AMERICAN FILM EARNINGS IN AUSTRALIA

Greymouth Evening Star, 26 September 1947, Page 7

AMERICAN FILM EARNINGS IN AUSTRALIA

(Rec. 12.15 p.m.) CANBERRA, This Day

American film interests will be obliged to find investments in Australia for yearly earnings amounting to £600,000 as a result of the decision of the Federal Government aimed at cutting Australian dollar expenditure. It is stated officially that cuts in other items might still be necessary to balance the dollar expenditure' against earnings. The film interests are expected to accept the Government plan, under which their remittances to the United States will be cut by 30 per cent, on the base year, 1946. In that year the remittances to the United States producing companies covering the earnings of American films in Australian picture houses amounted to about 6,690,000 dollars. Henceforth the total remittances allowed yearly will not exceed about 4,620,000 dollars. Approximately £619,000 will therefore have to remain in Australia. It is believed that the American film interests may be persuaded that a profitable form of investment would be the production of films in Australia.

The Australian Government is relutcant to impose a tax on earnings as has been done in Britain to reduce the drain cn dollars. However, the fact that the Australian Government could, if it wished, follow Britain’s example gave the Prime Minister, Mr Chifley, a strong bargaining position in the negotiations with the Australian representatives of the film companies.