Updated 8pm with MFC reaction

Taxpayers spent almost €8 million on two film festivals, while local producers have been unable to access any government funding, two industry lobbies said on Wednesday. 

In a joint statement, the Malta Producers' Association (MPA) and Malta Entertainment Industry and Arts Association (MEIA) said the government has not yet fulfilled its electoral pledge to increase the National Film Fund budget to €2 million. 

The current €1 million budget “has been either issued haphazardly or not at all over the past few years” they added.

A spokesperson for MEIA explained that the last time the fund was issued was in December 2022 and that funding had lasted till June of last year. Since then, Screen Malta (formerly Malta Film Commission) hosted two film festivals. 

The June 2023 edition of the Mediterrane Film Festival cost €3.8 million. Film commissioner Johann Grech said this year’s festival - which ended last Sunday - cost around €3.9 million.  

In the period between these two events, film producers were unable to access any government funding. 

“The government says it's because local films have been transferred from the film commission to the arts council, but producers need a sense of stability,” the spokesperson said. 

Producers need to know when funding applications will open, and these openings need to be regular, they said. 

“When you're getting financing from other producers abroad and have development schedules, you need regular funding,” the spokesperson said. 

The fund “has been either issued haphazardly or not at all over the past few years. Consequently, Maltese filmmakers have had to contend with a fundamental disadvantage in an already highly competitive and challenging landscape,” MPA and MEIA said. 

MPA and MEIA also said that the funds for local productions are insufficient. 

Film producers said the lack of local films screened during last week's Mediterranee Film Festival shows that Maltese filmmaking has not prospered despite claims to the contrary. 

“The Mediterranee Film Festival wrapped up last Sunday with a lavish gala, during which Malta Film Commissioner Johann Grech proclaimed that ‘the growth of filmmaking in Malta has paralleled the growth of Malta as a nation.

“Amidst the prolific workshops and screenings, the conspicuous lack of Maltese films indicates that the success being lauded isn’t quite there,” they said.

They called for a "film policy", especially since the film industry has now been divided between the tourism and culture ministries. 

“In 2022, during Malta Film Week, Minister for Tourism Clayton Bartolo announced the 'Vision 2030' strategy, which aimed to place the indigenous film industry at the forefront.

"To date, this strategy has not materialised, and several stakeholders await consultation.” 

“This policy is crucial to eliminate the current fragmentation and ensure a functional ecosystem that reliably and sustainably supports, trains, and provides employment to Maltese filmmakers,” the two added.

Malta Film Commission reacts

In a statement, the MFC said it was crucial to differentiate between attracting foreign film investment - a core objective of the festival - and funding local productions.

"Confusing these two distinct goals either intentionally misleads or inadvertently diverts the conversation away from the necessary discussions," the commission said.

MFC noted that last year's festival, and "the promising" feedback from this year's edition, underscored its confidence in its role of attracting investment.

Last year Malta achieved a record level of investment in its film history, beating the previous year’s record, generating jobs and tens of millions of euros in direct and indirect benefits, it said.

"Conflating public funds aimed at attracting foreign investment - which consistently yields a return on investment - with the support needed for local productions, whose primary goal is cultural enrichment rather than ROI, is misguiding," the commission said in its statement.

It added that funding for local productions has increased "significantly" over the past years.

"Public funds support these productions, which are essential for Malta's cultural and artistic landscape. However, they often lack the commercial bandwidth for full private financing.

"The MFC has consistently advocated for increased budgets for these productions when it had such responsibility. However, it is important to point out that today the commission no longer carries the responsibility relative to local film funding."

It said that the decision to transfer the responsibility for local film funding from the MFC to the Arts Council Malta was positive.

The MFC will still support local film productions through cash rebate incentives, a strong regulatory framework, and upskilling programmes.

"However, financial support for local productions is now clearly defined as the remit of another ministry, allowing the commission to focus on its primary goal: marketing Malta, attracting foreign film investment, and creating a stronger platform for local crew to build better careers."

It claimed discussions about the cash rebate varied over the past months, with some arguing they were "overly generous" and others saying they were "insufficiently competitive" compared to the UK incentives.

It added that over the years, the rebate programme was improved in a bid to keep it competitive.

On its part, the MFC successfully lobbied for the inclusion of the cash rebate for Maltese productions, creating a level playing field despite the lower ROI impact of local films.

"The government has consistently affirmed its commitment to strengthening and supporting the cash rebate, with no plans to reduce these incentives.

"The commission is confident that the cash rebate will continue to bring success in the future, as it has in the past and present. The MFC recognises these schemes as a foundational pillar which will continue to grow this key economic sector for many more years to come."