124/03
4 November 2003
Estelle Morris Announces Major Review Of Film Co-Production
The Government today launched a root-and-branch review of international film co-production treaties in a bid to ensure they are bringing real cultural and economic benefits to the UK.
The review, which will be jointly carried out by the DCMS and UK Film Council, will look at how the existing treaties are working and explore the potential for new ones.
To kick the process off the Government today published updated guidelines clarifying the criteria international co-productions – films made by two or more countries - must meet to gain British certification. This enables them to apply for film tax relief.
The up-dated guidelines, which are supported by the UK Film Council and producers body PACT, will help cut down on abuse of the system.
Films Minister Estelle Morris also announced that from now on a minimum 40% of the film budget in any bilateral UK/Canada co-production must be spent in the UK – up from 20%. This addresses a current imbalance and has been agreed by the Canadian authorities.
Estelle Morris said:
"Co-production is central to the future of the British film industry and the UK can lead the way.
"But it is a two-way deal. Co-productions and the associated tax breaks must lead to more jobs in film in this country and more work for our film making facilities. I am determined to ensure the right people are reaping the benefits and we will be monitoring the system to ensure just that.
"That's why I am launching this major review and up-dating the existing guidelines, to ensure the system is delivering on the shop floor, where it counts."
Co-production has been an important part of the expansion of the UK film industry over the last decade. In the early 1990's approximately 20 co-productions were made each year. This year will see around 200 UK co-productions.
Films qualify as British if either 70% of the budget is spent in the UK or through co-production agreements. The UK has agreed bi-lateral film co-production treaties with Australia, Canada, France, Germany, Italy, New Zealand and Norway. The European Convention on Cinematic Co-Production also puts in place agreements between the UK and 30 other European countries.
The new guidance replaces the existing, out of date version and has been produced after wide consultation with both the industry and co-production partners. It will explain the basis on which the DCMS grants British Certification, making the system more transparent for filmmakers.
It will also introduce new requirements. For example, applications will need to be received by the DCMS four weeks before production starts and there will be tighter requirements for auditor's reports.
Notes to Editors
1. The terms of reference for the review are as follows:
- To review and make recommendations for the redefinition of the current legislative definition of a "British film", geared to the twin issues of cultural expression and industry economics;
- To propose a clear policy framework for the UK's international co-production activity;
- To evaluate fully the cultural and economic benefits of all the UK's existing international co-production treaties, including the European Convention on Cinematic Co-Production, and to make recommendations, based on that analysis and the policy framework defined in objective 2 above, as to the retention or revision of those existing treaties in order to obtain the maximum cultural and economic benefits for the UK;
- To make recommendations for new international treaties aimed at fostering intra-industry co-operation across the value chain, in the light of objective 2 above;
- To review the current operation of the system whereby films are certified as British, examining in particular the efficiency and relevance of current practice, and to make firm recommendations about the future operation and location of and appropriate resources for this function, with reference to objective 2 above.
3. The revised UK/Canada co-production treaty will be revised in 2005.
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