FILM TAX BOYCOTT.

New Zealand Herald, Volume LXVII, Issue 20656, 30 August 1930, Page 10

FILM TAX BOYCOTT.

NO SALES IN DOMINION.

ACTION BY AMERICAN FIRMS.

POLICY OF RETALIATION. DISTURBANCE IN INDUSTRY. [BY TELEGRAPH. —PRESS ASSOCIATION.] WELLINGTON, Friday. Representatives of certain American film corporations have been instructed to cease selling pictures in New Zealand as from noon oil Thursday. Most people connected with the film industry in Wellington were thrown into a slate of excitement to-day when they learned of (he receipt of cable messages by American picture corporation representatives here ordering tho immediate cessation of the sale of films in New Zealand. Endorsement of the disturbing news was received through other channels during the day. This move, which practically means a boycott of New Zealand as far as the American film is concerned, is believed to be an attempt at retaliation against tho action of the New Zealand Government in imposing additional taxation on the industry in the Dominion, including a tax of 25 per cent, on the net profit made by tho exhibitors of all foreign-made pictures. Mr. R. Stewart, secretary of the Motion Picture Distributors' Association, when asked for particulars of the reported disturbance in the industry, said it was true that some members of the association had met that afternoon, but it was not an " official " meeting of the association and there was nothing to say.

However, news of the proposed boycott was in free circulation in other quarters. It was known to tho Motion Picture Exhibitors' Association, tho secretary of which, Mr. J. Robertson, was not inclined to take the news very seriously, as there were " such things as contracts to be fulfilled with picture theatre companies and owners." He thought perhaps that some members of his association might become alarmed, so he sent out (lie following telegram to members: —"Please advise exhibitors to disregard alarmist statements regarding a film boycott. 'iho conflict is one of exchanges versus Government. The association is watching the position. Expect all well very soon (official)." "CRIPPLING BUSINESS." MR. P. H. HAYWARD'S VIEWS. CONTRACTS TO BE COMPLETED. " If the threat is carried out it will be a severe blow to New Zealand," said Mr. P. H. Hay ward, a director of FullerHnyward Theatres, last evening. " It will simply cripple the film business in this country because we cannot possibly live on British, French, German, Italian or Russian pictures now that talking films have displaced the silent pictures. Britain's total output does not amount to more than 40 pictures a year, whereas New Zealand absorbs from 300 to 400 American films a. year. We must have at least 300 films a year to keep tho business going."

Mr. Hay ward said the news was not unexpected. He had heard that vigorous protests were being made in Wellington regarding the new increased taxation, but he was hopeful that some means would be discovered whereby the trouble might, be settled amicably. Personally, he thought tho taxation unduly high./ Whereas New Zealand was demanding a tax of 25 per cent., Australia, he believed, asked only about 10 per cent.

Explaining the nature of the tax, Mr. Hayward said that it a film earned £IOOO in New Zealand and cost the film exchange £SOO to distribute, 25 per cent, of the remaining £7OO, namely, £177, was taken by the Government in tax. The £SOO (lid not represent the cost, of the film but only the overhead expenses incurred in New Zealand. Royalties and other expenses incurred in America had to bo taken out. of the £525 which was left after the lax was deducted.

" There is one aspect about the whole business that is important, and that is that we have some months' grace before the blow falls in which to settle tlio matter," said Mr. Hayward. " The corporations are obliged to complete their contracts, which, on the whole, come to an end at the close of the present year as far as the main centres are concerned. The country districts will bo able to carry on for an extra two months or so. As far as Auckland is concerned, the contracts will carry us to the end of tho year." Mr. Hayward said the boycott of New Zealand by the American corporations would injure a large number of New Zcalanders employed in the industry. As far as the film exchanges were concerned, they were staffed almost wholly by New Zealanders, the idea that Americans were running them being quito erroneous. Approximately one-third of tho money earned by a film actually stayed in the country. There were seven exchanges in tho Dominion and each engaged a staff of about 18 or 20 people. Of course, if the industry was deprived of its lifeblood, as was now threatened, theatres would have to close and the economic damage to the country would be extremely serious.