Every once in a while, you'll see one of those faded red bumper stickers from 2013, pleading to "Save B.C. Film!" Well, mission accomplished -- thanks to a Canadian dollar that has slumped below 70 cents U.S.
The film business is booming in B.C., and industry insiders are "just licking our chops" at the number of Hollywood productions heading north. Unfortunately, that means B.C. taxpayers are about to get dinged with an even bigger bill -- a historic amount of film subsidies.
Now, it's time for Premier Christy Clark to "Save B.C. Taxpayers!" and wean the film industry off the ludicrous tax breaks it enjoys. We must address this addiction to subsidies now, while B.C. film has a powerful advantage over the U.S. thanks to the tanking Canadian dollar.
Documents found in November 2014's Sony Pictures hack show just how lucrative government subsidies are: film companies get back 58.4 per cent of their labour costs reimbursed from taxpayers.
The documents reveal that Sony paid B.C. residents $5 million to work on the Smurfs movie, and then got $2.86 million back from taxpayers. This for a movie that cost $110 million to make and grossed $563 million worldwide. Smurfs 2 is expected to suck up even more tax money, some $7.7 million of its $13.1 million wage bill.
The decidedly unamazing Amazing Spider-Man 2, which somehow grossed $709 million worldwide, saw taxpayers cover $7.7 million of its $13.3 million B.C. wage bill.
The hacked Sony documents show they expected to get back $38.3 million of the $65.6 million they spent on wages in B.C. from 2010 to 2014.
To put that into perspective, the B.C. government spent $38 million last year to open the Hope Centre for Psychiatry and Education in North Vancouver. For most British Columbians, new mental health facilities are likely a far better use of $38 million than writing corporate welfare cheques to giant U.S. conglomerates.
All told, the B.C. government cut cheques for $1.5 billion in film subsidies over the past five years. That's more than taxpayers spent on the ministries of aboriginal relations, agriculture and environment -- combined.
As if that wasn't enough, the federal government jumped in with $1.73 billion more nation-wide.
With the low Canadian dollar attracting more filming here, these subsidies are going to soar even higher in 2016-17, as there are no caps on these payouts.
Even with every conceivable tax spinoff included, experts estimate the provincial treasury only got back, at most, half of what it paid out. While the industry touts overall "economic spinoff," the truth is this money simply isn't rematerializing in the treasury.
This means B.C. taxpayers have lost roughly $750 million on this industry over five years -- money that could have been building schools or hospitals, paying down debt or coming back to us in Medical Services Plan tax cuts.
All over North America, provinces and states have been getting out of the business of cutting corporate welfare cheques to movie companies. Michigan found it recouped just 11 cents of every dollar it paid out and killed its subsidy. New Jersey, Alaska, Washington, Arizona, Arkansas, Idaho, Iowa, Kansas, Saskatchewan, Nova Scotia and Maine ended their subsidies, and Quebec and at least nine states have reduced them. Ontario is also considering a cut.
British Columbians should want a strong film industry, but not one wholly reliant on taxpayer dollars. The provincial government should seize the opportunity that comes with a low Canadian dollar to force the industry to become self-sufficient. If not now, when?
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Our Favo(u)rite Canadian Movie Actors
Ryan Gosling(01 of22)
Open Image ModalThe man is literally unstoppable right now. "The Ides of March," "Drive" and "Crazy, Stupid, Love" all did well -- and those were just released in the past year. Who knows what's to come? (credit:Getty Images)
Rachel McAdams(02 of22)
Open Image ModalWho doesn't love this woman? A born-and-bred Canadian, McAdams still has a home in Toronto. Her stock has risen exponentially since "Mean Girls," and she's well-liked for her performance in "The Notebook." Her turn in the "Sherlock Holmes" movies (and her recent co-starring role in "The Vow") have only upped her stock. (credit:Getty Images)
Christopher Plummer(03 of22)
Open Image ModalAnna Paquin(04 of22)
Open Image ModalIt's a rare thing for an Oscar-winning child actor to move on to further success, but that's exactly what Paquin did! She was terrific as Rogue in the "X-Men" franchise, and now she vamps it up weekly on "True Blood." (credit:Getty Images)
Ellen Page(05 of22)
Open Image ModalShe describes herself on her Twitter account as a "tiny Canadian," and boy is it true! Luckily for her, her personality far outweighs her tiny stature. With starring roles in "Juno" and "Inception," and with two upcoming films, be expecting more from Page in the near future. (credit:Getty Images)
Ryan Reynolds(06 of22)
Open Image ModalReynolds has had a couple flops in the past year -- "Green Lantern" and "The Change Up" among them -- but it hasn't seemed to hinder his star power. He's still in high demand, and he was voted People's Sexiest Man in 2010, so we don't think he's going anywhere. (credit:Getty Images)
Jay Baruchel(07 of22)
Open Image ModalThis funnyman has been on camera for most of his life, starting on TV and working his way to movies. In each of his roles, from "Tropic Thunder" to "Goon," Baruchel has a way of connecting with the audience without losing the funny. A diehard Canadian, the actor has a maple leaf tattooed over his heart. (credit:Getty Images)
Michael J. Fox(08 of22)
Open Image ModalSure, he hasn't been in very many movies lately, but when you think about his performance(s) in the "Back to the Future" franchise, you remember why he's so well-loved. Plus, "Teen Wolf." That is all. (credit:Getty Images)
Sarah Polley(09 of22)
Open Image ModalDonald Sutherland(10 of22)
Open Image ModalThe prolific icon has done it all, starring in some of the most beloved movies in history ("M*A*S*H," "Invasion of the Body Snatchers," "Animal House" to name a few). And he's ingratiated himself to new generations with the perfect depiction of President Snow in "The Hunger Games." (credit:Getty Images)
Jim Carrey(11 of22)
Open Image ModalSeth Rogen(12 of22)
Open Image ModalSarah Gadon(13 of22)
Open Image ModalSure, you may have never heard of her, but she's director David Cronenberg's latest darling. With small-ish roles in "A Dangerous Method" and "Cosmopolis," Gadon's star is on the rise. See her next in "An Enemy," where she stars next to Jake Gyllenhaal. (credit:Getty Images)
Taylor Kitsch(14 of22)
Open Image ModalPoor Kitsch just can't catch a break. He's getting a terrible rep in the business as a "movie killer" for his latest releases, "John Carter" and "Battleship." We still hold out hope for him, though, with his next film, "Savages." (credit:Getty Images)
Mike Myers(15 of22)
Open Image ModalWhat an enigma. You couldn't touch Myers in the '90s -- his movies ("Austin Powers," "Wayne's World") grossed millions and he was considered part of the comedy elite. Somewhere along the way he got a bit lost, but his popularity has recently resurged with an under-the-radar role in "Inglourious Basterds." And let's not forget he's the voice of Shrek. (credit:Getty Images)
Dan Aykroyd(16 of22)
Open Image ModalEugene Levy(17 of22)
Open Image ModalCanadian funnyman Levy just has this thing, this certain comedic approach that sucks you right in. Hilarious roles, like his appearance as Jason Biggs' dad in the "American Pie" series, or his various appearances in Christopher Guest's mockumentaries are infinitely memorable. And that's just the tip of the iceberg with this guy. (credit:Getty Images)
Michael Cera(18 of22)
Open Image ModalCurrently on Broadway, Cera has established himself as the awkward-teen-guy in Hollywood. The critically successful "Scott Pilgrim vs. The World" and the underwatched "Youth in Revolt" solidified his place in the teen movie canon. We'll enjoy him as much as we can now, since we're not sure how he'll fit into the picture when he transitions to adult roles. (credit:Getty Images)
Alison Pill(19 of22)
Open Image ModalCatherine O'Hara(20 of22)
Open Image ModalO'Hara hardly needs a description -- the woman is one of the funniest actors that ever graced the big screen. She's in so many movies they're hard to count, but we loved her in "Beetlejuice," "Where the Wild Things Are," and her more serious turn as Mom in "Home Alone." Looking forward to her performance in the upcoming "Frakenweenie." (credit:Getty Images)
Rick Moranis(21 of22)
Open Image ModalPlease come back Rick, you are sorely missed! We understand your noble decision to put raising your children in front of a Hollywood career, but as other comedians of your era have aged not-so-gracefully, you went out on a perfect high note and will always have us wanting more. (credit:Getty Images)
Carrie-Anne Moss(22 of22)
Open Image ModalWhile her most memorable role was Trinity in "The Matrix," Moss has done many things since, including a role in "Disturbia," the role of Gertrude on TV show "Chuck," and she continues to do awesome things like voice video games (Mass Effect 2 and 3). (credit:Getty Images)