To obtain an aid under the anticipated programme, a project will have to be approved by the Programme Council. Given that the Programme to Support the Film Industry falls within the scope of the Budgetary Rules Act, support will be granted in the form of subsidies. In line with the European Commission’s rules, all films will need to undergo a cultural test guaranteeing that the supported films have certain cultural qualities relating to European culture.
The scheme aims to motivate both foreign and Czech film productions to realise their projects - and therefore invest money - in the Czech Republic. It will provide contracts for companies in related service and production sectors, and create new jobs. For example, the Czech Ministry of Culture foresees that, after the film incentives are introduced, 1500 new jobs will be created in the film professions (cameramen, editors, costume designers, lighting technicians, etc.), as well as about 2500 actor and film extra jobs. In addition, the creation of several thousand new jobs can be expected in indirectly related sectors (construction, accommodation, catering, etc.).
A PROPOSAL TO SUPPORT FILM INDUSTRY ADOPTED
At its session on 19 October 2009 the Czech Government adopted a draft Programme to Support the Film Industry, submitted by the Ministry of Culture of the Czech Republic. The programme is a response to the downturn in the country’s film production activity, due not only to the global economic crisis, but also to the introduction of similar measures in neighbouring countries. Similar support programmes have already been introduced in many EU member states. In the following month, the Ministry of Culture, in cooperation with the Office for the Protection of Competition, will notify the programme to the European Commission. If the notification is accepted, the programme will most likely be launched in January 2010.
With the European Union having exempted aids to the film industry from the general state aid ban (under the condition that the aids are notified), a number of incentive schemes to support the film industry have appeared in the last five years, both in the EU and in other countries in the world. After fulfilling all the conditions of the programme, the investors will be entitled to a refund of up to 20% of the costs they covered using their own financial resources.