The Greene report recommends Newfoundland and Labrador increase support to arts and culture but the figures show that it already costs a lot to be in the movies and television.
The provincial government encourages television and film production through tax credits and other measures.
When the subsidies are taken into account, the Province’s Economic Recovery Team concludes that each full-time position created in the industry costs taxpayers just over $48,000.
The negative return to the treasury from television and film financial incentives over the four-year period of 2014 to 2018 was $31.5-million.
As per the report:
To create jobs and promote the province, the provincial government has encouraged television and film production in the province through tax credits and other investments. From 2014-15 to 2017-18, 69 film and video productions began shooting in the province, with a total expenditure of $163.2 million, of which $101.1 million was spent in Newfoundland and Labrador. About 60 per cent of this was on direct and indirect employment in the province. During this period, the Government of Newfoundland and Labrador provided direct subsidies of $36.4 million. The Department of Finance estimates the provincial tax revenues from personal income taxes, sales taxes, and consumption taxes generated by film production activities to be $12.5 million. The result is an estimated negative net return to treasury (net fiscal impact) of $31.5 million.
The Department of Finance estimates the net benefit to the Newfoundland and Labrador economy at $27 million, which is the total labour income, less provincial and federal taxes paid by labour, and the net return to the treasury. When Provincial Government assistance is measured in terms of cost per full-time equivalent position, each direct position is subsidized by an average of $48,712.
