Movie Industry Rallies to Halt ‘Runaway’ Films

With production activity continuing at a lethargic pace, the issue of “runaway production” is fast becoming the hottest topic in Hollywood, with labor and film commission officials pushing hard to make it a national issue as well.

Various groups are moving on several fronts to call attention to the issue this week:

* On Sunday, the newly formed Film and Television Action Committee plans to hold a “Bring Hollywood Home” rally at 1 p.m. at Johnny Carson Park in Burbank.

* Earlier this week, the Directors Guild of America said it had hired a high-powered Washington tax-lobbying firm to press its case and come up with possible incentives to keep productions in the U.S.

* Assemblyman Scott Wildman (D-Los Angeles) met in Burbank with representatives from Hollywood trade unions to discuss his bill calling for a 10% tax credit on labor costs. Wildman’s proposal is one of two in the Assembly; Sheila Kuehl (D-Santa Monica) has also proposed a tax credit bill that is expected to be merged with Wildman’s.

* State and local film officials are moving to form a national trade association for film commissions in the United States, called “Film U.S.,” that would work to stem the flow of production overseas.

All of the moves come as concerns grow that high production costs will continue to tempt producers to shoot movies and TV shows in lower-cost places such as Canada and Australia. Because of that competition, officials are trying to get the issue on the agenda of politicians in Washington.

Directors Guild Executive Director Jay Roth said the hiring of the firm Washington Counsel PC as a lobbyist on the issue was done because “our view is that the question of the loss of motion picture and TV production is not strictly a California issue. It’s a nationwide issue.”

Over the last few months, production work has slowed for a variety of reasons, including studios’ cutting their bloated production slates due to high production and marketing costs in a saturated market for films. As that has happened, the issue of runaway production--a major issue in Hollywood off and on since the early 1980s--has reemerged as a top concern.

Canada offers a weak dollar and government incentives that have allowed it to capture much of the TV movie business. Australia’s soft currency relative to the dollar has made it attractive as well. The current box-office hit “The Matrix” was shot there.

Jack DeGovia, a film production designer who chairs the group organizing Sunday’s rally, said it is being called to support the Wildman and Kuehl bills. The rally is also aimed at sparking a joint effort by unions, producers and suppliers to keep production strong domestically.

During the meeting with Wildman, union officials were supportive of his efforts but insisted they first need to change their own attitude.

“What we have to do is to stop being so chauvinistic and realize that we are not the only place in the world that can produce television shows and movies,” said Sandy Burke Jordan, business representative of the Motion Picture Costumers. “It’s time to take our heads out of the sand.”

Wildman warned the union crowd that his bill may be difficult to pass. Legislators from Northern California may not want to subsidize the Los Angeles film industry with about $80 million in forgone taxes, he said.

Several union officials said the entertainment industry needs the politicians’ help. “I have 15% unemployment right now,” said Thom Davis, head of the local grips union.

Union officials stressed that the health of the industry isn’t important just for them.

“People need to realize that L.A. is a company town,” said Norm Glasser of the lighting union. “Without the company, it will be a ghost town.”