Hugh Jackman is returning to Australia to make The Wolverine, his sixth outing as
the Marvel character, thanks to a $12.8 million federal government subsidy.
And while billed as a “one-off”, the local film industry has its fingers crossed that the
near-doubling of the standard assistance for a big-budget foreign production is a sign
of things to come in next month’s budget.
The Wolverine is set in Japan but will be shot at Fox Studios in Sydney between July
and December. Hugh Jackman will star and produce. “It’s so great to bring these big
movies down there, to keep people working,” Jackman told the Today program from
London, where he is filming Les Miserables for Oscar-winning director Tom Hooper
(The King’s Speech). “I just have to say thanks to Prime Minister Gillard, she was
instrumental with this.”
Ms Gillard and Arts Minister Simon Crean jointly announced on Friday “a one-off
payment” that provides Marvel Entertainment, the Hollywood producers of The
Wolverine, a 30 per cent rebate through the tax system on production expenditure in
Australia. “Without this … the producers of The Wolverine would not have chosen
Australia as the location,” their statement said.
They claimed the subsidy would generate “over $80 million of investment in
Australia and create more than 2000 jobs”.
But local industry figures are hopeful the “one-off” caveat could soon be lifted.
“It’s a positive step for us, it shows the government’s willingness to look at the
proposed increase to the location offset,” said Debra Richards, chief of Ausfilm,
which is charged with attracting big-spending foreign productions to Australia.
Ausfilm and others have been lobbying the government for an increase in the foreign
location offset for the past three years as the strong Australian dollar and competing
incentive schemes offered by more than 40 states within the US and countries such
as the UK, Canada and even Malaysia combine to make Australia too expensive for
big-budget foreign productions.
The offset was introduced in 2001, at 12.5 per cent. At the time, the Australian dollar
was worth about 50 cents. In 2007 it was increased to 15 per cent as a number of
other territories copied, and often bettered, Australia’s incentives. Last year it was
increased to 16.5 per cent.
The industry is seeking an increase to 30 per cent, and is believed to have support
from both sides of politics because big-budget foreign productions are seen as
important in training and retaining technical personnel.
Crucial to the case it has taken to government is the argument that the cost to
government will be relatively low as Australia is unlikely to be inundated with big
productions. “It won’t be opening the floodgates,” said Ms Richards. “There’s a
natural capacity here in terms of personnel and facilities.”
Sources suggest that capacity might be one large production per annum in each of
Queensland (Warner studios), NSW (Fox) and Victoria (Melbourne Docklands
Studios).
Docklands boss Rod Allan greeted the news with both cautious optimism and regret.
“I think it’s terrific the federal government is willing to look at a one-off production
offset and I hope that’s an indication of its willingness to look at the offset generally,”
he said.
“I’d have preferred Wolverine to have come here, but now the Sydney studios are tied
up for the rest of the year we’re in a great position to compete for other projects.”
Asked if the decision foreshadowed an announcement on the offset scheme in the
budget, Simon Crean’s office replied “the issues facing the screen industry are
important to the government and will remain on our agenda over the coming years”.
The budget will be handed down on May 8.
Karl Quinn – SMH – April 20, 2012