The Malta Film Commission insisted on Thursday that it is no longer responsible for local film funding and its primary role is to market Malta to attract foreign film investment, 

The commission was reacting hours after the Malta Producers' Association (MPA) and Malta Entertainment Industry and Arts Association (MEIA) complained that almost €8 million had been spent on two film festivals, while local producers have been unable to access any government funding

The commission insisted that the primary aim of the Mediterrane Film Festival, which ended last week, was to serve as a strategic marketing tool to attract investment and bolster the commercial film sector in Malta.

"It is crucial to differentiate between attracting foreign film investment—a core objective of the festival—and funding local productions, which is driven by the cultural and artistic imperative to nurture the local industry. Confusing these two distinct goals either intentionally misleads or inadvertently diverts the conversation away from the necessary discussions," the commission said.

It said that the government's investments are naturally directed towards areas that stimulate economic growth and develop a robust local ecosystem comprising service providers, professional crews, and aspiring professionals. In this regard, the Mediterrane Film Festival was a significant success.

"Last year's festival, and the promising early feedback from this year's edition, underscore our confidence in its role in attracting further investment," it said, pointing out that the festival showcases Malta’s potential and capabilities in attracting film productions.

Malta last year 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, the commission said.

It insisted, however, that funding for local productions had significantly increased 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 commission said, adding that it had consistently advocated for increased budgets for these productions when it had such responsibility.

Arts Council responsible for funding of local films

"However, it is important to point out that today the commission no longer carries the responsibility relative to local film funding. Last year’s decision to transfer the responsibility for local film funding from the Malta Film Commission to the Arts Council Malta was, and is, a positive development, as this entity is better positioned to address the cultural depth of these films. The Malta Film Commission 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 Film 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," the commission said.

It also argued that when it succeeded  in spurring economic growth through foreign film investment, this would enable the government to procure funds to invest in areas such as financing local film productions, which do not necessarily provide a direct financial return

The cash rebate

Turning to the cash rebate given to film producers, the commission said some had claimed it was overly generous and others claimed it was insufficiently competitive compared to the UK incentives.

"Over the past decade, we have made numerous improvements to the cash rebate programme to keep it competitive, as it has been key element to Malta’s success," it said.

It had also successfully lobbied for the inclusion of the cash rebate for Maltese productions, creating a level playing field despite the lower return on investment impact of local films.

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

"The Malta Film Commission recognises these schemes as a foundational pillar which will continue to grow this key economic sector for many more years to come," the commission said.