributor investment in mid-range films, as part of the Coalition’s electoral platform.
“It’s crucial to helping the film industry, which is a proud industry. This proposal has the backing of the Screen Producers Association of Australia and will provide additional support and jobs to the film sector,” he said.
Ciobo explained that, if elected, the Abbott Government – “firm believers in the arts sector” – would establish the $60m loan fund, matching the financial commitments made by film distributors, with loans ranging from $2-10m for films with $7-30m budgets.
The loans would be recouped by the Government “in line with the industry’s standard recoupment schedule”, with fund and distributor recouping their advances “side by side”
The fund is expected to operate for five years (three operational, two recoupment), with SPAA projecting that 73 percent of the capital invested will be returned to the Commonwealth over seven years – therefore the fund would have a net cost of $31.9m by 2014.
Ciobo explained that the creation of this fund would not affect any other programs, and the money would be available because the Coalition would use resources that the Rudd/Gillard Government had “wasted recklessly”.
“It’s a temporary loan fund that becomes self-funding, with revenue flowing back. Further funding will be available from repayments.
“The fund has an increased emphasis on commercial realisation of quality films. It aims at achieving commercial success at a time of increased market pressure, and commercial viability is a key part of the focus,” said Ciobo.
Ciobo admitted that the film industry is risky business and there is always a chance that projects will not be a financial success, and that’s why the Coalition is estimating a 73 percent return only.
In terms of accountability for the investment decisions made by Screen Australia, Ciobo said that, as Minister for the Arts, he would be looking closely at internal KPIs to ensure that funds are being utilised effectively.
The Producer Offset was also discussed; Ciobo promised that he would support the cash flow for production by allowing interim assessments, so producers can apply for the rebate before the end of the financial year.
The Coalition plan for the arts also includes the development of the arts in regional areas and the introduction of a musical instrument loan scheme.
As if marketing will make our films any better.
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