VSTA ONLINE

VSTA Response to the Robert Con

Mon, 10 Nov 2008 00:00:00 +1100

THE VICTORIAN SCREEN TECHNICIANS ASSOCIATION'S RESPONSE TO
ROBERT CONNOLLY'S PAPER ON THE AUSTRALIAN FILM INDUSTRY

Robert Connolly's paper on a new methodology for feature film production makes
interesting reading. In it he makes some valid points and suggestions on the future of our industry.

The paper looks at 10 key issues that affect the way our industry works.

1. Perverse incentives
2. Income models
3. Wages
4. The danger of percentages
5. Unrealistic budgets, budget templates and inflexibility
6. Cast fees
7. The role of the completion guarantor and insurance
8. Reporting
9. Legals
10. Delivery

These issues are things we should have an understanding of and what effect they have on the crew side of the business.

The paper looks at the industry from the producer's point of view and a more sustainable business model driven by lower cost of production and tighter turnaround between productions and a share of gross revenues for the producer.

We often bemoan producers for trying to hire crew for less money than what we feel we should get, but producing is a difficult job and trying to raise enough money for a
production is a real challenge. The reality is that for our industry to survive and prosper
we need our producers to make a reasonable living so as they can continue to bring
productions on stream for us to work on.

The traditional way to budget a film involves getting a production manager to budget the finished script then trying to fund the film at that budget. The expectations of writers, directors and producers are often beyond the limits of financing. What person would envisage a $100,000 renovation of a house and expect to only pay $10,000 for it. Budgets for films and television never seem adequate for the work and equipment needed.

This often sees the project budgeted at levels that exceed the possible financing. Robert Connolly's suggestion is to take the developed screenplay then budget it at a level that could realistically be financed.
Certainly the way our films are funded and the return they offer is not perfect. As Robert Connolly points out, for every $15.00 taken at the box office around $10.00 is retained by the exhibitor and $5.00 flows to the distributor. The distributor deducts a 25-30 per cent commission after taking out marketing costs. The remainder makes its way back to the investors who need to recoup their full equity before any money makes it to the creatives behind the film.

Unlike other industries where you can lift the selling price of a product to make a profit
the film industry makes a product, hopes it can sell it, doesn't know the selling price or
how much it will get back.

Other industries also create products that people want. For us it is all about bums on seats and mostly the public like to see films that are often canned by the critics. We have to be able to make films that appeal to a broad market. Of course not every film will do that but if we want to broaden our funding possibilities we have to prove to potential investors we can make films that have a market. Art house can be wonderful but after a while the sums don't add up. We can have all types of films but we must remember that this is a business.

For films that have some level government funding the producer's fee is around 3 per
cent of the budget. This translates to $30,000 dollars for a $1,000,000 production or
$150,000 for a $5,000,000 production. Robert points out that the work load is often the same regardless of the budget and that $30,000 is not enough to sustain an ongoing office and staff. One of his suggestions is to allow producers to have an equity stake in the production that would allow them to share in the profit of a production in lieu of a realistic fee.

His paper sets out other avenues producers can take to get more out of the productions they are working on. All this is important stuff, and we are certainly qualified to comment on all matters raised in his report, but like producers, we are also concerned on how we can have sustainable careers in our industry. Of all of the issues that Robert Connolly has raised, as crew members and members of VSTA, it is the wages side that most affects us.

One of his suggestions is to use more flexible budget models for low budget films which
would strive for lower production inputs. Technology is forever changing the way films
are being made. This technology, particularly the use of HD cameras, and visual effects
becoming more affordable has made some parts of filmmaking cheaper. Of course the
hiring of cast and crew remains a major cost of any film.

Considering the insurances, availability and quality of the workforce the fees charged by most freelancers could never be considered expensive. With wages being such a large portion of a production budget they are often seen as a likely candidate for reduction. Mining workers don't take a pay cut with a profit share incentive to help out some of our large mining companies in the hope the project will pay off

The company takes the risk after careful consideration and planning to generate the best chance of success. Projects are budgeted realistically to cover all contingencies. If the numbers do not add up the project does not go ahead until it is financially viable.

We know our films do not have the resources of these large companies but a lot of our
problems seem to arise from the projects that are chosen and with inappropriate
budgeting and script planning. If we are talking about pay flexibility and profit sharing
we should also be taking action on the planning front with writers, directors and
producers understanding lot more about budget basics and taking responsibility for
educating their finance sources about those basics and develop an acceptance that they may have to do with out the script or project elements they cannot afford.

Robert Connolly puts forward methods of crew payments that would include a
combination of award minimums and a meaningful share of a film's income. He argues
that smaller crew structures and an innovative approach to production can allow
equivalent wage structures to larger films and longer periods of work. It is not clear what he means by innovative approach, perhaps it may be a term for multi tasking.
It is an interesting argument but one that would need fleshing out. As any freelance crew member would tell you, to only work for award wages would mean a substantial cut in income. Topping up that wage with a share of the film's box office is a way of increasing the total financial package but as stated before, we are dealing with a product in which we don't know the ultimate selling price or how much it will return. Having as much as five per cent share of a film's profit is no good if it doesn't make a profit. Deferrals, with their restrictions, have not proven to be a great system for either party.

Just as a producer's workload is the same regardless of the budget, the same can be saidof the crew. In fact the work load is often greater because of the reduced size of each department and equipment restrictions. If it is a producers contention that they should be able to access some of the first dollar returns, then crew should be able to contend that if they accept a lower wage for working on a production with a share of box office to make up the difference on the normal rate then some sort of guarantee to that share should be in place.

If we are to entertain the idea of creating a new model of funding and new work
methodologies for lower budget films we need to make sure that this does not mean less overall remuneration for crews. Most freelancers have worked on projects for less money than usual but to do this on an ongoing basis would not be financially viable.

Award payments are often cited as the base for low budget productions as it gives crew a certainty of wage level. The problem is that the award has not kept pace with the level of wages that is standard on normal productions. Even the highest level covered by the MEAA award is well below commonly paid wages. The award is a necessary safety net but it should better reflect what the market normally pays.

A department of Industry and Innovation and Regional Development report reveals ABS figures that state industry wages fell by around 10% in the years 2006-2006 and salaries were below the average weekly earnings for the economy as a whole. With wages accounting for between 40-60 per cent of a production's budget it seems that it is the crew that is bearing a lot of the cost cutting in low budget films. This is hardly an
incentive to keep people in the industry. We are realistic enough to know that the award will probably never reflect true market rates, but there needs to be serious discussion amongst all interested parties about an increase and to what level.

Putting the award aside, any crew member who has been in the industry for a few years will tell you that the rates they are getting now are what they were getting years ago. It is easy to see why our remuneration is down by 10 percent. If we take inflation into account the wage reduction is far greater.

The Federal Government has in place legislation to protect workers entitlements called
the General Employee Entitlement Scheme (GEERS). This scheme makes sure that
employees of failed businesses get the superannuation and leave they are entitled to when a business fails.

To help with fair payment for work on lower budget films we could introduce a system where crew can have access to a similar fund. It would be necessary for crew members to work out a total fee that would be acceptable to both themselves and the producer. Usingthis fee as the basis, crew members could divide that fee into a wage portion and a deferred portion which would come out of the box office for the film. This deferral may even involve an on going share of the box office above the total fee they have agreed to.

If after a prescribed period the film has not made enough money to pay deferrals, the shortfall could come from this fund. Crew members could nominate to take the money owing to them up to the amount of their agreed fee from this fund or wait and get payments from the released film if they feel that it is going to be successful. Overtime and loadings etc would also be factored into the total money owing to the crew member. A loading of say 5% could be added to the total package because of the delay in receiving the final remuneration.

This scheme is a possible option for low budget productions and obviously funding of it a matter that would have to be worked out. Many countries have schemes where
governments grant funds to producers according to how many local viewers see their
films. A variation of such a system could fund this scheme e.g. $2.00 per ticket sold in
Australia. Perhaps it could come from a share of box office. It makes sense for producers to have access to first dollar returns and perhaps a portion of first dollar returns could be directed to this fund.

This is just one idea and film crew personnel need to be involved in developing ideas and ways of working that allow films to be created with budgets that can actually be financed. Crews have to go beyond just accepting any new work methods and structures that are imposed on them. We must be able to have our say on how changes affect us and have suggestions that can help. This is our industry too and the VSTA wants to do its bit to make it prosper.

Robert Connelly has produced a thought provoking paper with the basic tenant that we
have to produce innovative films with budgets that allow them to make a profit at the box office. Of course for the industry to thrive we need to produce films in all budget ranges, but they must aim to make a return or we may find eventually we have no industry at all. In the end this whole discussion is about sustainability and that means for both producers and crews.

Lex Martin - VSTA Vice President

Copy of Robert Connelly's White Paper

goto: http://www.vsta.com.au/forum/viewtopic.php?f=2&t=61

Presidents Report 2008 AGM

Sun, 27 Jul 2008 00:00:00 +1000

Welcome to the second Annual General Meeting of the Victorian Screen Technicians Association. We are continuing our "tradition" by combining the AGM with a social get-together and are pleased that you are all here today. My name is Ian Dewhurst and I am the outgoing President of VSTA.

To recap briefly for some of you who may not be aware of the history behind VSTA...
The group was formed back in September 2005 when a group of us got together to start what was primarily a Lobby Group. This stemmed from crew complaints and dissatisfaction in Victoria combined with a call for greater unity within our community. This informal group was known as The Committee and in November 2005 a ballot was held to elect a Film Crew & Technician Representative Committee. In August 2006 the group became an Incorporated (Not for Profit) Association and took the name VSTA. - Victorian Screen Technicians Association.

Over the course of this year, our membership has increased to 43. (Currently there are 28 financial members of VSTA and 15 non financial members.) It remains a primary goal of the association to increase our membership so as to be truly representative of the crew community. This association was formed by CREW for CREW. It is not a Union, and it is more than a lobby group. It is a place where YOU can have a voice and influence the future direction of our industry, a place where YOU can access information and support, a place where YOU can contribute towards building a stronger sense of community and a place where YOU can be involved in creating a regular social calendar.

Over the last 3 years, the earlier committee, and the current committee of VSTA have been very proactive. We have continued to meet with and maintain an open dialogue with Film Victoria and the Melbourne Film Office. After participating in Film Victoria's Sector Survey last year, VSTA was briefed extensively on the outcomes. In conjunction with Film Victoria and as a result of some other initiatives from Open Channel, The Working Party and our local Industry Training Board, the issue of training and skills recognition is beginning to be addressed. Representatives from the committee have attended a number of seminars & discussion groups and recently the VSTA Committee submitted to Film Victoria a proposal for a training scheme. A copy of this paper is available for download to VSTA members on the website's forum.

We are hopeful that before the end of the year, a clear Victorian Film Industry Training Plan will be developed. We urge all our members who might want more information or for those of you who would like to participate in the development of the Training Plan, to visit our website or to contact a member of the committee. I would like to thank publicly Lex Martin for his work in preparing the VSTA Training Scheme Proposal. Well done Lex!

The issue of training has also been taken up by the Victorian Film & TV Industry Working Party. The Working Party is made up of representatives from SPAA, the Screen Services Association of Victoria, the Australian Screen Directors Association, the Australian Writers Guild, the Australian Screen Editors, the MEAA (the Union), the Australian Cinematographers Association and VSTA. Our representatives, Victoria Conners-Bell and Sue Marriott have been attending the Working Party meetings, ensuring that crew and technician's views have been taken into account on various initiatives - including lobbying for the MIFF Production Fund and the TV Pilot Production Fund announced in recent state budgets.

Several VSTA members attended the inaugural MINDSHIFT forum held at the BMW Edge a few months back. MINDSHIFT is a Film Victoria initiative and Jason Byrne represented us on the Discussion Panel. There was a healthy debate about the direction of the industry which focused around Robert Connolly's White Paper. It is planned that these forums (the first of which was hosted by Jenny Brockie from SBS) will become regular quarterly events and we encourage VSTA members and all crew to get involved. Details about the next MINDSHIFT Forum will be posted on our website once they have been confirmed.

I have mentioned the VSTA website a number of times, Jason Byrne and Andrew Jerram will speak shortly about our new website and provide an interactive demonstration. The development of our new website has been largely down to these two gentlemen and on behalf of the committee; I'd like to express our thanks to them for their efforts. It is a great resource for VSTA members and non members can get involved on the public forum too! I encourage all crew to visit the forum regularly - it is a place where we can communicate openly to each other as colleagues and privately as members of VSTA.

Earlier work of the committee included a submission to Film Victoria regarding the PIAF (Production Incentive Attraction Fund) and the RLAF (Regional Locations Attraction Fund) Guidelines. While the changes included in our submission have not been incorporated into the current guidelines, we have seen a significant increase in the amount of drama production in Victoria and the ratio of local crew employed on these projects has also increased.

And for the first time in a long time, The Union has involved crew outside of its membership, via the booking agents, in negotiations; specifically regarding the recent US Spielberg Production, ‘The Pacific' and the US production of ‘Knowing'. VSTA acknowledges the work of the MEAA as a positive step forward to ensure that the crew are consulted and heard.

VSTA has also made available to members, a comprehensive info pack specific to the issues of:
-ABN, PTY LTD, verses Sole Trader and PAYG;
-Superannuation,
-Public Liability & other insurances,
-And Workcover
Affectionately known as The Production Monster, it is a valuable resource. Thanks largely to the work of Anna Johnson (we all thank you Anna) it goes a long way to demystifying these issues. All members should download their copy from the website; however you should recognise that the Production Monster does not take the place of independent legal and financial advice specific to your own circumstances.

In keeping with our goal to increase social opportunities for crew outside of private celebrations and gatherings, VSTA held their inaugural "Day on the Greens". We had a great afternoon down at the St. Kilda Bowling Club on the 20 April with many members bringing colleagues, family and friends. We all enjoyed the opportunity to sip a beer, bowl barefoot on the greens and snack on the tasty snags cooked to perfection by our BBQ'ing cook extraordinaire - Adrian Kortus. He has his apron on again today! So let's hear a cheer of appreciation for Adrian in recognition for his culinary skills! VSTA intends on making "A Day on the Greens" an annual event, providing a day of fun for all, including the kids with dedicated activities and entertainment to keep them busy while we grown ups mingle. Later this year and into 2009, VSTA aims to hold more social events to unite our community. We also plan further Open Forums and Guest Speaker Events specific to the issues facing us all and to address ways we can improve the conditions and everyday life for crew. If you have an idea for a social event or a topic for a future Open Forum, we'd love to hear form you!

A second batch of VSTA stickers are available here today. Make sure you grab your free sticker and join the many crew that are proudly displaying them on them on their bumper bars and truck doors.

Not all of what we have been able to achieve can be held up as tangible results. Much of our success relates directly to us creating and maintaining a dialogue with the state government and other institutions. We've asked them to open their doors to us and listen to what challenges are facing Victorian crew and we have firmly secured our place at the table.

In addition to developing our information and support resources and increasing our social activities, the ongoing agenda items of VSTA are:
- To continue our involvement with the Working Party in addressing the issues of script development, production finance, and distribution & exhibition,
- To continue to work with all the parties involved with the development of an effective Training Program and Skills Recognition Scheme,
- And to work towards bringing the issue of Freelance rates Vs Award Rates to the table. We would like to explore ways that the award can be brought more in line with current freelance rates. We see this as essential issue. It is the belief of the committee that if award rates were increased then productions seeking finance would be better able to meet the demands of an "ambitious" budget and meet the creative elements of a script.

Before I wrap up, I would like to thank a few more people. Firstly, our outgoing Treasurer Jannine Barnes for all her work in effectively keeping the financial aspects of VSTA in order! Job well done Jannine! We are sorry that you are unable to continue on the 2008/2009 committee, aside from your diligent booking keeping, you have made a valuable contribution as a member of VSTA and the committee. You will be missed.

Thank you too, to all our outgoing committee members, participation is key to our association and you have all made positive contributions one way or another.

On behalf of the committee I would also like to thank our joint secretaries and agent representatives, Caroline Logan and Michelle Wells. Without you girls we would be lost. Thanks for all your hard work behind the scenes and for supporting VSTA.

And last but not least, on behalf of the Committee and the members of VSTA, I would like to acknowledge the support of Film Victoria, our corporate sponsors and event sponsors. Without your involvement the financial position of VSTA would not be as certain. We look forward to your continued support and involvement in the first ever Victorian Screen Technicians Association.

VSTA gives us all a chance to be a part of our industry community. Together, we can make a difference!

VSTA is currently staffed by volunteers and managed by elected committee members who also volunteer their time. While the activities undertaken by VSTA to date have affected significant change, we would be able to achieve much, much more with appropriate systems and people in place to help share the workload. To that end, I encourage you to become a member of VSTA and to consider nominating for the committee. There are a number of vacancies; Brendan Campbell will explain more about that shortly.

If you would like to know more about how you can become a member, speak to any of the committee members, or visit the website. It is that easy.

Before I hand back to Brendan, I would like to mention that while I am stepping down as president, I intend to stand again as a committee member. I have enjoyed my time as president, but feel the time is right for someone new to step into the role. I look forward to working with the 2008/2009 committee and hope to see some fresh faces on the committee in addition to a larger membership base.

Thanks for your time today.

IAN DEWHURST - VSTA President (Outgoing)

NOMINATIONS NOW OPEN FOR 2008/09 VSTA COMMITTEE

Sat, 05 Jul 2008 00:00:00 +1000

NOMINATIONS NOW OPEN FOR 2008/09 VSTA COMMITTEE

The VSTA AGM date has been set – SUNDAY 27 JULY 2008. We will be promoting the event as a social BBQ much the same as last year. It will be held at Pit Lane in Albert Park, starting at 12 Noon.

Part of the fun of the AGM is the “voting” process to elect the new committee. There are 28 available committee positions to be filled. If we DO NOT get more than 28 nomination there is no need for a ballet. Those in attendance today from the current committee were asked to consider their intentions as to whether to nominate for another term.

Please note, we ask that you consider seriously if you should nominate for a repeat term. Attendance at meetings is a vital form of contribution; if you do not believe that you will be able to attend at least 5 of the 11 meetings held each year it may be best for you not to submit a nomination.

VSTA is currently staffed by volunteers and managed by the elected committee members who also volunteer their time. While the activities undertaken by VSTA to date have affected some change, we would be able to achieve much, much more with appropriate systems and people in place to help share the workload. At present were are lucky if more than a third of committee members attend a meeting, good attendance sees us hitting 50% but in order for us to be truly effective and for the workload to be shared without burden, we should be aiming for 80% attendance at every meeting. (For those who do not have their calculator handy, that’s 22 out of 28).

We all appreciate that from time to time, work commitments and personal commitments will prevent some of us from achieving 100% attendance record, which is why the committee is so large. If you would like to work towards ensuring a sustainable future for our industry and wish to be part of VSTA as it grows it into a meaningful industry association, please submit your nomination now!

PLEASE REGISTER YOUR INTENTION TO NOMINATE BY EMAILING EITHER CAROLINE LOGAN at mail@vsta.com.au or MICHELLE WELLS at info@vsta.com.au

We look forward to receiving your nomination and hope to see some new faces as part of the incoming committee!

New Look Website

Mon, 07 Apr 2008 00:00:00 +1000

At Long Last! Our Website is finally up and running! Please browse around and check out the forum.

A Day on the Greens

Mon, 07 Apr 2008 00:00:00 +1000

Sunday 20th April

BBQ from 2pm. Lanes Open from 3pm. Drinks available at the Bar. A Great Family Day out and a chance to meet socially! For Catering Purposes. please RSVP to Michelle OR Caroline by the 17/04/08 Email: info@vsta.com.au

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