Updated 6pm, adds government reply

The PN has suggested a change to Malta's film rebate scheme that would see funding capped according to the size of the production to prevent extravagant taxpayer spend on big-budget movies.

Julie Zahra, shadow minister for culture, made the suggestion as the government comes under pressure to demonstrate that its generous cash-back scheme is providing value for money.

Malta pays out a maximum 40% rebate in cash to producers if they film in the country - an incentive that has risen from the 25% offered in 2013. 

The scheme has come under the spotlight after Malta greenlit a record-breaking almost €47 million rebate for the production company behind Ridley Scott's Gladiator sequel.

When asked about details of how budget caps can be implemented, Zahra said that further discussions would figure out the correct proportions.

Other countries cap spending per project. Italy and Spain have a rebate capping of €20 million per project, France caps it at €30 million per project and Greece at €12 million, according to industry insiders. 

The film commissioner last week responded to questions over the spending by saying that those questioning the scheme are attacking Malta and the stability of the film industry. 

Zahra said that the PN, who have asked the Auditor General to investigate the funding, have "never said the cash rebate should not exist". 

She said asking questions about how taxpayer funds are spent is not an attack on the country. “We are obligated to ask for an investigation,” she said during a PN news conference. 

“I truly doubt how much incentives we are giving to our homegrown artists,” she said.

Foreign productions are able to come into the country, bring their own crews and workers and still benefit from the rebate while non-film expenditures such as food are also subsidised by the taxpayer, she said.

In the rebate, a daily allowance of €300 is given to help fund meals and daily expenditures yet, in the past, that amount was a more realistic €70, Zahra said.

“We need to see how we can protect workers,” she said as local jobs are competing with workers brought in by foreign productions.

During Grech’s five-minute video, the film commissioner did not share a single detail on how the money was spent, PN MP Darren Carabott added.

“Other people may call this an attack. The Nationalist Party is saying this is not an attack, but an investigation,” Carabott said. “Let's make an appeal for the responsible expenditure of public funds,” he said.

Local filmmakers are also in favour of the rebate, however, they want the scheme to be re-engineered to push local film-makers and crew into higher-end jobs, growing the industry.

Opposition has no clue how incentive works - government

In a reply, the government criticised the Opposition for its “systematic attack on the film industry” and said it had no idea how the cash rebate incentive worked.

It promised to continue investing in the industry, incentivising employment and creating a sustainable industry for the benefit of all.

The government said that any film getting a cash rebate is subject to rigourous auditing by a company independent to the government and it was only after this production passed from this scrutiny that the cash rebate was approve in line with EU rules.

It was the serious scrutiny that accompanied the scheme that strengthened the country’s reputation in the industry and ensured the creation of the resulting work.

The rebate ensured that Malta remained competititve in the global films market and it was surreal that the Opposition wanted it capped.

Capping would limit the creation of work risking that Maltese and Gozitans crews would end up unemployed.

There were now more than 1,300 people who worked in the industry which enjoyed back to back productions. The rebate ensured that the big majority of these workers are Maltese.