Last month, Iceland’s Minister of Finance and Economic Affairs announced the government’s plan to cut the Icelandic Film Centre’s budget by 28.8% in 2023, bringing it down from 1.67 billion Icelandic crowns (roughly €11.89m) to 1.19 billion (roughly €8.47m)

The cut of 483.6 million Icelandic crowns (roughly €3.44m) is just one of a variety of new austerity measures introduced across various sectors of the country’s economy. The news followed the recent publication of the centre’s ambitious 2020-2030 Film Policy (read news) and an increase in the film refund incentive for major productions which rose from 25% to 35% (read news). Minister of Culture and Trade Lilja Dögg Alfredsdóttir described the cut as a “temporary postponement”, until 2024, of the extra 500 million Icelandic crowns (roughly €3.5m) in support which was initially planned for next year.

(L'article continue plus bas - Inf. publicitaire)

The Chairman of the Association of Icelandic Film Directors, Ragnar Bragason, highlighted that “this is the third time in twelve years that the film fund has been substantially cut, by around 30-40%.” “Every time, major efforts are required from Icelandic filmmakers to build this fragile industry up again and to try to prevent major brain drain. There are general cutbacks in the financial bill for next year, but if things go as proposed we will lose at least three or four Icelandic film projects, for cinema and television. That said, on a positive note we are currently enjoying constructive conversations with the minister and her people on ways to prevent this disaster. We’re hoping for the best,” he concluded.

Meanwhile, the Chairman of the Icelandic Producers’ Association Anton Máni Svansson described the plan for a budget cut as “a shock to the whole industry.” “Our government still doesn’t seem to understand the importance of predictability in a supportive film industry environment,” he said, adding how the slash could seriously impact local productions, and ultimately “obliterate the new TV support scheme just before it sees the light of day.”

Svansson also pointed out that the association is involved in productive talks with the Ministry: “and maintains the hope that they will find a way to resolve this situation, as well as to make good on their promise to uphold the new Film Policy for the period of 2021-2030 that we worked so hard on in collaboration with them.”

Margrét Örnólfsdóttir is the chair of the Icelandic Dramatists Union [the local screenwriters and playwrights’ guild], the vice chair of the Icelandic Film Council and a board member of the Federation of Icelandic Artists. Örnólfsdóttir described the time that has elapsed since the financial bill’s presentation as “quite stressful and emotional.” She told us: “People are angry, shocked, puzzled. The bill introduces general cuts across the cultural sector, affecting both funds and institutions, but the largest blow is the 30% cut for the film fund and the film institute. If this were to happen, it would have serious effects on the entire industry and result in fewer and possibly lower grants, which would then lead to fewer productions.”

“The majority of Icelandic productions, both films and TV series, are co-productions, and 40-60% of the financing comes from abroad, through Nordic and European film funds, pre-sales, and so on. But even though the support given by the film fund doesn’t usually cover more than 20-30% of the budget at most, it’s nonetheless vital, and the remainder of funding is dependent on it. A 30% cut would send us 5–10 years back in time, and everything we've managed to build up for the last decade or so would find itself at risk.”

The Icelandic Dramatists Union has been also in talks with the Ministry over the past few weeks. “We’re hopeful that this [cut] will be corrected before the bill passes, in order to prevent a disaster that would undoubtedly harm the Icelandic film industry,” she concluded.

To be continued…