Though set apart by more than just a letter, the similarities are many between Iceland and Ireland.

However, the differences just got bigger.

First, the similarities:

Both countries support filmmaking with taxpayer money.

• In Iceland this is done through The Icelandic Film Centre and the 20% rebate.
• In Ireland they call it The Irish Film Board and Section 481

But unfortunately:

• Both countries were hit extremely hard by last year’s financial crisis.
• Both are having to face large cutbacks in public spending.

Now what?

• When drafting the 2010 budget, the Icelandic government suggested a 34% cut in film funding, while cutting other arts funding by 4% on average.
• In Ireland a special committee suggested scrapping the IFB altogether and rely entirely on Section 481, a tax relief regulation.

Crazy ideas both, but kinda understandable when you’re in the throes of despair and everything seems unsurmountable. Then, usually, you climb out of this  miserable hole and pull yourself together. Both ideas of course were met with outrage by the respective film communities – and internationally.

OK, the differences:

• In Ireland they just decided to not close down the IFB. Instead, a 5% cut is on the cards, slightly lower than the average 6% cut in arts funding.

They’re out of the hole.

• In Iceland they’re still discussing the budget. Yesterday, Althingi’s Budget Committee proposed to somewhat scale back the film funding cuts; from 34% to 23%. Remember: the average cut of arts funding is 4%.
  

They probably regard it as a generous gesture. The best they can do in the circumstances etcetc.

Well, not so. They’re still in the hole.

As has been clearly demonstrated by the Producer’s Association (see the lowdown here) to the government and every member of the legislature; a cut of this magnitude doesn’t make any sense. It will lead to a big loss of investment in much-needed foreign currency, huge job losses (up to third of the filmmaking workforce) and far less income for the state (which actually makes more from filmmaking than it puts in).

In other words:

This will wreak general havoc in the rather fragile Icelandic film industry; an enterprise eternally stuck between rock and a hardplace.

Enter the Minister

Minister of Culture Katrín Jakobsdóttir, said in an interview when the budget proposals were presented, that the film industry was not being singled out. Problem is that there isn’t a slightest bit of evidence to support this claim.

4% average cut in arts funding. None going over 6%. Except film funding. That’s now being proposed at 23%.

Why?

It’s not that filmmakers don’t understand the need for cutbacks. Its just that they don’t understand why they’re being singled out.

These proposals originate from the belly of the Ministry of Culture. They will set the film industry back at least half a decade and more if counting for inflation.

Shine a Light

It’s interesting to look at how the Irish came to their conclusion on the issue. IFB’s chairman James Morris was naturally pleased by the good news and is qouted as saying:

“I would like to acknowledge the role of the Minister for Arts, Sport and Tourism Martin Cullen in supporting the Irish Film Industry and the work of the Irish Film Board as the industry development agency. The support of the Government for Bord Scannán na hÉireann/the Irish Film Board is a strong endorsement of the economic value of the film and television production sector to the emerging digital economy. It is also an acknowledgement of the cultural value of Irish artistic and creative work in building Ireland’s international profile that emerged as a major conclusion of the Global Irish Economic Forum in Farmleigh earlier this year.”

And Minister Martin Cullen chips in:

“At the Global Irish Economic Forum held in Farmleigh in September there was wide acknowledgement of the importance of culture in promoting Ireland abroad and developing a unique brand for the country in new markets. Most participants agreed that our unique and strong cultural identity provides the Government and the private sector with a strong competitive advantage abroad. Internationally, the creative economy is moving centre stage and creativity is seen as a crucial bedrock, underpinning our knowledge economy.”

Hang on. “Building international profile”. “The importance of culture”. “Our unique and strong cultural identity”. Why do I have the feeling I’ve heard all this before?

Why, it’s the same rhetoric as used by Icelandic politicians when they want to bask in the glory of the arts. C’mon guys and dolls, the spotlight’s on you.

Lights, camera, action!

(And finally, consider the case of Norway, our next door neighbour. In September, they just raised the allocation for film funding by more than 8%, the largest increase ever. Bless them.)