A new and improved grant scheme for big-budget screen productions was announced by the government yesterday (16 July), with improvements to the Large Budget Screen Production Grant (LBSPG), and ongoing funding for Film New Zealand.

"These changes will ensure that New Zealand remains a competitive and attractive location for the international screen industry," said Economic Development Minister Trevor Mallard.A new and improved grant scheme for big-budget screen productions was announced by the government yesterday (16 July), with improvements to the Large Budget Screen Production Grant (LBSPG), and ongoing funding for Film New Zealand.

"These changes will ensure that New Zealand remains a competitive and attractive location for the international screen industry," said Economic Development Minister Trevor Mallard."Large budget international productions have a positive impact on the New Zealand economy. However, we are operating in a competitive environment and it is important that our incentives are tailored to the needs of the international industry."

Additional funding and improvements for Film New Zealand and Large Budget Screen Production Grant

The one-stop shop organisation Film New Zealand - which helps facilitate access to New Zealand as a location for international film makers - has been granted six years of additional funding until 2012/13, worth $4.8 million in total.

"I am also announcing major improvements to the Large Budget Screen Production Grant, including moving to make bundled films eligible. These changes will provide a great boost to the local industry - ensuring the grant is an incentive that is competitive internationally, but which enables us to maintain our high quality reputation and support our core strengths in technology and production locations.

"New Zealand has a strong international reputation with a great depth of talent, cutting- edge technology and diverse production locations. The grant, which complements these strengths, offers a financial incentive that compares very favourably with incentives available in other countries. The changes we have introduced will reinforce our reputation as a film-friendly and competitive location.

Since 2003, grant has benefited nine major productions

"This grant has helped attract major productions to New Zealand. Since the grant was introduced in July 2003 nine major productions have come here and benefited, receiving grants totalling $NZ90.41m (GST exclusive) which reflects a total qualifying New Zealand production expenditure of $NZ 723 million. However recently grant spending has dropped and we are facing increasing competition as a location for large budget films," he said.

"The changes we've introduced will help us stay ahead of the game while still keeping the grant format and payment process simple, transparent and quick."

The changes to the Large Budget Screen Production Grant include:

• Increasing the grant to 15 per cent of the New Zealand expenditure for the production from the current 12.5 per cent;
• Removing the current requirement for at least 70 per cent of the production expenditure to be spent in New Zealand for productions between the $15 million and $50 million range;
• Allowing several productions costing a minimum of $3m each to "bundle" together to qualify for the grant to meet the requirement for qualifying expenditure of $30 million;
• Adding an incentive to use New Zealand-based post-production digital and visual effects services with qualifying expenditure of between $3 million and $15 million;
• Allowing a production or bundle of productions to pre-qualify for the grant; and
• Allowing very large productions to access their grant each time their expenditure goes over the $50 million mark.

"The specific post-production, digital and visual effects incentive recognises New Zealand's strengths in design. It will act as a catalyst for growth in this sector and will enable New Zealand to attract more of the total international post-production digital and visual effects market," Mr Mallard said.

The changes to the scheme are effective from today.

17/7/07

Image: Since 2003, the government has paid out $90 million in grants and subsidies to films with budgets over $15 million. More than half of that went to Peter Jackson's blockbuster King Kong, which spent $389 million in New Zealand.