Untitled Document

"Is anyone else in a council position able to explain to me my earlier question of why the DGA has production centers in Canada, where most of the DGA cannot work???

A few years ago I was able to budget T3 for a US-shoot only, as opposed to the PLAN of going to Vancouver once we did the LA exteriors... I was able to expose the FALLACY that it is always cheaper to shoot in Canada... and as many of you may know, T3 stayed entirely in Los Angeles, providing many months of work for all the crew instead of just a few weeks for the exteriors... as originally planned.

ALL the IA locals and Teamsters took out a full-page ad in the trades, thanking me and the producing team for keeping T3 home...

Did my own Guild ever acknowledge that achievement? No, my friends, no. Not a peep, not an invitation to explain how I pulled it off, nothing...

I have not been able to repeat that success, sad to say, and have recently lost an excellent job opportunity because it's going to Vancouver...

So again I ask, why is the DGA complicit in this runaway production situation, maintaining production centers in Totonto and Vancouver??? WHY?"

Sharon Mann

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07-31-05
TV, Film Productions Lured Back to the United States (National Public Radio Story) few years ago, film and TV production fled the United States for Canada and Eastern Europe. Now, several U.S. states are offering financial incentives to lure movie production back. Between the weak dollar and the incentives, it seems to be working.

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Why States' Economic Development Incentives Programs Are In Trouble
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0805.17 - California State Assembly bill AB 777 - This bill would create refundable tax credits based on certain wages paid or amounts paid to purchase or lease certain property used to produce motion pictures or commercials in California.
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JOBS ACT - "JUMPSTART OUR BUSINESS STRENGTH" ACT /
also known as "The American Jobs Creation Act" , signed into law last fall by President Bush. The language allows producers of films with budgets under $15 million to immediately write off their costs in a single year -- if 75% of their principal costs are incurred via shooting in the U.S

From Variety.com Sun., May 8, 2005,
Feds' bait-and-switch move gets mixed reviews
By MATTHEW ROSS
Finally, after years of complaints about foreign governments wooing away productions with tax incentives and cheap labor, the U.S. government decided to do something about it. By most accounts, it failed...............Initially, the bill was hailed as a major victory for the independent sector, but that enthusiasm was short-lived. ......................"We were really excited about (the act) when it was passed, but it's become clear that it just doesn't work," says Tim Williams, of New York production outfit GreeneStreet Films. "I don't think it'll make a damn bit of difference to our investors." Schuyler Moore, a partner at corporate law firm Stroock & Stroock and the author of the treatise "Taxation of the Entertainment Industry," agrees. "Let's put it this way," says Moore, "not a single film is being shot in the states because of the act, and no film will ever be shot here because of it. And that's a promise.".........................READ MORE
Senate FSC/ETI bill, S. 1637, the "Jumpstart Our Business Strength Act"

Details of the legislation are in the links following, including a Q & A. It is our hope that this Federal legislation, combined with state incentives, will go a long way toward keeping film and television production -- and the millions of jobs it creates -- alive and well in the United States.
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Description of the Chairman's Mark for the Conference Committee on H.R. 4520 DOC icon - DOWNLOAD DOCUMENT
4. Special rules for certain film and television production (New Sec. 181 of IRC)
Domestic Film Production Incentive Program New Section 181 of the Internal Revenue Code DOC icon
A Brief Guide to the Tax Provision
"Domestic Production Activities" Income Deduction New Section 199 of the Internal Revenue Code DOC icon
A Brief Guide to the Tax Provision
New Federal Tax Legislation 'Runaway Production' Incentive DOC icon
Frequently Asked Questions

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Runaway Film Production

Section 321 of the Jumpstart Our Business Strength Act, S. 1637, Special Rules for Certain Film and Television Productions

Purpose: To encourage film and television production in the United States in response to an aggressive effort by other nations to steal U.S. jobs by luring away U.S. produced film and television productions with a variety of incentive programs.

Background: Today, a number of countries have enacted incentive programs to attract U.S. film productions as a means of creating local jobs. Those incentive programs are designed to lower the cost of producing a film or television production. Canada accomplishes this through a tax credit that is paid to producers based on the cost of hiring Canadian workers. The UK, Germany and other countries accomplish this by permitting the immediate write-off of film production costs which attracts investors tempted by the tax savings that can be realized through large deductions. Through either approach, it is possible to reduce the costs of production by approximately 7% to 15%.

Senate Provision: Under the provision in the Senate bill, a category of film and television productions, which are most likely to runaway to other countries, would be eligible for a tax incentive program. Under this program, the cost of production of qualifying films would be permitted to be immediately expensed -- that is, fully deducted from income for tax purposes -- in the year the expenditures occur. This would be in contrast to current law, where the cost of producing the film is usually recovered over a period of several years. This ability to immediately deduct costs from income will serve as a means of attracting investment capital into production where a portion of the tax benefits will flow through to reduce the cost of the production. ..................READ MORE

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Education Essay: Runaway Film Production - Section 321 of the Jumpstart Our Business Strength Act, S. 1637, Special Rules for Certain Film and Television Productions
Purpose: To encourage film and television production in the United States in response to an aggressive effort by other nations to steal U.S. jobs by luring away U.S. produced film and television productions with a variety of incentive programs..............READ MORE
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FTAC - Film and Television Action Committee (anti- Runaway production coalition of Film Workers)
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THE RUNAWAY PRODUCTION COMMITTEE -- DGA - AD/UPM COUNCIL
Please Consider joining the AD/UPM Council's "Runaway Production Committee" - Membership is open! (Unfortunately, Directors may not participate in this committee presently, but comments and contributions from Directors are welcome. Perhaps in the near future the Committee will appeal to the AD/UPM Council to seek "joint" status for this committee from Michael Apted, our President. Until that possible time, regrettably, the Committee is prevented from welcoming DGA Directors to attend its meetings personally. For details, please refer to this
Letter from Bryan Unger All other AD/UPM/TC members are encouraged to consider joining this committee if you have an interest in influencing the DGA's efforts at halting Runaway Production.
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U. S. Film Incentives - State by State
Filming Incentives in the United States - Compiled by the Association of Film Commissioners Internationa (March 2006)l
Motion Picture Assn Of America, Inc 2004 State-by-State Tax Incentives
for the Film Industry" - An at-a-glance summary of States Incentives for the Film Industry (with Hotlinks to States Pages LISTED BELOW)
Film in America - A website about Filming in The United States

Axium Payroll Services - "In addition to Los Angeles, New York, Vancouver, Toronto and London, Axium now has offices in New Mexico, Louisiana and Connecticut with South Carolina, New Jersey and Illinois to follow. Producers using Axium for payroll will be able to qualify part of the payroll expenses, which will increase their incentive by 1.25% to 2.00%. As a result of our working closely with the state incentives, whether we have an office in an incentive state or not, we can generally assist you to maximize your production’s rebate or credit.
We know consultants who can help maximize your credits, brokers who will purchase (and may cash- flow) the incentives, as well as banks and organizations that may monetize the rebates; we will be pleased to provide introductions."
For more information, please call Jeff Begun at 323 988-2965, or email at jeffb@axium.com.

The Caribbean and Bahamas - Click Here for the Caribbean and Bahamas Archive
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Foreign Film Incentives: (ARTICLES AND ARCHIVES)
Foreign Film Incentives Document published by Association of Film Commissioners International

Article in September 2008 P3 Update Magazine: "Filming Incentives go Global"

The Location Guide - The world's pre-eminent guide to international filming locations
Argentina - Click Here for the Argentina Archive
Australia - Click Here for the Australia Archive
Austrian Film Commission
Bulgaria - Click here for the Bulgaria Archive
Canada - Click Here for the Canada Archive
Danish Film Institute
England / United Kingdom - Click Here for the United Kingdom Archive
Finnish Film Foundation
Commission Nationale du Film France
Greek Film Centre
Holland Film
Icelandic Film Fund
Ireland - Click Here for the Ireland Archive
Mexico
New Zealand - Click Here for the New Zealand Archive
Poland - Click Here for the Poland Archive
Rotterdam Film Fund
South Africa - Click Here for the South Africa Archive
Swedish Film Commission
Swiss Film Center
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Mark Litwak
From Mark Litwak - "Soft Money in Hard Times" articlein Moviemaker Magazine Winter 2004 - From: Mark Litwak's Entertainment Law Resources - Articles
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From Mark Litwak - "Runaway Home - Production Incentives From Foreign Jurisdictions Are Playing An Increasing Role In Where Movies Are Getting Made" - LA Lawyer Magazine May 2004
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Print Articles on Runaway Production

Filmmakers Are Swept Away by Romania
October 2, 2005

As filming leaves, so do benefits for taxpayers
August 22, 2005

Hollywood's new backlot? The U.S.
August 17, 2005

Article in Backstage Magazine - Sept. 2, 2005 - Can California Afford a Tax Incentive?
Bill may stop runaway production. By Lauren Horwitch
A bill backed by the Screen Actors Guild, the California Film Commission, and Gov. Schwarzenegger is designed to halt runaway production with a tax break of up to $3 million for feature films shooting in California. But opponents in Sacramento, citing data that shows entertainment jobs have increased compared to other industries, claim the state can't afford to lose the $50 million needed to fund the program, especially, they say, because Schwarzenegger's 2004?05 budget dramatically cut funds for schools and social services......................READ MORE

Story in Variety.com May 13, 2005:
TV catches a break
Runaway tax relief aids small screen most
TV series producers appear to be the major beneficiaries thus far from a federal tax break aimed at keeping small-budget features from fleeing the U.S.

That was a key conclusion Wednesday evening from a panel hosted by a pair of showbiz tax experts: Ernst & Young senior partner Jeff Tolin and PricewaterhouseCoopers partner Rick Rosas. The "Making Cents of New Tax Incentives" event, sponsored by the Academy of Television Arts & Sciences, drew more than 100 people to CBS Studio Center in Studio City.

Rosas and Tolin focused on the nuances of the film provisions contained in the American Jobs Creation Act, signed into law last fall by President Bush. The language allows producers of films with budgets under $15 million to immediately write off their costs in a single year -- if 75% of their principal costs are incurred via shooting in the U.S.........READ MORE
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EDITORIAL in The BTL (Below the Line) Newspapter March 2005 (subscribe: http://www.btlnews.com
"Operation Runaway, The Sequel" by Leonard Klady
"...............But the problem isn't chiefly a less expensive labor force, a favorable rate of exchange or the lure of tax rebbates. Movies cost too much.............READ MORE

Article in LA Daily News 12-7-04
Film crews looking for love - Tax cut not only reason to stay
By Greg Hernandez, Staff Writer
BEVERLY HILLS -- Tax credits alone won't stem the tide of runaway production. Studio executives said Thursday that states competing for film productions are offering everything from free rental cars to discount hotel rooms to try to lure projects away from Los Angeles, and sometimes they succeed....................READ MORE

Article in the NY Times - Aug. 4, 2004 - Using Trade Pacts to Stem Loss of TV and Film Jobs to Canada
By ANDRÉA R. VAUCHER
Out-of-work film technicians - those actors, prop men and other entertainment industry workers whose names unfurl on the screen as moviegoers scramble out of the theater - are rallying behind international trade rules to stem the flow of film and television production to Canada.

With the Teamsters leading the fight, the Film and Television Action Committee, a grass-roots organization started by an unemployed production designer in 1998 specifically to fight "runaway production," has sent 20 pages of comments to the new Unfair Trade Practices Task Force of the Commerce Department and demanded that the Bush administration take action against Canadian film subsidy programs, which have lured United States filmmakers north of the border and siphoned tens of thousands of jobs out of the country.....................READ MORE

Runaway Filming a Challenge for Gov.
Schwarzenegger searches for ways to keep movie and TV production within state. By Jordan Rau, Times Staff Writer

SACRAMENTO — Nearly a year after he swapped his acting career for a political role, Gov. Arnold Schwarzenegger is taking his first concrete steps to aid the state's film industry. But despite his extensive Hollywood background, Schwarzenegger has yet to come up with a way to dissuade production companies from filming outside California to save money.....READ MORE

09/16/04 (SF Chronicle) - SAN FRANCISCO/ City Film Board Gets Beefed Up, Office Gets New Head
Promising to revitalize San Francisco's film industry, Mayor Gavin Newsom named several entertainment heavyweights Wednesday to the city film commission -- including Lucas Digital President Jim Morris -- and nominated location manager Stefanie Pleet Coyote to head the film office............READ MORE

09/17/2004 - Governor Schwarzenegger Issues Executive Order on Interagency Cooperation
with the California Film Commission
In an ongoing effort to increase the efficiency of the California Film Commission and promote filming in the State, Governor Arnold Schwarzenegger has issued Executive Order S-15-04 which mandates cooperative relationships between government agencies and departments and the California Film Commission..............READ MORE

09/03/04 - Article in USA Today: As anxious travelers last week streamed out of Los Angeles International's Terminal 6 during a bomb scare, one asked an airport official: "Is this real or part of the TV show?"
The alert was real. But it's a fair question because LAX is the site of as many as five filming projects on a given day.
Hollywood's demand for permission to film at airports is booming. Always petri dishes for intrigue and emotion, airports in the age of terrorism present even greater opportunities for travel-related plot lines. But the heightened tensions that are making airports more coveted by entertainment moguls are also making them harder sets to book and more cumbersome places to film...........

Some airports, including those in Las Vegas and Atlanta, have stopped giving crews filming rights since the Sept. 11 terrorist attacks. At LAX, the importance of entertainment to the local economy makes it politically inadvisable to pull the plug. But filming has become more complicated amid tighter security and demands of the war on terrorism..........READ MORE

08-31-04 - San Francisco Chronicle Article:   San Francisco's film industry is dying, and beleaguered movie production workers say it's time for City Hall to come to the rescue before the credits roll.
      For more than two years, The City has not been home to a single major motion picture. The film drought has caused an "economic disaster" that has driven companies out of business and forced hundreds of workers to leave town, according to industry workers.
           It also marks a stark contrast to the late-1990s, when The City was averaging between seven and eight major studio films a year.
In total, 184,124 square feet of production stage space has been lost in The City between 1999 and this year. In addition, five prop-rental houses have closed, as have five camera-supply businesses, seven grip and lighting outlets and 66 production companies, according to information gathered by the Bay Area Film Alliance...............READ MORE

Breaking News July 3, 2004: Los Angeles Daily News --
Proposal seeks to head off runaway production
By Lisa Friedman
Washington Bureau
WASHINGTON -- With House Republicans ignoring Hollywood's worries about runaway production, a coalition of lawmakers has launched a new effort to keep film production in the United States.
Legislation authored by a Midwest congresswoman, expected to be announced this week, would offer incentives to U.S.-produced films, allowing investors in American movies to deduct a percentage from taxes. The film industry estimates that Canada and other foreign countries that offer larger tax incentives and other perks to lure American movie production abroad drains about $10 billion annually from the U.S economy. Officials estimate there are 22 films in production in Los Angeles, seven elsewhere in California and 36 in other states -- and 24 being made abroad. "It's a real bread-and-butter issue for a lot of our Southland employees," said Rep. Adam Schiff, D-Pasadena, one of the bill's nine co-sponsors. "It's a problem of really great proportion in our region and in our country. We need to fight for these jobs, because other countries are fighting for them, too." In a letter generating support for the so-called Independent Film Small Business Job Creation Act of 2004, Rep. Karen McCarthy, D-Mo., noted that 270,000 U.S. jobs are directly involved in the film industry, the vast majority of which are hired at the location where the film is produced. "Film productions create ripple effects, with revenues and jobs generated in a variety of local businesses" like hotels, catering companies and transportation vendors, McCarthy said. "These are jobs that can and should remain in the United States." Last month, House Republicans rejected appeals from Hollywood and Southern California lawmakers to include tax incentives to curb runaway production in a massive tax bill. A similar bill in the Senate includes a number of film industry provisions, but it remains to be seen if those measures will stay in the bill after the legislative bodies negotiate the different versions of the legislation. This separate legislation would apply to nonpornography films costing $2 million to $20 million. Runaway production is predictably a hot-button issue in Southern California, but with film production and distribution one of the decade's highest growth industries, it also is a growing problem in other states and McCarthy is hardly the first non-Californian to take on the issue. Last year, Sen. Blanche Lincoln, D-Ark., introduced runaway production legislation, several provisions of which are included in the Senate tax bill awaiting negotiations. Kyser said the more lawmakers who get involved in curbing the drain of U.S. film production even if they don't focus on California needs the better. "Anything we can do to level the playing field internationally is good."
Lisa Friedman, (202) 662-8731 lisa.friedman@langnews.com

04/15/04 - AP Press Release: Governor Schwarzenegger's appointments to the California Film Commission - ".............All that was missing in the Capitol's main hallway was a red carpet when Schwarzenegger led Hollywood stars Danny DeVito and Clint Eastwood to a noon press conference naming both to the film commission along with actor-director Bill Duke, producer Tom Werner and producer-director Lili Zanuck.
Schwarzenegger used his selection of two former co-stars, a Hollywood acting and directing icon, a hugely successful television producer and one of the film industry's leading producers to bring more national attention to California's problem of runaway film production.".......................................................READ MORE

04/16/04 - Article in LA Tijmes - Governor Acts to Inspire Film Work in State -- Gov. Arnold Schwarzenegger on Thursday tapped a cast of Hollywood figures, including his former co-star Danny DeVito and Clint Eastwood, to mount an effort to keep movie and television productions in California....................(and) announced the appointments of DeVito and Eastwood to the California Film Commission, along with producer Tom Werner and directors Bill Duke and Lili Zanuck.................. because the state's $33.9-billion-a year entertainment industry was ailing and has been losing too many productions to other states and countries.................................READ MORE.
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04/16/04 - Article in the Hollywood Reporter -- Talking about States' Filming Incentives to compete with Canadian subsidies, etc (in light of the plight of the Federal legislative effort in the U.S. Senate & House:)..............................."Over the years, efforts to pass film production incentives on a federal level have been unsuccessful. The most recent, Senate Bill 1613 (originally introduced as SB 1278 in July 2001), would create tax credits equal to 25% of the qualified wages paid on a production whose total costs range from $200,000-$7.5 million. The bill was read twice in September 2003 and referred to the Senate Committee on Finance, where it hasn't been heard from since."................................................READ MORE
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040704 - Editorial in LA Times - "Aggravation on Location" - ......."To tackle the threat of runaway production, city and county officials in 1995 created the nonprofit Entertainment Industry Development Corp., a one-stop film office that streamlines permits and generally tries to make it easier for production companies to film in and around L.A.    Last year, the office was plagued by scandal over the misuse of public money. It has since reorganized with a new board made up of film, labor, business, civic and neighborhood representatives. A new president starts next week. Now it's time for a new resolve to make life easier for those who live on location.....................READ MORE
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04/06/04 Article in LA Times highlighting the changing landscape Downtown. If Hollywood is to continue to enjoy filming priveleges there, then the notification system will need to be revamped. Adequate Prep time, Adequate location management resources and thorough notifications will be the rule there from now on.
"Gunfire, Blasts Prompt New Filming Rules - Council is developing guidelines after complaints by downtown residents and office workers.
By Cynthia Daniels Times Staff Writer   April 6, 2004
A week of explosives-laden filming on the streets of downtown Los Angeles has left some residents and office workers rattled, prompting officials to consider new regulations governing the way the entertainment industry operates on city streets..............." READ MORE
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06/01/03 Great Editorial in American Cinematographer Magazine by ASC President George Dibie :      " ...........far too many genuine American stories are filmed offshore for all of the wrong reasons. How can anyone defend the decisions to produce Chicago or My Big Fat Greek Wedding anyplace, but in Chicago? What about Cold Mountain, which purports to chronicle an American Civil War story in North Carolina? How can any producer justify shooting that story in a foreign country? Have they no shame?.........."......READ MORE

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From Backstage.com 3/17/04: Montana is Hollywood's 'Last Best Place' By Brooke Comer - Hollywood has always loved Montana: rugged mountains, wild rivers, big sky, open plains; what's not to love? Filmmaking there caught on during the 1970s, and the annual economic impact peaked at an estimated $16 million in 1997 with "The Horse Whisperer," "What Dreams May Come" and "The Patriot." But the movie business went north in 1998, ..........READ MORE
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03/15/04 Article in LA Times - Analysis of Filming Data Reads More Like Fiction
Michael Hiltzik - "Considering that the California Business Roundtable is one of our most respected business groups and that Bain & Co. is
one of the nation's most august business-consulting firms, it would be presumptuous for me to suggest that their recent
report about California's declining economic competitiveness was based on bogus facts and figures."..........READ MORE
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03/25/04 - Interesting Article in Toronto Globe about the city's policy on filming on the subway properties & the importance of making filming easier there to compete w/ Chicago and Other Cities w/ subway systems. Los Angeles' MTA is still in need of improving access and ease of filming on our subway system, although it has been getting somewhat easier of late.
"The Toronto film and television industry yesterday assailed the Toronto Transit Commission for making it so difficult to get approval to film in the city's subway system that the city loses business to more film-friendly competitors.".............READ MORE
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Wednesday Jan 26, 2004 - LA Times Article: "Hahn to Filmmakers: Stay Here" - After many months of previews and promises of coming attractions, Los Angeles Mayor James K. Hahn announced Wednesday that he was issuing a series of executive orders designed to encourage film production to stay in Los Angeles. READ MORE
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MAYOR HAHN JOINS COUNCILMEMBERS LUDLOW AND GREUEL,
FILM AND ENTERTAINMENT INDUSTRY REPRESENTATIVES, IN HELPING CREATE A MORE FILM-FRIENDLY LOS ANGELES
Mayor Jim Hahn today joined Councilmembers Martin Ludlow and Wendy Greuel in a meeting with representatives from Los
Angeles' film industry to discuss ways the city can address the challenges studios and industry workers are facing........READ MORE
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Article in LA Time 02/04/04 - "Cold Mountain Controversy Rages On"
“The debate over so-called runaway productions echoes the fray over numerous U.S. companies, from jeans maker Levi Strauss & Co. to air conditioner manufacturer Carrier Corp., moving operations to distant lands to boost profits. There is growing resentment within working class Hollywood over a production exodus that many estimates say is costing the local economy billions of dollars and tens of thousands of jobs.".......READ MORE
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Story in Variety Feb. 25, 2004:HUNGARY OFFERS INCENTIVES TO FILMMAKERS
A new law provides incentives to lure foreign productions and domestic investment. Foreign producers stand to
earn a 20% rebate on every penny spent on Hungarian soil..........READ MORE
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Story in LA Times 10-20-03 Business Section:"Jack Valenti said;"I've been in this job for 37 years and never had any governor of California call me twice to say, 'I need your help and please be available to me,' " - Can Sacramento Help Hollywood?
Schwarzenegger promises to staunch the outflow of filming to cheaper locales, but the issue may be overshadowed for now. READ MORE
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What the puck?
Daily Variety - Letter to the editor By ERIC PERARDI
To the Editor: Disney's film "Miracle" tells the story of the 1980 U.S. Olympic hockey team's gold medal run, but the producers, for budgetary reasons, chose to film the movie in Vancouver. READ MORE
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Aiming to Keep Cameras Rolling - Seeing the economic boon from the 'Rings' films, New Zealand offers incentives to lure more productions - Los Angeles Times
December 21, 2003 P.J. Huffstutter, Times Staff Writer
............The motion picture business exploded as a result. Employment multiplied from nearly 8,000 in 1999 to more than 31,000 in 2001, making the industry one of the largest employers on this craggy island nation of 4 million people. It could get bigger if cost-conscious Hollywood moguls, hungry for inexpensive venues, shift more of their work to New Zealand.. READ MORE

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Audio Stories from NPR

04-15-05
Airtalk with Larry Mantle - RUNAWAY PRODUCTION ROUNDTABLE
"Film Production: Why Shoot in LA? Why Shoot Elsewhere?
Runaway production is a growing concern as other states and foreign countries offer lucrative incentives to film companies. Although production is reportedly up in and around LA this year, our status as the center of film and television production is being eroded as other regions develop their own-long term production infrastructure. Larry explores the issue with a panel of experts on film production in, and outside, of Southern California. Joining him is Steve McDonald, President of LA's Entertainment Industry Development Corporation (EIDC); Ms. Pat Swinney Kaufman, President of the Association of Film Commissioners International (AFCI); Jeff Shepherd, independent location scout; Duncan Henderson, freelance producer, and Rob Lorenz, Executive Producer of Flags of Our Fathers, directed and produced
by Clint Eastwood, produced by Steven Spielberg.
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Click on the NPR audio links below to listen to the stories. You'll need an audio player to hear it,
and you can find the right one for your computer at
<http://www.npr.org/audiohelp/audioplayers.html>. If you
have any problems, please visit the NPR audio help page
<http://www.npr.org"/audiohelp/index.html>.
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Want a transcript of this story?
<http://www.npr.org/transcripts/story.html>
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The Future of Teleivision - 3 part series - January 2006
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National Public Radio Store 3/23/04 - Who Owns This Issue - "Jobs" -
Democrats and Republicans are hard at work to position themselves on the issue of employment. Democrats blame the president for the loss of more than two million jobs, but Republicans say Bush's tax cuts are creating jobs. Interesting discussion of NAFTA, Outsourcing, the two parties' stance on Jobs in America Click to Listen To This Story
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Other Websites of Interest :

FilminAmerica.com - Scott Trimble, Location Scout / Manager's amazing website about film locations in the USA. Here you will find the most comprehensive list of historical film locations in the Country. Plus, a new website that will compile prime film locations throughout the country for future filming.
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The Film & Video Pocket Tax Guide helps film and video producers with line-by-line instructions, examples, and information on the U.S. income tax rules that apply to them. With this Guide filmmakers and videographers can learn how report their income and deduct their expenses and learn about about the new tax incentives! The Guide includes hyperlinks to pdf versions of IRS forms and publications hosted on this website.
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FTAC - Film and Television Action Committee (anti- Runaway production coalition of Film Workers)
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IATSE.ORG - A Grassroots website of IATSE Members fighting Runaway Production -- Tons of info and links for the grassroots activist in filmmaking.
We have been fighting the outsourcing of our jobs through runaway productions for decades. Now that the general public is aware of and sensitized to the problem of outsourcing we have a unique opportunity to marshal them to support the American film industry...............READ MORE
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CEIDR - The Center for EntertainmentIndustry Data and ResearchDedicated to the development of an informed U.S. Production industry that will collaborate, strategize, advance artistically and technically and aggressively market itself as a competitive production venue in an increasingly global economy
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The EIDC (Entertainment Industry Development Corporation) - the Quasi-Public Agency in charge of issuing film permits in Los Angeles City and County

The Entertainment Industry Development Corporation (EIDC) Website

Ex-EIDC chief Cluff OKs plea bargain, avoids trial
5-28-04 - DAILY NEWS - By Beth Barrett Staff Writer
Former Entertainment Industry Development Corp. President Cody Cluff pleaded no contest Monday to one felony count of embezzling public funds from the agency, which issues permits for television and movie location filming..............READ MORE

Plea Deal for Ex-Chief of Film Agency
Cody Cluff is scheduled to surrender next month and faces up to two years in prison for embezzling funds. He agrees to repay $80,000.
5-28-04 LA TIMES - By Anna Gorman and Patrick McGreevy, Times Staff Writers
Cody Cluff, the former head of the agency that promotes film production in Los Angeles, pleaded no contest Monday to embezzling public funds that he used to pay for excursions to strip clubs and a fantasy baseball camp, and for donations to his children's high school............READ MORE
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Comments and Contributions from Fellow ADs / UPMs / Location Professionals (notes on the subject of Runaway Production):
May 27, 2006 - From the DGUSA online Discussion Group:
From Sharon Mann, DGA Member, Producer/UPM:
"Is anyone else in a council position able to explain to me my earlier question of why the DGA has production centers in Canada, where most of the DGA cannot work???
A few years ago I was able to budget T3 for a US-shoot only, as opposed to the PLAN of going to Vancouver once we did the LA exteriors... I was able to expose the FALLACY that it is always cheaper to shoot in Canada... and as many of you may know, T3 stayed entirely in Los Angeles, providing many months of work for all the crew instead of just a few weeks for the exteriors... as originally planned.
ALL the IA locals and Teamsters took out a full-page ad in the trades, thanking me and the producing team for keeping T3 home...
Did my own Guild ever acknowledge that achievement? No, my friends, no. Not a peep, not an invitation to explain how I pulled it off, nothing...
I have not been able to repeat that success, sad to say, and have recently lost an excellent job opportunity because it's going to Vancouver...
So again I ask, why is the DGA complicit in this runaway production situation, maintaining production centers in Totonto and Vancouver??? WHY?"

Sharon Mann

SURVEY SEEKING POTENTIAL TESTIMONY IN LAWSUIT REGARDING CANADIAN SUBSIDIES AND DISCRIMINATION AGAINST AMERICANS:

We all know that a large amount of American film and television production has gone to Canada not because "things are cheaper there," but because Canada subsidizes film and television production, paying millions of dollars to companies who agree to make a production "Canadian content." What is not as well-known is that Canada will pay out subsidies only if the recipients agree to discriminate against American citizens and American-owned businesses.

Each instance in which subsidies have been paid in exchange for an agreement not to hire Americans may involve violations of numerous
local, state and federal laws, including the Equal Employment Opportunity Commission and the Sherman Anti-Trust Act.

A number of legal proceedings and proposed legislative actions seek to address this issue.

One legal action is before the California Superior Court, regarding the use of "Canadian content" rules to discriminate against Americans and American-owned small businesses in order to obtain Canadian subsidies.

The judge in this case is allowing testimony concerning whether discrimination against Americans in order to get Canadian subsidies is commonplace in California. This testimony will help determine the urgency of the case and whether the issue of discrimination against Americans in this manner is a widespread problem having an adverse impact on American citizens and American-owned small businesses in California.

Your experience could be relevant if you can answer "yes" to any of the following questions:................................READ MORE
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04/04 - ECO*USA - Ideas and Suggestions to the Runaway Production Committee
IDEAS FOR ENCOURAGING AND STIMULATING FILMMAKING IN THE USA PUBLIC AWARENESS AND MARKETING CONTINUING EDUCATION AND SEMINARS UNION / GUILD CONFERENCE SPEAKERS INTERVIEW WITH MOW PRODUCER NEGATIVE ASPECTS OF SHOOTING IN CANADA * Excerpted from Ceidr 2000 Report
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04/12/04 - An interesting discussion thread from the Location Professionals' E-group, "Locolist," - highlighted by this great contribution from Jody Hummer:
".........................To slow down Runaway Production, I think we need to turnaround the negative filming attitudes at home and show people how location filming contributes personally to them. We need to get the public behind us, so the elected officials, both local and federal, might try harder to keep the industry happy to be here. I think we need to acknowledge that our industry should have the freedom to make films wherever in the world they wish. Then, make it attractive, popular and affordable for the industry to film here, without force. Our industry doesn't respond to force. They respond to saving money. .................................." READ MORE
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I have read your email with marked interest. However, I do have Concerns about your approach and feel that the underlying attitudes may best prepare you for success in this endeavor. As an international film producer and 23 year DGA member, I have some experience in the areas you address. I also have some opinions that I will share with you, since you1ve come knocking on my door. READ MORE
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...............I'm speaking of the enormous growth in "reality" television completely ignored by the vast majority of the DGA, and the DGA hierarchy. Check out the credits on the broadcast networks' reality programming. Where are the directors? READ MORE
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......................What's happening to our jobs in Canada and Bulgaria and elsewhere is OUTSOURCING folks! Explain it THAT way, and maybe the important folks will understand. After all, we WERE "outsourced" before "outsourcing" was cool. How about it? Drop "Runaway Production" and call it "Hollywood Outsourcing"??? I think it might actually help......................READ MORE
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Downtown Los Angeles - Filming Issues Downtown, Articles, Residents' Rants Against Filming (& Film Community Responses)
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ARTICLE in Downtown News 06/21/04: http://downtownnews.com/articles/2004/06/21/news/news01.txt
"Lights, Camera, Payday
Residents Tell Film Companies to Shell Out or Get Out"
by Kathryn Maese
Think of it as the bad sequel to a film story heard often in Downtown.
A Warner Bros. production crew was recently filming Catwoman near Fourth and Main streets. Five banks of blazing floodlights set up to illuminate a dark alley shone through the bedroom windows of several lofts late at night, prompting angry protest from residents, one of whom threatened not to renew his lease.
Conciliatory notes were sent to the tenants, offering free drinks at local watering hole Pete's Cafe. But like many film-tenant relations, the goodwill gesture turned into a misunderstanding, as residents were offered only one well drink and those who brought friends were turned away.
"We should have known better [than] to expect any compensation for being inconvenienced by filming, complained one loft resident on New Downtown, an online chat group discussing local issues.
While Pete's management and Warner Bros. apologized for the confusion and offered gift certificates, the interaction reveals just how tense relations between the two sides have become in recent months"...............READ MORE

Thomas Guiton - Downtown Artist District Resident, wrote this diatribe against location filming Downtown.
"One of the tenets of community policing is that the appearance of neglect in a community leads to a lack of community. Nuisances result in crimes. Crimes are inherently antisocial attacks on the community. Rebuilding community social structures requires forming relationships between the government services and the neighborhood as well as improving communication and respect within the neighborhood. Policies of the local government and police should not be destructive of the social fabric we are attempting to weave. A broken window means that no one cares. If no one else cares then why should I? If we don't respect the community, who will? The bright lights of a movie crew are another indication that no one cares. If the community is already alive and vibrant, it does not need the Industry to add what little economic activity and culture that it brings. A movie crew is an indication that the neighborhood does not have the political clout to keep such nuisance activity out. The presence of a film crew is an announcement that no one cares, particularly agencies of the government. The nuisances of filming are allowed, or even encouraged, so other activity, some of it criminal, will be tolerated............." READ MORE

(Editorial Comment by Robert Mendel:)
Mr. Guiton's articulate, if overly zealous anti-filming sentiments deserve attention, as there are over 6,000 more residential loft units which will be issued occupancy permits within the next two years - in all corners of Downtown. Understanding how Filming and Downtown lifestyles will be able to co-exist are fundamental to effective local anti-runaway production efforts. Mr. Guiton's rant appeared as a Downtown LA e-group posting and was subsequently mailed to location managers by the EIDC (film permit office) about a week before the DA's office served search warrants and began an investigation into the EIDC's finances. Subsequently, the Board of Directors of the EIDC has been changed to no longer include elected officials, nor are they permitted to receive political contributions from the EIDC. A new contract with the city and county is being finalized and is forthcoming, and the EIDC will be operated in a new climate of transparency. (Bryan Unger of the DGA serves on the newly re-formulated Board of Directors, and Lindsley Parsons Jr. (DGA) served as the interim President of the EIDC during the transition period following the DA's investigation and sunsequent indictments.

A healthy (financially and ethically) EIDC is pivotal to a sensible and hopeful climate for the renewal and growth of local filming on location "in the zone" as runaway production problems are reduced and the LA Region reclaims a proportion of the lost filming activity over time.

This response to Mr. Guiton's rant, from a location manager, brings a pro-filming argument for tolerance of our industry to the fore. Mr. Baker, the writer, details a high level of detailed preparation, and a commitment to "give back" to and be sensitive to the downtown community. DGA members can benefit by understanding how his response might shape future approaches to filming in the increasingly residential Downtown. "The article by Guiton brings to mind a new kind of pamphleteering for the digital age. Gone are the outright savages on personal character from political pamphlets of the 18th century, yet the film industry in his essay still comes across as atavistic and rapacious in its desire to devour locations. Specious arguments aside, his style is clear and direct but not supported by actual sources or footnotes. I film quite a bit in downtown Los Angeles and in the artist district. I have helped to support artists and businesses by filming in these areas.........." READ MORE
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Letters / Templates / Informational Forums

A Grass Roots effort to lobby the MPAA into encouraging member companies to take pride in their "Made in the USA" film products. Includes a sample letter template to write to the MPAA. "Made in USA -- Any company can use this in their advertisements and on their products at anytime - the only caveat is - it must be true..
We have been fighting the outsourcing of our jobs through runaway productions for decades. Now that the general public is aware of and sensitized to the problem of outsourcing we have a unique opportunity to marshal them to support the American film industry............".....READ MORE
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How to Contact your Legislative Representatives.............and why: CLICK HERE
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Mission Statement of a potential Congressional Entertainment Caucus (Write your legislators to encourage their formation and participation in this!) The focus of the congressional entertainment Caucus will be to create alliances within government, community and business associations, consultants and mediators to reverse the trend of outsourcing films and television jobs, to bring industry and employment back to the United States. READ MORE
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04/08/04 - Letter from Steve Dayan, Business Agent for the Teamsters Local #399 Location Managers on the subject of the Teamsters' Energetic Fight against Runaway Production: " Dear Colleagues: The Teamsters are working on many fronts to try to curb runaway. You may recall the rally that was held in Century City to protest against a payroll company that was bringing the Canadian government to do a seminar on how to take advantage of Canadian subsidies. The Teamsters and Basic Crafts were the only unions to protest this activity. Local 399 is also supporting FTAC's efforts to get a 301A petition filed. We feel the Canadian subsidies are illegal and should be stopped. Our local and our International have contributed over $50,000.00 to that effort. None of the other guilds or unions support this effort............................READ MORE
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A Remedy for Runaway Production? - Info on FTAC's plan to file a "301 Petition" to the US Trade Representative:
5/25/04: A Letter From Runaway Production Committee Member Don Newman:
"Attached is the most recent material we have on runaway production, similar to the material I passed out at the last meeting. It is my intention to have this material included in the agenda when the RAP/Mentor Committees meet. This information plus other suggestions from groups will give the membership something to think about, and a way to protect their jobs. "

The more I understand about the current federal legislation the more I feel it lacks the teeth to create and enforce a level playing field which we must obtain in order to survive, therefore we must have contingency plans ready to go since this is an election year and "outsourcing" is on every politicians lips. Now is the time. Please read the attached, call if you have questions, then display prominently. An educated population makes this a better place. Thanks - Don "
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(from Don, continued...........)
"There is no America. There is no democracy. There is only IBM and ITT and AT&T and DuPont, Union Carbide and Exxon. Those are the nations of the world today." -- Paddy Chayefsky, "Network," 1976

"I've only got one motive in life: to protect the industry and to protect jobs." -- Jack Valenti, quoted in Daily Variety, October 7, 2003

>Under Section 301 of the Trade Act of 1974 America's major film studios are asking for our trade agreements to be enforced in order to protect their products from unfair competition from illegal foreign copies.
>Under Section 301 of the Trade Act of 1974 America's film workers are asking for our trade agreements fo be enforced in order to protect their jobs from unfair competition from illegally subsidized foreign labor.
> What's the difference? Is equal protection under the law only for the already rich?
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JUNE 30, 2004:
From Daily Variety -
H'wood orgs seek action vs. subsidies Groups press Commerce on runaway prod'n

By DAVE MCNARY
        The Film & Television Action Committee, a group of below-the-line Hollywood workers, and the Intl. Cinematographers Guild have asked the Dept. of Commerce to take action against foreign governments' filmmaking subsidies. Orgs have filed comments with Commerce's Unfair Trade Practices Task Force, a panel created last month to help the U.S. manufacturing sector regain some of the nearly 3 million jobs lost since 2000.   "Movies and TV shows have always been shot on locations all over the world and outside the major production centers for creative reasons, typically to take advantage of uniquely spectacular landscapes or unique architecture," the FTAC filing said. "However, the relocation of significant amounts of film and TV production to foreign countries for solely financial reasons and with no regard for artistic concerns is a recent phenomenon and is directly related to the creation of foreign subsidy programs."
         The 20-page FTAC filing singled out Canadian and Australian programs and asserted that the subsidies violate provisions of trade agreements that they have committed to as members of the World Trade Organization.
        "We are in imminent danger of suffering permanent, irreversible damage to our world-renowned film industry as its highly specialized work force, which took nearly a century to build, is dispersed and not renewed," FTAC exec directors Tim McHugh, Don Newman and Gene Warren Jr. wrote. "Foreign subsidies do not create new jobs; they merely relocate existing jobs from one country to another."
         The filing asserted that nearly 38,000 of the 51,000 jobs in the Canadian film and TV industry in 2002-03 were the result of productions eligible for Canuck film tax credits. It also detailed the incentive programs offered by the provinces of British Columbia, Ontario and Quebec.
         The FTAC filing also describes what it calls lavish Australian subsidies for offshore productions.
Filing does not offer specific dollar figures for runaway losses but notes that in a recent compilation of 52 features in pre-production, 28 were to be shot in the U.S., 20 in foreign countries and four at unknown sites.
        The issue of how to deal effectively with runaway production has pitted 6-year-old FTAC against many parts of the showbiz establishment. Org has spent most of its energy on prepping a North American Free Trade Agreement Section 301(a) petition asking the U.S. trade representative to initiate negotiations with Canada to remove its subsidies, backed by the threat of intervention of the WTO, as the most effective way of putting the brakes on productions fleeing to less-expensive locations outside the U.S.
        Orgs such as the Motion Picture Assn. of America, the American Film Marketing Assn., Directors Guild of America, Intl. Alliance of Theatrical Stage Employees and American Federation of Television & Radio Artists have long contended that such a strategy could backfire by leading to a trade war and further loss of jobs.
        The three-page letter by the Intl. Cinematographers Guild, which operates as IATSE Local 600, represents a reversal of policy for the union. A slate headed by recently elected president Gary Dunham won several other offices and board seats after campaigning on a platform of taking a more aggressive stance on runaway production. The Guild said in its letter that runaway production is part of the exportation of American jobs and commended the Dept. of Commerce for launching an inquiry.
         Date in print: Thurs., Jul. 1, 2004, Los Angeles
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A CURRENT VIEW OF OUTSOURCED FILM AND TELEVISION PRODUCTION
AN UPDATE TO "THEY DON'T GO TO CANADA FOR THE SCENERY: AN OVERVIEW OF RUNAWAY PRODUCTION"
".............." means this is Annotated -- CLICK HERE TO READ THE COMPLETE VERSION) (or Click on any of the ".............." )

"WE ARE CREATING THE JOBS YOUR CHILDREN WANT"
(Slogan used by the Canadian government to garner taxpayer support for its production incentives.)

In 1998 the motion picture and television industry was given credit for California's recovery from recession in the early nineties: ..... Also in 1998, Canada implemented very aggressive subsidy programs on both the federal and provincial levels which were specifically designed to attract "foreign" film and television production. These incentives suddenly and substantially reduced the cost of Canadian below-the-line labor, making it less expensive for American studios to make their products in Canada with Canadian crews and supporting actors rather than in the United States with American labor and talent. The response to these new subsidies was immediate and noticeable............

As early as 1999 American film and television artists, technicians, workers and vendors were being deeply impacted by unfair competition from newly subsidized Canadian labor. In January 1999, the Directors Guild of America and the Screen Actors Guild retained the Monitor Company, a leading global management consulting firm, to study "runaway" production. Its study was released in June, 1999 as the U.S. Runaway Film & Television Production Study Report, and is commonly known as the Monitor Report. Even then it showed alarming trends, and it made disturbingly accurate predictions which have come to pass in the ensuing five years.............

The Monitor Report confirmed that an overwhelming number (81%) of runaway productions went to Canada. In fact, American production in Canada increased 268.3% between 1990 and 1998. This means that U.S. production of features in Canada expanded at more than twice the rate (17.4% annually) of feature production in the United States (8.2%). American television production in Canada grew seven times faster, at 18.2% annually, than it did at home, where it grew only a mere 2.6% annually. In a nutshell, while U.S. film and television production increased every year, its growth in Canada far outstripped its growth in the United States. The correlation between the introduction of the Canadian subsidies and this sudden expansion is unmistakable.............

The subsequent 2001 report from the Center for Entertainment Industry Data and Research .......... showing a 193% increase in the number of films with budgets from $10.1 million to $50 million and a 400% increase in the number of films with budgets over $50 million shot in Canada from 1998 to 2001. Although this is the most recent comprehensive study available, knowledgeable industry insiders now estimate economic losses from outsourced production to total approximately $25 billion a year in lost direct production spending plus the multiplied effects of lost spending and tax revenues............

The most recent comprehensive data on the state of film production in the United States comes from The Migration of Feature Film Production From The U.S. To Canada and Beyond Year 2001 Production Report released by the Center for Entertainment Industry Data and Research in 2002. Known as the CEIDR Report, this document focuses only on feature film production ............

"Since the June 1998 revision of the Canadian Production Services Tax Credit (PSTC) and other rebates and incentives, the overall value of production in Canada has risen in total dollar volume by
$635 million (154%). The U.S. has suffered a corresponding fall in annual production expenditures from 1998 to 2001 of $683 million (-17%)." "Gross production dollars in the U.S. in 2001 declined by $121 million (-4%) from $3.37 billion in 2000 to $3.24 billion in 2001. This represents an estimated loss to the economy for the year of $2.6 billion and 27,313 jobs. Since the inception of the Canadian rebates, the loss of production
expenditures in this segment of the entertainment industry alone has cost the U.S. economy an estimated $4.1 billion and an average of 25,000 jobs per year." "Canadian subsidies are having their intended effect of making Canada the production venue of choice for U.S. producers. . . . the U.S. production industry is in a serious decline that will have ramifications for years to come."..............

Despite the increase in Canadian incentives, a study commissioned by the Australian government and released in August 2003, showed that while a $25 million movie could be made for $21.2 million in Vancouver, it would cost even less in Sydney at $19.6 million, thanks to Australia's incentive package...........

As long as subsidy programs in Canada and other nations specifically designed to raid another country's industry artificially lower the cost of their citizens' labor, film and television workers in the United States remain vulnerable to economic harm. .............

Data from the Directors Guild of America confirms that while Canada is still the prime offender in terms of being the primary destination for outsourced production, other countries with newly created subsidy programs are also making inroads: ...........In the last quarter of the twentieth century, film production began to expand beyond Hollywood and New York to many other parts of the country, such as Illinois, Florida, North Carolina, Georgia, Texas or Maryland, becoming a truly American industry rather than just a regional specialty based in one large city on each coast. ...........

The picture is considerably different now. By the end of 2002, Vancouver claimed to be "the third largest production center in North America after Los Angeles and New York."............

In the space of twenty years the film industry came to Wilmington, took root and grew to become a significant force in the local economy and make the city an important and successful center of American production, and now it is almost gone, thanks to foreign wage rates artificially lowered by government subsidies. That's a considerable loss.

In Los Angeles, which is generally considered the world capital of film and television production, the predictions are dire. UCLA Anderson Forecast senior economist Christopher Thornberg sees the industry staying put but shifting "mainly to non-production management jobs." In September of 2003 he said, "I don't think the industry will leave Los Angeles, but it looks as if local production jobs are slowly declining and moving elsewhere. Los Angeles and New York will remain the centers for the industry's dealmaking, financing and advertising.".............

A shift in these numerous middle class jobs from cities in the United States to foreign locations has severe adverse economic impact, and is a serious problem. Jack Kyser, chief economist for the Los Angeles Economic Development Corporation, confirmed this reality, saying, "The problem with the film industry is that everyone sees it in the light of 'Entertainment Tonight' and 'Access Hollywood'-- all the glitz and glamour-- and they don't see that the bulk of the industry is below the line and that's what's hurting." .............

The same holds true of other cities and states with established film and television production industries. From 1999 to 2002, Chicago's revenue from feature films and TV production plummeted from about $125 million to $27 million, in large part because of companies choosing Toronto over the Windy City.................

The Oregon Film Office said, "It is impossible to track the production we have 'lost,' because they often don't even check here anymore before going to Canada or other countries. ......................

The Washington State Film Office reports a similar situation. It says that most of its business is lost to Vancouver, which looks the same, is in the same time zone, is only three hours further north, and is, of course, cheaper because of Canadian subsidies. ............ "We have several vendors who are holding on by a thread, including equipment suppliers and talent agencies. Half of our crew base has either moved to LA or gotten out of the business entirely."..............

Variations on the same theme are occurring all over the United States. The upcoming Focus Features film "Brokeback Mountain" is based on Annie Proulx's novel set in Wyoming, but will be shot in Calgary. ................ About twenty years ago, Texas referred to itself as the "Third Coast," and seemed to have started building a busy regional film industry. According to data from the Texas Film Commission, during the years 1998 through 2003 inclusive, a total of 24 projects scouted or researched Texas and then shot in foreign countries instead. ...............

Preliminary work to bring the Hollywood version of the book 'The Prize Winner of Defiance, Ohio: How My Mother Raised 10 Kids on 25 Words or Less.'.............. Lesley Ward, vice president of film commission services with the Greater Cleveland Film Commission, said the agency spent two years trying to lure the movie's crew to Defiance but was unable to sway producers to shoot the film in northwest Ohio. 'The producer said you are doing a good job to cover some of the costs, but you can't do $2 million,' she said. The movie is expected to be filmed primarily on a soundstage in Toronto, where many movies are shot to save money..............

AFMA, the trade association for the independent film and television industry, held its sixth annual Production Conference June 17, 2004 in Beverly Hills. The event featured a panel discussion called "What Will It Take to Bring Production Back to the U.S.?," moderated by Paul Hertzberg, president of Cinetel Films. Hertzberg, who often shoots in Canada to take advantage of its subsidies, joked that the panel's title should really be "How Do We Make Romania Our Fifty-first State?" The four producers on the panel all said that the overwhelming majority of their 2004 projects will be shot outside the United States. .............

Because every film or television project is unique, it can be difficult to precisely quantify losses when production is taken to a foreign country. In 2003, Vancouver was the site for the filming of, among many other "foreign" films and television shows, the 2004 summer releases "I, Robot" and the $100 million "The Chronicles of Riddick," which had 1,300 and 1,500 people on payroll respectively. That's 2,800 middleclass jobs just on two movies. Director Roland Emmerich set his special effects-laden blockbuster "The Day After Tomorrow," in New York because it "is a recognizable symbol of Western civilization," but shot it in Vancouver, at a cost $125 million.32 Multiply these figures by the number of projects which shoot outside of America every year. .............

While there has been no comprehensive study of the impact of outsourced production since 2001, anecdotal evidence of ongoing and growing harm is undeniable. For most of the artists and technicians employed in the film industry health insurance and retirement benefits are based on the amount of work they have performed in given periods of time. With American production lured away to foreign countries an important social safety net is starting to unravel as American film workers are not only losing their jobs but are also losing their health coverage and not building their pensions as a result. As their incomes are reduced, so, too, are their federal, state and local tax payments..............

The Directors Guild Foundation provides many services to Guild members, but its main purpose is to give confidential emergency financial assistance to members unable to pay for food, housing or medical expenses due to temporary setbacks. In soliciting donations to support its programs a recent fundraising letter said, "Not surprisingly, requests for these short-term, no interest loans are increasing as runaway production and the downturn in our economy continue to impact our membership." According to workers speaking to FTAC members, the Motion Picture Fund has also experienced an increase in applications for its financial assistance program in the past several years. .............

In Hollywood, long-established businesses which service the motion picture industry with rentals of various items have gone out of business or, if surviving, report huge losses. .............

The harm from outsourced or runaway American film and television production is everywhere. Its economic impact touches large and small communities all across the United States. Besides directly affecting those who have always made a middle-class living working in America's film industry, it causes people who never even dreamed of a career in show business to lose income, health care, and pension benefits. It costs companies of all sizes and governments on all levels revenue............

While the studies we have are by now almost three years old and no longer current, pieces of data from all around the U.S. clearly show that the industry most closely identified with our national psyche is dangerously close to being destroyed by unfair foreign trade practices. We are in imminent danger of suffering permanent, irreversible damage to our world-renowned film industry as its highly specialized work force, which took nearly a century to build, is dispersed and not renewed. ............READ COMPLETE VERSION
ollywood, Oldsmobile dealers and race track owners would be among the many beneficiaries. ..................READ MORE

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3) "IT'S ABOUT FAIR TRADE: A REMEDY FOR RUNAWAY PRODUCTION:
THE PROBLEM
       Governments around the world are offering substantial subsidies and other incentives to attract film and television production to their countries. As a result of these financial incentives, film and television productions have been abandoning California, New York, Florida, Texas, North Carolina, and other sites in the United States. Instead of shooting in America they have run away to foreign countries that are offering subsidies for film and television production.
       In short, subsidies and other incentives offered by foreign governments have distorted the market for film and television production.
       As a direct consequence of these distorting subsidies, U.S. film and television workers have been losing their jobs to subsidized workers in foreign countries ? not better or more efficient workers; not more competitive workers but workers whose wages and salaries are subsidized by their governments for the specific purpose of attracting U.S. productions. Thus, foreign governments’ subsidies in the film and television production market not only have distorted the market, they have caused economic harm in the form of lost jobs and lower income to individuals and companies that provide services to film and television production companies. Loss of jobs and income also reduces tax receipts for the local, state and federal government and results in increased burdens on the social safety net provided by governments in the United States.
       And no country has been as ambitious or successful in using subsidies to attract film and television jobs away from the U.S. as Canada..................READ MORE
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4) JACK VALENTI Press Release May 3, 2004: "MPAA COMMENDS US TRADE REPRESENTATIVE "SPECIAL 301" REPORT - China under "Section 306 Monitoring,"
Taiwan, Russia and Brazil on "Priority Watch List" -
The Motion Picture Association of America welcomes the decision by the United States Trade Representative (USTR) to place China under "Section 306 Monitoring" and Taiwan, Russia and Brazil on the "Priority Watch List" for failure to provide adequate copyright protection in the war against optical disc piracy.
The designations were unveiled today in USTR’s "Special 301"
annual review. "Special 301" of the 1988 Trade Act gives the United States an effective tool to utilize in dealing with nations that impose barriers against U.S. film, TV programs and home video material, or permit these exports to be pirated. Over 50 countries are on USTR’s list.
"American films and TV programs enjoy immense popularity all over the world and they contribute mightily to the U.S. economy. Protection of these valuable assets must be a priority to ensure the industry’s continued success. Piracy has a dramatic impact on the creators and copyright owners of this nation, and its defeat will only be possible with the help and determination of the U.S. government," said Jack Valenti, MPAA President and CEO.
" ‘Special 301’ remains an essential part of our strategy to protect our intellectual property abroad. It is a key tool for the U.S. Government to communicate and influence foreign government response to international piracy," Valenti said. "We are grateful to Ambassador Zoellick and the USTR for utilizing all their resources to protect America’s creative products."
...........................READ MORE
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