Madrid's plan to take on Hollywood backfires
20 March 2007, MADRID – A new row broke out on Tuesday over a controversial new law which is designed to promote Spanish cinema.
20 March 2007
MADRID – A new row broke out on Tuesday over a controversial new law which is designed to promote Spanish cinema.
The law, which is due to be approved in a cabinet meeting on Friday, will oblige television companies to invest 5 percent of their earnings to promote home-grown productions.
In return, television production companies will get an 18 percent tax deduction.
The law means Spanish channels have to show a quota of Spanish and European films as opposed to Hollywood productions.
One in three must be Spanish or at least European.
Carmen Calvo, cultura minister, said the law was “necessary and opportune” and claimed to have reached a deal with the television companies.
But the Union of Private Television Companies (UTECA), which includes television channels Tele5, Antena 3, Cuatro, La Sexta, VeoTV y NetTV, denied reaching a deal with the government.
A UTECA statement said private companies should not have to invest their income in another private sector, cinema.
However, they said they will study the government's proposals.
Some film production companies and television figures say the draft bill would have an adverse effect on the industry and appeared protectionist.
The draft bill is expected to be debated in parliament in April.
[Copyright EFE with Expatica]
Subject: Spanish news