Res. No. 560

Resolution supporting the filming of motion pictures and television in the United States and the City of New York.

By Council Members Barron, Clarke, Seabrook, Sanders Jr. and Lopez

Whereas, According to the Film and Television Action Committee, the outsourcing of jobs in the film industry, also known as runaway production, will cause a loss of $10 billion from the United States economy in 2004, to foreign countries, especially Canada, Australia and Romania; and

Whereas, While runaway productions typically hire Americans as producers, directors and stars, most of the non-star actors and crews are hired locally; and

Whereas, The Center for Entertainment Industry Data and Research (CEIDR) shows that the estimated economic loss to the U.S. economy as a result of runaway productions since Canada implemented tax credits for film productions in 1998 is $4.1 billion, which is equal to about 25,000 jobs a year; and

Whereas, CEIDR also reports that gross film production expenditures in the United States declined in 2001 for the fourth straight year, dropping $683 million from $3.93 billion in 1999 to $3.24 billion in 2001, while such expenditures  in Canada grew $617 million during the same time period; and

Whereas, According to data from the Mayor’s Office of Film, Theatre and Broadcasting, direct expenditures, the indirect economic impact and local tax revenues of film and television production in New York City have dropped every year since the implementation of the 1998 Canadian tax credit; and

Whereas, The Film and Television Action Committee has filed a 301 (a) petition to remedy alleged unfair trade practices, such as countries implementing tax credits for film production, in violation of existing trade agreements; and

Whereas, In order to help thwart runaway production, the Screen Actors Guild (SAG) has recently begun to enforce its Global Rule One, which disciplines members who sign non-SAG contracts while working abroad in English speaking countries; and

Whereas, The Hollywood Labor Council has stated that SAG members have lost residual payments, important safety provisions and substantial contributions to pension and health funds because of work done out of the country using SAG talent where SAG contracts have been avoided; and

Whereas, Citing runaway production as the cause of loss of production, the Directors Guild of America (DAG) took Atlanta, Boston, Dallas, Miami and Orlando off its list of “production centers” on July 1, 2004; now, therefore, be it

Resolved, That the Council of the City of New York supports the efforts of SAG, DAG, the Film and Television Action Committee, and the Mayor’s Office of Film, Television and Broadcasting, as well as other unions and groups working in the field of film and television production; and, be it further

Resolved, That the Council of the City of New York supports the filming of motion pictures and television in the United States and the City of New York.

LS# 1492

THC - 9/3/04