Leaders from Manitoba's film industry are gathering Tuesday evening to discuss ways of boosting the number of productions coming to the province.

The once robust film business has dropped from over $100 million in annual productions in Manitoba to nearly half that amount — a level not seen since 2001.

'We're sort of hit by a perfect storm of economic conditions, the dollar fluctuating, incentives in other locations being very attractive and sweetened.'—Tara Walker, On Screen Manitoba

Tara Walker of On Screen Manitoba — a membership-driven association that represents the Manitoba motion picture industry — said the local film business has taken hits from all sides.

"We're sort of hit by a perfect storm of economic conditions, the dollar fluctuating, incentives in other locations being very attractive and sweetened," she said.

Manitoba used to be a North American leader in offering incentives through tax breaks. But other jurisdictions like Quebec and Ontario have recently boosted tax breaks to film companies.

In 2007, the province revamped its film tax credit program, allowing federal and provincial credits to be administered with one application process. That was the result of a partnership between Manitoba Film and Sound and the Canada Revenue Agency.

Tax incentives need tinkering

But some in the industry are calling for further improvements to Manitoba's film tax credit program, which currently gives a 65 per cent credit for labour expenses but not things like rentals, equipment and other costs.

Phyllis Lang, president of Buffalo Gal Pictures — an independent film production company based in Winnipeg — said Manitoba's tax incentives still need some tinkering.

"Right now we are really in favour of a combined labour and spend tax credit that would make us very competitive," she said. A government spokesperson said the province is looking at the tax issue closely.

Some of the ideas industry members will consider at Tuesday's meeting include improving marketing and production facilities in Manitoba.

Many of those who work in the film industry would like to see a direct flight to the film capital of Los Angeles from Winnipeg.

Walker said the local film industry will recover because it has a solid reputation worldwide.

"We're also small enough that we can reposition our strategies and make the most of what competitive advantages we have here," she said. "We are a low cost production centre, we have incredible talent here and world-class crews that are recognized around the world."