28/01/2010

Over 250 Icelandic filmmakers and producers protested earlier this week against a recent decision from public broadcaster RUV to withdraw its investment in independent productions, a new blow to the industry, which is still fighting off the government’s plan to cut its 2010 film budget by 24%.

Last Friday, the announcement from RUV Managing Director Páll Magnússon that they would stop investing in independent film and TV productions to face overall cuts of 10% to their own budget, sent a shockwave through the local filmmaking community. It was denounced by all as a breech of a Service Agreement signed in 2006 with the government, making it mandatory for the public channel to invest around ISK200m (€1.1m) a year in independent Icelandic productions.

At various emergency meetings held on Monday and Tuesday, local producers and filmmakers asked for proof from RUV that the broadcaster had effectively invested that sum over the last couple of years. But no proof was given by Magnússon.

“We all have a strong feeling that he is not fulfilling his obligations,” said Ari Kristinsson, head of the Icelandic Film Producers Association.

High profile producer-director Baltasar Kormákur told Cineuropa, “We know he hasn’t honoured the Service Agreement, so we have asked for his resignation”.

Parallel meetings with Culture Minister Katrín Jakobsdóttir had a more positive outcome. The minister expressed doubts about RUV’s decisions and said she would ask for explanations at a meeting this week with the broadcaster’s board. Her own efforts over the last few months to reduce the government’s initial film budget cut from 34% to 24% was welcomed positively by the industry.

“She feels the drastic budget cut to the film industry – disproportionate when compared to the average 5% cuts to other cultural activities – was a mistake and she is trying to correct this,” noted Kormákur.

As it now stands, the film budget for 2010 is ISK 450m (€2.5m). It was ISK 590m (€3.2m) in 2009.