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Friday, Mar 29, 2024

Don’t Criticize the EIDC for Trying to Solve Problems

Don’t Criticize the EIDC for Trying to Solve Problems Guest Column by GREGORY N. LIPPE On Sept. 19, a headline article appeared in the Daily News which severely criticized the Entertainment Industry Development Corp. (EIDC) for donating funds to help sponsor the Pittsburgh Film Office’s fundraising effort to attract television and movie production to western Pennsylvania, stating that “the EIDC is to promote filming and taping in Los Angeles.” I believe this view is very shortsighted and I am disappointed that the Daily News would take this position. As chairman of the Valley Industry and Commerce Association Subcommittee on Runaway Film Production, I have spent countless hours over the last year and a half, with tremendous assistance from our committee members, the VICA staff and others offering their services, to stop or, at least, slow down the ever-increasing migration of film production from our shores to other countries. Our committee meetings have been frequently attended by representatives of our state and federal elected officials, the Directors Guild of America, the Motion Picture Association of America, the California Film Commission and the EIDC. We have received continuing information updates and guidance from all of the attendees. In performing our difficult task we have been assisting an alliance consisting of Film US (an organization of more than 200 U.S. film commissions, partially underwritten by the EIDC), trade organizations, guilds, etc. in a unified national effort, against tremendous odds. Working together, we have encouraged the introduction of legislation at federal and state levels to provide tax incentives, expense reimbursement programs, low or no-cost filming locations, and loan guarantees. Additionally, successful efforts are being made with union concessions. It has been estimated that the United States economy is losing as much as $10 billion annually from the effects of runaway film production. Approximately 80 percent of all U.S. filming is done in California, with the lion’s share in Los Angeles County, which lost approximately 18,000 jobs because of runaway film production last year. We must continue to do whatever we can to keep filming in Los Angeles County, California and the United States. The issue is serious on both a local and national basis. Sometimes, a motion picture requires cultural content that isn’t available in California but may be available in other countries including Canada, Australia and others, or alternatively, in a different state of the U.S. In this instance, we in Los Angeles County must do our best to help encourage the production company to select the U.S. alternative. If we can keep the filming in the U.S., I believe we have a good chance of the production company returning to California when the content allows. If, on the other hand, we allow the filming to go to Canada, we may lose the ability to attract future productions back to California. Once the producers have experienced lower costs of filming in Canada, Australia and certain other countries resulting from sizeable government subsidies, more favorable exchange rates, and labor that is willing and able to work for less because of generalized lower costs of living and less trade pressures, they may continue to seek non-U.S. locations and be reluctant to return despite the fact that they would rather be here due to convenience, better infrastructure, more availability of quality crews, more desirable weather and proximity to home and family. Retaining film production anywhere in the U.S. benefits all citizens of our country no matter what their state of residence. All states receive an allocation of federal funds and services. A stronger economy with more funds available at the federal level will enable a greater allocation to the states of funds and services. I think we should applaud the Entertainment Industry Development Corp. for their commendable efforts in helping to keep filming in Los Angeles, Pittsburgh, and any other city in the United States. Gregory N. Lippe is managing partner of the Woodland Hills-based CPA firm of Lever, Lippe, Hellie & Russell LLP, and chairman of the VICA Subcommittee on Runaway Film Production.

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