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breaking news: New Brunswick axes tax credit, updated

By Mike Valiquette on March 22, 2011

Last updated on March 23, 2011

I don’t know anything else yet, but this is the message I got from Loogaroo’s Gene Fowler just a few minutes ago:

New Brunswick just killed their tax credit.

More info coming at 6pm.

And this came in from Rob Anderson, just now:

The new government in NB has decided that funding film is no good.
The government is eliminating funding for the Provincial Capital Commission and the New Brunswick Film Tax Credit.
The death of an industry.
I’ll update as I get more info.
mv
Ok, here’s what we’ve got as of this morning.  First of all, this is a proposed budget, it’s not final.  That being said, toppling the budget would also trigger an election in NB, so you can forget that.
Here’s the official word from the New Brunswick government: http://www2.gnb.ca/content/gnb/en/news/news_release.2011.03.0341.html
The provincial government tabled its 2011-12 budget today at the legislative assembly, announcing significant spending reductions and increased revenue measures expected to result in a smaller deficit, projected at $448.8 million.
Finance Minister Blaine Higgs said the provincial government had been facing a $1-billion deficit if the spending trends of the past four years continued.
“Today’s budget signifies a new direction: reversing our province’s fiscal decline and restoring New Brunswickers’ priorities and trust in government,” said Higgs. “Our government has inherited a spending mess that cannot be fixed overnight. We are developing a plan to return to balanced budgets within our mandate and to encourage a growing, vibrant economy.”
So yeah, economically speaking, things are a mess. They’re looking at taking a potentially one billion dollar deficit, and reducing it to 450 million.
It sounds like they took a really solid approach to getting input from the citizens of NB as well, using all manner of means to gauge the province on how they should approach the budget.  But for all I know, that could be political smoke and mirrors.  And they are still managing to put money into some programs, such as establishing the $30-million Northern New Brunswick Job Creation Fund and the $7.1-million Miramichi Regional Job Creation Fund, which consists of both contributions and loans.  It also sounds like there are going to be significant public sector layoffs as the government looks to increase efficiency.
The release doesn’t actually cover the Film tax cut.  But there’s a link to the actual budget.  I’m still reading to find the details.
And a meeting has been called of Media NB on April 8th to see if anything can be done.  Here’s the details from the Facebook event listing:
Filmmakers, producers, game designers, animators:
*** PLEASE COME TO THE AGM TO DISCUSS THE CUT OF TAX CREDITS, AND THE POSSIBLE ELIMINATION OF NB FILM, THAT SPELLS THE END OF THE MEDIA INDUSTRY IN NEW BRUNSWICK. IT IS URGENT THAT WE ARE TOGETHER AS A GROUP TO ADDRESS THESE CUTS***

Even if you are not a MEDIA NB member, please come to discuss and support.

…Where: at the Charlotte Street Arts Centre in Fredericton

When: Friday, April 8th, 2011 at 2:00p.m. – 8p.m.

Please contact Gia Milani at 455-8959 for more information on the AGM and for media inquiries please contact Maurice Aubin 866- 1043

From our AGM press release:
Media NB is preparing for their annual general meeting to be held at the Charlotte Street Arts Center in Fredericton on Friday April 8th.
Previously known as the APNBPA (Association des producteurs du Nouveau-Brunswick, New Brunswick Producers Association), the industry association has rebranded to Media NB in order to attract more producers from the television, animation, gaming and new media sectors.
The province has an active media content production community who is exporting their productions globally. Media NB’s objective is to create a strong common voice to represent the sectors as the province moves forward into the digital age.

Thanks to everyone who has chimed in with support and for spreading the word via facebook and twitter.
m

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Mike Valiquette
Mike Valiquette

Animation professional, dad, closet optimist.

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10 Comments

  4. Mark C. Mark C. March 22, 2011

    Please let any of us know if we can help you NB guys out Gene and Rob. This is crazy. I can’t believe the short-sightedness of some institutions.

  5. Jason Nicholson Jason Nicholson March 22, 2011

    There will be a meeting April 8th at 2pm in Fredericton. Come in person, call in via skype (we are looking into it) or write a letter. Support NB Film Makers. We need to keep the tax incentive. They gave a 10 year extension in 2009 after reducing NB Film from business class to a culture piece that is under the umbrella of “Sports, Wellness and Culture”.

    Let’s make the gov’t accountable for the remaining 8 years. Gives us more time to ensure a profitable project.

  7. Holly @ Confessions of an Actress Holly @ Confessions of an Actress March 23, 2011

    As a New Brunswick born and raised, Toronto based actress and filmmaker, this makes me so sad. I got my start in film when I landed a job on the movie Red Rover that was filmed in St. Andrews back in 2002. I fell in love with the art of film making and was advised by the producer that if I wanted to pursue it seriously, that I had to go where the work was. Two months later my bags were packed for Ontario and I’ve been here ever since. I often dream that one day I might be able to return home to work on a project or two. While in the past productions in NB have been infrequent, they will now be all the rarer. My hope of ever coming home to work is growing fainter. And young people like I was may never get that first taste into the world of film, a world they might have embraced. Please let us know if there is anything we can do. A dark day, indeed.

  8. Richard Lorway Richard Lorway March 23, 2011

    Sorry to hear about your troubles, guys. We fought a similar battle in NS recently and it wasn’t fun. Hopefully, common sense will prevail. It would be great if NBCC would publicly support the industry they are training young people for.

  9. ali ali March 23, 2011

    Only in New Brunswick, a lumberjack way of thinking.

  10. Tempa Hull Tempa Hull March 23, 2011

    I just read the official release. I don’t understand how simply cutting a tax credit is supposed to gain more money for a province. It only gains money if the companies and people involved in the industry stay and now pay 100% of the taxes. However, all this going to do is mean ZERO tax money for the province from anyone affiliated with this industry because they will simply LEAVE the province! So, in supporting this budget decision, they will manage kill an industry, run people out of the province and,consequently, decrease revenue for NB.

    I am an immigrant to NB. I came through the help of Enterprise Saint John and the NB Provincial Nominee Program. I wish I knew how much money the province spends every year in recruiting immigrants to New Brunswick. Don’t we need people? What about retention? And, with this–they’re simply helping to decrease any tax money they will receive from residents in this industry—who will now either choose not to come to NB or will choose to leave NB.

    Why change something if the only outcome is a negative one? Who could possibly say this will benefit the province and bring more money to NB?

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