17/05/2007

Flemish Minister of Culture Bert Anciaux has officially approved this week an announcement made some time ago to provide assistance to the Vlaams Audiovisueel Fonds (VAF – Flemish Audiovisual Fund) in order to get the body back on its feet after past financial difficulties. The Minister has promised to grant a sum of €2,475,000 for 2007.

Moreover, the budget of the funding body for cinema and audiovisual production is expected to increase every year, while sums allocated to the production of features are expected to double between now and 2010.

So there is hope that VAF will see light at the end of the tunnel. Several factors have been at the root of the institution’s financial difficulty in the past three years. Since 2003, the amount allocated by the federal government – which was expected to be €12,500,000 – was reduced to €12m because of budgetary restrictions. The institution also inherited certain dossiers that dated prior to the body’s creation.

However, the main cause is the overburdened tax shelter, which is causing deep concern among Flemish industry professionals. The introduction of a government tax incentive has not only led to an increase in applications for funding, but has also made possible the realisation of numerous projects and speeded up their formation.

This acceleration of funding procedures has led to greater financial spending in much shorter periods of time than before, creating a bottleneck effect. To solve this, the institution has had to introduce a range of measures, including the cancellation of its last funding session. Although the 2006 results showed a positive balance of just under €2m, an almost equivalent amount has been set aside for television investment, which is expected to be brought forward to the 2007’s budget.

VAF’s obligation to invest in television is also expected to be relaxed, announced the minister. In any event, 2007 will see the continuation of the “Faits divers” operation consisting of a series of films produced by the private broadcaster VTM and supported by the VAF (see news). The operation was met with success among the film-going public.

Flemish cinema has also seen its market share rise by over 6.5%. While VAF’s results are cautious, the nomination of Pierre Drouot as director, the reform of the internal structure that has now created specialisation by sectors (training/research, creation and promotion), as well as a new system of selection by sessions and committees have convinced everyone that the body will succeed in reaching the objectives set by Anciaux for 2010: a 10% market share and a dozen majority Flemish features in cinemas.

(Translated from French)