Netherlands

[NL] New Measures to Stimulate the Film Industry

IRIS 1997-7:1/28

Nico van Eijk

Institute for Information Law (IViR), University of Amsterdam

Three Ministries have announced a joint programme to stimulate the film industry. The Ministry of Economic Affairs, the Ministry of Finance and the ministry responsible for culture have chosen to adopt an integral approach to attract new investments and risk capital. In practice, rich private investors will be stimulated to participate in the financing of films. They will receive special tax advantages in order to increase the return on investments and to lower the risks. The measures aim at creating a viable competitive film industry where direct governmental support is only available in the start-up phase. Furthermore, the programme foresees that the film industry should become more commercially oriented, less fragmented and adopt a broader orientation towards international cooperation. The Ministry of Economic Affairs will create and finance the start-up costs of an office that will act as an intermediary between producers and financiers. The Ministry will also provide initial capital for a fund that should attract private capital for film productions. The fund will base its participation decisions purely on a commercial evaluation of the project. The tax measures include new rules concerning the write-off of investments in film productions.