Qld not getting value for money luring blockbusters: review

Southeast Queensland has resembled “Hollywood Down Under” the past decade, with a procession of big-budget movies shot there. But questions are being asked about if the deals are actually doing us any favours.

MILLIONS of dollars in secret incentives are being handed out to Hollywood film producers, despite state officials being warned it is a waste of taxpayers’ money with little benefit to Queensland.  

The Courier-Mail can reveal a state-ordered review of the undisclosed film industry incentives and payroll tax breaks found the benefits would mostly flow to offshore producers over Queenslanders.

Actor Tom Hanks enjoys a night out at Gold Coast restaurant Bonita Bonita & Bon Bon Bar

Jason Momoa happy to hit the Gold Coast for Aquaman premiere

Federal incentive for ‘runaway’ productions key to Gold Coast film industry’s continued growth

But the State Government, via its wholly owned film financing company Screen Queensland, has continued handing out the film incentives, while keeping secret the size of the individual payments.

It means while politicians pose with celebrities and spruik how many jobs the productions created, you are not allowed to know how much public money went into creating those same jobs.

Jason Momoa as Arthur Curry, aka Aquaman, which was filmed in Queensland.

The 2014 review was commissioned by Queensland Treasury, but has remained buried up until its release to the newspaper under Right to Information laws.

ACIL Allen Consulting, which specialises in economic analysis, was asked to review the value of payroll tax rebates for film makers, but took a broader look at the film incentives generally.

The review criticised previous studies on the claimed benefits of incentive schemes for tending to “exaggerate the positive macroeconomic effects of attracting film production to a location”.

“To win a project, a location will have to pay the producer at least some of, and maybe a substantial proportion of, the value of whatever positive effects it perceives will flow from hosting the project,” the review said.

Chris Hemsworth takes a break filming scenes for Thor: Ragnarok in Brisbane.

“The fact that producers will capture most/all of (the) value that a location assigns to securing a production is the most compelling economic argument against jurisdictions offering financial incentives to attract international film productions.”

It found governments’ willingness to negotiate special top-ups and compete to secure relatively few large productions implied most value flowed to the film producer, not the host location.

But the Government and Screen Queensland have continued to pour money into luring big-budget films, shelling out $85.7 million over six years.

A spokesman for Premier and Trade Minister Annastacia Palaszczuk stood by the incentive payments, saying they had generated 7500 jobs and $679 million for the local economy since 2015, and incentives, grants and investments were covered in published annual financial statements.

STATE’S WALK OF FAME

* Untitled Elvis biopic (2021)

* Aquaman (2018)

* Dora the Explorer (2018)

* Kong: Skull Island (2017)

* Thor: Ragnarok (2017)

* Resident Evil: The Final Chapter (2017)

* Pirates of the Caribbean: Dead Men Tell No Tales (2017)

* The Shallows (2016)

* San Andreas (2015)

* Unbroken (2014)

* The Chronicles of Narnia: The Voyage of the Dawn Treader (2010)