FILM TAX DISPUTE.

Auckland Star, Volume LXI, Issue 217, 13 September 1930, Page 11

FILM TAX DISPUTE.

WTOSn

EXJPEMZEKCE OF FRANCE.

TACTICS OF AMERICAN GROUP.

I Picture interests are -wondering -what is to be tie next move in tie taxation I drama which has resulted in a threatenec I boycott of New Zealand by Americai film producers. While there zre some iz ■•ie industry who consider tie withdrawal threat a "lataS, ,3 tker« aie Qyaeii WVia axe 'verj tOTaccraeS. qvct ttie 6\tua. tioa, and point cut that there have beeii. otier occasions on wiici tie great American interesis have used direct iction to gain their ends. . J

An American Tisitor "to New. Zealand who lias- an important position in the film world, informed a representative of tie "Auckland Star" apropos of the present position, that what is known as the Hays group in America k eo powerful financially that it will go to endless expense to get its 'own way. I

i '"I was in France last year," he said, "during a period of six months when the Hays group refrained, from sending- any film into "the country owing to a quota Act carried hy the French Legislature. It was known as the 'European Quota/ under which, it was necessary for the Americans to make a certain number of local pictures in the countries in "which they were showing Hollywood films. France, which imported more' American films than some of the other countries that had decided on the quota, was! selected for a test, and for six months the Hays group refrained from sending films into France from April to October. This resulted in a scarcity of film, and the French exhibitors were heavy losers. Tie Americans pointed out that it was impossible without losing large sums of mon«y to establish studios in France and make pictures there, which could. only be shown in France. It would, of course, be no good sending French films to England or elsewhere. j

Principle at Stake,

"Tie Hays group considered a principle was at stake, and after six months the legislation vra.s ■withdrawn. If the corporation, yields in the present crisis in New Zealand there is no telling what other British countries will adopt similar taxation, and that is the reason for me saying that the -"ron-p is apt to present ,& solid front, -xhc same principle is involved in New Zealaad. as in France, and it is-difficult to visualise the wealthy concerns involved throwing in the towel.

"The complete back down of the French Government was considered a great victory by the Hays ■ group, and convinced them ■ that by sticking together they could impose their will on a country that was dependent largely on American film for the supply of its theatres.

i "T&ere were certain independent makers of film in America who advised France that.. they would carry out the conditions laid down, but the Hays group, owning a large proportion of the American theatres, threatened the independents that they would buy none of their film for American exhibition. This brought the independents into line, as they could not afford to lose the American business, which, was their mainstay. Insnfficisnt British Flm. "While it is self-evident that America would feel the loss of the business done in New Zealand, which is substantial, the loss from the New Zealand point of view would be relatively greater. The English isfcadios are increasing their output, but they are not making nearly enough, pictures to satisfy xeqtrirements. The Dominion- needs between _30Q and 400 feature; films for first release honsee annually, and England is. not making 100. As fax as silent pictures are*-con-cerned tbe supply is progressively negligible.'*