Fatkat Animation thin on contracts, unlikely for more N.B. funds: Byrne
Last Updated: Thursday, April 30, 2009 | 6:27 AM AT
CBC News
Business New Brunswick Minister Greg Byrne is suggesting he's unlikely to give any more money to a faltering Miramichi animation studio that has been handed more than $1 million in government grants since 2005.
Miramichi-based Fatkat Animation has received the provincial funds from Business New Brunswick, the Regional Development Corp. and Post-Secondary Education, Training and Labour since 2005. At its peak, it employed more than 100 people.
But the northern New Brunswick animation studio now has no contracts and is operating with only three people.
Byrne told reporters on Wednesday that the province would have to take a hard look before giving the company any more help.
"Obviously we do a complete financial overview of the company that includes, of course, an assessment of their viability and the contracts that are in place and the revenue projections," Byrne said.
"And at this stage, it would seem that Fatkat does not have the revenue stream it had anticipated."
Gene Fowler, Fatkat's chief executive officer, said the company's troubles began early last year when more and more clients moved their animation work to cheaper overseas studios.
He said the recession accelerated that trend and now the company has to find other work for Fatkat to stay alive.
Fowler said he appreciates the government investments in his company.
"You know it does weigh on my mind. Everybody supported me so heavily. And I certainly want to remain committed to the area, and I'm hell-bent on doing so," he said.
Fatkat began receiving government money in 2005 when it was extended a $15,000 grant. In 2006, it received more than $200,000 for a variety of projects. And in 2008, it received more than $600,000 from the provincial government, most of it in the form of a loan guarantee.
It has also received money from the federal Atlantic Canada Opportunities Agency.
