'Fantastic Four' depart B.C. with $100M in movie revenue
The blockbuster movie production is heading to Louisiana for better tax breaks
A well-known group of superheroes is leaving British Columbia and taking as much as $100 million in movie revenue with them.
Peter Leitch, the president of North Shore Studios, said Thursday The Fantastic Four Reboot has moved production to Louisiana because of the lucrative tax incentives offered in that state.
- Read about the B.C. film industry seeking ways to survive
- Read about government support for the industry
Leitch said the producers decided to move after lawmakers in the state rejected a bill that would have reduced subsidies to the industry.
The cost savings for the producers could be 10 to 20 per cent, quite a savings on a movie that could have a budget of up to $100 million, Leitch said.
"The numbers are getting so big, and the risk is getting so great with these features that costs become more and more of an important issue."
The Fantastic Four is a fictional superhero team based on comic books published by Marvel Comics.
Question period smackdown
The loss prompted New Democrat MLA George Heyman to accuse the B.C. government of being the bad guy during question period in the legislature.
"This government has succeeded in doing what no other super villain has, and that's to scare away the Fantastic Four," Heyman said.
"Will the government's message continue to be it's clobbering time for the B.C. film industry?" Heyman said referring to a slogan often used by the movie character, Thing.
Finance Minister Mike de Jong's reply was just as comedic.
"Holy corporate subsidy Batman," he said as other members laughed.
But on the more serious side, de Jong said the B.C. government expects to pay out $380 million this year in subsidies for film and TV labour.
"We think it's a sound investment and it is an investment that has grown dramatically year over year, signalling madam speaker, continued growth in that sector," he told the legislature.
"But it is not a limitless subsidy that British Columbia taxpayers can afford, and we will continue to ensure that an appropriate balance is achieved."
B.C. offers a 33 per cent subsidy on labour and other incentives if the filming is done outside of Metro Vancouver or is for visual effects work.
Leitch said the industry in B.C. can only continue to let producers know about the value they provide after years of experience in the business. But he also said higher incentives would help keep the B.C. industry in business.
"We certainly think the economic benefits outweigh the costs and that creates a whole bunch of jobs with at least 24,000 working in the industry," he added.
"We want to participate in the creative sector. The screen-based industry worldwide is a trillion-dollar industry."
Leitch said B.C. has great centres for visual effects, production crews, film and TV, talent for digital media.
"We're really a one-stop shop here, and there are huge benefits to that. We just have to fight though this period where it gets really tough on the tax-credit side."
Leitch said the B.C. industry will continue to do well if it remains cost effective.