Posted: Fri., Jul. 30, 1999

Pols in prod'n report spat

Berman hopes to avoid resentment between U.S., Canuck citizens

WASHINGTON -- It's only natural for Canada to covet U.S. production jobs, but it's not fair to lure them away with "blockbuster" tax rebates, Rep. Howard Berman (D - Calif.) wrote in a letter to the Canadian ambassador.

Berman was responding to a letter from ambassador Raymond Chretien, who argued that some in Hollywood are trying unfairly to blame a downturn in L.A.'s production economy on Canada. "The work done in California in a typical week represents an entire year's production for all of Canada," Chretien wrote.

In his letter to Berman, Chretien went on to say that the recently released Screen Actors Guild/Directors Guild of America study on the issue has "vastly overstated" the impact of production in Canada on Hollywood. According to Chretien, production spending in Canada was $573 million, not $2.8 billion as the report claimed.

In his letter to Chretien, Berman shot back, "The study's methodology is sound, and the results are accurate."

Although runaway production is a hot issue in Los Angeles, Congress, except for the California congressional delegation, is more concerned about the upcoming budget fight. Berman nevertheless warned Chretien that the issue could lead to hard feelings between the U.S. and Canada.

"I know we share the desire to avoid situations where resentment between citizens of our nations might grow," Berman wrote.

Berman represents the 26th District, which includes much of the San Fernando Valley.


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