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Latin-AICN: As the Mexican Cine Becomes Chic, their Government Pulls Its Funding, and USA companies launch lawsuits...

Father Geek here... sad news for lovers of Mexico's proud, long-lived Cine Industry. Government cutbacks and outside pressure from USA interests are making it increasingly difficult for new blood to enter the biz south of the border. In the December 11th issue of the NY Times, editorial observer Tina Rosenberg penned the following gloomy report for an industry that was once a world leader...

Just as Mexican Movies Become Chic Again, the Government Pulls Its Support

By TINA ROSENBERG

MEXICO CITY... Mexican movies and moviemakers are hot. Hollywood borrowed Alfonso Cuarón, who made the breathtaking "Y Tu Mamá También," to direct the third Harry Potter film. Alejandro González Iñárritu, whose 2000 debut movie, "Amores Perros," was nominated for an Oscar for best foreign film, has won more acclaim with the just-released "21 Grams." The once-great Mexican film industry is again enjoying boom years.

Everywhere, that is, but in Mexico. It is hard to make a profit on a film in Mexico, no matter how good. Mexico will produce 28 movies this year (only 14 last year), and the industry depends heavily on state funds. That money is provided by Imcine, the Mexican Film Institute. Now the government is trying to close it.

President Vicente Fox's new budget would also privatize the historic Churubusco Studios, one of the most modern in Latin America. Churubusco may find a buyer but when another major studio was privatized, it was bought by a TV network, which dismantled much of it. The budget would also close the government's film school although there are others in addition to Imcine, Mexico's largest movie producer.

While Imcine has had its share of waste and nepotism, it helps beginning filmmakers in countless ways. It puts up seed money, negotiates a discount with Kodak and gives out postproduction grants. In a country where credit is short and movies a terrible investment, Imcine is so important that its annual budget determines the number of films produced in Mexico each year.

The government's proposals, which would save only $10 million a year, are part of widespread budget cuts. But they are also inspired by a philosophical shift. Under the 70-year rule of the Institutional Revolutionary Party, the Mexican state did everything for everyone. Today, a more free-market government is trying to cut back.

Many countries, of course, hold that government does belong in the movies. France's film industry lives off more than 50 years of heavy state support. An infusion of state money three years ago has sparked a resurgence of British film.

Mexico's famous directors no longer need or get funds from Imcine. But if they had not enjoyed Imcine's help when starting out, they would have been shooting TV commercials or fetching coffee for Hollywood directors instead of making their first pictures. Their movies ( even those financed entirely with private funds ) would not exist.

Not every poor country should have a national film industry. But Mexico should, and not just because of its history. Like France, Mexico defines itself in large part by what it isn't: it's not the United States. For Mexicans, their films are a defense against being swallowed culturally by America. Despite the best efforts of the Mexican film industry, 80 percent of the movies playing in Mexican theaters come from Hollywood.

Worried about sustaining the film industry as Imcine's budget shrank, Mexico passed a law last December allowing it to do what Argentina and France do: tax movie tickets. The law was modest. While France taxes each moviegoer 11 percent, Mexico wanted one peso < 10 cents < on every 35-peso ticket, with the money going to film production. That would raise about $15 million per year, more than Imcine has gotten lately. If the tax worked, it would support films without state funds.

But even this tiny sum drew the wrath of the USA's Motion Picture Association, whose head, Jack Valenti, wrote a letter to President Fox. The association, which opposes all box-office taxes, argued that the law inadvertently penalized film distributors. The Valenti letter came after the law had been passed by the Mexican Congress, but in Mexico that is rarely the end of the story. Warner Brothers, 20th Century Fox and other American movie distributors have filed lawsuits, which are blocking the collection of more than 80 percent of the funds. It will probably be years before directors see the money.

Father Geek back again... Here's a link to the original New York Times December 11th story...

Just Click Here to get the poop straight from the horse's...

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