AMERICAN FILMS IN N.Z.

Press, Volume LXXXIII, Issue 25271, 25 August 1947, Page 6

AMERICAN FILMS IN N.Z.

EFFECT OF PROPOSED HIRE TAX

“ COMPLETE SHUT DOWN ” SAID TO BE LIKELY

(From Our Parliamentary Reporter.) WELLINGTON, August 24. “If the hire tax on United States films is increased to 40 per cent., as recommended by ,the Aid-to-Britain conference, it will probably be unprofitable for American film distributors to trade in New Zealand,” said Mr R. J. Kerridge, of the KerridgeOdeon Corporation, in an interview with “The Press” to-night. Mr Kerridge is on a business visit to Wellington.

There was a distinct possibility of a complete shut-down on American films unless some compromise was reached, Mr Kerridge said. “This would be most unfortunate, and I think it likely that some measure between present arrangements and those proposed will be sought. Everyone realises that dollars must be saved, but such an increase on film hire tax might have serious repercussions,” Mr Kerridge said. “If America stopped sending us films, about 75 per cent, of the cinemas in this country would be without supplies. British studios are not producing enough films to keep one-third of our theatres going. Every foot of film made in Great Britain is being released as soon as it is produced, and it all comes to New Zealand.

“There will be a speeding-up of production in the British studios, but their potential production is limited. Even if Britain increased her film output by 100 per cent., the total would be 50 per cent, below New Zealand’s requirements.” Mr Kerridge said that the 40 per cent, tax would be on gross income. On top of this would be the usual distribution costs, and income tax, the total effect making it doubtful whether American companies would “break square.”