SPADA E-NEWS #7
10 August 2007

Dear Members

It’s fair to say that 2007 has so far been a tough year for many members of our industry.  While gearing up for the digital future, TVNZ's commissioning levels have been relatively low, which impacts on work levels across the industry.

In an encouraging new development, after the announcement that the planned soap THE POINT wouldn’t go ahead, TVNZ and NZ On Air have called for proposals from producers for a number of local dramas in the 8.30pm Sunday Theatre slot.  In addition to the Sunday drama initiatives, we understand that a number of other dramas are in development for both TVNZ and TV3.

While it is heartening to see a number of New Zealand films about to be released, there have been few films greenlit over the past 12 months, which may impact on the industry’s ability to sustain the momentum of New Zealand films.  We are hopeful that the coming year will see more projects off the ground.

Over this period SPADA has also been garnering up to date information from the experience of our international colleagues on digital rights issues, and working on the clearance issues for use of back catalogue for VOD, digital and other internet use of existing programming.  This, of course, is a key area given the newly implemented terms of trade for NZ On Air funded programming achieved in April, which enable production companies to capitalise on new sales of back catalogue and new programming.

Further to the Australian Government's major package for the screen industry, which includes a producers’ rebate on Australian expenditure of 40% for film productions and 20% for television productions, the New Zealand Government has also introduced changes to the Large Budget Screen Production Grant ('LBSPG').  The changes include:
  • an increase in the grant to 15%
  • removal of the 70% threshold for productions with QNZPE between $15m and $50m
  • bundling of productions (each with a minimum spend of $3m) to reach a QNZPE threshold of $30m
  • a new PDV (post-production, digital and visual effects) incentive whereby qualifying PDV expenditure in excess of $3m will receive a grant of 15%

(New criteria to reflect these changes is currently being drafted and will be available at the end of August 2007 on the NZFC website.  The existing criteria will continue to apply to production expenditure incurred prior to 16 July 2007.)

The screen production industry is a competitive business, and it’s important that incentives recognise this, so the changes to the LBSPG are a positive response to current international market conditions.  It is pleasing that this incentive has been extended to post production, digital work and visual effects with a lower qualifying threshold, that bundling has been included and that the 70% production expenditure in New Zealand requirement has been removed.

SPADA is particularly interested in incentives that directly benefit the producer; and we will be watching Australia closely to see how these new incentives bed in.

SPADA is also involved in discussions with AMCOS/APRA regarding clearing music rights for back catalogue.  In order to exploit a company’s back catalogue the value of the sale has to outweigh the cost of the producer obligation to obtain all necessary clearances.  At the moment this isn’t the case, therefore, SPADA is working towards a mutually satisfactory agreement whereby all parties are receiving some returns; and New Zealand audiences get another opportunity to watch some great local content.

SPADA is holding a chat room on current industry issues, along with a Special AGM on membership categories and Board terms in Auckland on Thursday 30 August at 6.00pm.  Details to follow.

Look forward to seeing you there.

Penelope Borland
CEO

WELCOME TO THE FOLLOWING NEW MEMBERS

Great Southern Television – AK,
TV Production Company
Huia Lambie – Kapiti, Producer, Studio 40 Limited
Josie McNaught – AK, Producer/Director, TVNZ
Kristian Eek – AK, Producer, Eek! Limited
Matthew Horrocks – AK, Producer, Reservoir Films
Colin McRae – AK, Producer, Landmark Productions
Tim Riley – AK, Dominion Law

NZ ON AIR: PCO’s
SPADA is currently re-opening discussions regarding Producer Company Overheads.  SPADA position going into these talks is that it believes there is a need for an increase in PCOs.

SUBMISSIONS

Proposed Tax Credit for Research and Development
At the end of last month the Screen Council made a submission on the proposed tax credit for research and development, which was endorsed and supported by the Guilds and SPADA.  The submission focussed on the definition of research and development in the proposed R&D Tax Credit.  At present the R&D Tax Credit precludes content development, which is the principal area of research and development in the screen production industry: the submission recommended revising the definition to include “(screen) content”.  Submission.

Police Act Review
SPADA’s submission to the New Zealand Police on the Police Review Act addresses the current constraints placed upon producers and production companies include the use of police characters in works of fiction/non-fiction, which leads to the use of police uniforms or items.  SPADA recommended inserting the wording “without lawful excuse”, asserting that a television programme or film could be considered a “lawful excuse an exception.  Submission.
LEVY DECLARATION NOTICES
Please note levy declaration notices will now be sent out monthly. 
AIR NEW ZEALAND SCREEN AWARDS
Congratulations to the following SPADA members for their success at the Air New Zealand Screen Awards. 

* South Pacific Pictures for Outrageous Fortune / Maddigan’s Quest
* Elizabeth Mitchell for ‘broTown
* Mark Albiston for Run
* Peter Young and Tracy Roe for Hunger for the Wild
* Screentime/Maori Television for Na Ratou Mo Tatou – They Did It For Us
* Ondrej Havas for Henderson to Hollywood
* Jason Gunn for Dancing with the Stars
* Peter Young for Country Calendar
* Victoria Kelly for Maddigan’s Quest

SPADA would also like to congratulate Stefen Lewis for receiving the Best Digital Feature award for The Waimate Conspiracy, which comes with one year’s free SPADA membership. 
NEW BROADCASTING FUTURES CONFERENCE
28-29 August 2007, Te Papa, Wellington

 Hosted by Broadcasting Minister Steve Maharey, the New Broadcasting Futures Conference will feature a mix of international keynote speakers, workshops, case studies, technology demonstrations and panel discussions. 

“As New Zealand progresses toward the digital future, this conference is very timely and means we can learn from international experiences and consider how to ensure our unique culture, values and national identity are protected in a world of globalised multi-media,” the Minister said.  “This conference is an excellent opportunity to discuss the issues facing us as we move further in to the digital age and it is also great to see that tertiary students will benefit from using the event as a cross-platform, multi-media project in itself.”

To view the latest programme details and speaker's biographies click here.  Tickets for the dinner are also selling fast, so register now to avoid missing out.

QANTAS TV AWARDS
Just a reminder that entries to the Qantas TV Awards close Friday August 17 at 5pm.  To enter go to www.qantastvawards.co.nz.  For further information contact Kerryanne Evans on (021) 289 1064.
SPADA CONFERENCE 2007
Discounted rooms are available at City Life. This year the conference is being held from 15-17 November, Hotel InterContinental in Wellington.
NEXT SPADA BOARD MEETING
Friday 31 August 2007 in Auckland.
FEEDBACK
Please email any feedback to us on info@spada.co.nz or give us a call.

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