• Arts Subsidies a Runaway

Movie Tax Credit 07-08 and all-time
Movie Tax Credit By Year 02-07

REGINA: The Canadian Taxpayers Federation today released details of $15-million handed out through the Saskatchewan Film Employment Tax Credit (SFETC) in 2007-08 and called on the provincial government to curtail runaway subsidies to the arts industry.

Million dollar recipients in 2007-08 include The Englishman's Boy ($3 million), horror film The Messengers ($2.8 million), Corner Gas ($2.7 million), and Renegade Press ($1.4 million), according to the provincial response to a freedom of information request issued by the CTF.

"When Minister Christine Tell says she wants 'to move arts, culture and heritage sectors from the margins of government to the centre,' it's hard to imagine what that might mean," said Lee Harding, Saskatchewan Director for the CTF. Saskatchewan's Film Employment Tax Credit is the most generous in Canada, returning up to 55 percent of eligible labour costs.

"Taxpayers have already given $7.4 million to Corner Gas and $3.2 million to Renegade Press for their first four seasons," says Harding. "Claims that this has been a boon to the Saskatchewan economy are overstated. Provincial coffers may be taking a loss."

In May 2004, the province commissioned an "Economic Impact Statement for the Saskatchewan Film and Video Industry." It reported that each job directly created by the SFETC cost the province $15,873, and if indirect employment was included, the cost would still be $8,095. Even after accounting for trickle-down effects in the economy, the total impact for government revenues in 2003-04 was a loss of $1.6 million. Even worse, the tax credit was less generous then, returning a maximum of 40 percent of eligible labour costs, not the 55 percent of today.

A recent report by the Saskatchewan Institute for Public Policy said that in 2003-04 Saskatchewan had the third-highest level of provincial funding for the arts, and the second highest municipal funding. Since then annual provincial subsidies through the SFETC and the Saskatchewan Arts Board have both doubled, to $15 million and $11 million, respectively. In addition, all but $30,000 of Saskatchewan Communication Network's $7.7 million in revenues came from provincial taxpayers.

"The provincial government should not spend one extra penny on the arts, and would be wiser to spend less," said Harding. "We're paying more than enough already."