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### Viewing cable 09HALIFAX15, FILMMAKING IN NOVA SCOTIA

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
09HALIFAX15 | 2009-04-17 20:39 | 2011-04-28 00:00 | UNCLASSIFIED | Consulate Halifax

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    VZCZCXRO3138
    RR RUEHGA RUEHMT RUEHQU RUEHVC
    DE RUEHHA #0015 1072039
    ZNR UUUUU ZZH
    R 172039Z APR 09
    FM AMCONSUL HALIFAX
    TO RUEHC/SECSTATE WASHDC 1376
    RUEHOT/AMEMBASSY OTTAWA 0601
    INFO RUCNCAN/ALL CANADIAN POSTS COLLECTIVE
    RUCPDOC/USDOC WASHINGTON DC
    RUEHHA/AMCONSUL HALIFAX 1467

` `

    UNCLAS HALIFAX 000015

    SIPDIS

    FOR WHA/CAN
    STATE PLS PASS USTR

    E.O. 12958: N/A
    TAGS: ETRD EINV EIND CA
    SUBJECT: FILMMAKING IN NOVA SCOTIA

    ¶1. Summary: The issue of intellectual property rights (IPR) does
    not rank high on the agenda of the Nova Scotia film industry.
    Rather, the key issue is attracting increased film production to
    the province. Film Nova Scotia is the provincially owned
    development corporation through which the province has been
    assisting and encouraging the development of a local filmmaking
    industry for almost twenty years. Successive provincial
    governments have seen this assistance--mainly in the form of tax
    credits and small production grants--as an economic development
    tool akin to those for any other industry. While these efforts
    have produced some positive results, Nova Scotia lags far behind
    the established Canadian film centers in Montreal, Toronto, and
    Vancouver. END SUMMARY.

    ¶2. Consul General and Pol-Econ Specialist met with Anne
    MacKenzie, President and CEO of Film Nova Scotia on April 7 to
    discuss IPR issues concerning copyright legislation and the
    local film industry. On the former, MacKenzie noted that the
    issue was not a high priority and offered no opinion on the
    likelihood of the Harper government actually passing copyright
    legislation other than a brief comment that any development in
    this area would likely take a long time.

    ¶3. MacKenzie then described the mandate of Film Nova Scotia,
    explaining that it was set up in 1990 as an economic development
    tool. Its mandate is to grow Nova Scotia's film, television and
    new media (CD, DVDs and internet) industry and also to promote
    the province and its worker force in global production markets.
    Through direct assistance the corporation annually invests in
    the range of C$15-20 million in programs for such things as
    training and loans and grants for would-be filmmakers.

    ¶4. In addition to this assistance, the province offers a film
    tax credit that Film Nova Scotia administers on behalf of the
    provincial finance department. This provides for a fully
    refundable corporate income tax credit based on labor costs. The
    credit is designed to encourage the development, training and
    hiring of Nova Scotia film workers (which amounts to some 2,000
    to 3,000 individuals). The tax credit currently ranges from 50
    to 65 percent, with the higher percentage going to films shot
    outside the Halifax region.  In the province's 2007-2008 fiscal
    year, local producers received C$8.10 million in credits while
    visiting (i.e., non-resident) producers received C$2.64 million.
    MacKenzie pointed out that the various incentives have helped
    grow the industry to where it is now the fourth largest in
    Canada, coming in behind Vancouver, Toronto, and Montreal. In
    its 2006/07 fiscal year, the industry saw over C$100 million in
    production spending in the province, but that figure dipped to
    C$76 million in 2007/08 due to increases in the value of the
    Canadian dollar, labor unrest in the industry and increasing
    competiveness among other jurisdictions.

    ¶5. COMMENT: While Film Nova Scotia has succeeded in carving out
    for local production companies a small niche in the Canadian and
    global film industry, the prospects of displacing Canada's
    traditional production centers remain remote. END COMMENT.

    FOSTER

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