AN independent inquiry is being carried out to assess the value and competitiveness of the island’s film industry.
Treasury Minister Eddie Teare MHK has revealed his department’s joint report with the Department of Economic Development on the future direction and support of the film industry – due to be published at this week’s Tynwald sitting – is not yet finished.
Consultants Oxford Economics have been contracted to carry out a review.
Mr Teare told Tynwald: ‘This research will not only qualify the economic impact of film production on the island but also analyse the competitiveness of the Isle of Man’s offering in comparison with other jurisdictions.
‘It will also include a forward-looking economic impact analysis of the proposals being considered in respect of the future development of our film and our media industry. I am sure members will agree it is important that we have clarity going forward and, if we are able to continue to support and grow a film and media industry on the island, that we have a robust business case and economically viable proposal that will give all concerned the comfort required.’
Last December, Tynwald members supported two recommendations of the Public Accounts Committee for the Treasury and DED to consider further and then report back.
Mr Teare said: ‘These concerned the determination of options for the longer term development and support of the film industry, together with a more specific performance-management framework for the advisers who currently manage the Media Development Fund, namely CinemaNX.’
He added: ‘The arrangements for supporting the film industry have changed on a number of occasions since its inception and, I believe, from government’s perspective, we can be confident that in overall terms the industry has made an important contribution to economic activity on the island and has generated a substantial financial return to the Treasury.
‘However, we cannot rest on our laurels and, quite rightly, we must continually ask the question that, if we wish to support the film industry, which is the best way to achieve this.’
Mr Teare said the proposals were ‘not yet fully developed’ and it would take a ‘few months longer’ to finalise the possible alternative options and report back.
Meanwhile, in a written reply to a question from Douglas South MHK Kate Beecroft (LibVan). Mr Teare said that as of December 8, no film in which CinemaNX had invested had yet entirely recouped its initial equity investment.
But he said all films have or are expected to recoup the proportion of the investment made by the way of debt – mainly loans advanced against UK-generated tax credits.
He said: ‘Building long-term value through equity investment is entirely consistent in the film and television industry as is mixing the investment ratios of debt and equity to ensure revolving cash flow for future investments.’
