Opposition says film industry cash rebate financing foreign crews as minister defends incentive

The Nationalist Party is questioning the economic benefit of the generous 40% cash rebate offered to film producers, saying it was financing the wages of foreign film crews.

PN spokesperson Julie Zahra was reacting to news over the weekend that the producers of the Gladiator sequel, Paramount Production, will be receiving €47 million in taxpayers’ money. The eye watering amount has raised eyebrows among local producers.

Zahra said these productions were not fully-filmed in Malta, raising question marks as to the economic spin-off the money will generate locally.

PN MP Julie Zahra

“The government has to be clear and explain to the Maltese public what financial benefits these productions leave in Malta when compared to the size of the cash rebate,” Zahra said.

She said a co-production fund should be set up to help Maltese producers compete on a level playing field with their European counterparts.

Apart from this, Zahra said government had only allocated €600,000 for the Screen Fund, which is targeted towards local producers, while paying €143 million to foreign companies.

“The spending [on foreign film productions] is a clear example of wasting public money to the benefit of a few people, while government tries to create the illusion that Maltese people can have a career in the film industry,” Zahra said.

But Tourism Minister Clayton Bartolo has defended the cash rebate, insisting the country was not forking out its own money to finance the scheme.

“Incentives in the form of a cash rebate are offered to foreign and Maltese productions that decide to carry out their project in Malta, and the incentives are based on the expenditure that would have been made while the film is being shot in Malta,” Bartolo said.

Tourism Minister Clayton Bartolo

“Those who are trying to imply that the country is dishing out its own money, is deceiving people,” the minister added, insisting these fiscal incentives strengthened Malta’s competitiveness in the film industry while creating work opportunities on the island.