/ 5 August 2005

Film a R1-billion industry

The first study of the film sector in almost five years says it is “particularly important that the restrictive tax and labour legislation is addressed”, if the industry is to maintain its stature and increase its competitiveness.

According to the Microeconomic Development Strategy Report, which will be officially released later this month, the sector’s worth stands at a turnover of R1-billion per annum, with the commercial (advertisement) segment alone estimated at a turnover of R772-million.

The film sector research has identified “seven key problem areas”, from audience development to tax and labour legislation, as “hurdles damaging the competitiveness”.

Its recommendations include an industry-wide exemption from the overtime regimen of the Basic Conditions of Employment Act; that crewing agents be registered as labour brokers, effectively shedding obligations to pay benefits; and a 25% flat tax rate for independent contractors. “Foreign talent” should also be subject to a fixed, but as yet unstipulated, tax rate, while the labour department requirements for hiring children on set should be reviewed.

Among other challenges cited in the report are industry over-pricing — “the escalation in local and support industry prices is rapidly reducing the attractiveness of filming in the Western Cape” — and fluctuating exchange rates.

The report also emphasises the need for better cooperation between the Cape Film Commission, a Section 21 company established to promote and facilitate on location filming, the Cape Town council film officials and provincial initiatives such as the film fund to train black filmmakers.