FILMMAKERS' UK SPEND DIPS TO £410M IN 2002

THE Film Council have revealed that the level of film production in the UK during 2001 dropped from the previous record of £750 million in 2000, to a total production spend of just over £410 million.
Analysts suggest that the key factor for this downturn in investment was the threat of the possible lengthy strike action by the Screen Actors Guild in the US earlier in 2001. Many US productions were postponed or cancelled with a significant effect to the UK production industry, as more than 70 per cent of business is derived from the US. A similar UK industrial dispute between producers and actor’s union Equity is also cited as a factor in the fall.
Steve Norris, the British Film Commissioner, said: "Production levels dipped last year as we anticipated, although nearly all of the reasons for this downturn were beyond the control of the UK production sector. The effect of the possible strike action in the US did mean we were able to anticipate the decline in inward investment figures compared to last year's record figure of £750 million.
“While we should have every reason to be optimistic for the coming year, it is the view of the Commission that the current dispute between producers in Britain and the actors union Equity remains a insurmountable obstacle to persuading the US that the UK continues to be a viable option for the production of mainstream Hollywood films. Despite nearly a decade of sustained growth, some 800 per cent in nine years, it is unlikely that we will see rising levels of production until this matter is resolved."
Although the BFC has seen a downturn overall, 90 productions with budgets in excess of £500,000 were shot in the UK throughout the year. Of these, 39 were productions from overseas bringing inward investment, including films such as ‘The Hours’, ‘Below’, ‘Gosford Park’ (Co-Financed By The Film Council), ‘Spy Game’ and ‘Harry Potter And The Chamber Of Secrets’.
There was also a positive increase in the number of Indian films shooting in the UK in 2001, including ‘Kabhi Khushi Kabhie Gham’, which is currently on release in the UK. The film has broken box-office records for a Bollywood film exhibited in British Cinemas.
Since 1992 the number of productions being shot in the UK each year has increased from 30 to 90 productions. Previous to this fall, overseas and indigenous productions' spend on UK facilities and services grew from £98 million in 1992 to £750 million in 2000. (GB)