Sask Film Tax Credit Report

REGINA: The Canadian Taxpayers Federation (CTF) released a freedom of information request today showing Saskatchewan taxpayers handed the runaway success Corner Gas $4.8-million toward labour costs in its first three seasons and are set to hand over millions more. The findings are part of $37-million handed out through the Saskatchewan Film Employment Tax Credit (SFETC) from 2002 to 2007.

"CTV-Globemedia which airs Corner Gas hardly qualifies for a government handout," says Lee Harding, Saskatchewan director for the Canadian Taxpayers Federation. "The company made $4-billion last year in part because of ad revenue successful programs like Corner Gas generate. The new government should take the opportunity to say no to corporate welfare and shelve plans to hand over another $4.2-million for Corner Gas seasons IV and V."

According to Sask Film's website, the SFETC can write off "up to 55% of eligible labour on each individual project with no content or copyright restrictions- Unlike other tax credit programs, Saskatchewan's incentives are available for each production, without obligation to film additional projects in the province to qualify for an additional rebate." "How is such favourable treatment justified for such a small part of the economy " asked Harding.

Other projects receiving over $1-million dollars from Saskatchewan taxpayers include:

• 2005 movie Tideland received $1.6 million;
• 2006 movie Just Friends received $3.1 million;
• Short-run TV series Body and Soul ($1.7 M);
• Three TV episodes of Mary Higgins Clark ($1.5 M); and
• TV program Renegade Press $1.9 million over three years.

Despite receiving millions through Crown Investments Corporation, a Centennial Grant, the "Our Future is Wide Open" ad campaign, and construction of a soundstage, the Regina-based Mind's Eye Productions was another big recipient including: TV show MythQuest ($1.7 M); TV movie Sins of the Father ($1.5 M); and the woefully inaccurate Tommy Douglas Story ($1.6 M).

These figures do not include additional funding from the federal Film or Video Production Services Tax Credit (PSTC). This program rebates up 16 per cent of labour costs and can stack on top of provincial tax credits. The Canadian Film or Video Tax Credit will refund 25 per cent of labour for productions that have not used a provincial tax credit. The taxpayer-supported Canadian Television fund also gave $2.5 million to Renegade Press.

"Even spend-happy Alberta has a more modest rebate program and caps handouts at $1.5 million per project. Flatland dreams of becoming Hollywood North are quickly becoming fiscal nightmares," concluded Harding. "This is not a responsible use of tax dollars and the new government should put an end to it."