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Taxpayers' group slams cash Sask. spent on TV, film subsidies

19.08.2008 23:01 Arts - Source: cbc.ca

The Saskatchewan government isn't getting much bang for its buck after spending $15 million on film and TV tax credits last year, a taxpayers lobby group says.

The Canadian Taxpayers Federation is comparing Saskatchewan's film tax credit to a runaway subsidy train and says it's time taxpayers got off.

Documents obtained by the organization through an access to information request show the biggest tax credit subsidies in 2007-08 fiscal year went to a mini-series, The Englishman's Boy ($3 million), a horror film, The Messengers ($2.8 million), and a sitcom, Corner Gas ($2.7 million).

Saskatchewan's Film Employment Tax Credit is the most generous in Canada, returning up to 55 per cent of eligible labour costs, CTF Saskatchewan director Lee Harding said.

Although the film industry has argued the tax credits help generate jobs in Saskatchewan, the CTF argues the credits don't make financial sense from a taxpayer's perspective.

According to the CTF, a provincial government report from 2004, Economic Impact Statement for the Saskatchewan Film and Video Industry, reported that each job directly created by the tax credit program cost the province $15,873. If indirect employment was included, the cost to taxpayers would still be $8,095 per job.

"Claims that this has been a boon to the Saskatchewan economy are overstated," Harding said in a news release. "Provincial coffers may be taking a loss."

However, according to Susanne Bell, CEO of SaskFilm, the province's film and television development agency, the CTF has been selective in its use of figures.

It picked one year from the 2004 report when the industry was in a growing phase and there was a net loss to the province, she said.

"What they didn't do was average it out over the other years," she said. "There were years in the review where the program actually returned positive net impacts for the province."

The taxpayers' federation also fails to see other benefits that film industry provides to local communities that host productions, Bell said.

As well, the CTF doesn't recognize the importance of reflecting Saskatchewan's people and stories to the rest of the world, she said.

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