INDABA 2001
INTERIM REPORT
Introduction
It was resolved at the European Union – South African Film Symposium held by the National Film & Video Foundation in November 2000 that an "Indaba" of Industry and Government stakeholders would be held in 2001. This was seen as a vital step towards South Africa becoming an important and viable partner for international players, and also as a means of working towards consensus within the industry on a common vision for growth & development.
The South African film and video industry, in spite of its long history and solid infrastructure, has often been characterised as fragmented. By hosting Indaba 2001 on 11 August 2001, the National Film & Video Foundation has taken the lead in facilitating the industry’s articulation of a common vision and direction. This "Indaba" or industry meeting was designed to identify areas of common concern, propose possible solutions and action plans, and present them to the industry for constructive input, commitment and ratification.
Volumes of research have been completed over the past five years, and the intention behind the Indaba was for this research to be consolidated and for viable action plans to be drawn up. These plans would involve both the NFVF, as a statutory body and facilitator, and relevant private sector and government stakeholders.
Aims of the National Film & Video Foundation
The NFVF’s aims are:
- To develop relationships between government, the industry and regulatory bodies.
- To access funds through public funds, private investments, the lottery and other means.
- To stimulate and advance skills development, film education and training.
- To monitor, measure and plan national strategies for the industry, and advise government of policy.
- To develop local content and production.
- To develop South African film and television audiences.
- To develop film exports, and attract international productions and investment.
- To redress past imbalances and develop small, medium and micro enterprises (SMME).
- To help reflect South African culture and language and show it to South Africa and the world.
- To provide and disburse funding for development, production, exhibition, marketing and training.
All these aims were incorporated in the Indaba process.
Objectives
The broad objectives of the Indaba are to put forward strategies, which will receive input from industry players and provide a springboard for:
- The private sector to state their needs, to identify opportunities and prioritise them,
- The NFVF to focus on changing policy issues
- Government to determine its role, and to highlight opportunities which Government has identified.
The Indaba Process
Four panels of industry players were appointed by the NFVF on the basis of expertise and representivity, to look into the following areas: Production, Co-Production & Local Content; Finance, Funding & Taxation; Marketing & Distribution; and Training & Development. Panels were tasked with gathering relevant information, reviewing existing research and consulting with a wide variety of stakeholders, including government, in order to formulate clear proposals for viable action plans.
Regular meetings were held between panel chairs to ensure that there was consistency among the recommendations of the four reports and that duplication of work was avoided.
Once reports were drafted by the panels, they were reviewed, edited and posted to the NFVF web site (www.nfvf.co.za) for written comment from interested parties. The reports on the web site were identical to those presented at the Indaba conference.
An e-mail newsletter was sent to the NFVF database of approximately 1800 companies & individuals, including conference delegates, encouraging them to make use of the opportunity to submit their written comments on the reports. The deadline for these submissions was set for 11 September, one month after the conference, in order to allow sufficient time for organisations to discuss and debate issues with their constituencies, and submit responses that reflect collective opinions.
Ultimately, all four reports will be collated into a single report that also takes into account the written submissions received from stakeholders. The final post-Indaba report is due for publication on 1 October 2001.
Participants
The entire film and video industry was targeted as participating either in the form of input into work of the panels, actual attendance at the Indaba or written submissions on the reports presented at Indaba. Amongst the 78 delegates that attended the conference, was representation from the following
The main findings and recommendations of the panels included:
1. Finance, Funding & Taxation
- The NFVF should establish an advisory panel funded by the NFVF and DACST, with the participation of the Departments of Trade & Industry and Finance, to investigate and make recommendations on:
- Fair & generally accepted criteria for the allocation of NFVF funds, which need to be settled; creation of distinct commercial and cultural / development funds
- Mechanisms to improve accountability for usage of government funding
- Substantive due diligence into all income tax allowances and trade & industry incentives; the National Film Fund; the lottery fund; investigate additional revenue sources such as withholding tax on royalties paid to foreign film distributors, box office levies, incentives for private contributions to National Film Fund
- Establishment of full time finance & funding office within the NFVF in order to carry out the policy objectives of council with respect to meeting the funding needs of the emerging domestic industry
- Liaison with SARS regarding consistent application of section 24F, including: clarifying status and opportunities of section 24F, and proposing amendments where necessary, and role of NFVF office in assisting Revenue practice through SA film certification
- Liaison with DACST/NFVF representative on Distributing Agency: Arts, Culture & National Heritage
- Consolidation of general DTI subsidies and incentives through one NFVF office
- Liaison with the Reserve Bank to consolidate criteria for foreign exchange approval in respect of export investment structures
- Consistency and co-ordination with best international practice: co-production treaties, Memos of Understanding (MoUs) between the NFVF and foreign film commissions / institutes, analysis of international models capable of local application
- Advise on strategy for marketing the film industry as a viable investment nationally & internationally
- Investigate alternative sources of government funding
- Liaison with ICASA on application of local content regulation
- Development of a national strategy for public funding & private finance models for the film industry
2. Production, Co-production & Local Content
- Investment in script development and script editing skills must be a training priority for all genres and media.
- Once the new ICASA local content regulations are announced at the end of September 2001, the NFVF and ICASA should establish a negotiation forum with broadcasters and industry organisations to review:
- Terms of trade
- Fairness and transparency in commissioning practices, including the development of a points system for broadcasters to determine the extent of local content and to embrace diversity, affirmative action imperatives, South African ownership and participation (as contained in NFVF submission to ICASA)
- Local content (Definition & delivery mechanisms)
- Copyright
- Contracts
- Development budgets
- Co-production with other broadcasters, industry & NFVF
- Improve commissioning to include a broader base of industry
- Encourage broadcasters to commission movies-of-the-week
- Develop short film initiative with the participation of the NFVF, broadcasters, distributors and exhibitors
- Creating local festivals with competitions and prizes
- NFVF to set up a task team to investigate the viability of developing up film commissions in each province in order to more effectively disseminate information on the industry and to accelerate development of the film industries in provinces and market respective locations.
- Create better access to information on a provincial level by developing film co-ops in provinces as satellites of a main co-op or community arts centre. Possibly using existing DACST / local government structures
- Create a climate in which small indigenous companies thrive
- Increase the number of productions commissioned from small companies, especially black production companies
- Create diversity in points of view, genres, and content on the airwaves
- Increase funding available for production and co-production from government and other sources
- Utilise local events with international profile (like Sithengi) to aggressively market and have local and regional co-production forums
- Fuel the African Renaissance in the area of film production – actively pursue co-productions and co-production treaties with other African countries with a film culture as in North and West Africa
- NFVF to make co-production more accessible to more producers by cashflowing (not funding) DTI exhibition incentives so that more producers can attend international markets
- NFVF to create opportunities for a broad base of individual producers to attend international film markets and expos. ‘Umbrella’ stands should provide opportunity for companies from South Africa and Africa to have representation or own stand thus facilitating access and exhibiting a more united presence. The NFVF should collaborate with provincial film commissions, SATOUR, Department of Foreign Affairs and industry stakeholders to develop and coordinate an international marketing strategy and materials.
- Creation of co-ordinated marketing materials aimed at attracting international business
- Encourage and incentivise mentorship of newcomers to the markets
- Improve local marketing of the industry, particularly to investor community, but also to government and the general public. Need to show the wealth and job creation potential of the industry
- NFVF to establish a task team of private sector and government to review existing proposals & towards the creation of a new regulatory body for foreign production in South Africa that fits into the current legislative framework. The new body would enable the establishment of a database, allow easier monitoring of compliance to SA laws and ethical business practices – especially with regard to taxation
- Creation of an industry representative body that can be used to address issues of common concern, particularly as a lobbying vehicle
3. Marketing and Distribution (local & international)
- Lobbying government for additional funding and support for audience development.
- Providing an economically sound rationale for increased audience exposure that will allow for improved government & private sector funding and support and access to new means of mass communication.
- Favourable trade agreements that allow penetration and delivery to new audiences & markets.
- Imposition of tariffs on foreign film imports, which could be channelled into audience development fund.
- Percentage of withholding tax paid by local agencies to foreign film companies to be channelled to audience development fund.
- Tax rebates for companies contributing to and partnering with implementing audience development agencies.
- Facilitating legislative provision for provincial and local government funding and support for film production, distribution and exhibition.
- Ensuring a separate allocation from the National Lottery Fund for audience development funding & support.
- The formation of a new Film Marketing, Distribution & Exhibition Fund of R50 – R100 million to be established for disbursement over a two-year period. Fund to have a strong entrepreneurial bent, governed by the Business Arts South Africa philosophy, and be supported by the NFVF, government, international donors & the private sector
- Projects receiving NFVF support for script development & production should also qualify for marketing and distribution assistance.
- Market research to become standard requirement for all NFVF funded script development and pre-production
- Provision of capital and infrastructure for continuous & self-sustainable research in the fields of audience development, film & TV consumption trends & international market trends
- Strengthen links with Department of Foreign Affairs, International Marketing Council, and SATOUR and ensure that film is showcased at international conferences, events & exhibitions
- Formation of alliances between the NFVF, the film industry, broadcasters, print media and the advertising industry to encourage buy-in to local product
- Greater percentage of film budgets allocated to marketing
- Increased use of trademarks, product placement, sponsorship advertising, merchandising and cross promotion in film and television production
- Subsidised process enabling communities to use digital technology and new media as a means of cultural expression, including community-directed workshops and courses to demystify the medium
- Review and update of copyright laws
4. Training and Development
- An annual industry training needs analysis should be conducted.
- The NFVF needs to facilitate a process of getting the production community to buy into the Skills Development Act.
- The industry needs to seek accreditation as a training provider with the relevant authority for theory or workplace on-the-job training.
- MAPPP SETA (Media Advertising Printing Publishing & Packaging Sector Education & Training Authority) Media Advisory Committee, together with the NFVF to facilitate learnerships so that skills training can be made available to full-time staffers, independent contractors, and freelancers, and promotes equity within skill groups.
- There is a need for a film & video industry body that concentrates only on training, ideally consists of all the different training bodies that currently exist in South Africa, and works closely with the NFVF and the MAPPP SETA.
- The NFVF to appoint a person to champion the establishment of a National Film School together with the existing sub-committee and task team from various stakeholders including government, industry, training providers and community organisations. Core issues to be examined by this grouping include: research, investigating international models, raising finance for the school, exploring the relationship between the school and existing institutions, integrating new media into the curriculum, establishing the school within two years.