Cape Correspondent

CAPE TOWN The trade and industry department is soon expected to announce a package of incentives for the South African film industry which could see it being declared a "strategic industry".

This could result in financial benefits for the sector.

If the package of incentives is extensive enough it could see a slew of foreign film companies heading for SA to produce full-length feature films.

Clifford Sitonga, City of Cape Town executive councillor for economic development and tourism, said yesterday the task team involved in adjudicating bidders for Western Cape's film studio had "engaged" with central government "who will shortly be announcing a package of incentives for the film industry".

Sitonga made the remarks at a briefing by Dreamworld Film City, which has been named as the "preferred" bidder for building the R490m film studio at Vergelegen, between Cape Town and Somerset West.

Sudhit Pragjee, of Videovision Entertainment, which is part of Dreamworld, said at the same briefing that the trade and industry department " is to come forward with more support for the film industry and there are suggestions that it could be declared a strategic industry, like the motor manufacturing industry, which benefited greatly from government's export schemes".

Pragjee said areas affected by the incentive scheme could include critical infrastructure funding, tax breaks and training grants .

"I believe this is in the melting pot government looking positively at the film industry," said Pragjee.

Ebrahim Rasool, Western Cape economic development MEC, said the partnerships which had been cemented around the film studio bid had been manifested in the public sector's approach. This brought confidence to the process.

It had been reflected in the way all three levels of government were considering their "inputs", from fast tracking regulatory issues (environmental impact assessments and planning) to assistance with infrastructure and sustaining the industry through incentives and marketing.

"And we are seeing this (partnership) in the way in which development finance institutions like the Development Bank of Southern Africa and the Industrial Development Corporation have come to the table and have been involved in the process," said Rasool.

He appealed to service providers in the film industry not to squander SA's competitive advantage in costs through "unscrupulous profiteering that will do damage to tourism if left unchecked".

Oct 01 2003 07:38:19:000AM  Chris van Gass Business Day 1st Edition