21/03/2007

The disagreement between the Spanish government and local film professionals on the draft of the new Film Law is far from over, although Minister of Culture Carmen Calvo announced yesterday that a compromise had been reached with the parties involved in the discussion and that the draft would be submitted for debate to the Council of Ministers on Friday, March 23.

A partial agreement was reached with the guarantee that producers and their partners will have an 18% tax write-off with respect to film investment. The Spanish Federation of Audiovisual Producers (FAPAE) decided not to comment on the development, following an agreement not to publicly discuss the content of last Monday’s meeting with Spain’s Vice President Maria Teresa Fernandez de la Vega.

The government also withdrew its plan to increase the obligatory film investment of private television operators to 6%, deciding to the keep the current 5% of the broadcasters’ overall revenue.

However, the Unión de Televisiones Comerciales Asociadas (UTECA), which unites seven private broadcasters, declared today not to have agreed on any draft with Calvo and that they are upholding their decision to reject the mandatory financing of independent films, regardless of the percentage stipulated, on the principle that one private sector should not be obliged to invest in another private sector.

A new draft is scheduled to be sent today to producers, distributors, exhibitors and broadcasters, eventually clearing the way for passing the controversial new law. After the Council of Ministers meeting next Friday, the draft will be analysed by the State Council. Following that, it will be sent back to the Ministers Council at the end of April and afterwards debated in Parliament.