So why are taxpayers spending more than $20 million to get Walt Disney Studios to
shoot a blockbuster movie in Australia? Isn’t this just throwing cash – not much more
than a bribe – at a hugely profitable Hollywood studio?
Federal Labor backbencher Ed Husic is not alone in questioning why the government
is handing so much money to attract 20,000 Leagues under the Sea – the latest
movie based on Jules Verne’s novel about Captain Nemo’s adventures – instead of
funding hospitals.
After all, the movie will have no more cultural connection to Australia than some of
the big Hollywood films that shot in Sydney when the dollar was half the value – the
Matrix trilogy, two Star Wars episodes and Mission: Impossible 2.
Like so much involving Hollywood, shooting 20,000 Leagues is a numbers game.
Depending on how the movie is set up and who stars in it – Channing Tatum seems
more likely than Brad Pitt but both actors have other films lined up – it is expected to
have a budget of at least $200 million.
Federal and state subsidies could total more than $50 million, when you add the
$21.6 million grant to a tax rebate of 16.5 per cent (the ”location offset” for big-
budget foreign movies), plus whatever NSW, Victoria and Queensland offer to get the
work.
In round terms, even if the star gets a salary of $20 million, the director, producers
and other foreign cast get $15 million and post-production goes overseas, 20,000
Leagues could spend $130 million to $150 million in Australia.
These government incentives will bring Hollywood money into the country for a
movie likely to shoot for six to eight months.
It will pay wages to 200 to 400 crew and cast on a typical filming day, plus fees for
studio, facilities and equipment hire, construction, catering, transport and
accommodation.
Everyone who works on the movie will pay tax and spend their earnings as they go
about their lives.
When he launched The Wolverine, Hugh Jackman estimated that a $100 million
movie immediately returned $20 million to the government in tax revenue.
Without 20,000 Leagues, some of these crew members will take jobs outside the film
industry and others will head overseas to work but many will be under-employed or
unemployed.
Economics professor John Quiggin, from the University of Queensland, argues the
$21.6 million would be better spent on commercial Australian films than a movie
largely set underwater with a US star.
That grant would support just one or two medium-budget Australian films. But
everyone getting paid more on a Hollywood movie helps local filmmaking.
On 20,000 Leagues, the grant leverages up production worth at least $130 million,
provides work for crew and actors, stops facilities and equipment companies making
cuts for lack of business and develops skills that support Australian filmmaking.
True, it’s not producing the next Red Dog or The Sapphires and does nothing for
hospital patients. But it does create jobs and bring economic benefits.
Some of the US-backed movies shot in Australia
The Great Gatsby (2013)
Director: Baz Luhrmann. Stars: Leonardo DiCaprio, Tobey Maguire, Carey Mulligan
(above)
The Wolverine (2013)
Director: James Mangold. Stars: Hugh Jackman, Will Yun Lee
I, Frankenstein (2013)
Director: Stuart Beattie. Stars: Aaron Eckhart, Bill Nighy, Miranda Otto
The Lego Movie (2014)
Directors: Phil Lord, Chris Miller, Chris McKay.
Voiced by Chris Pratt, Elizabeth Banks, Will Ferrell
Sanctum (2011)
Director: Alister Grierson. Stars: Richard Roxburgh, Ioan Gruffudd, Rhys Wakefield
Happy Feet and Happy Feet Two (2006 and 2011)
Director: George Miller. Voiced by Elijah Wood, Robin Williams
The Chronicles of Narnia: The Voyage of the Dawn Treader (2010)
Director: Michael Apted. Stars: Ben Barnes, Skandar Keynes, Georgie Henley
Don’t Be Afraid of the Dark (2010)
Director: Troy Nixey. Stars: Katie Holmes, Guy Pearce
Legend of the Guardians: The Owls of Ga’Hoole (2010)
Director: Zack Snyder. Voiced by: Hugo Weaving, Jim Sturgess, David Wenham
X-Men Origins: Wolverine (2009)
Director: Gavin Hood. Stars: Hugh Jackman, Liev Schreiber, Ryan Reynolds
Comment: Garry Maddox – SMH – April 6, 2013