Dutch seek new coin
Rebate, incentives hope to shore up criticized system
The Dutch Federation of Film Professionals submitted a report by financial analysts Baker and McKenzie on Tuesday during a meeting in which a 50-50 matching-fund agreement was announced between Dutch film distribs, exhibs and producers to provide new coin for advertising and marketing local films.
The report outlines two plans: one, a tax rebate for portions of production costs, is similar to one being considered in the U.K.; the other is not dissimilar to the Belgian tax incentive, which would allow corporations to invest in film projects. The current Dutch system, which allows only individuals to invest, is widely criticized by local tax bureaucrats.
Since the government has said it won't consider any more tax breaks, neither plan has any guarantee of implementation.
"The report demonstrates that the film sector doesn't just complain, but offers real solutions to putting together an effective film policy," said federation chairman Jaap Nieuwenhuis.
Dutch films now take 15.3% of the total box office, up from a meager 4%-6% average before the current tax break scheme went into effect five years ago.
Wilco Wolfers, chairman of the Dutch Cinema Federation and managing director of Warner Bros. Holland, said that the matching fund agreement would back the marketing and advertising of films.
He added, however, that the government has been warned that the fund won't work unless the government comes up with a plan for ensuring that at least 24 Dutch films are made annually. "You can't distribute and exhibit films that don't exist," he said.
Wolfers added that the industry, by taking 15.3% of the box office, had proved its mettle.
"We've become more professional because of the tax-break scheme. The top-grossing Dutch films come from all genres and are both arthouse and commercial projects," he said. "Our script writing, our directing and our technical support is better. If the government doesn't do something in the way of tax breaks, everything that we have worked for and achieved will go down the tube."
