2010 Review of the Australian Independent Screen Production Sector

Submission to the Department of Environment, Water, Heritage and the Arts

Prepared by Lynn Gailey
May 6, 2010

With the possible exception of India, there are no screen industries in the world that do not receive government subsidy. Even the industry in the USA now receives subsidy from American states and foreign countries. Australian screen subsidies must be sufficient to support a sustainable industry.

Australia attracts foreign productions through such financial incentives, but it cannot depend upon being host to foreign productions. They are subject to too many variables beyond our control. Expenditures from offshore fell from $105m in 2008 to $2m in 2009! A key to the sustainability of the industry is that it is able to offer continuing employment to people of talent and expertise.

Australia attracts foreign productions through such financial incentives, but it cannot depend upon being host to foreign productions. They are subject to too many variables beyond our control. Expenditures from offshore fell from $105m in 2008 to $2m in 2009! A key to the sustainability of the industry is that it is able to offer continuing employment to people of talent and expertise.

There is a severe lack of comprehensive data on the Australian industry in its many ramifications. This is now exacerbated by the cessation of ABS activity for the film industry. The government is investing in this industry with little quantified knowledge of its operations. It should ensure that the ABS collects the data.

More films are being made on low budgets and fewer on higher budgets. It is probable that this is at the expense of the film workers who are expected to do more for less. This includes the composer who is often given an inadequate budget allocation from which all costs of producing the musical soundtrack must be met.

The Music Council thus supports the proposal that payments from the Qualifying Australian Production Expenditure should go only to Australian citizens or permanent residents. Similarly, the Significant Australian Content test should benefit Australians at all levels of production.

The Producer Offset at its present level is probably not sufficient to underpin a viable industry. Support might be enhanced through state funding agencies playing a larger role in providing cashflow facilities.

The Free Trade Agreement with the USA has constrained Australia’s ability to regulate to foster its screen industry. The CER with New Zealand is making some inroads into Australian television production. The negotiation of the Trans-Pacific Partnership with both the USA and NZ arouses deep concern that Australian cultural sovereignty could be further compromised.

Read the complete submission