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Producers look to new Government

Screen producers are hopeful an incoming Coalition Government will agree to their pleas to lift the producer offset for TV drama from 20% to 40% and to raise the uncompetitive 16.5% location rebate to 30%.

Producers are also optimistic the next Government will reject proposals by the Australian Law Reform Commission (ALRC) which they fear would severely weaken Australian copyright law.

Statements by the Shadow Arts Minister, Senator George Brandis, at a forum staged in Canberra on Wednesday by the Screen Producers Association of Australia were widely seen as encouraging signs of the policies the Coalition is likely to adopt in Government.

Brandis and Arts Minister Tony Burke took part in a Q&A session moderated by Sky News’ David Speers.

While he gave no commitments, Brandis indicated that, if elected, he is willing to listen to arguments that the producer offset and location rebate should be increased to meet market needs. He hinted at the prospect of these measures being “tweaked.”

Brandis listened attentively when SPAA executive director Matthew Deaner branded the ALRC’s copyright proposals as “misguided.” While the Senator did not respond directly to Deaner’s remarks, his broad smile suggests he is across the issue and it is unlikely that a Coalition Government would implement those reforms.

Addressing Screen Australia’s Jobs, Dollars, Hearts and Minds conference in Canberra on Tuesday, Deaner said the ALRC recommends “repealing all existing copyright exceptions (including Screenrights Statutory licences) and replacing them with a vague concept imported from the US known as ‘fair use’ which would be largely determined by litigation. “

He added, “The current discussion from the ALRC appears to have been seduced by interests whose priority it is to seek to exploit the investment and risk made by others. Those that make the original works appear to have been ignored.”

At the SPAA breakfast Burke batted away criticism that the producer offset should not apply to films such as The Great Gatsby, stating the incentive should be available to Australian filmmakers, not  just to Australian-set stories.  In a rare show of unity, Brandis agreed. 

If the Canberra policy conference were designed to focus the minds of politicians on the challenges facing the screen industry, it got off to a bad start. Burke and Brandis’ flights to Canberra were delayed by fog and neither arrived in time to deliver the speeches scheduled for Tuesday morning following Screen Australia chairman Glen Boreham’s opening address. Burke’s speech was delivered by an Arts Department official.

However SPAA president Brian Rosen said the conference and Wednesday’s forum achieved their intended purpose. “It was a very successful presentation to Government in Canberra,” Rosen told IF. “Both Burke and Brandis expressed their support for the screen industry.”

The conference was attended by about 200 people; the vast majority, including federal and state agencies personnel, travelled there on other people’s money. The cost and location deterred producers from other States.

  1. OPPORTUNITIES FOR SCREEN AUSTRALIA

    Recent reports in the screen industry press indicate that many professionals, including myself, are concerned about the state of our industry and are looking to SA to implement a new culture.

    My name is Oscar Scherl, I have served in the Australian screen industry for forty plus years as a Cinematographer, Director, Producer, Executive Producer, Film Fund Manager and Consultant. I feel more than qualified to make positive suggestions at this opportune time of SA choosing its new CEO.

    I make my proposals in brief paragraphs; most are based on the Screen Australia Act 2008, and the conditions of the 2008 Minister’s Statement, both are first-rate business plan documents. Unfortunately, few of the main clauses have been implemented by the Executives of SA due to the lake of actual industry experience.

    Proposals for Screen Australia to act as a Corporation (Mini Studio)

    • Appoint a respected Australian Screen Professional the CEO, with long years of ‘actual’ experience. Or If the (bureaucratic) status quo is to be maintained appoint an experienced screen industry Consultant (SA Act 2008, Part 4, Division 2, 34) who can advise the CEO and/or the Board.

    • Reduce Staff, by natural attrition, or redeploy them to the various proposals to follow;

    • As per the Minister’s 2008 directions, establish a section which is charged to bring additional finance to SA, by engaging or partnering with private and corporate finance via DGR, Offer Document or Prospectus financing (SA Act, Part2, Powers 7).

    • Next to project financing, and in conjunction with private investment, SA to expand their financing services into Guaranteeing, (SA Act 2008, Functions, (2) (b), End Funding, Completion Guaranteeing, Marketing finance, Gap Funding, Rebate financing, instead of these finance services being performed by other corporations, charging high premiums and often the money leaves Australia.

    • The SA Act 2008, Part 2, Functions, (1) (b)(ii), provides for SA to become a Distribution Service, actually representing and selling the many independently produced films, whether it’s a SA financed film or not. By SA becoming a respected Distributor of Australian films, it will shed the image of Australian films being a ‘soft touch’ product! This is often repeated at markets, because small independents do not have the experience, finance, powers or inclination to make the best deals and usually have to ‘give away’ their films, and have to listen to ‘you got the money for free anyway’.

    • SA as a Distributor, to establish world wide networks of ‘first look’ Cinema Chains, Broadcasters and Aggregators who are outright buyers of Australian films, saving much time, money and it alleviates follow-up problems, non reporting, non payments, on-selling without permission, contract over-runs, and often involve legal issues which the individual Producer cannot afford to pursue.

    • Films in which SA invests; remove the requirement to have a Distributor attached to a feature film, which automatically assures little or no ROI for any film.

    Note; I am astonished that Box Office is used as a measure of success. My experience shows that if a Producer is lucky, the ROI, not considering profit, is only achieved when the Box Office takings are at least 12 times larger than the production Budget. As far as I and my previous investors are concerned BOX OFFICE figures are miss leading and falls and SA should drop such research and publication. Box Office figures, whether for publicity or research are a waste of time, money, and have little to do with the business of producing films, such information should only be used for audience participation purposes.

    As far as I know, perhaps with the exception of the publishing industry, the film production industry is the only one that produces a product (film) then gives it to the wholesaler (Distributor / Agent) for free, (the inexperienced Producer claims success) and the Investors and SA hope to get their money back, let alone make a profit?)

    • In Australia, increase the audience for Australian Films by SA negotiating with the Private Cinema Owners Association (51%) to have at least one session per week, at a regular time slot, showing only Australian Films. Such a system will attract audiences for Australian Films. Normally Australian Films only receive a very brief showing and are pushed out by the blockbusters, if the Distributors allow for the Exhibitor to provide a time slot at all. My research shows acceptance by Exhibitors of such a proposal, if established and backed by SA, specifically in terms of access to Australian films.

    • SA to make available Interest Free loans for small communities, for them to establish screening facilities in their area. SA to distribute or make available Australian films for these new outlets, which can also be used for audience building and feedback for future projects through Synopsis distribution, etc.

    • With the oncoming NBN facilities, SA must be instrumental in establishing its own platform for broadcasting Australian films to Australian and world audiences.

    • Under the SA Act 2008, Part 2, Functions, (2)(d), SA is able to assist infrastructure companies to continue to provide their services, (e.g. the last film laboratory having closed down, re-establish a laboratory in the Film Australia premises) so that foreign and local Producer’s, DOP’s and the NFSA can continue to utilise film stock whenever required. Assist other necessary infrastructure companies to continue their services, if they have difficulties to continue to be in business, but are vital to our Industry.

    • Facilitate the transfer of films to digital media. Many films are held by the NFSA and in private ownership. Such films can be utilised for rescreening in the Australian participating Cinemas, in the community theatres and world-wide via the internet platforms, thus increasing the Screen Australia Brand world-wide.

    • Re-establish Film Australia at the Lindfield Studio site as the hub for Australian documentaries and low budget films by providing its facilities at an affordable level, creating films that reflect the Australian culture, freeing feature films to be more suitable for the world market.

    • Continue to establish more Enterprise Clusters (a great and successful program).

    • Support a wider range of professionals throughout the screen industry, foster, but lessen the emphasis on new talent, who are doing courses in every Uni, Films schools etc, and after graduating have nowhere to go. Professionals, through lack of support and finance, cannot employ the new talent, for them to receive real industry experience. (It’s not enough to show a piece of paper with the Producer, DOP etc title on it, then demand money for their pet film subject; what happened to learning on the job?) The industry’s image also suffers because there are too many courses (which is now an industry on its own) with no work available, creating disappointment for the many.

    • SA to establish a system which would provide direct access to actors and directors by bypassing their agents, this would enable actors to read scripts and decide themselves if they wish to participate in the project (SA to use ‘Pay or Play’ contracts / guarantees).

    I believe that enlarging on the current SA activities, via these proposals will provide jobs, establish the Australian Screen Industry as a predominant industry, respected by Australians and around the World.
    Oscar Scherl
    EP / Industry Consultant
    http://www.osscca.com

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