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Statement of Expectations by the Minister for the Arts and Sport, for the Film Finance Corporation Australia

Context

This statement outlines the expectations of the Government and embraces the communication framework between the Film Finance Corporation Australia (FFC), myself and the Department of Communications, Information of Technology and the Arts (DCITA) for the period 1 July 2007 to 30 June 2008.

Priorities

I expect the FFC to:

• Work with DCITA and other portfolio agencies to implement the Government's Screen Industry Support Package;
  
• Continue to implement the Government's 2004 election commitments, specifically to support the production of commercially competitive feature films;
  
• Engage with issues relating to the impact of new technologies on the audio-visual sector; and
  
• Make adjustments to the FFC's programs as necessary to meet changing industry priorities, in particular through ensuring that programs place a strong focus on developing more sustainable businesses.

Implementation of the Screen Industry Support Package

My expectations in relation to the FFC's role in implementing the Screen Industry Support Package are that it will:

• Administer the Australian Screen Production Incentive - Production Rebate as the main funding avenue for projects with commercial prospects;
  
• Place a high priority on using its direct funding allocation to support projects of strong cultural significance which might not be able to be made using the Production Rebate alone, such as children's television and documentaries;
  
• Provide top-up support to projects which can utilise the rebate in circumstances where such a need is clearly demonstrated and warranted on the basis of cultural objectives; and
  
• Work closely with DCITA, the Australian Film Commission and Film Australia on the range of transitional activities prior to the establishment of the new Australian Screen Authority and ensure minimal disruption to existing programs.

It is also my expectation that the FFC will:

• Be responsive to Government and to the Parliament while fulfilling the FFC's functions as outlined in the Constitution of the Film Finance Corporation Australia Limited (Updated to October 2005);
  
• Manage the affairs of the FFC with diligence and in compliance with all relevant legislative requirements and applicable Government policies, including the Constitution of the Film Finance Corporation Australia Limited (Updated to October 2005), the Commonwealth Authorities and Companies Act 1997 and the Corporations Act 2001;
  
• Work cooperatively with DCITA and other portfolio agencies to effectively fulfil the FFC's role as the main mechanism for Commonwealth assistance to the film production industry;
  
• Keep DCITA and myself fully informed in a timely manner of the FFC's activities and of any significant events relating to the FFC's business;
• Respond to requests from my office and DCITA in a timely manner, and work with DCITA as my primary source of advice;
• Develop and maintain effective relationships with key stakeholders, in both the public and the private sectors;
• Take active steps to secure revenue form sources other than Government, in order to increase the revenue base for the FFC;
• Effectively implement and maintain the highest standards of corporate governance, including the development of effective strategic planning documents containing relevant and measurable performance indicators, risk management strategies and a performance monitoring framework;
• Ensure that board members are aware of their roles and responsibilities and are participating in ongoing professional development and self-assessment;
• Provide for my approval a Statement of Intent (SOI) within two months of receipt of this SOE. The SOI should state how the FFC proposes to meet the expectations of Government, including identifying key performance indicators; and
• Provide a brief governance report for discussion at the formal biannual governance meetings.

Statement of Intent by the Film Finance Corporation Australia Limited to the Minister for the Arts and Sport

• Work with DCITA and other portfolio agencies to implement the Government Screen Industry Support Package:
1. Administer the Producer Rebate as the main funding avenue for projects with commercial prospects;
2. Provide supplementary support to the Rebate in exceptional cases and support other productions of strong cultural significance or which are justified on other public interest grounds, such as documentaries or children's television programming;
3. Work closely with DCITA, the Australian Film Commission and Film Australia to make an efficient and effective transition to the new Australian Screen Authority, while ensuring minimal disruption to existing programs.
• Continue to implement the Government's 2004 election commitments, specifically to support the production of commercially competitive feature films:
1. Enter co-finance arrangements with theatrical distributors, broadcasters, international sales agents and others to ensure that FFC-backed programs achieve the distribution and exhibition needed to maximise their potential audience reach;
2. Direct additional FFC funding from the Government's 2004 election commitments to the production of some higher-budgeted feature films with potential to play to mainstream audiences, locally and overseas.
• Engage with issues relating to the impact of new technologies on the audio-visual sector:
1. Encourage producers of traditional program formats (particularly children's drama and documentary) to incorporate new media content (e.g. for interactive websites, mobile phones, game consoles) into program production;
2. Disseminate market intelligence about the impact of new technologies to film and television producers via the FFC website
• Make adjustments to the FFC's programs as necessary to meet changing industry priorities, in particular by ensuring that programs place a strong focus on developing more sustainable businesses:
1. Adjust FFC funding programs so that producers receiving FFC funding are also able to benefit from the Producer Rebate where their projects are eligible;
2. Ensure that producers of projects using both FFC funding and the Producer Rebate have the opportunity to retain an equity stake in their projects, which is equal to the value of the rebate.

• Be responsive to Government and to the Parliament while fulfilling the FFC's functions as outlined in the Constitution of the Film Finance Corporation Australia Limited (Updated to October 2005).
• Manage the affairs of the FFC with diligence and in compliance with all relevant legislative requirements and applicable Government policies, including the Constitution of the Film Finance Corporation Australia Limited (Updated to October 2005), the Commonwealth Authorities and Companies Act 1997 and the Corporations Act 2001;
• Implement the policies and processes outlined in the Corporate Governance Statement in the FFC's Annual Report. The board will monitor developments in corporate governance best practice and seek advice from management and the Department to maintain the highest standards of corporate governance;
• Provide a six-month report (February 2008) and a full-year report (October 2008) against the key performance indicators and risk management strategies of the FFC's Corporate Plan 2007/08.
• Ensure that board members are aware of their roles and responsibilities and are participating in ongoing professional development and self-assessment.

• Work cooperatively with DCITA and other portfolio agencies to effectively fulfil the FFC's role as the main mechanism for Commonwealth assistance to the film production industry. Consultation will include:
  1. Regular formal meetings with the Department, Australian Film Commission, Film Australia and the Australian Film, Television and Radio School to discuss industry policy and foster cohesive delivery of policy;
  2. Regular exchange of data and information between the FFC and the Department and the other Commonwealth film agencies (e.g. data for the AFC's National Drama Production Survey);
  3. Regular informal meetings with staff from the Department and the other Commonwealth film agencies;
  4. CEO's attendance at the Heads of Cultural Organisations meetings held during the year.
• Keep DCITA and the Minster fully informed in a timely manner of the FFC's activities and of any significant events relating to the FFC's business. Respond to requests from the Minister's office and DCITA in a timely manner, and work with DCITA as the Minister's primary source of advice:
  1. Provide a brief governance report for discussion at bi-annual meetings with the Minister, the FFC Chairman and CEO;
  2. Organise regular meetings of the CEO and the Minister in Canberra on the occasion of Parliamentary screenings of FFC-financed films;
  3. Timely reports on significant developments by the CEO or senior management to the Minister's office and the Department;
  4. Prompt response to requests for information from the Minister's office and the Department;
  5. Regular meetings of the CEO and senior staff with the Department to discuss FFC operations and policies.
• Develop and maintain effective relationships with stakeholders:
  1. Easy access for program makers to FFC staff, information about FFC policies and procedures and marketplace intelligence;
  2. Consultation with the industry in preparing the FFC's annual investment guidelines;
  3. Information seminars for producers chaired by FFC staff who have attended international markets;
  4. Participation by FFC personnel at key industry conferences in Australia and international markets;
  5. Sponsorship of annual conferences and events run by industry peak bodies (e.g. Screen Producers Association of Australia, Australian Screen Directors Association, Australian Writers Guild, Media Entertainment and Arts Alliance);
  6. Sponsorship of annual film and television award ceremonies (e.g. AFI Awards, IF Awards, ASDA awards, AGSC awards);
  7. Short internships at the FFC for graduating students from the Australian Film, Television and Radio School;
  8. Access for staff from other Commonwealth film agencies to internal FFC meetings to observe FFC operations;
  9. Regular communication by the CEO with both mainstream and trade journalists on industry matters and FFC policies;

• Continue to manage the financial affairs of the FFC diligently and prudently and to maintain proper financial accounts compliant with applicable accounting policies as set out in the FFC's Financial Statements.
• Maximise recoupment income consistent with its corporate objectives. The FFC sets annual targets (as reflected in its Corporate Plan) for various income streams and recoupment of its investments. Achievement of these targets is monitored and corrective action taken if appropriate.
• Implement policies which encourage non-government co-investment in projects, including accelerated recoupment for other investors and/or the use of recoupment corridors, to further leverage the FFC's investments.