You Have No Idea How The Film Industry Works, Tourism Ministry Tells PN

Malta’s Tourism Ministry has strongly criticised the Opposition for its lack of understanding about how the film industry operates, particularly concerning the controversial cash rebate incentive.

Issued on Tuesday, the ministry’s statement comes, the Ministry’s statement comes at a time when the PN has been systematically critiquing the film industry. This comes after The Maltese Film Commission was under heavy criticism after €143 million of tax payer money went towards the cash rebate scheme in the past five years.

According to the Tourism Ministry, the Opposition seems unaware that the cash rebate system is subject to rigorous scrutiny. An independent auditing company reviews every film that applies for the cash rebate.

Only upon passing this review does the film receive the rebate, in compliance with European regulations. The Ministry argues that this stringent process has helped to bolster Malta’s reputation and also aids in the continued employment and job creation in the country’s film industry.

The Ministry also emphasised the crucial role the cash rebate plays in maintaining Malta’s competitiveness in the global film industry. Currently, over 1,300 people are employed in this sector, benefiting from multiple, ongoing productions. A capping of the cash rebate, as proposed by the Opposition, could risk destabilising the industry, with adverse effects on employment and the national economy. The Ministry pointed out that the cash rebate ensures that a majority of jobs in the film industry go to Maltese and Gozitan citizens.

The ministry however did not clarify on why rebates of under €500,000 aren’t listed on the EU State Aid website and why Film Commissioner Johann Grech, has not commented on the exotic expenses allegations.

The Opposition suggests that the cash rebate results in a loss for the country, citing a hypothetical example where a film with a total budget of €100 million spends only €30 million in Malta but gets back a €40 million rebate, resulting in a €10 million deficit for the country. The Ministry categorically rejected this assertion as a fabrication and accused the Opposition of either lying or misunderstanding how the system works.

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