PN suggests film rebate scheme should be capped to prevent ‘extravagant spending’

Updated 6:29pm with government's statement

The Nationalist Party has suggested Malta’s film rebate scheme should be capped according to the production’s size, in order to prevent extravagant taxpayer spend on movies.

Speaking during a press conference on Tuesday, culture spokesperson Julie Zahra insisted the PN has never said the rebate scheme should not exist, stating the party was obliged to request an investigation into the matter.

The Nationalist Party has formally requested the Auditor General to initiate an investigation into an expenditure of approximately €137 million by the Maltese Film Commission.

According to the PN, these funds were allocated to foreign companies registered outside Malta between September 2018 and August 2023.

Recent headlines about a €46.7 million payment to the film company producing the sequel to the blockbuster Gladiator raised eyebrows

When asked by MaltaToday, about potential capping on the total amount given back to production houses, Tourism Minister Clayton Bartolo stressed that the film industry's vitality isn't solely reliant on high-grossing films.

He noted that in Malta, the industry thrives due to a mix of major hits and smaller-scale projects like television series that collectively contribute to a “thriving cinematic ecosystem”.

"Between them, they create the ecosystem. We can't rely only on big-budget movies. Movies like Gladiator, with a huge budget, don't come every year but they come sometimes." Minister Bartolo said.

During Tuesday’s press conference, Zahra said she “truly doubts” how much incentives are being given to Maltese homegrown artists.

“Foreign productions are able to come into the country, bring their own crews and workers and still benefit from the rebate while non-film expenditures such as food are also subsidised by the taxpayer,” she said.

She said a daily allowance of €300 is given to fund meals and daily expenditure, but in the past, it was a “more realistic” €70.

“We need to see how we can protect workers,” Zahra said, insisting local jobs are competing against foreign workers.

Nationalist MP Darren Carabott also spoke about Film Commissioner Johann Grech’s five-minute video where he addressed critics who latched on to a Times story on the cash-back paid out to the Ridley Scott movie Gladiator II.

“Other people may call this an attack. The Nationalist Party is saying this is not an attack, but an investigation,” Carabott said. “Let's make an appeal for the responsible expenditure of public funds.”

"The opposition has no clue how the film industry works" - Government

Reacting to the Opposition’s statements, the government said “the opposition has no clue how the film industry works.”

The government clarified that films seeking a cash rebate are subjected to thorough auditing conducted by an independent company, ensuring a robust evaluation process free from government influence. Only upon successfully passing this rigorous assessment is the cash rebate granted, in adherence to the regulations set forth by the European Union.

“This meticulous scrutiny embedded within the incentive scheme has played a pivotal role in elevating the nation's standing within the industry,” it said.

The government once again excluded capping, saying this would limit the creation of work risking that Maltese and Gozitans crews would end up unemployed.

“There were now more than 1,300 people who worked in the industry which enjoyed back to back productions. The rebate ensured that the big majority of these workers are Maltese.”