Canadian Prime Minister Defends TV, Film Incentives

Canadian Prime Minister Jean Chretien on Friday defended Canada’s aggressive policies aimed at luring U.S. film and TV productions during a visit to Hollywood’s backyard, saying, “The best wins, and we want to be the best.”

Chretien said incentives that Canada and its provinces offer are similar to those accorded by individual states in the U.S., as well as other countries, such as Australia and New Zealand, where filming is flourishing.

“We’re competitive,” Chretien said. “That’s what the world is all about. There are no incentives that the Canadian government or provincial governments are giving to the industry at this time that are not acceptable.”

Chretien also suggested that Canadian film policies are criticized in the U.S. no matter what they are, noting that not too long ago Canada came under fire--especially by Motion Picture Assn. of America President Jack Valenti--for being too protectionist.

“Now we are not protectionist, but we are competitive,” Chretien said.

Canada is able to lure film production not just because of financial incentives, but because “we have good studios, we have good manpower, we have a lot of beautiful land,” Chretien said.

But Brent Swift, chairman of the Film and Television Action Committee formed to fight “runaway” production to Canada, disagreed. “The playing field would be level if the subsidies to the major U.S. producers were taken away,” he said.

Chretien’s comments come amid growing pressure on lawmakers in Washington to offset the big cost incentives Canada enjoys.

In addition to government sweeteners, producers shooting in Canada benefit from the weak Canadian dollar and lower wages. A 1999 study commissioned by the Screen Actors Guild and the Directors Guild of America concluded that production costs were about 25% lower than in the United States.

Members of Swift’s FTAC are holding a rally at 1 p.m. Sunday at the Hollywood Bowl to kick off a petition filing Tuesday with the Commerce Department in which they plan to allege Canada’s film subsidies are illegal and merit a counter tariff.