The Government today announced changes to incentive schemes to encourage more television production being made in New Zealand and build on our world-class reputation for high-quality post production work, and innovative digital and visual effects.

It follows a comprehensive review of New Zealand's screen sector by the Ministry of Business, Innovation and Employment and the Ministry for Culture and Heritage.

The review focused on the Large Budget Screen Production Grant, the Screen Production Incentive Fund, Film New Zealand's functions, international co-production agreements, skill development, coordinating promotion and marketing of the domestic screen industry and collaboration between the New Zealand Film Commission and NZ On Air. It involved workshops with domestic and overseas stakeholders, as well as a large number of individual interviews.

The Large Budget Screen Production Grant, established in 2003, provides a 15 per cent rebate on productions with at least $15million qualifying New Zealand production expenditure. An additional 15 per cent rebate, capped at $9.75million, is for expenditure in New Zealand in excess of $200million.

The Screen Production Incentive Fund provides a rebate on qualifying New Zealand production expenditure of 40 per cent for feature films and 20 per cent for TV with New Zealand content.

The Screen Sector review, which covered the period 2010-2011, found the two incentive schemes have been successful in bringing films, TV and post-production work to New Zealand and that changes could be made to them to further grow the screen sector industry.

The review period did not include The Hobbit films which have qualified for funding under the Large Budget Screen Production Grant. These films have created an estimated 3000 jobs, boosted tourism, and pumped millions of dollars of additional spending into the wider New Zealand economy.

'The incentives have ensured New Zealand's screen industry has continued to grow and employ thousands of New Zealanders despite challenging global economic conditions,” says Mr Joyce.

'The production and post-production sectors alone contributed $638million to gross domestic product in 2011, up from $313million in 2005. Total gross revenue for the entire screen industry was $3billion in 2012, up from $2.6billion in 2005. This shows New Zealand's screen industry is making steady gains, and is competing on the world stage.

'To encourage more TV programmes being made here, we are lowering the qualifying production expenditure threshold for TV productions under the Large Budget Screen Production Grant from $15 million to $4 million from 1 October this year.

'Attracting more TV production and investment in New Zealand will boost the economy and provide greater continuity of work for Kiwis and their families.

'We also want to build on our growing strength in high-value post production, digital and visual effects, and enable smaller New Zealand companies to be more successful in attracting work to New Zealand. Accordingly, the qualifying expenditure threshold for the Post, Digital and Visual Grant will also drop from $3million to $1million.”

Mr Finlayson says the screen incentives are essential to the on-going development of the arts in New Zealand.

'Without the Large Budget Screen Production Grant most of the 35 major screen productions such as Avatar and King Kong that received rebates would not have come here. The Screen Production Incentive Fund also contributed to medium and larger-scale New Zealand productions, such as Boy and Top of the Lake, two excellent examples of New Zealand culture reaching broad audiences here and overseas,” says Mr Finlayson.

'Industry sustainability is what's driving these changes. We want more international screen productions to come to New Zealand and utilise our world-class expertise and scenery.

'The changes could also mean more local film and TV producers are able to make content that is attractive to overseas markets.”

There will be further work later this year as a result of the review focussing on skills development, and determining a co-ordinated strategy to ensure effective international marketing and promotion of the domestic screen industry.
More information, including reports and cabinet paper, is available at http://www.med.govt.nz/sectors-industries/screen-industry and http:///www.mch.govt.nz/screensector-review.

Source: Office of Steven Joyce and Christopher Finlayson.