Short film support and discussion of new film promotion law in Spain

A new film promotion act has been a topic of discussion in Spain since late last year – the first under the socialist regime. It is intended to replace the act passed in 1999 under the old government. Consulting on a draft and the adoption of the law, which passed the cabinet in early June, has turned into a veritable obstacle course for Minister of Culture Carmen Calvo. The most vehement and persistent objections come from the association of private television stations and the film theatre marketing board.

The new film promotion act also affects short film. According to the draft legislation, the intention is to strengthen national short film funding.

Short film promotion in 2007

This year, funding will still be distributed according to the old rules. They set aside 1.2 million euros for short film, including 500,000 euros for projects and 700,000 for finished short films.

The highest amount of project financing available is 30,050 euros per film. But the funding cannot be higher than the producer’s own contribution, i.e. it can account for no more than 50% of the total costs. The largest amount available for already completed short films cannot exceed 75% of the production costs.

Eligible for funding are both individuals and legal entities registered as producers in the state Registro de Empresas Cinematograficas. The application process comprises two phases, with deadlines in March and June 2007. A board makes the funding decisions. The criteria applied include artistic value, production costs and the professionalism of the director and screenwriter. Decisions are reached using a scale of 0 to 10 points, corresponding to the percentage of the producer’s own share in the production costs – the higher the producer’s share, the more points the board members can award to the film in question. If the applicant is in charge of several jobs on the film (“empresario individual”), the savings are calculated as a fictive personal share according to fixed rates per metre of film and job.

Up until now, Spanish short film promotion has been oriented around the model of short film as prelude to a feature film at the cinema. Like in <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />France, most of these short films are created by production companies and require a license for public screening. 209 short films were produced within these structures in Spain in 2006 – ten years ago the number was only 87.

Besides the federal government, the autonomous regions and local authorities also promote short film.

Reorganization of film funding

The declared goal of the responsible minister and the government is to boost national production, sales and screening of films of high quality and to promote variety. A larger budget is to be made available for this purpose, the system restructured and the rules by which funding is awarded reworked. Plans are to increase the overall amount granted to 100 million euros.

The most important changes involve the differentiation of an independent sector, an expanded system of tax breaks, different fees payable by television stations and the consideration of digital media.

The most concerted resistance against the bill has come from the television stations, which will be obligated to contribute 5% of their gross income. The association of private television stations sees this as pandering to a parasitic system and wants to appeal to the European Court of Justice to intervene.

Objections have also been voiced by the film theatre marketing board, which rejects the new calculation model proposed for determining the quota of Spanish and European films. The act calls for a 40% share of European films. In the new draft, the calculation will no longer be based on the number of days a European film is shown, but rather on the number of individual screenings.

The high point in the conflict on the new legislation was reached on 15 June when cinemas all over the country closed their doors out of protest. More than 90% of all commercial cinemas participated.

The legal distinction to be made between an independent sector as opposed to private television stations and multinational corporations is designed to create greater transparency. The independent sector is understood to encompass primarily small to medium-sized enterprises in the production, sales and projection fields. The producers in particular are to be assisted by means of higher tax breaks. A progressive annual reduction starting 1 January 2007 should lead to complete tax exemption by 2014.

Moreover, in order to encourage external investments, co-producers who are not in the film business should also be granted tax allowances in the amount of 18%.

The latest developments in digitization and the Internet gave rise to further changes. According to Minister Calvo, the new law will offer more support for audio-visual productions outside the cinema realm, such as short films, documentaries and animated films.

Info: Ministerio de Cultura http://www.mcu.es/cine/index.html