Australian Film Finance Corporation Limited

Transcription

FFC992000
Mission Statement
To strengthen cultural identity by:
– supporting a highly professional and
creative Australian screen production
industry;
– entertaining and informing Australian
audiences with a diversity of screen
images;
– showcasing Australia’s screen
production industry to the world.
ANNUALREPORT
ISSN 10338179 © Copyright 2000
ABN 22 008 642 564
Cover: Pia Miranda in Looking for Alibrandi
Photo Paolo Bassi
Inside cover: Nick Giannopoulos in The Wog Boy
Photo Skip Watkins
00
Contents
Notice of Annual General Meeting
4
Delivery Letter
6
Highlights
8
Corporate Profile
10
Board of Directors
13
16
20
22
27
28
30
Chief Executive’s Report
Investment
– Investment Overview 1988–2000
Distribution and Recoupment
Business Affairs
Policy
Public Relations
The Annual General Meeting of the
Australian Film Finance Corporation
Limited (ABN 22 008 642 564) will be
held at 10.00 am on Tuesday October
10 at the Department of Communications,
Information Technology and the Arts,
38 Sydney Ave, Forrest ACT 2603.
33
Projects Report
47
Awards
1. To receive, consider and adopt the
financial statements of the Company
for the year ended June 30 2000,
together with the reports of the
Directors and Auditor thereon.
2. To consider any other business of
which due notice has been received.
51
Releases and Screenings
Proxies
54
Financial Report
Note that:
Business
1. a member entitled to attend and vote
is entitled to appoint not more than
two proxies;
2. where more than one proxy is
appointed, each proxy must be
appointed to represent a specified
proportion of the member’s voting
rights;
3. a proxy need not be a member; and
4. forms of proxy must be lodged at the
registered office of the Company at
least 48 hours prior to the meeting.
By order of the Board.
Keith Lupton
Company Secretary
September 1 2000
3
September 1 2000
The Hon Peter McGauran, MP
Minister for the Arts and the
Centenary of Federation
Parliament House
Canberra ACT 2600
Dear Minister,
It is with pleasure that I present the
12th Annual Report for the Australian
Film Finance Corporation.
The announcement by your Government in May of its commitment to
in-principle funding for the FFC of
$50 million for three years, to 2004,
was a welcome endorsement of the
Australian film and television industry.
This continued support reflects the
importance to Government of Australian
content in the global marketplace and is
greatly appreciated by the industry.
In a period of change and uncertainty,
driven by the inevitable forces of
globalisation, the film and television
industry continues to attract the cream
of Australia’s creative talent and is the
leading cultural ambassador for
Australia on the international stage.
There were numerous highlights during
the year. In particular, we celebrated the
outstanding domestic box office success
of feature films The Wog Boy, Looking
for Alibrandi and Two Hands.
4
These three different, yet wonderfully
Australian, films have now taken their
places in the FFC’s top ten list, alongside
Strictly Ballroom, Muriel’s Wedding,
The Adventures of Priscilla: Queen of
the Desert and Shine. This affirmation
by Australian audiences provided the
industry with a timely boost.
Our children’s television programs
remain in demand both domestically
and internationally and although the
adult television drama market is as
competitive as ever, our programs
continue to be seen and enjoyed in
large numbers at home.
The unprecedented increase this
year in documentaries financed with
international partners, as well as with
our local broadcasters, underlines the
hard work and determination of our
documentary filmmaking community.
In the tight international market, we
worked harder than ever to consolidate relationships with our co-financing
partners and the FFC slate again
attracted high levels of non-FFC
investment. In total, non-FFC participation represented 46.4 per cent of
the value of the production slate and
the FFC welcomed a number of new
marketplace partners, including Key
Entertainment, Providence and BSkyB.
It is the marketplace that determines
what is made and this year 65 projects,
with a total budget value of over
$133 million, secured FFC funding.
The slate again represents film and
television programs that are diverse
in genre, style and budget.
The two Film Licensed Investment
Companies (FLICs) went to the market
for a second time this year and we
were pleased to see that they raised
a combined total of $21 million of
concessional capital. We welcome
another avenue of much needed film
and television production finance.
We have begun working with the
AFC on examining ways of providing
increased support for project and script
development. We are collaborating
on developing a proposal for a script
‘hothousing’ program, where successful practitioners from Australia and
overseas work intensively on selected
projects in development.
Australian creative talent excelled once
again in the international arena. Russell
Crowe, whose film career began with
the FFC financed features Blood Oath
and The Crossing, received an Oscar
nomination for his role in The Insider
and Toni Collette was nominated for
The Sixth Sense. And it was not only
our actors taking the accolades, our
remarkable film technicians also
excelled, with Academy Awards going
to David Lee for Best Sound and Steve
Courtley for Best Visual Effects, both
for The Matrix.
Furthermore, Australia continues to
attract big budget foreign production,
another acknowledgment of our highly
sophisticated production infrastructure.
The growth in this production tier brings
welcome employment and training
opportunities for our industry. It is a
development that would not have
occurred without long-term government support.
We congratulate the Government
on moving to introduce legislation
to enforce the ten per cent requirement
for pay TV. This expenditure is a vital
source of ancillary finance for our
industry and the new leglislation will
finally ensure that the pay TV operators
comply with their obligations. We
hope that similar legislation will soon
be introduced for pay TV documentary channels.
During the year, we welcomed new
directors Mario Andreacchio, Jonathan
Shiff, Jan Chapman and Greg Vickery
and Lynda House’s reappointment
to 2002.
Our Deputy Chair, Jill Robb, will be
retiring from the Board in August 2000.
Through Jill’s unparalleled experience,
in both feature and television drama,
and her extensive involvement with
film and broadcasting agencies, she
has enriched and informed the FFC’s
deliberations over the past five years.
I know each of my colleague directors
would like to make special mention of
her contribution.
I would also like to thank Catriona
Hughes and her team for their hard
work, innovation and dedication.
Finally, this year has involved a high
level of collaboration between the FFC
and your ministerial and departmental
staff, which has proven to be highly
productive. We remain committed to
nurturing the Australian film and
television industry, with the limited
resources at our disposal, in order
to foster an environment that gives
voice to Australia’s cultural identity.
Yours sincerely
Geoffrey Levy
Chairman
5
HIGHLIGHTS
Investment
Project performance
The FFC invested $72.9 million in
65 new projects and one production
loan creating a production slate worth
$133.6 million.
Three FFC financed feature films
The Wog Boy, Looking for Alibrandi
and Two Hands entered the top 25
Australian films of all time.
The year’s slate comprised:
By the end of week one at the domestic
box office The Wog Boy had taken over
$2.6 million, securing its position as the
strongest opening Australian film. The
film went on to take the number ten
spot of Australian releases achieving
box office of $11.4 million.
– 13 feature films, including two large
format films with total budgets of
$61.4 million;
– 8 adult television drama projects with
total budgets of $35.7 million;
– 3 children’s television drama projects
with total budgets of $20 million; and
– 41 documentaries with total budgets
of $16.5 million.
The FFC’s slate of investments since
establishment in 1988/89 comprises
688 projects with a total budget value
of $1.5 billion.
Recoupment
6
In the year in review the FFC recouped
$12.7 million from projects in the
marketplace.
Total recoupment to the FFC since
establishment is $186.8 million, which
has been reinvested in new film and
television projects.
Looking For Alibrandi was released
to rave reviews. The film was still in
release at the end of the financial year,
taking over $8 million at the box office
by July 2000.
Two Hands achieved great critical and
box office success upon its Australian
release and went on to collect five
Australian Film Institute (AFI) Awards
and three Film Critics’ Circle of Australia
Awards, including the top honour of
Best Film from both.
Facing the Demons received a Logie for
Most Outstanding Documentary/Special
Report in a Public Affairs Program.
Soft Fruit distinguished itself nationally
and internationally picking up several
awards including Best Actor and Best
Supporting Actress at the AFI Awards,
the top prize from the Fipresci Jury
at the San Sebastian Film Festival
and the Special Jury Prize at the
Turin Film Festival.
Thunderstone collected the 1999 British
Academy of Film and Television Artists
(BAFTA) Award for International
Children’s Series.
Round The Twist 3 won the prestigious
Banff Rockie Award in the Children’s
Program category for the episode
Whirling Derfish.
The first in the series of three telemovies Dogwoman: Dead Dog Walking
screened on commercial television
during the year to great ratings that
peaked in the high twenties.
Railway Adventures Across Australia
made a number of impressive sales in
the international market, including PBS
in the USA and the Travel Channel, and
achieved direct-mail sales of 50,000 sets
worldwide, a landmark achievement for
a documentary series.
Kissing Crocodiles joined an elite group
of documentaries to go into profit.
Background photo:
Bryan Brown in Two Hands
Top left to right:
From left: The Hon Minister for the Arts and the
Centenary of Federation, Peter McGauran with
Nick Giannopoulos and John Brousek at a screening
of The Wog Boy at Parliament House, Canberra.
Greta Scacchi, Pia Miranda and Anthony LaPaglia
in Looking for Alibrandi Photo Lisa Tomasetti
Dee Cameron shows off her Logie for
Facing the Demons
Russell Dykstra in Soft Fruit
Stuart Halusz in Thunderstone Photo Suzy Wood
Her Majesty The Queen visits the set of Round The
Twist. From left Her Majesty, John Wrigglesworth,
Dr Patricia Edgar and Mathew Waters
Photo courtesy of The Age
Magda Szubanski in Dogwoman episode
Dead Dog Walking Photo Dominic O’Brien
Bob Bredl in Kissing Crocodiles
7
CORPORATE
PROFILE
The Australian Film Finance Corporation
(FFC) is wholly owned by the Commonwealth Government and is the Government’s principal agency for funding the
production of Australian film and
television programs.
The Government supports film and
television production because it recognises audiovisual media as the most
pervasive cultural medium of our time
and seeks to foster an environment that
gives voice to Australia’s cultural
identity through this medium.
The FFC works in cooperation with the
other agencies in the Commonwealth
Film Program – the Australian Film
Commission, Film Australia, the
Australian Film Television and Radio
School and ScreenSound – to achieve
this aim.
FFC Objectives
1. Finance the production of a diverse
range of Australian film and
television product.
2. Maximise opportunities for audiences to view FFC financed film
and television product.
3. Increase the volume of production
generated by: co-investing with the
marketplace and maximising
recoupment.
4. Provide a centralised source of
market intelligence for the benefit
of film and television industry
practitioners.
5. Efficiently and effectively manage
the FFC and its resources for its
shareholder, the Commonwealth
of Australia.
CORPORATE
PROFILE
The FFC’s role is to invest in the
production of a diverse range of
projects in the categories of feature
film, adult television drama, children’s
television drama and documentary.
To ensure that they reflect the
Government’s cultural objectives, all
FFC financed projects must have high
levels of creative and technical contribution by Australians. All projects must
therefore meet the Australian content
requirements in Division 10BA of the
Income Tax Assessment Act.
8
The funds invested by the FFC consist
of its annual appropriation from
Government – $48.015 million in
1999/2000 – as well as recoupment
from investments in previous years.
Investment is provided on the basis
that projects are supported by non-FFC
investors, in particular, marketplace
participants such as broadcasters,
distributors and sales agents. In addition to direct investment, the FFC may
provide production loans and print and
advertising loans to facilitate the
theatrical release of feature films.
The FFC does not provide development
funds for projects. Development, in the
form of script and marketing assistance,
other than print and advertising loans,
is provided by the Australian Film
Commission (AFC) and through state
funded film agencies in New South
Wales, Victoria, Queensland, Western
Australia and South Australia. These
agencies also provide limited forms of
production assistance.
All production investment decisions are
made by the FFC Board which meets on
a six-weekly basis. Additional meetings
and committees may be convened to
attend to urgent investment applications, administrative matters and
applications to vary previous investment
decisions. The FFC’s Chief Executive has
limited delegated powers to vary Board
investment decisions.
Producers are kept informed of the
expected level of non-FFC participation for various production budget
thresholds, production categories, and
appropriate investment and recoupment structures via the FFC’s Investment Guidelines. These Guidelines,
distributed throughout the industry
and available on the FFC website, are
revised annually after consultation with
industry representatives.
The FFC has offices in Sydney and
Melbourne. The Sydney office is the
Corporation’s administration centre
and has a staff of 27 full-time
employees. During the year in review
the Melbourne office increased its fulltime staff contingent to four with the
relocation of the Recoupment Manager.
The Sydney office has responsibility for
projects originating from all states other
than Victoria. The Melbourne office
handles Victorian projects. Meetings
with state agencies and producers take
place on a regular basis in other states.
FFC staff attend major international
markets for film and television where
they assist producers in negotiations
with distributors, sales agents and
co-financiers.
Till Human Voices Wake Us
Helena Bonham Carter with Guy Pearce
Photo Suzy Wood
9
BOARD OF
DIRECTORS
Geoffrey Levy
Jill Robb
Lynda House
The Board of Directors of the Australian
Film Finance Corporation Limited is
appointed by the Federal Minister
for the Arts and the Centenary of
Federation. The Board met on twenty
one occasions during the year. Eight
scheduled meetings were held in
Sydney and one was held in Melbourne.
Ten special meetings were held to
consider variations of investment in
projects which had already received
Board approval or urgent new funding
applications. The Administration SubCommittee met on one occasion.
Roger Amos
Jan Chapman
Jonathan M. Shiff
Gregory Vickery AM
Mario Andreacchio
Geoffrey Levy, Chairman
Lynda House
Jonathan M. Shiff
Principal, Wentworth Associates Pty Ltd
a corporate advisory firm. Geoff is a
former partner of the Australian law
firm Freehill, Hollingdale & Page. He
is a non-executive director of a number
of companies including Ten Network
Holdings Limited, Singleton Group
Limited and the Mirvac Group.
Independent producer whose credits
include features Proof, Muriel’s
Wedding, River Street and the
documentary Pozieres.
Independent producer of children’s
and family programming whose credits
include television drama series Kelly,
Ocean Girl and Thunderstone.
Appointed July 10 1997 to June 30
2000. Reappointed July 25 2000 to
January 31 2002.
Appointed August 5 1999 to
August 10 2002.
BOARD OF
DIRECTORS
Appointed July 10 1997 to June 30 2000.
Appointed Chairman April 28 1999 to
June 30 2000. Reappointed Chairman
July 1 2000 for three years.
Jill Robb, Deputy Chair
Independent producer whose credits
include features Careful He Might Hear
You and The More Things Change and
television drama The Man from Snowy
River series 2. Jill was the first Chief
Executive of the Victorian Film Corporation, now Film Victoria. She was
Executive Producer for the ABC of the
Children’s and Education Department
and then of TV Drama, where her
credits include Phoenix, Embassy
and Stark.
10
Appointed May 4 1995 for three years.
Reappointed August 27 1998 for two
years. Appointed Deputy Chair
November 23 1999 to August 30 2000.
Roger Amos
Senior Partner, KPMG. Roger is the
Partner in Charge of KPMG Services
Division of Assurance and Advisory and
has been an audit partner since 1981.
He is the Chairman of KPMG Australia’s
Information, Communications and
Entertainment (ICE) Group and is the
Australian firm’s representative on the
KPMG International ICE Group. He is the
Chairman of the ICE – Communications
Global Client Industry Group.
Appointed April 28 1999 to
April 30 2002.
Jan Chapman
Independent producer whose
credits include features Last Days of
Chez Nous, The Piano, Love Serenade,
Holy Smoke and Walk the Talk. Jan’s
television drama credits include
Naked and Come in Spinner.
August 10 2002.
Gregory Vickery AM
Solicitor/Managing Partner, Deacons
Graham & James. Greg is State Chair
of the Australian Red Cross, Queensland
Division. He is Honorary Consul for
Indonesia in Queensland and Adjunct
Professor in Law at the University of
Queensland.
August 10 2002.
Mario Andreacchio
Film director and producer whose
credits include features Napoleon,
The Real Macaw, Sally Marshall’s Not
an Alien and Young Blades. Mario is
also a member of the board of the
South Australian Film Corporation.
Appointed October 1 1999 to
September 20 2002.
Photography by Penelope Clay
11
CHIEF
EXECUTIVE’S
REPORT
In 1999/2000 there was a resurgence
in domestic box office for our Australian
films, with three FFC financed feature
films – The Wog Boy, Looking For
Alibrandi and Two Hands – making
it into the top 25 Australian films of
all time.
None of these films, though, has
been particularly successful in terms
of overseas sales, reflecting a wider
decline in demand at key overseas
markets for independent film and
television programs such as those
Australia produces.
The comedy The Wog Boy grossed
$11.4 million in its domestic release,
surpassing Australia’s last homegrown
hit, The Castle which took around
$10 million. Looking for Alibrandi, a
more serious exploration of multicultural Australia, had reached over
$8 million at the box office by July
2000 and the black comedy/thriller
Two Hands grossed $5.5 million.
The Commonwealth Government’s main
aim in subsidising film and television
production is for Australian audiences
to have the opportunity to view locally
made programs and a domestic success
such as The Wog Boy or Looking For
Alibrandi certainly achieves this aim.
We estimate 1,442,000 Australian’s
visited the cinema to see The Wog Boy
and over 939,000 saw Looking for
Alibrandi.
These are excellent results for a
production industry which, like other
relatively small industries around the
world, is fighting for space in the
crowded, American-dominated,
multiplex exhibition environment.
Background photo:
Xaris Miller in Eugenie Sandler PI
Photo Dominic O’Brien
Nevertheless, overseas sales typically
represent a significant share of revenues from our local film and television
programs (67 per cent in 1999/2000)
and the ability of producers to raise the
finance for their programs also depends
on international presales. The contraction in international demand for
Australian programs is an ongoing
problem for the local industry.
Clockwise from top right:
X-Pats – The Alien Connection
Colin Friels and Anna Lise Phillips in
Marriage Acts Photo Gary Johnston
Ice Break Heart
Malpa
Aden Young in Serenades
Photo Mark Rogers
13
Chief Executive’s Report continued
The trend in feature film production,
in this climate, is towards a polarisation
of budgets. Whereas the $3-4 million
film has been the industry standard
in the past, irrespective of whether
the perceived audience is local or international, we believe that filmmakers
will be obliged to define whether their
market is domestic or international and
conceive ideas and scripts with budgets
that acknowledge the different markets.
A perceived domestic market will
impose a cap on the film’s budget and
introduce a rigour that will require the
filmmakers to identify the hook into the
local audience. To the extent that the
target market is international, the scope
for low budget filmmaking, in our
opinion, has significantly diminished
and only projects with ideas and themes
that can reach out to an international
audience – in most cases supported by
‘marquee’ elements (eg cast, director) –
will be able to secure finance. These
projects will necessarily be of a higher
budget than the $3-4 million film.
14
The Hon Minister for the Arts and
the Centenary of Federation, Peter
McGauran, commissioned a joint report
from the FFC and the Australian Film
Commission (AFC) during the year on
the state of the industry. This was in
response to concern within the industry
that local production levels were falling.
The report, delivered to the Minister in
November 1999, found that, overall, film
and television production had actually
increased but growth had been driven
by foreign production and international
co-production while the level of wholly
Australian production was static.
The report concluded that there were
indeed a number of serious issues
confronting the local industry.
These included:
– a shortage in development funding
for feature films;
– declining television licence fees from
Australia’s free-to-air broadcasters,
coupled with rising production costs;
– increased competition for independent producers from specialist
divisions of the major American
entertainment conglomerates; and
– the possibility that new media
technologies will dilute the effect of
Australia’s local content regulations.
The report recommended an increase
in government funding, specifically
for development of feature films and
the production of the expensive
television miniseries format.
It also recommended a number of
amendments to the Broadcasting
Services Act to reinforce local
content provisions.
The Government announced in-principle
triennial funding of $50 million for the
FFC in the May Budget, however the
appropriation will not be confirmed until
the next Federal Budget.
At the same time, the Minister
announced a review of the FFC’s cash
balance. The cash balance, which
consists of funds committed to projects
but not yet expended at the end of the
financial year, rose from $6.4 million at
June 30 1996 to $26.4 million in 1998/99.
Subsequent to the announcement of
the review, the cash balance fell to
$9.9 million at June 30 2000.
Although the outcome of the review
was still to be determined at the close of
the financial year, the FFC demonstrated
that at each June 30, all the funds in the
cash balance were allocated to projects
scheduled to go into production and
were expended within the following
12 months.
The FFC also demonstrated that the
end of year accumulation of committed
funds is a product of the time lag
between FFC Board approval of a
project and drawdown of funds for
expenditure on that project. Such
time lags are an intrinsic part of film
financing, as complex contracts
between multiple parties – of which
the FFC is just one – must be negotiated
before it is financially prudent to expend
money on approved projects.
With the financing of Australian
films now inextricably linked to the
international market – and its contractual complexities regarding cast, key
creatives and other project elements –
these time lags are likely to continue.
Australian program producers will
continue to experience the effects of
globalisation in the next few years and
it is unlikely international demand for
Australian product will increase, at least
in the short term. On the positive side,
the market appears to have plateaued
and is unlikely to deteriorate further in
the immediate future.
In the longer term, the market may shift
again under the force of new digital
technologies, however, it is still too
early to predict outcomes. There is no
guarantee that the Australian production
industry will benefit from the expansion
of services and other features of the
new technologies. Past experience
shows that new platforms lead to the
fragmentation of rights but not an
increase in the overall licence fees.
In summary, the chief problem for
our independent producers in the
foreseeable future will be accessing
distribution networks.
15
New production investment commitments 1999/2000
Project
Type
Production
Loans
Feature Films*
Television Drama
Adult
1
Children’s
Documentaries
Non-Accord
Accord
Total
1
Number of
Projects
Investment
Budget
FFC
($M) Commitment
($M)
13
61.4
35.0
8
–
3
11
35.7
–
20.0
55.7
18.4
1.3
9.3
29.0
17
24
41
10.0
6.5
16.5
4.4
4.5
8.9
65
133.6
72.9
Breakdown of investment commitments 1999/2000
12%
13%
Children’s Television Drama
48%
27%
Documentaries
Feature Films (including
Large Format Films)
Adult Television Drama
Total investment for the Corporation
was $74.8 million, $1.9 million of which
was expended as additional investment
or enhancement in 20 projects
contracted during previous years.
The FFC’s financial commitment to
investment for the year breaks down as
48 per cent to feature films, 27 per cent
to adult television drama, 13 per cent
to children’s television drama and
12 per cent to documentaries.
Non-FFC participation
The FFC is able to boost the level of
production generated by its appropriation by co-investing with the market
and re-investing its recoupment from
previous years.
During the year in review, the FFC
secured an average non-FFC participation level of 46.4 per cent in its
investment slate (calculated as
a percentage of the total production
budget of projects contracted).
16
The FFC’s investment criteria for feature
films will vary according to the budget.
For higher budget features, the FFC
expects a higher proportion of risk to
be taken by the marketplace.
INVE STMENT
The Australian Film Finance Corporation
committed $72.9 million to 65 new
projects, and one production loan, with
a total budget value of $133.6 million
for the 1999/2000 financial year.
In addition, the sum of $2.8 million
was committed, to be met from the
Corporation’s 2000/01 appropriation of
$48.015 million and net recoupment
from that financial year.
* includes Large Format Films
Non-FFC participation can be further
broken down to 42.9 per cent in feature
films, 48.8 per cent in adult television
drama, 53.4 per cent in children’s
television drama (another reflection
of a stronger marketplace participation
in this area) and 46.1 per cent in
documentaries.
This figure is lower than the previous
year, which represented the highest
ever non-FFC participation, at 51.5 per
cent. Given the tight international
market, the current figure stands out
as a strong result.
Feature Films
This year the FFC financed 13 feature
films, including two large format films,
and again experienced a high level of
demand on its funds. The demand
tended to bunch into the second half
of the financial year and marketplace
attachments reflected a softer market.
The FFC committed $35 million in
investment to the feature films slate,
which represents a small increase in
funds committed the previous year.
There was, however, a decrease by one
film in the number of features financed
this financial year.
Of the 13 films financed, one had a
budget under $3 million, five had
budgets of between $3 million and
$5 million and seven had budgets
over $5 million.
The average budget for the year was
$4.7 million, slightly higher than the
previous year. The increase reflects
the higher than average cost of large
format films as well as a trend in the
marketplace away from low budget
features in favour of budgets capable
of delivering ‘on-screen’ value.
Overall, there were difficulties
for feature films initially in the
marketplace, both domestically and
internationally, in terms of attracting
co-financing partners.
The FFC financed two large format
films, Australia – Land Beyond Time,
and Equus – the Story of the Horse
reflecting an increase in interest in this
area of production. For the remainder
of the features slate there was a mix of
genre, style and subject matter which
ranged from comedy with Let’s Get
Skase, murder mystery in Lantana,
horror in Cubbyhouse, science fiction
in Subterano and the aesthetically
driven Till Human Voices Wake Us.
Television Drama
The FFC invested $18.4 million in eight
miniseries and telemovies, $1.3 million
in one production loan and $9.3 million
in three children’s miniseries. These
commitments represent 40 per cent
of the FFC’s production investment for
the year.
The FFC expects all television drama
it supports to have a presale to a local
broadcaster. The Corporation also
encourages producers to negotiate
presales in other territories to maximise
a project’s revenue potential, as prices
paid for completed television projects
can be considerably lower.
17
The children’s drama slate continued to
be strong, with three miniseries funded,
including the sequel Crash Zone 2.
Also financed was Eugenie Sandler PI,
in which a teenager turns detective
and Horace and Tina, which features
invisible toy-maker elves.
The adult drama slate experienced
difficulties with domestic television
licence fees declining in real terms
and bigger budget deficits. With
international markets relatively soft in
terms of pre-buying or distributing
Australian product, high-end miniseries
and telemovies have found it difficult to
obtain the necessary finance.
The slate ranged in style from a
production loan in the Hallmark backed
miniseries On the Beach, which was
financed the previous financial year,
through to the miniseries adaptation of
the classic Australian novel My Brother
Jack. Hallmark was also involved in
Dogwoman, a package of three
telemovies, while the four stand alone
telemovies in the slate ranged from the
outback drama The Love of Lionel’s Life
to the story of businesswoman Jill Ker
Conway’s early life, as told in The Road
From Coorain.
The FFC committed funds to one official
co-production during the year, the adult
television miniseries, Rubicon with the
participation of the British broadcaster
BSkyB.
18
Official co-productions occur when there
is a government to government treaty
or memorandum of understanding.
This arrangement is distinct from cofinancing with international partners,
as part of day to day business, some of
which might be termed unofficial coproductions. It is anticipated that, as a
result of the softer conditions applying
in the marketplace, the next year will
see an increasing focus on coproductions of one kind or another.
Documentaries
The FFC supported 41 documentaries,
six more than in the previous year.
This represented $8.9 million in
commitments and 12 per cent of the
FFC’s production investments for the
year, geared by non-FFC participation
up to a total budget value of
$16.5 million.
Of the 41 documentaries financed,
24 were financed under the Accords and
17 were non-Accord. The number of
non-Accord documentaries more than
doubled from the previous year, when
only seven in a slate of 35 were
financed.
This year, Accords represented 59 per
cent of the FFC’s financial commitments
for documentaries, with non-Accords
representing 41 per cent.
Under the Accords, domestic
broadcaster presales are determined
by a fixed percentage of the budget.
The FFC accepts this commitment as
the only non-FFC participation required.
This year the two public broadcasters
ABC-TV and SBS and one commercial
broadcaster, the Seven Network, took
up the Accord.
Three non-Accord documentaries,
The Beach, Painting the Country and
Boys in Blue Singlets, were made in
association with Japanese broadcaster
NHK and the Seven Network participated in a 8 x 30 minute documentary
series, Drama School, which profiles
the National Institute of Dramatic Art
(NIDA).
ABC-TV Accord documentaries showed
an increased interest in international
subjects. These included Wahid, a
profile of the Indonesian president,
The Glorious Aftermath, a film that
explores the global frontiers of e-trade
and X-Pats – the Alien Connection,
a film about Australians living in
Singapore. There were also films
with more traditional subject matter,
including Dolphin Mania and Inside
the Australian Ballet.
Non-FFC participation in documentaries
was 46.1 per cent and there was an
increase of six in the number of projects
contracted the previous year, reflecting
a more buoyant market for Australian
documentaries.
The SBS Accords also reflected the
international trend with From Korea
with Love and Fond Memories of Cuba,
while also featuring more traditional
domestic stories such as Yvonne, based
on soprano Yvonne Kenny and Mr.
Strehlow’s Films, a film which utilises
archival aboriginal footage.
Access and Equity performance:
creative principals attached to FFC financed projects 1999/2000
Non-Accord documentaries must gain
an overseas financial commitment as
well as a presale from an Australian
broadcaster to trigger FFC finance. For
the first time in three years, non-Accord
productions received more of the FFC’s
documentary budget than Accords.
Project Type
Credit
Male
%Male
Female %Female
Feature Films*
Director
Producer
Writer
12
17
11
40
86
65
85
75
2
9
2
13
14
35
15
25
Television
Drama
Director
Producer
Writer
12
9
9
30
86
50
53
61
2
9
8
19
14
50
47
39
Documentaries
Director
Producer
Writer
25
31
19
75
50
62
56
56
25
19
15
59
50
38
44
44
*includes Large Format Films
19
INVESTMENT
OVERVIEW
Cumulative Investment Documentaries 1988/89 to 1999/2000
Cumulative Investment 1988/89 to 1999/2000
1988/89
1989/90
1990/91
1991/92
1992/93
1993/94
1994/95
1995/96
1996/97
1997/98
1998/99*
1999/00
Total
Number of
Projects
$ Production
Slate
$ FFC
Investment
$ Non-FFC
Investment
% Non-FFC
Investment
34
53
41
52
65
59
63
63
55
58
55
65
663
69.0
113.6
136.4
113.5
109.8
103.9
119.1
141.0
99.1
128.6
107.5
133.6
1,375.0
38.9
63.8
63.7
65.3
67.6
68.5
70.5
74.9
51.3
69.1
52.8
71.5
758.0
30.1
49.8
72.7
48.2
42.2
35.4
48.6
66.1
47.8
59.5
54.6
62.1
617.0
43.6
43.8
53.3
42.4
38.5
34.1
40.8
46.9
48.2
46.2
50.8
46.4
44.9
1988/89
1989/90
1990/91
1991/92
1992/93
1993/94
1994/95
1995/96
1996/97
1997/98
1998/99
1999/00
Total
Number of
Projects
$ Production
Slate
$ FFC
Investment
$ Non-FFC
Investment
% Non-FFC
Investment
18
29
17
27
38
40
40
39
35
35
35
41
394
9.2
14.3
7.5
12.4
11.9
15.8
17.2
14.4
8.7
11.7
16.1
16.5
155.6
5.8
8.4
4.3
7.8
8.6
10.2
11.3
8.6
5.8
7.1
7.8
8.9
94.6
3.4
5.9
3.2
4.6
3.3
5.6
5.9
5.8
2.9
4.6
8.3
7.6
61.0
36.7
41.2
42.6
37.2
27.7
35.4
34.3
40.3
32.9
39.3
51.5
46.1
39.2
Cumulative Investment Adult Television Drama 1988/89 to 1999/2000
1988/89
1989/90
1990/91
1991/92
1992/93
1993/94
1994/95
1995/96
1996/97
1997/98
1998/99
1999/00
Total
Number of
Projects
$ Production
Slate
$ FFC
Investment
$ Non-FFC
Investment
% Non-FFC
Investment
4
11
6
3
8
5
6
8
4
4
5
8
72
19.8
53.9
29.9
18.4
32.7
31.0
24.4
28.4
21.2
19.9
25.9
35.7
341.2
6.8
29.2
17.1
7.3
16.9
17.8
14.1
16.9
8.3
8.5
10.0
18.3
171.1
13.0
24.7
12.8
11.1
15.8
13.2
10.4
11.6
12.8
11.4
15.9
17.4
170.1
65.7
45.8
42.8
60.3
48.4
42.5
42.4
40.7
60.7
57.4
61.4
48.8
49.9
Cumulative Investment Feature Films 1988/89 to 1999/2000
Cumulative Investment Children‘s Television Drama 1988/89 to 1999/2000
1988/89
1989/90
1990/91
1991/92
1992/93
1993/94
1994/95
1995/96
1996/97
1997/98
1998/99*
1999/00
Total
20
Number of
Projects
$ Production
Slate
$ FFC
Investment
$ Non-FFC
Investment
% Non-FFC
Investment
6
10
12
14
13
9
11
11
12
13
11
13
135
28.1
35.9
73.0
50.2
38.6
27.8
45.8
59.0
44.7
59.0
46.1
61.4
569.5
19.1
20.2
25.1
30.0
25.4
20.3
28.4
29.8
29.0
34.9
26.2
35.0
323.4
9.0
15.7
47.9
20.2
13.2
7.5
17.4
29.2
15.6
24.1
19.9
26.4
246.1
31.9
43.8
65.6
40.3
34.2
27.0
38.1
49.5
35.0
40.9
43.1
42.9
43.2
1988/89
1989/90
1990/91
1991/92
1992/93
1993/94
1994/95
1995/96
1996/97
1997/98
1998/99
1999/00
Total
Number of
Projects
$ Production
Slate
$ FFC
Investment
$ Non-FFC
Investment
% Non-FFC
Investment
6
3
6
8
6
5
6
5
4
6
4
3
62
11.9
9.5
25.8
32.5
26.7
29.3
31.7
39.2
24.6
38.1
19.5
20.0
308.7
7.2
6.0
17.1
20.3
16.7
20.2
16.8
19.6
8.1
18.7
8.9
9.3
168.9
4.7
3.5
8.8
12.2
9.9
9.1
14.9
19.6
16.4
19.3
10.6
10.7
139.8
39.9
36.8
33.9
37.6
37.3
31.1
47.0
50.0
66.9
50.8
54.5
53.4
45.3
Notes
– * Three feature films approved for funding in 1998/99 were terminated prior to cashflow and these
funds re-allocated to the feature film slate in 1999/2000
– All figures in $ million as at June 30 2000 inclusive of variations to prior year projects
– ‘Number of Projects’ and ‘$ FFC Investment’ exclude production loans, print and advertising loans
and Film Fund projects
– ‘Number of Projects’ excludes the lapsed projects War Crimes, Red Rain, Emily and Atlanta’s Child
(a project that found alternative funding after approval)
– Large Format Films and Official Co-Productions included within each genre
21
DISTR IBUTION &
REC OUPMENT
Breakdown of FFC recoupment 1999/2000
from projects in the marketplace since 1988/89
$
$
$
$
$
$
$
$
$
$
$
$
136,771
247,983
270,842
298,707
958,787
499,448
2,208,250
3,070,247
1,784,339
1,317,679
528,128
1,355,506
from
from
from
from
from
from
from
from
from
from
from
from
projects
projects
projects
projects
projects
projects
projects
projects
projects
projects
projects
projects
contracted
contracted
contracted
contracted
contracted
contracted
contracted
contracted
contracted
contracted
contracted
contracted
in
in
in
in
in
in
in
in
in
in
in
in
Distribution and
Recoupment
1988/89
1989/90
1990/91
1991/92
1992/93
1993/94
1994/95
1995/96
1996/97
1997/98
1998/99
1999/00
The Australian Film Finance Corporation recouped $12.7 million from its
investments in the year ending June 30
2000. This represents a decrease of
$2.9 million on the previous year.
A number of factors contributed to
the decrease. These include:
FFC recoupment 1999/2000
Documentaries
11%
27%
30%
Feature Films (including
Large Format Films)
32%
Feature Films
Documentaries
Total
Children’s Television
Drama
$
%
3,411,143
4,064,639
3,769,367
1,431,538
27
32
30
11
$12,676,687
100%
FFC recoupment analysis 1999/2000
Australia vs. International
– an absence of worldwide ‘breakout’
feature films during the year despite
local box office successes The Wog
Boy, Looking for Alibrandi and
Two Hands;
– the level of sales achieved by FFC
projects over the last year suggests
that the contraction of the international marketplace has not eased,
especially in relation to sales to
North America and Germany. Most
distributors are reluctant to pay the
level of minimum guarantees they
previously paid, therefore the
revenue flow is delayed until, and
if, overages are earned from the
distribution of the films in the
respective territories;
– evidence that buyers around the
world are becoming ‘slower’ in
making their payments, often as
a result of liquidity problems.
Total recoupment for the FFC from
inception to June 30 2000 was
$186.9 million.
33%
22
67%
Australian
recoupment
International
recoupment
Recoupment for the FFC in previous
financial years is:
–
–
–
–
–
–
–
–
–
–
$ 8.1
$ 10.7
$ 11.5
$ 18.1
$ 18.3
$ 25.6
$ 19.3
$ 22.5
$ 24.3
$ 15.6
million
million
million
million
million
million
million
million
million
million
in
in
in
in
in
in
in
in
in
in
1989/90
1990/91
1991/92
1992/93
1993/94
1994/95
1995/96
1996/97
1997/98
1998/99
In 1999/2000 recoupment to the FFC
came from 267 projects.
It should be noted that the current year’s
slate will not begin earning revenue
until two or more years from financing;
the current year’s recoupment relates
predominantly to prior years’ slates.
The exception is the repayment of the
production loan On the Beach which
accounts for 10.69 per cent of the
year’s recoupment.
A significant proportion of this year’s
recoupment (41.6 per cent) was
generated by 31 projects contracted in
1994/95 and 42 projects contracted in
1995/96. Only 28.6 per cent of 1999/2000
recoupment is attributable to projects
contracted between July 1996 and June
1999. This reflects the trend of slower
payments and signifies that it takes a
number of years for projects to return
revenue.
Older projects still provide revenue to
the FFC, with 39.8 per cent of projects
contracted prior to June 30 1994
continuing to return revenue to the
FFC in 1999/2000.
Feature films generated $3.8 million,
or 29.7 per cent, of the FFC’s 1999/2000
recoupment. Adult and children’s
miniseries provided $6.2 million, or
48.7 per cent, of the year’s recoupment, while telemovies and telemovie
packages provided $1.3 million, or
10.3 per cent, of recoupment.
126 documentary titles generated
$1.4 million and provided 11.3 per
cent of the year’s recoupment.
In the year in review, 66.9 per cent of
the FFC’s recoupment was generated by
overseas sales. It should be noted that a
significant proportion (32.3 per cent) of
the Australian-sourced revenue was the
repayment of the On the Beach
production loan.
The FFC recouped in full its investment
in the documentary Kissing Crocodiles
during the year. Financed in 1995 and
produced by Michael Murray and Vic
Martin, it is only the third documentary
in the FFC slate to go into profit.
The level of recoupment to the FFC
depends on the quality and marketability of the finished product, the level
of presales, the degree of subordination
by the FFC to other investors and how
lucrative the territories are from which
the FFC recoups its investment.
While the majority of feature film
sales occur within the first year after
completion, this is not generally the
case with sales of television drama to
broadcasters. Buyers may indicate an
intention to purchase but contracting
does not occur until a slot in the
transmission schedule becomes
available or when acquisition budgets
permit. As a result, revenues are spread
over the life cycle of the project. There
is a tendency for projects to recoup over
a three to seven year period, with the
exception of children’s television drama,
which usually has a 10 to 12 year
shelf life.
23
Top 20 FFC financed feature films at the
Australian box office
Projects’ performance 1999/2000
$
Strictly Ballroom
21,760,400
The Adventures of Priscilla:
Queen of the Desert
16,459,245
Muriel’s Wedding
15,765,571
The Wog Boy
11,436,221
Green Card
10,611,000
Shine
10,164,498
* Looking for Alibrandi
7,445,706
Reckless Kelly
5,860,000
Two Hands
5,478,485
The Sum of Us
3,296,004
The Delinquents
3,288,907
Cosi
2,815,738
Sirens
2,802,764
The Heartbreak Kid
2,785,741
Antarctica
2,706,801
Dating the Enemy
2,674,524
Death in Brunswick
2,620,954
The Big Steal
2,519,758
Black Robe
2,136,619
Napoleon
2,100,000
1999/2000 releases are in bold
* Still in season as at June 28 2000.
24
On the domestic front, three feature
films entered the FFC’s list of top ten
performers at the Australian Box Office
during the 1999/2000 financial year.
Two Hands achieved great critical and
box office success upon its Australian
release in July 1999, finishing with a
box office of $5.5 million. The film went
on to collect a number of local awards
including five Australian Film Institute
(AFI) Awards and three Film Critics’
Circle of Australia Awards, winning Best
Film at both.
The Wog Boy was released in February
and by the end of week one had taken
over $2.6 million at the box office,
securing its position as the strongest
opening Australian film at the domestic
box office. It went on to achieve box
office of $11.4 million, taking it to the
4th highest Australian Box Office
achiever in the FFC slate.
Looking For Alibrandi was released in
May to rave reviews. The film was still
in release at the end of the financial
year having taken $7.4 million at the
box office to June 28. During the year it
was invited to screen at the Seattle Film
Festival as well as the Taormina Film
Festival (Italy).
Soft Fruit continued to be a favourite
on the festival circuit. It received the
Fipresci International Critics’ Prize at the
San Sebastian Film Festival, the Special
Jury Prize at the Turin Film Festival, as
well as being invited to screen at the
Sundance Film Festival and at Critics’
Week at the Cannes Film Festival.
At a preview screening in New York in
March the film attracted a full-house of
over 1,100 people. It has also collected
a number of local awards, including
two AFI’s.
After its solid box office performance in
1999, Praise won a number of local
awards including two AFI’s and three
Film Critics’ Circle of Australia Awards.
It was nominated for Best Foreign Film
at the British Independent Film Awards.
My Mother Frank was invited to screen
in the Panorama section of the Berlin
Film Festival.
A number of FFC adult television
dramas made their small screen debuts
with strong to excellent ratings. These
included the telemovies Close Contact,
Secret Men’s Business and two Halifax
f.p. episodes Murder of Crows and
Swimming with Sharks, miniseries Tribe
and The Violent Earth. The first episode
of the three Dogwoman telemovies,
Dead Dog Walking, screened in April
and achieved ratings of 20s nationally.
Australian children’s television drama
continues to be highly regarded
overseas. Thunderstone won the British
Academy of Film and Television Artists
(BAFTA) Award for Best International
Children’s Series; this is the second
successive BAFTA win for Jonathan M.
Shiff Productions. Also nominated for
this award were The Wayne Manifesto
and Misery Guts. Round The Twist 3
won the Rockie Award (Children’s
Category) at the Banff Television
Festival for the episode entitled Whirling
Derfish. Domestically, Thunderstone 2
won the award for Best Children’s
Television Drama Series at the
Australian Teachers of Media (ATOM)
Awards, and achieved consistently high
ratings for its screenings on Network
Ten. Round The Twist 3 and the
animation series The New Adventures
of Ocean Girl also rated very well.
The documentary series Railway
Adventures Across Australia has
achieved direct-mail sales through
Readers Digest of 50,000 sets
worldwide. It has sold to the PBS
Network in USA, and to the Travel
Channel and Voyage for European and
African pay television rights. The series
screened on Network Ten during
June/July 1999 with solid ratings,
ranging from 10 to17. It won the Golden
Camera award at the USA Film and
Video Festival.
Other documentaries to gain good
ratings during their Australian screening
included the series Diving School, The
Bulls and The Bears, For the Defence,
Shell Shocked, The Fortune Teller, Last
Plane Out of Berlin and The Human
Journey.
FFC funded documentaries continued to
win awards both locally and overseas.
These include:
– Facing The Demons won a Logie for
the Most Outstanding Documentary
and was awarded the National Press
Club Media Excellence Award by the
Dart Foundation National Press Club.
– Emily’s Eyes was awarded the Bronze
Plaque at the Columbus International
Film and Video Festival (USA).
25
– The Human Journey was awarded
the Michael Daley Prize for Science at
the Eureka Awards (Australia), as well
as the Best Secondary Educational
Resource at the Australian Teachers
of Media (ATOM) Awards.
– Chris Doyle Orientations: Stirred Not
Shaken received the award for Best
Documentary at the Australian
Teachers of Media (ATOM) Awards.
– Paradise Bent won the International
Television Competition and was
awarded the Silver Plaque at the
Chicago International Film Festival.
– Paying for the Piper was awarded the
Golden Spire Award at the Golden
Gate Awards, and received an
honourable mention at the
International Festival of Maritime
and Exploration.
– River of Dreams won Best Television
at the United Nations Association of
Australia (World Environment Day
Award) 2000.
Producers’ Revenue Entitlement
Scheme
In operation since 1993, the FFC’s
Producers’ Revenue Entitlement
Scheme entitles producers to a 15 per
cent share of all revenues from feature
films and television drama paid to the
FFC, and a 20 per cent share of all
revenues from documentaries paid to
the FFC once a particular level of
recoupment is reached. This provides
support to producers who achieve
significant commercial revenues for
their productions.
26
For the 1999/2000 financial year, a
30 per cent recoupment threshold
applied for feature films, 35 per cent
for television drama and 10 per cent
for documentaries. The return to the
producer is an advance on profit and
the FFC recoups the advance, should
the film reach profit.
A number of documentaries qualified
for the Scheme during 1999/2000. They
were Africa – High and Wild for Michael
Balson, Boy in the Bubble for Rosemary
Blight, Dead Letters for Juliet Darling,
Facing the Demons for Dee Cameron,
The Highest Court for Sue Maslin,
The Human Race for Andrew Ogilvie,
The Nature of Healing for Brian Beaton,
for Will Davies, Rite of Passage for
Andrew Wiseman, Taking Pictures for
Les McLaren.
Auditing of sales companies
The FFC continued its policy of routinely
auditing the accounting of distributors
and sales agents in relation to the
marketing of selected FFC funded
projects. The FFC requires producers to
exercise their audit rights in line with
relevant distribution agreements.
Project sales & marketing information
The FFC responds to enquiries from
producers, government departments,
industry bodies and associations and
guilds on a regular basis.
Information requested ranges from
average prices per territory to more
specific requests for marketing advice,
deal terms and prices for specific sales.
The FFC publishes sales of FFC financed
projects, including the buyer and the
territories, in its quarterly newsletter.
BUSINESS
AFFAIRS
Business Affairs
Goods and Services Tax
The greatest challenge for Business
Affairs in 1999/2000 was preparing for
the commencement of the Goods and
Services Tax (GST). The GST has and
will affect all areas of the FFC’s operations and needs to be considered in all
of the FFC’s contractual obligations.
The FFC has faced the challenge of GST
on an industry-wide basis through its
active involvement in the Film Industry
GST Working Group and has taken a
leading role in pursuing Australian Tax
Office rulings on issues facing the entire
industry. In addition to industry-wide
initiatives, the FFC has agreed to more
flexible drawdown arrangements to
minimise any cash flow consequences
for producers.
Terminated investments
In the case of three feature films,
contracted in the 1998/99 financial year
with a combined FFC investment of
$10 million, the FFC’s co-investment
partners defaulted on their contractual
obligations during 1999/2000. Prior to
drawdown of the FFC’s investment, the
FFC took the rare step of terminating its
investment in the projects.
The termination of these projects
resulted in an unusually large amount
of committed, but unspent funds, in the
last quarter of the 1999/2000 financial
year. As a result, the dollar value of
the slate for 1998/99, as reported in
the Annual Report for that financial
year, was subsequently reduced by
$10 million. The funds, however, were
reallocated in full in the 1999/2000
financial year.
Drama
During1999/2000 the drama slate
was marked by the complexity of the
projects, as the FFC has pursued better
recoupment positions and improved
terms of trade with co-financing
partners. Where appropriate, and as
a response to globalisation, the FFC
actively encouraged producers and
Australian sales agents to presell their
projects to international distributors.
There were also a greater number of
projects involving new delivery and
exploitation systems, such as
webcasting and online transmission.
Documentaries
The FFC’s efforts to encourage the nonAccord component of the documentary
slate has resulted in an increased
number of non-Accord documentaries
for the year in review. The total FFC
financial participation in non-Accords
was for the first time greater than that
in Accord documentaries.
As was significant with the drama slate,
this growth in volume and participation
was matched by an increase in the
complexity of the contracting process.
In the documentary slate, however, this
was also partly due to a decrease in the
financial contributions of international
co-investors, causing the need for the
involvement of a greater number of
international participants.
27
Policy
Corporate Plan
POLICY
Investment Guidelines
The FFC consulted extensively with the
industry during the year in the process
of revising its Investment Guidelines.
The new Guidelines came into operation
on July 1 2000.
Foremost among the changes are
provisions to give producers guaranteed
overhead payments and provide them
greater access to the revenue streams
generated by their film and television
projects. This will alleviate to some
extent producers’ reliance on what are
often modest fees paid out of budgets.
Another new provision allows the FFC
a ‘discretionary power’ to increase the
maximum level of its investment in
select feature films or adult television
drama, where track record would
support the decision. The aim is to
encourage a small amount of more
ambitious, higher budgeted production
from experienced creative teams.
New program formats eligible for FFC
investment under the 2000 Guidelines
include:
28
– the categories of animated programs
which became eligible for 10BA in
1999/00 (i.e. adult animation and
children’s animated series comprising
15-minute episodes);
– telemovie pilots, other than
telemovie-length opening episodes
for a series already commissioned
by a network;
– 45-minute large format feature films.
Along with all the Commonwealth film
agencies, the FFC has now begun to
report to Government through an
annual corporate plan, which sets out
the organisation’s objectives, strategies
and financial projections for the period.
Each FFC annual corporate plan has
a three-year outlook and is the key
accountability document for
Government.
The FFC’s first (six-monthly) report
against the corporate plan was provided
to the Minister in February.
Pay Television
Australia’s pay TV drama channels have
consistently failed to meet the requirement that they allocate 10 per cent of
their annual program expenditure to
new Australian drama.
Faced with their non-compliance over
three years, the Federal Government
introduced legislation, in December
1999, to enforce the requirement and
backdated the legislation to July 1 1999.
However, the latest figures released by
the Australian Broadcasting Authority
(ABA) – for 1998/99 – were worse than
for the previous year. Expenditure on
new Australian programs fell from
8.1 per cent in 1997/98 to 5.3 per cent
in 1998/99. While total program
expenditure on pay TV drama channels
had risen from $24.57 million in 1995/96
to $118.76 million in 1998/99, the
percentage spent on new Australian
drama had decreased from 7.1 per cent
to 5.3 per cent.
Only two channels, Nickelodeon and
The Disney Channel, met the 10 per cent
requirement in 1998/99; Hallmark
provided no data to the ABA; and three
channels, TV1, UKTV and arena, spent
nothing on local drama.
ABA’s minimum licence fee for C Drama
Despite a submission from the FFC
recommending an increase in the ABA’s
minimum licence fee for Australian
Children’s Drama, the ABA announced
in June that it would retain its minimum
fee of $45,000 per half-hour.
The announcement came as part of
an ABA report, which found that the
introduction of the $45,000 minimum
had had no impact on the ability of
producers to attract licence fees higher
than $45,000 for children’s drama.
Moral rights
In March, the FFC hosted a number
of round table meetings of film and
television organisations on the issue
of Moral rights.
All representatives agreed to put a
number of proposals to the Government
on the Copy Right Amendment (Moral
Rights) Bill 1999. As a result, the
Government now has the benefit of a
fully consensual approach from the
industry on the legislation. The
proposals are currently with the
Government for its consideration.
The FFC submission argued that, on
the contrary, the ABA’s minimum has
crystallised $45,000 as the licence fee
for those programs which did not attract
the FFC’s $55,000 licence fee. Also, it
argued that while select producers with
established supply relationships to the
networks continued to get projects up at
$55,000, less experienced and emerging
producers were not securing network
interest at $55,000.
In the FFC’s view, the ABA is endorsing
a price structure which cannot support
high quality program production for
children, given increased production
costs in Australia and reduced prices for
Australian material in overseas markets.
29
Public Relations
Doing Business with the FFC
PUBLIC
RELATIONS
Sponsorship program
During the year in review, the FFC provided financial support to a number of
industry guilds and associations for
conferences, awards presentations and
forums. These were: the Australian
Writers’ Guild Awards (AWGIES), Screen
Producers’ Association of Australia
(SPAA) Conference, Australian Film
Institute (AFI) Awards, Australian
International Documentary Conference,
Australian Guild of Screen Composers’
(AGSC) Awards, Australian Screen
Directors’ Association (ASDA)
Conference, Australian Cinematographers’ (ACS) Awards and Small
Screen: Big Picture Television
Conference.
Parliament House screenings
Screenings of new Australian films
financed by the FFC were held at
Parliament House in Canberra for
members of parliament, senators and
parliamentary and departmental staff.
The screenings aim to promote an
awareness of the industry’s latest
achievements. Screenings for the year
were: feature films Siam Sunset,
Muggers, Looking for Alibrandi and
Bootmen and children’s television
drama Round The Twist 3.
Producer Attachment Scheme
30
Under the Producer Attachment
Scheme the FFC and the Australian
Film, Television and Radio School
(AFTRS) collaborate to bring emerging
Australian producers into the FFC for
skills development. During the year
four students attached to the Sydney
office and five students attended a
one-day briefing.
The FFC continued its course ‘Doing
Business with the FFC’. The course aims
to provide participants with background
on key aspects of doing business with
the FFC, in particular its infrastructure
and investment guidelines, case studies
in deal structuring and contractual
requirements. This year sessions were
held in Adelaide, Brisbane, Melbourne,
Perth and Sydney.
Post-market briefings
The FFC conducted a number of postmarket briefings for producers in
Sydney and Melbourne. The sessions
are chaired by an FFC investment
manager, joined by a panel of industry
representatives. Transcripts of the
sessions are made available on the
FFC’s website. Post-market briefings
for the year were on: American Film
Market (AFM), MIP TV 2000/Hot Docs
and Cannes International Film Festival
& market.
Cross-agency collaboration and industry
liaison
During the year the FFC held launches
and receptions in collaboration with
other film agencies. The FFC joined the
Australian Broadcasting Authority (ABA)
and the Australian Children’s Television
Foundation (ACTF) in launching the
publication: 20 Years of C: Children’s
Television Programs and Regulation
1979-1999; ScreenSound and the FFC
shared resources to launch Cinema
Collection and the FFC and the
Australian Film Commission (AFC)
jointly hosted a reception for Australian
producers attending Hot Docs in
Toronto, Canada.
FFC personnel participated in a number
of seminars, workshops and panel
sessions at industry conferences and
film festivals. FFC investment managers
were regularly invited to speak at
film schools.
An attachment from the Economic
Development Board, Singapore spent
three weeks in the Sydney office
reviewing funding procedures.
Information Technology
The FFC actively uses its website
to provide up-to-date news and
information to the film and television
community.
Producers and any other interested
parties can access detailed information
on FFC financed projects, providing a
snapshot of investment for the last
financial year and information on key
creatives and cast, presales and
distribution.
The website also offers an FFC profile,
with an overview of the Corporation,
its staff and board members. The
FFC’s Investment Guidelines can be
downloaded from the site and there
is a news and information section.
Transcripts of post-market industry
briefings are also available online.
The website invites users to sign up to
receive funding appplications and the
FFC newsletter, and contains hyperlinks
to other industry organisations, media
guilds and associations.
In response to the paradigm shift
towards online communications, the
FFC has embarked on a strategy to
enhance its online presence.
The Government legislated for all
government services to be online and
complicit with a range of technical and
content standard policies by the end of
2001. The aim is to create a seamless
interface to Federal Government
services that is openly accessible and
easily sourced. The FFC is collaborating
with the Office of Government Online
and other film agencies towards
this end.
The FFC database continues to play
a valuable role in enabling the
Corporation to monitor the recoupment
of its investment in nearly 700 projects.
The database is also utilised to provide
information of a non-confidential nature
to the industry.
Also in development is the webenabling of the FFC database, which will
provide website-users with interactive
statistical reports on the state of the
FFC’s activities and productions.
Publications
The FFC publishes a quarterly
newsletter, which carries investment,
production and distribution news on
FFC financed projects. The newsletter
also provides information and updates
on policy issues affecting the industry.
Newsletters are distributed to industry
representatives, guilds and associations,
government bodies and the media.
Access and Equity
The FFC is an equal opportunity
organisation. Of the 31 full-time staff
employed by the FFC in Sydney and
Melbourne, senior staff members
comprise 11 females (36 per cent) and
five males (16 per cent). FFC support
staff is made up of 14 female members
(45 per cent) and one male (3 per cent).
31
PROJECTS
REPORT
Abbreviations used in project
description:
PC
EP
P
CO
LP
AP
D
COD
W
COW
Production Company
Executive Producer
Producer
Co-Producer
Line Producer
Associate Producer
Director
Co-Director
Writer
Co-Writer
Feature Films
The Bank
100 minutes; Arenafilm Pty Ltd (PC);
John Maynard (P); Robert Connolly
(D/W)
Thriller set in the world of high finance,
a modern day story of alchemy.
Principal Cast: David Wenham,
Anthony LaPaglia, Sibylla Budd
FFC Participation: $2,814,882
Sales & Distribution: Footprint Films,
Fandango, Axiom, Premium Movie
Partnership
Background photo:
Colin Friels in The Farm Photo Gary Johnston
Lakis Lazopoulos in Beware of Greeks
Bearing Guns Photo Bill Jackson-Martin
Russian Brides: Caught in the Net – Part 2
No Ball Players Here Photo Suzy Wood
The Stolen Generation
Birthrites
Damien Bodie, Cassandra McGrath and Sludge in
Crash Zone 2 Photo Suzy Wood
Beware of Greeks Bearing Guns
96 minutes; Media World Features Pty
Ltd (PC); John Tatoulis, Colin South,
Dionyssis Samiotis (P); John Tatoulis
(D); Tom Galbraith (W)
When a mild-mannered schoolteacher
is sent from Crete to Melbourne by
his grandmother to kill the man she
believes killed her husband, he rekindles
an old friendship, falls in love, becomes
a father and learns the truth about
himself and the man he is sent to kill.
Principal Cast: Lakis Lazopoulos, Zoe
Carides, John Bluthal
Sales & Distribution: Palace Films,
Trimark, Mythos, Foxton
Cubbyhouse
92 minutes; Cubbyhouse Productions
Pty Ltd (PC); Chris Brown, David Hannay
(P); Murray Fahey (D); Ian Coughlan,
Murray Fahey (W)
Natalie, six, and Ivan, eight, become
captivated by a derelict cubbyhouse,
unaware that a powerful demon resides
within; when teenage brother Danny
and neighbour Bronwyn are warned
of its pure evil they resolve to discover
the cubby’s dark secret.
Principal Cast: Joshua Leonard,
Lauren Hewett, Craig McLachlan
Sales & Distribution: Beyond Films,
Trimark, Premium Movie Partnership
33
Projects Report continued
Hildegarde
90 minutes; A Nice Picture Company Pty
Ltd (PC); Heather Ogilvie, David Hannay
(P); Di Drew (D); Gabrielle Sara
Pendergast (W)
Hildegarde is a duck – the much-loved
pet of Christopher, Jeremy and Isabel
who are grieving the untimely death of
their father. Things begin to pick up for
the children when they discover
Hildegarde is incubating a clutch of
eggs, until she goes missing.
Principal Cast: Richard E. Grant,
Tara Maurice, Tom Long
Sales & Distribution: Providence,
UIP, J&M Entertainment
Bryan Brown, Claudia Karvan and Tom Long in Risk
Photo Elise Lockwood
34
Lantana
100 minutes; Jan Chapman Films (PC);
Jan Chapman (P); Ray Lawrence (D);
Andrew Bovell (W)
Centres on a number of characters
at a crucial time in their lives who are
connected by a series of coincidences
involving misperception, infidelity and
false assumption.
Principal Cast: TBA
Beyond Films
Let’s Get Skase
100 minutes; Media World Features Pty
Ltd (PC); John Tatoulis, Colin South (P);
Matthew George (D); Matthew George,
Lachy Hulme (W)
Anti-hero Peter Dellasandro and his
posse of boys become men in the
process of bringing Skase back
from Majorca as the forces of good
overcome all obstacles to triumph
over the bad guys.
Principal Cast: Lachy Hulme,
Alex Dimitriades
Sales & Distribution: Village Roadshow,
Trident Releasing
Risk
98 minutes; Beneficiary Films (PC);
Marion Pilowsky (EP); Marian
Macgowan (P); Alan White (D);
John Armstrong, Steve Wright (W)
Ben Madigan, one of the many hopefuls
trying to make it big through the sharp
edge world of personal injury, gets
mixed up in insurance scams with a
disgruntled employee and a sleek but
greedy solicitor.
Principal Cast: Bryan Brown, Claudia
Karvan, Tom Long
Sales & Distribution: Village Roadshow,
Premium Movie Partnership, Smile,
Beyond Films
Russian Doll
85 minutes; Screen Artists Pty Ltd (PC)
Bruno Charlesworth (EP); Allanah
Zitserman, Stavros Kazantzidis (P);
Stavros Kazantzidis (D); Allanah
Zitserman, Stavros Kazantzidis (W)
Ethan meets Katia and they fall in love.
Along comes Ethan’s best friend Harvey
and by Ethan and Katia’s wedding day
Harvey and Katia have fallen in love.
How will this web of deception finally
come untangled?
Principal Cast: Hugo Weaving, Natalia
Novikova, David Wenham,
FFC Participation: $588,042
Sales & Distribution: Beyond Films,
Beyond Distribution
Serenades
90 minutes; Southern Star/Sandra Levy
(PC); Sandra Levy (P); Mojgan Khadem
(D/W); Nicholas Parsons (COW)
Love story set in the beautiful and harsh
landscape of the desert one hundred
years ago.
Principal Cast: Alice Haines, Aden Young
Southern Star Film Sales
Subterano
95 minutes; Becker Films Pty Ltd (PC);
Richard Becker, Barbi Taylor (P);
Esben Storm (D/W)
Thirteen souls, trapped in a car park,
are being preyed upon by a bizarre and
deadly array of remote controlled toys.
Principal Cast: Alex Dimitriades,
Tasma Walton
Sales & Distribution: REP, MBM
Natalia Novikova and Hugo Weaving in Russian Doll
Photo Heidron Lohr
Till Human Voices Wake Us
100 minutes; DND Productions Pty Ltd
(PC); Gareth Wiley, Justin Pearce,
Thomas Augsberger (EP); David
Redman, Nigel Odell, Dean Murphy,
Shana Levine (P); Michael Petroni (D/W)
Twenty years after the disappearance
of Silvy, presumed drowned, Sam
rescues Ruby from a swollen river
and Silvy’s memory starts to become
painfully present.
Principal Cast: Helena Bonham Carter,
Guy Pearce
Sales & Distribution: Globe Film Co,
Key Entertainment
35
Australia – Land Beyond Time
Photo Reg Morrison
Large Format Films
Australia – Land Beyond Time
45 minute Large Format Film; Living
Pictures (Australia) Pty Ltd (PC);
David Heidtman (EP); David Flatman,
Sue Flatman (P); David Flatman (D)
Traces the four billion-year journey of
this ancient southern land, the world’s
oldest continent and largest island.
Sales & Distribution: Houston Museum
of Natural Science, Museum Center
Cincinnati, Museum Victoria
36
Equus – The Story of a Horse
45 minute Large Format Film; Mullion
Creek Productions Pty Ltd and Beyond
International (PC); Liz Butler, Michael
Caulfield (P); Michael Caulfield (D)
Follows the lives of three young
thoroughbreds born on a Victorian
horse stud on the same night.
Sales & Distribution: Imax Ltd
Dogwoman
3 x 90 minute telemovies; Beyond
Simpson Le Mesurier Pty Ltd/Magnetic
Productions Pty Ltd (PC); Mikael
Borglund (EP); Roger Le Mesurier,
Roger Simpson, Magda Szubanski,
Terry Jennings (P); Rowan Woods,
Paul Maloney, David Cameron (D);
Magda Szubanski, Andrew Bovell,
Mac Gudgeon (W)
Margaret O’Halloran can think like a
dog. She is drawn into a world of
mystery, intrigue and, even murder,
which lies beneath the surface of the
happy dog-owning family.
Principal Cast: Magda Szubanski
Sales & Distribution: Hallmark,
Beyond Distribution
Broadcaster: Nine Network
The Farm
3 x 55 minute miniseries; Burberry
Productions Pty Ltd (PC); Ewan
Burnett/Artist Services (EP); Alan Hardy
(P); Kate Woods (D); Judith Colquhoun,
David Philips (W)
The story of a family’s struggle to save
their farm when they are caught in an
escalating spiral of debt to the banks.
Principal Cast: Greta Scacchi,
Colin Friels
Sales & Distribution: Granada Media
International
Broadcaster: ABC-TV
Hope Flies
100 minute telemovie; Liberty & Beyond
Pty Ltd (PC); Simone North, Tony
Cavanaugh (P); Geoff Nottage (D);
Tony Cavanaugh (W)
When Hope returns home in response
to her father’s cry for help, her arrival
brings about an extraordinary journey of
rekindled friendships and a professional
challenge she hadn’t expected.
Principal Cast: Rebecca Gibney
Sales & Distribution: Beyond Distribution
Broadcaster: Network Ten
The Love of Lionel’s Life
90 minute telemovie; Liberty & Beyond
Pty Ltd/Simone North (PC); Simone
North, Tony Cavanaugh (P); John Ruane
(D); Des Power (W)
When a twenty-something guy meets
Lena through an international video
magazine, romance blossoms until she
becomes the victim of a brutal and
unprovoked attack and the small mining
community is turned upside-down with
shock, anger and shame.
Principal Cast: Matt Day, Alex
Dimitriades, Nadine Garner, Steve Vidler
Broadcaster: Network Ten
Marriage Acts
90 minute telemovie; Beyond Reilly
(PC); Gary Reilly (P); Rob Marchant (D);
Ann Brooksbank (W)
Following a series of bomb attacks
threatening his life, Judge David
MacKinnon is forced to go back
through his case files in search of a
potential bomber.
Principal Cast: Colin Friels, Sonia Todd
Broadcaster: ABC-TV
Alex Dimitriades, Matt Day and Nadine Garner in
The Love of Lionel’s Life Photo Greg Noakes
My Brother Jack
2 x 120 minute miniseries; Samson
Productions Pty Ltd (PC); Sue Milliken
(EP); Ken Cameron (D); John Alsop,
Sue Smith (W)
Based on the novel by George Johnston
about a family in crisis which focuses on
the relationship between two brothers
who survive two world wars and a
depression and in the process come to
an understanding of themselves and
each other.
Principal Cast: Matt Day, Simon Lyndon,
Jack Thompson
International
Broadcasters: Network Ten, Optus
37
Right: Jasmine Ellis with Horace and Tina in
Horace and Tina Photo Greg Noakes
The Road from Coorain
112 minute telemovie; Chapman
Pictures Pty Ltd (PC); Penny Chapman
(P); Brendan Maher (D); Sue Smith (W)
Based on Jill Ker Conway’s celebrated
autobiography about the relationship
between two extraordinary women
over a lifetime of adversity.
Principal Cast: TBA
Sales & Distribution: Pearson Television
International
Broadcasters: ABC-TV, WGBH
The Rubicon
2 x 120 minute miniseries; Official UK/
Australian Co-production; Southern
Star/John Edwards (PC); John Edwards,
Lavinia Warner (P) Rowan Woods (D);
Christopher Lee, John Collee (W)
Years after Gemma falls in love with
Michael Tyler, a fugitive posing as an
undercover cop, she discovers her six
year old son has leukemia and must
undergo treatment using the blood
of a compatible donor. She travels to
Australia to find Tyler, the father of
her son.
Principal Cast: William McInnes,
Kate Ashfield, Hugo Speer, Patsy Palmer
Sales & Distribution: Southern Star
Entertainment
Broadcasters: Seven Network,
BSkyB
38
Production Loan
On The Beach*
2 x 120 minute miniseries; Southern
Star Entertainment Pty Ltd (PC);
Errol Sullivan, Jeff Hayes (EP); Russell
Mulcahy (D); David Williamson (W)
In the aftermath of WWlll, US
submarine commander Dwight Towers
arrives in Melbourne, the sole place on
Earth not yet affected by nuclear fallout.
Principal Cast: Bryan Brown,
Rachel Ward
Production Loan: $1,355,506
Sales & Distribution: Hallmark
Entertainment
Broadcaster: Seven Network
(*Project financed in 1998/99)
Crash Zone 2
13 x 24 minutes; Australian Children’s
Television Foundation (PC) Patricia
Edgar (EP); Bernadette O’Mahony (LP);
David Swan, Ray Boseley, Julian
McSwiney, Steve Jodrell (D) Phillip
Dakton, Jeff Peck, Susan Macgillicuddy,
Chris Anastassiades, Pino Amenta (W)
Crash Zone 2 revolves around the lives
of four teenagers with after-school jobs
at a software development com-pany,
crash testing computer games.
Principal Cast: Nikki Wendt, Paul
Pantano, Cassandra McGrath, Damien
Bodie, Frances Wang, Nicholai Nikolaeff
Sales & Distribution: ACTF
Broadcasters: Network Seven,
Disney Channel
Eugenie Sandler, PI
13 x 30 minute miniseries; Burberry
Productions Pty Ltd (PC); Ewan
Burnett (EP); Margot McDonald (P);
Ana Kokkinos, Moira Moss (D),
David McRobbie
Eugenie simply regards herself as an
ordinary Australian teenager, living in
suburbia with her father Ray, a private
investigator. The biggest challenge in
Eugenie’s life is being fifteen years old.
Principal Cast: Xaris Miller, Matthew
Vennell, Brett Climo
International
Broadcasters: ABC-TV, ITV
Horace and Tina
26 x 24 minute miniseries; Jonathan M.
Shiff Productions Pty Ltd (PC);
Jonathan Shiff (EP); Ann Darrouzet (P);
Michael Carson, Mandy Smith, Richard
Jasek, David Cameron (D); Helen
Macwhirter, David Phillips, Robert
Greenberg, Peter Kinloch, Sue Hore,
Marieke Hardy, Michael Joshua, Jutta
Goetez, Kris Mrksa (W)
Thirteen year old Lauren Palmer
doesn’t believe in Christmas. At least,
she didn’t until one Christmas morning
when two of Santa’s little helpers fall
from his sleigh, through her roof, and
into her life.
Principal Cast: Jasmine Ellis, Jordan
White, Matthew Parkinson, Carolyn Bock
Sales & Distribution: France Animation,
Daro Film Distribution
Broadcasters: Network Ten, Disney
Channel, ZDF
Documentaries
Animal Olympians
52 minutes; Wild Visuals Pty Ltd (PC);
Gary Steer, Tina Dalton-Hagege (P/D/W);
Alice Ford (W)
Portrays the athleticism and physical
skill of the animal kingdom in performances that resemble Olympic events.
Sales & Distribution: IGEL Media
Baseclimb 2 – Going Higher
55 minutes; The Summit Group
International Pty Ltd (PC); Dr Glenn
Singleman (P/D/W)
Profiles two people who overcome
humanity’s strong, innate fears by
undertaking an inspiring personal
adventure through rarely travelled
physical and emotional landscapes.
Sales & Distribution: ABC International,
ABC Video
Broadcaster: ABC-TV
The Beach
55 minute HDTV; Featherstone
Productions (P); Don Featherstone (P/D);
David Woodgate (CO); David Woodgate,
Don Featherstone, Geoffrey Dutton (W)
Examines the work of some of
Australia’s painters, writers, composers,
choreographers and filmmakers,
through the significance of the beach to
the nation’s psyche.
Sales & Distribution: RM & Associates
Broadcaster: ABC-TV, NHK
39
Boys in Blue Singlets
Birthrites
52 minutes; Jag Films Pty Ltd (PC);
Jennifer Gherardi (P); Linda
Rawlings (D/W)
A look at indigenous women reclaiming
their rites to birth, land and culture.
Broadcaster: SBS Accord
40
Boys in Blue Singlets
56 minute HDTV; Becker Group Limited
& Chapman Films Pty Ltd (PC); Stuart
Scowcroft (EP); Mark Chapman, Guy
Sainsbury (P); Stephanie Bates (D/W)
The story of three Australian ownerdriver truckies as they chase their dream
of independence and deal with their
love/hate relationship with life on
the road.
Sales & Distribution: MICO
Broadcasters: ABC-TV, NHK
Death in a Small Room
55 minutes; The Helpful Eye Pty Ltd
(PC); Mike Rubbo, Penny McDonald (P);
Mike Rubbo (D/W)
A literary detective story, where the
events to be delved and the murder to
be solved, happened more than 400
years ago.
Broadcaster: ABC-TV Accord
Family Week
55 minutes; Living Pictures Pty Ltd (PC);
Sue Flatman (P); David Flatman (P/D/W);
Russell Vines (COD)
Profiles a group of individuals who take
part in a therapeutic conflict resolution
program and a group of children taught
similar techniques from an early age.
Dolphin Mania
60 minutes; Singing Nomads
Productions Pty Ltd (PC); Sally Ingleton
(P/D/W)
Looks at dolphin swim tours in the
context of eco-tourism, the healing of
people through dolphin interaction and
subsequent exploitation which exists
through unrealistic expectations.
Sales & Distribution: Beyond
Distribution
Fond Memories of Cuba
52 minutes; Frontline Films (PC);
David Bradbury, Mike Rubbo (P);
David Bradbury (D/W)
An Australian filmmaker faces a moral
dilemma when he is sponsored by an
ageing Australian communist to travel
to Cuba to make a positive story of
the revolution.
Drama School
8 x 22 minutes; Hilton Cordell &
Associates Pty Ltd (PC); Chris Hilton,
Michael Cordell (P); Rachel Landers,
Kate Bannantyne (D); Rachel Landers,
Chris Hilton, Michael Cordell (W)
Follows the professional and personal
journeys of acting students at the
prestigious National Institute for
Dramatic Arts (NIDA).
Sales & Distribution: Minotaur
International
Broadcasters: Seven Network, TV3
A Fox with Twelve Chickens
55 minutes; Alley Kat Productions Pty Ltd
(PC); Alan Carter (P/D/W)
Follows a veteran bush-lawyer as he
prepares for a major murder trial defence
in a small outback town.
From Korea with Love
52 minutes; Iris Pictures (PC); Jessica
Douglas-Henry (P); Jennifer Cummins
(D); Justine Flynn (W)
An intimate portrait of an Anglo-Saxon
couple going through the process of
adopting a Korean baby.
Right: Grey Voyagers
The Glorious Aftermath
55 minutes; Nick Torrens Film
Productions Pty Ltd (PC); Nick Torrens
(P/D/W)
Profiles two men, New York banker
Mart Bakel and Hong Kong entrepreneur
Vincent Lee, both experts in using
changing times to generate wealth
and influence.
Grey Voyagers
6 x 27 minutes; December Films (PC);
Stuart Menzies, Tony Wright (P); Steve
Westh, Erika Addis, Fiona Hergstrom,
Sally Ingleton, Catherine Marciniak (D)
Highly individual, ‘older’ travellers
embark on unique odysseys to parts of
the world of special significance to them.
Broadcasters: SBS, RTE
Guns Under their Bums
52 minutes; Emerald Films Pty Ltd (PC);
Sally Browning, David Max Brown (P);
Tom Zubrycki (D)
The story of the most successful
and audacious project in the fight
against apartheid.
Sales & Distribution: Great Northern
International, Foundation Jan
Vrijman Fund
Broadcasters: SBS, YLE2, eTV
Holy Rollers: A Journey in the
Footsteps of Jesus
52 minutes; Flaming Star Pictures (PC);
Sharyn Prentice (P); Rosie Jones (D/W)
Tours religious sites around the Holy
Land during the 2000th anniversary of
the birth of Christ.
Ice Break Heart
55 minutes; Vue Pty Ltd (PC); Alan
Lindsay (P); Alan Lindsay (D)
After his return from a British
Expedition to the South Pole a young
Australian businessman discovers that
a dive he made in sub-zero water
triggered a serious heart condition.
Sales & Distribution: ABC International
Broadcaster: ABC-TV
Inside the Australian Ballet
55 minutes; East Australian Film Corp
(PC); Bob Hardie (P/D/W); Matthew
Dow (CO)
The Oxford dictionary defines ballet as
‘An artistic dance form performed to
music..’ but these words fall short of the
reality faced by every member of the
Australian Ballet every day of their
working lives.
Kimberley Cops 1 & 2
4 x 27 minutes; Iguana Film Productions
Pty Ltd (PC); Paul Roy (P); Jennifer
Ainge (AP); Paul Roy (D/W)
Follows the lives of several policemen
as they keep law and order in the
remote Kimberley region of Australia’s
far North West.
Broadcaster: ABC –TV Accord
Last Plane Out of Berlin
55 minutes; Jeff Watson Productions
(PC); Frank Haines (P); Jeff Watson (D/W)
Profiles Frederick Sidney Cotton,
Australian born aviator, inventor who
carried out spying missions for the
British Secret Service.
Last Plane Out of Berlin Photo Corrie Ancone
Little Dove Big Voyage
43 minutes; Firelight Productions
Pty Ltd (PC); Richard Dennison (EP);
Ellenor Cox, Marcus Gillezeau, Angela
Higgins (P); Marcus Gillezeau (D/W)
The ’Little Dove’ sales through 400 years
of Indonesian history on a mission to
reveal the true story of the Dutch discovery
of the world’s last habitable continent,
‘Terra Australis’.
Sales & Distribution: Granada, Media
International
Broadcasters: Seven Network, ZDF
Malpa
52 minutes; CAAMA Productions Pty Ltd
(PC); Priscilla Collins (P); Erica Glynn (D);
Kate Gillick (W)
Shows the relationship between
indigenous and non-indigenous women
living in remote communities in the deserts
of Australia and profiles the unique work
of the Ngaanyatjarra, Pitjantjatjara,
Yankuntjajtjara Women’s Council (NPYWC).
The Money Fish
55 minutes; Two-Up Films (PC);
Angela Borelli (P); Janet McLeod (D/W)
Observes the struggle of fishermen
living in the once thriving town of
Port Welshpool.
Mr. Strehlow’s Films
52 minutes; Journocam Productions (PC);
Adrian Herring (P); Hart Cohen (D/W)
Profiles the life and work of TGH Strehlow,
telling the story of provenance and the
legacy of the Strehlow Collection.
Nijinsky Photo Sam Oster
Nijinsky
85 minutes; Illumination Films Pty Ltd &
Music Arts Dance Films Pty Ltd (PC);
Kevin Lucas (EP); Paul Cox (P/D/W) Aanya
Whitehead (CO)
Celebrates the 50th anniversary of the
death of Vaslav Nijinsky, principal dancer of
the Ballet Russe at the turn of 19th century.
Sales & Distribution: Fox Lorber, Sharmill
Films, Winstar New Media
Broadcasters: SBS, ZDF/Arte, SVT, NPS
No Ball Players Here
1 x 70 minute and 1 x 52 minute;
Amber Films Pty Ltd (PC); Monique
Schwarz (P/D/W)
Traces across time and continents, the
tumultuous passage of the Jewish mother
in cinema – the target of some of the
world’s funniest and most vicious jokes.
Sales & Distribution: Minds Eye
International Inc, Ronin Films
Broadcasters: SBS, NOGA-Channel,
AVRO, ZDF/Arte
43
Right: President Wahid
Outback Stripper
60 minutes; Piper Films Pty Ltd (PC);
Mike Piper (P/D)
Sequel to Suburban Stripper, a lighthearted and entertaining strip-teasetravel-action-adventure film.
Sales & Distribution: Mind’s Eye
International
Broadcasters: Network Ten, Channel 5
Poles Apart
52 minutes; Rymer Bayly Watson
Productions (PC); Judy Rymer, Robert
Dein (P); Judy Rymer (D)
The story of politics, money and
cultural leaps of faith seen through the
controversial history surrounding a single
work of art, Jackson Pollock’s ‘Blue Poles’.
Painting the Country
60 minute HDTV; Electric Pictures Pty Ltd
& Robin Eastwood Productions Pty Ltd
(PC); Andrew Ogilvie, Robin Eastwood (P);
Sally Ingleton (D/W)
Follows ten celebrated artists including
Lucy Yukenbarri, Helicopter Tjungarrayi,
Bai Bai Napangnarti and John Lee as they
follow the dreaming track of the Luurnpa,
the mythical Kingfisher.
Sales & Distribution: MICO
Broadcasters: SBS, NHK
President Wahid
55 minutes; Olsen Levy Productions
Pty Ltd (PC); Curtis Levy, Christine
Olsen (P); Curtis Levy (D)
An intimate portrayal of the President
of Indonesia, Abdurrahman Wahid,
popularly known as Gus Dur.
Paying for the Past
52 minutes; Annamax Media Pty Ltd (PC);
Penny Robins (P); Nicola Woolmington
(D); James Kirby (W)
Examines the process of review that
Holocaust survivors must undergo when
searching for lost assets.
44
Playing the Game
3 x 60 minutes; Electric Pictures Pty Ltd &
Wildfilm Australia Pty Ltd (PC); Andrew
Oglivie, Peter Du Cane (EP); Peter Du
Cane, Mathew Kelley (D/W)
Reviews a number of landmark events
over the last six decades of the 20th
Century, in particular the terrible price
paid for freedom after WWII.
Broadcasters: ABC-TV, Oregon Public
Broadcasting
PS I Love You
55 minutes; Black Sheep Films Pty Ltd
(PC); Andrew McVitty (P); Lisa Wang (D/W)
Follows the journey of a group of
adolescent girls from different cultural
backgrounds as they leave their families
for an adventure, which will test and
transform them.
Rangers
2 x 48 minutes; Big Island Pictures Pty Ltd
(PC); Mark Chapman, Ruth Berry (P); Ruth
Berry (D/W)
Profiles the men and women who range
across Australia’s desert, savannah,
marine, island, wetland, rainforest and
alpine environments.
Sales & Distribution: Mind’s Eye
International
Return to Eden
55 minutes; Artemis International (PC);
Brian Beaton (P); Celia Tait (D/W)
Examines the war being waged on
Peron Peninsula, North West Australia,
between two opposing forces – feral
animals and native animals.
Broadcasters: ABC-TV, Discovery
Channel, National Geographic
Riding with Richard
55 minutes; Apollo Films (PC); Andrew
Wiseman, Richard Keddie (P); Andrew
Wiseman (D)
The follow-up to Driving with Richard
which tells the story of a remarkable
friendship between two women whose
sons have very special needs.
Russian Brides: Caught in the Net
– Part 2
45 minutes; Orana Films Pty Ltd (PC);
Richard Dennison (P/D/W)
Continues the story of two Australian
males who found potential marriage
partners via the internet.
Broadcaster: Seven Network Accord
Small Steps Giant Steps
52 minutes; Emerald Films Pty Ltd
(PC); Sally Regan, Sally Browning (P);
Sally Browning (D/W)
Examines the progress of a group
of autistic children attending a
special school.
The Stolen Generation
55 minutes; Jotz Productions (PC);
Tom Zubrycki, Sally Browning (P);
Tom Zubrycki, Darlene Johnson (D/W)
Examines the policy and practice of
removal of indigenous children
from their families.
Sales & Distribution: Tapestry
International
Broadcasters: SBS, SABC
X-Pats – the Alien Connection
55 minutes; Ago Films (PC); Marian
Bartsch (P/D/W); Carmelo Musca
(CO/COD)
Explores the world of international
expatriates living in Asia through
the eyes of four Australians.
Yvonne
52 minutes; Documentary Films
Pty Ltd (PC); Barbara Chobocky (P/D/W)
A behind-the-scenes look at the life
of Australia’s best-known soprano,
Yvonne Kenny.
45
AWARDS
Awards received by FFC funded projects in 1999/2000
Australian Film Institute (AFI)
Awards 1999
Feature Films
Best Film
Two Hands, producer Marian
Macgowan
Best Director
Two Hands, Gregor Jordan
Best Original Screenplay
Two Hands, Gregor Jordan
Best Adapted Screenplay
Praise, Andrew McGahan
Best Performance by an Actor
in a Leading Role
Soft Fruit, Russell Dykstra
Best Performance by an Actress
in a Leading Role
Praise, Sacha Horler
Best Performance by an Actor
in a Supporting Role
Two Hands, Bryan Brown
Best Performance by an Actress
in a Supporting Role
Soft Fruit, Sacha Horler
Best Achievement in Cinematography
Passion, Martin McGrath
Best Achievement in Editing
Two Hands, Lee Smith
Best Original Music Score
In a Savage Land, David Bridie
Best Achievement in Production Design
Passion, Murray Picknett
Best Achievement in Costume Design
Passion, Terry Ryan
Background photo:
Ben Cross in The Potato Factory
Best Achievement in Sound
In a Savage Land, Toivo Lember, Gethin
Creagh, Peter Smith, Wayne Pashley
The Human Journey
Gregor Jordan and Marian Macgowan at the
AFI Awards. Photo Belinda Rolland
Australian Writers’ Guild Awards
(AWGIES) 1999
Emily’s Eyes
Servant of the Ancestors
Sacha Horler at the AFI Awards.
Photo Jim Lee
Andrew McGahan at the AFI Awards.
Photo Belinda Rolland
Best Children's Screen Adaptation
Misery Guts, Mary Morris
Best Telemovie Original
Halifax f.p. – Swimming with Sharks,
Keith Thompson
47
Awards continued
Australian Guild of Screen Composers
(AGSC) Awards 1999
Australian Teachers of Media (ATOM)
Awards 2000
Best Original Music for a Soundtrack
Soft Fruit, Antony Partos
Best Children’s Television Drama Series
Thunderstone 2, Jonathan M. Shiff
Best Original Music for a Feature Film
Two Hands, Cezary Skubiszewski
Best Secondary Educational Resource
The Human Journey, Andrew
Waterworth
Best Original Music for a Documentary
Renzo Piano – Piece by Piece,
Richard Vella
Film Critics’ Circle of Australia
Awards 1999
Best Film
Two Hands, producer Marian
Macgowan
Best Director
Praise, John Curran
Best Original Screenplay
Soft Fruit, Christina Andreef (Joint
winner)
Best Adapted Screenplay
Praise, Andrew McGahan
Best Actress
Praise, Sacha Horler
Best Supporting Actor
Two Hands, Bryan Brown
Best Supporting Actress
Two Hands, Susie Porter
48
Best Documentary
Chris Doyle Orientations: Stirred not
Shaken, Karena Slaninka
Best Indigenous Resource Production
River of Dreams, John Hughes
Australian Cinematographers’ Society
(ACS) Awards 2000
Cinematographer of the Year and Milli
Award Winner
The Potato Factory, Kim Batterham
Golden Tripod, Telefeatures, Television
Drama & Mini Series
The Potato Factory, Kim Batterham
Other Awards
Feature Films
Dear Claudia
Worldfest Flagstaff Film Festival:
Gold Award for Best Independent
Feature Film
In a Savage Land
Hawaii International Film Festival:
Most Popular Feature
Praise
IF Awards: Independent Filmmaker of
the Year Award
Siam Sunset
Hawaii International Film Festival:
Golden Maile Award for Best Film
Puchon International Fantastic Film
Festival: The Best of Puchon Award
Soft Fruit
San Sebastian Film Festival: Fipresci
International Critics’ Prize
Turin Film Festival: Special Jury Prize
Golden Tripod, Feature Productions
Cinema
The Missing, Geoffrey Hall
Two Hands
IF Awards: Tribe Independent
Feature Film
Distinction, Feature Productions Cinema
Praise, Dione Beebe
Australasian Performing Right
Association’s (APRA) Music Awards:
Best Film Score
Distinction, Documentaries Cinema &
Television
The Human Journey, Peter de Vries
Best Music Score
In a Savage Land, David Bridie
A Difficult Woman
New York Awards for Television
Programming: Silver Medal
Best Cinematography
In a Savage Land, Danny Rhulmann
Thunderstone
Australasian Performing Right
Association’s (APRA) Music Awards:
Best Television Theme Music
British Academy of Film and Television
Artists (BAFTA): International Children’s
Award
Round The Twist 3
Ep: Whirling Derfish
Banff Television Festival (Children’s
Category) Rockie Award
Documentaries
Emily’s Eyes
Columbus International Film and Video
Festival: Bronze Plaque
Facing the Demons
Logie Awards: Most Outstanding
Documentary
Dart Foundation National Press Club
Awards: National Press Club Media
Excellence Award (Joint First Prize)
The Human Journey
Eureka Awards: Michael Daley Prize
for Science
Paradise Bent
Chicago International Film Festival:
International Television Competition
Chicago International Film Festival:
Silver Plaque
Paying for the Piper
Golden Gate Awards: Golden Spire
Award
International Festival of Maritime and
Exploration Film: Honorable Mention
USA Film and Video Festival: Golden
Camera Award
River of Dreams
United Nations Association of Australia
(World Environment Day Award) 2000,
Best Television
Servant of the Ancestors
Zanzibar International Film Festival:
Golden Dow for Best Documentary.
49
RELEASES AND
SCREENINGS
FFC funded projects with a domestic cinema
release or television screening during
1999/2000
Feature films with a cinema release
REP Film Distribution
Passion
Jul 1 1999
Two Hands
Jul 29 1999
United International Pictures
Siam Sunset
Sep 9 1999
New Vision
Strange Planet
Oct 7 1999
PolyGram Filmed Entertainment
In A Savage Land
Oct 21 1999
20th Century Fox Film Distribution
Soft Fruit
Oct 28 1999
Village Roadshow
The Missing
Nov 11 1999
20th Century Fox Film Distribution
The Wog Boy
Feb 24 2000
Village Roadshow
Looking for Alibrandi
May 4 2000
Muggers
May 24 2000
Background photo:
Judy Davis in Children of the Revolution
Marzena Godecki in Ocean Girl Photo Steve Brennan
Frances O’Connor in Kiss or Kill Photo Bill Bennett
Diving School Photo Julia Redwood
Marcus Graham, Simon Baker and Ben Mendelsohn in
Secret Men’s Business Photo Gary Johnston
Claudia Karvan in Dating the Enemy
Photo Robert McFarlane
Killing Priscilla
Feature films to screen on television
Free-to-Air
Nine Network
Muriel’s Wedding
Doing Time for Patsy Cline (P)
Back of Beyond
Metal Skin
Dad and Dave – On our Selection
Fatal Bond
On my Own (P)
That Eye, The Sky
Children of the Revolution
Hotel Sorrento
All Men are Liars
Seven Network
Over the Hill
Spotswood
Mr Reliable
Dead Heart
The Adventures of Priscilla:
Queen of the Desert
Dating the Enemy
Network Ten
Napoleon (P)
Sep 10
Sep 15
Nov 14
Dec 4
Dec 12
Dec 16
Dec 19
Dec 25
Feb 5
Mar 1
Mar 2
1999
1999
1999
1999
1999
1999
1999
1999
2000
2000
2000
Jul 13
Jul 20
Aug 1
Oct 10
1999
1999
1999
1999
Nov 5 1999
Apr 1 2000
Oct 9 2000
Pay Television*
Showtime
Heaven’s Burning (P)
Oscar and Lucinda
Dead Letter Office
Doing Time for Patsy Cline
Hurrah (P)
The Real Macaw
Paws
In the Winter Dark (P)
Jul
Aug
Jan
Jan
May
May
May
May
Arena
The Big Steal
May 3 2000
Encore
Resistance (P)
Aug 1 1999
7
8
7
8
2
3
3
5
1999
1999
2000
2000
2000
2000
2000
2000
The Disney Channel
Napoleon
Sep 26 1999
Movie Extra
Crackers (P)
Green Card
The Sound of One Hand Clapping
Death in Brunswick
The Interview
Dec 25
Feb 7
Mar 2
Mar 20
Apr 29
1999
2000
2000
2000
2000
51
Releases and Screenings continued
Movie One
The Sound of One Hand Clapping (P)
Crackers
Kiss or Kill (P)
Till there was You
Diana and Me (P)
Green Card
Death in Brunswick
The Interview
Pay Television*
Dec 8 1999
Dec 19 1999
Jan 3 2000
Jan 7 2000
Jan 8 2000
Jan 26 2000
Mar 8 2000
Apr 29 2000
The Disney Channel
Round The Twist 2
Ocean Girl 1 – 4
Lift Off 1 & 2
Thunderstone
Round The Twist
Crocadoo 2
Fox Kids
Blinky Bill – the series
Dec 23
Jan 3
Jul 1
Jan 27
Mar 21
Jun 3
2000
2000
1999
2000
2000
2000
Apr 3 2000
Free-to-Air*
ABC-TV
Secret Men’s Business (P)
Nine Network
Halifax f.p. A Murder of Crows
Dogwoman (P)
Seven Network
Tribe (P)
Close Contact (P)
Documentaries to screen on television
Oct 10 1999
Aug 15 1999
Apr 3 2000
Jul 18 1999
Oct 1 1999
Pay Television*
Showtime
Tribe
Apr 1 2000
Arena
Man from Snowy River
Apr 3 2000
Ovation
River Kings
Jan 19 2000
Children’s television drama
Free-to-Air
ABC-TV
The Genie from Down Under
Blinky Bill – the series
Lift Off 2
The Adventures of Sam
Escape from Jupiter
Sun on the Stubble
Li’l Elvis Jones & the
Truckstoppers
Round the Twist 3 (P)
Return to Jupiter
52
Nine Network
Ship to Shore 2
Crocadoo 2
Seven Network
The Search for Treasure Island
Network Ten
Thunderstone (P)
Mirror Mirror 2
Ocean Girl
The New Adventures of Ocean Girl (P)
Jul 1
Jul 4
Sep 27
Oct 9
Dec 6
Jan 17
1999
1999
1999
1999
1999
2000
Jan 17 2000
Feb 29 2000
Jun 26 2000
Jul 1 1999
Jul 3 1999
Sep 5 1999
Jul 2
Jul 17
Jul 17
Feb 19
1999
1999
1999
2000
Free-to-Air
ABC-TV
For the Defence (P)
Numbats
Requiem for a Generation of Lost Souls
Curtains for my Cabin
The Young Tree Green
The Legend of Fred
Patterson
Brushes with Fame
On the Road with the
Seven Dwarfs
Kosky in Paradise
Paying for the Piper
The Rough Shed
Secret Fleets
The Bulls and The Bears (P)
The Pitch (P)
The Edge of the Possible
I Witness: The Art of George Gittoes (P)
Conversations with a Dead Poet (P)
Renzo Piano – Piece by Piece (P)
Billal
Win Some, Lose Some
Pigs, Tusks and Paper Money (P)
Shell Shocked (P)
Rush (P)
Wild Ones
Love’s Tragedies
The Business of Making Saints
Diving School (P)
Glued to the Telly
Life Chances
Danny and the Cougars
Australia has No Winter
Grey Nomads
The Human Journey (Pt 2) (R)
The Astronaut
Year of the Dogs
The Butler
Mama Tina
Killing Priscilla (P)
Creative Spirits – The Black Swan
To Get Rich is Glorious
Susie is a Fish
Funny by George –
Jul 6
Jul 7
Jul 8
Jul 15
Jul 18
1999
1999
1999
1999
1999
Jul 21 1999
Jul 25 1999
Jul 26
Aug 8
Aug 12
Aug 18
Aug 20
Aug 24
Aug 27
Aug 29
Aug 31
Sep 7
Sep 17
Sep 17
Sep 20
Oct 12
Oct 26
Nov 4
Nov 6
Nov 8
Nov 11
Nov 23
Nov 24
Dec 3
Dec 9
Dec 22
Dec 26
Jan 11
Jan 25
Jan 29
Feb 1
Feb 1
Feb 2
Feb 3
Feb 8
Mar 8
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
2000
2000
2000
2000
2000
2000
2000
2000
2000
The George Wallace Story (P)
The Fighting Thornberrys (P)
The Fortune Teller (P)
Ice Break Heart (P)
Riots of Passage (P)
Facing the Demons (P)
The Pecking Order (P)
The Last Plane Out of Berlin (P)
First Mission (P)
Walmsley’s War (P)
Apr 12
Apr 18
May 23
May 24
May 30
Jun 7
Jun 13
Jun 14
Jun 15
Jun 22
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
SBS
Calling Young Hong Kong (P)
Red Light in Full Flight
The Last of the Nomads (P)
Speak Quiet, Speak Strong
A Dying Shame
Copyrites
Beating the Drum (P)
Buffalo Legends
Colour Bars
In a Small Valley
The Hillman
The Irish Empire (P)
Three Knocks on the Door
Chinchilla Dry
My Own Flesh and Blood
Paradise Bent
Mohammed Ali’s Happy Day Feast
The Nature of Healing
Growing Old Disgracefully (P)
Emily’s Eyes (P)
Rite of Passage (P)
The Nature of Healing (P)
The Metals (P)
The Last True Action Hero (P)
River of Dreams (P)
Errands of Mercy
Raskols
Breathing Space
Talking Pictures
The Astonishing Ashtons
The Golden Pig
Winds of Change (P)
Dream Believers (P)
No More Needles…Please
Mao’s New Suit
Sexing the Label
My One Legged Dream Lover
Cry from the Heart (P)
Land of the Little Kings (P)
Errands of Mercy
Jun 30
Jul 3
Jul 4
Jul 5
Jul 8
Jul 10
Jul 10
Jul 10
Jul 12
Jul 23
Jul 24
Jul 25
Aug 14
Aug 20
Aug 20
Aug 20
Aug 29
Aug 30
Sep 3
Sep 9
Sep 24
Sep 27
Oct 1
Oct 8
Oct 15
Oct 15
Oct 18
Oct 22
Oct 28
Nov 13
Nov 14
Nov 25
Jan 14
Feb 4
Feb 5
Feb 6
Mar 19
May 26
May 28
Jun 25
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
2000
2000
2000
2000
2000
2000
2000
2000
Nine Network
Africa – High and Wild
The Violent Earth (P)
Love in Ambush
Jul 4 1999
Sep 17 1999
Apr 22 2000
Seven Network
Barefoot Bushman
Nov 27 1999
Network Ten
Railway Adventures
Across Australia (P)
Pearl Fishers
King of the Outback Skies (P)
Jul 3 1999
Dec 4 1999
Dec 11 1999
Pay Television*
Arena
Sexing the Label
National Geographic
King of the Outback Skies
Ovation
When the War came to Australia
Odyssey
The Journey
Vaudeville
Dealing with the Demon
Jul 6 1999
Apr 11 2000
Jun 1 2000
Jan 26 2000
Jan 26 2000
Apr 29 2000
(P) Premiere
* First screening date of season or series
53
Australian Film Finance Corporation Limited ACN 008 642 564
FINANCIAL
REPORT
Directors’ Report
The directors present their report together
with the financial report for the year ended
30 June 2000 and the auditor’s report thereon.
Directors
For The Year Ended 30 June 2000
The directors of the company at any time
during or since the financial year are:
Contents
Directors in office at the date of this report:
55
Directors’ Report
58
Profit and Loss Account
59
Balance Sheet
60
Statement of Cash Flows
61
Notes to the Financial Statements
81
Directors’ Declaration
82
Auditor’s Report to Members
Mr Geoffrey Howard Levy (Chairman)
Director since 10 July 1997
Appointed Chairman 28 April 1999
Ms Jillian Claire Katherine Robb
(Deputy Chair)
Appointed 4 May 1995 for 3 years.
Reappointed 27 August 1998 for
two years. Appointed Deputy Chair
23 November 1999 to 30 August 2000.
Mr Roger Michael Amos
Appointed 28 April 1999
Financial Overview 1999/2000
Mr Mario Andreacchio
Appointed 1 October 1999
The result for the Australian Film Finance
Corporation for the financial year 1999/2000
was a loss of $4,968,940 after:
Ms Jan Chapman
Appointed 5 August 1999
–
–
–
–
Commonwealth Government grant of
$48.015 million;
other revenue of $4.47 million;
write-off/provision for loss on film investment
of $52.92 million;
administration expenditure of $4.53 million
representing 8.6 per cent of total revenue.
By 30 June 2000, the FFC had cumulatively
committed $884.44 million to 688 film and
television investments. By the end of the financial year the Corporation had expended all its
available funds except for $9.95 million.
Ms Lynda Mary House
Appointed 10 July 1997 to 30 June 2000
Reappointed 25 July 2000
Ms Robyn Kershaw
Appointed 25 July 2000
Mr Jonathan Mark Shiff
Mr Gregory John Vickery AM
Particulars of directors’ qualifications,
experience, period of appointment and
special responsibilities are contained in
a section ‘Board of Directors’ at pages
10 to 11 of the Annual Report.
Principal Activities
The principal activities of the company
during the year were to provide funding
support for qualifying Australian film and
television productions. There were no
significant changes in the nature of these
activities during the year.
Operating Result
The net loss of the company for the year
ended 30 June 2000 was $4,968,940 (1999
profit $628,274). This is after recognising
as revenue a Commonweath grant of
$48.015 million (1999 $48.015 million).
The change in the operating result compared
with the previous financial year is mainly due
to an increase in provision for loss on film
investments expense resulting from increased
film investment expenditure.The increased
expenditure in the 2000 financial year
followed from the relatively high level of
Committed Funds carried forward at the end
of the 1999 financial year. The company is
exempt from income tax under Division 50
of the Income Tax Assessment Act 1997.
Review of Operations
A review of operations is contained on pages
13 to 31 of the Annual Report.
Significant Changes in State of Affairs
There were no significant changes in the state
of affairs of the company during the year.
After Balance Date Events
No matters or circumstances have arisen
since the end of the financial year which
significantly affected or may significantly
affect the company’s operations, the results
of those operations, or the company’s state
of affairs in financial years subsequent to
30 June 2000.
55
Directors’ Report continued
Dividends
Director and Director-related transactions
The directors do not recommend payment
of a dividend at this time. No dividend has
been paid or declared during the year.
Transactions involving directors and directorrelated entities occur in the ordinary course
of the FFC’s business. That will always be so,
given the need to have a Board of Directors
that comprises people with a comprehensive
knowledge of the film and television industries. The commercial terms of transactions
involving directors and director-related
entities are no more favourable than the terms
available to everyone, as published in the
FFC’s investment guidelines.
Likely Developments and Results
The likely developments in the operation of
the company subsequent to the year ended
30 June 2000 are set out on pages 4 to 5 of
the Annual Report. Future operations and
operating results will be substantially
dependent on the level of continued
Commonwealth government support.
Meetings of Directors
The Board met on twenty one occasions
during the year. Nine scheduled meetings
were held, of which eight took place in
Sydney and one took place in Melbourne.
Ten special meetings were held to consider
variations of investment in projects which had
already received Board approval or urgent
new funding applications. The Administration
Sub-Committee met on one occasion. The
Audit Committee met on one occasion.
The FFC’s system for avoiding directors’
conflicts of interest operates at two levels.
At management level, a list of directors’
interests is maintained which comprises
interests previously declared by the directors.
Where management considers that a conflict
of interest exists, the Board papers relating to
that matter are withheld from the affected
director. At Board level, where any director
has a material personal interest in a transaction that will be considered at a Board
meeting, that director will not be present
while the transaction is being considered, and
that director will not vote upon the transaction.
The number of directors’ meetings (including meetings of committees of directors)
and number of meetings attended by each of the directors during the financial year were
Number scheduled
Directors’
meetings
A
E
56
Number special
Directors’
meetings
A
E
Number Admin.
Sub-Committee
meetings
A
E
Number Audit
Committee
meetings
A
E
Mr Geoffrey Howard Levy
(Chairman)
9
9
9
10
1
1
1
1
Ms Jillian Claire Katherine Robb
(Deputy Chair)
8
9
10
10
–
–
–
–
8
9
9
10
1
1
1
1
6
6
5
6
–
–
–
–
Ms Jan Chapman
7
8
7
9
–
–
–
–
Ms Lynda Mary House
7
9
9
10
–
–
–
–
8
8
9
9
–
–
–
–
7
8
9
9
1
1
1
1
A – Number of meetings attended that the relevant director was eligible to attend.
E – Reflects the number of meetings held during the time the director held office and was eligible to attend during the year.
In the absence of a definitive legal test for
identifying when a director has a material
personal interest in a transaction, the Board
has codified its existing practices into a list of
principles. Some of the principles are more
stringent than the law requires. Conversely,
the Board acknowledges that the code of
practice cannot be exhaustive, and that the
onus is always upon each director to declare
any material personal interest that may not be
covered by the code of practice. Subject to
these reservations, the Board considers that,
during the financial year ended 30 June 2000,
a director had a material personal interest in
the following circumstances:
(i)
Where the director, or the partner or child
of the director, has a production role in
the film.
(ii)
Where the director is also an officer
(meaning, as the expression is used in
the Corporations Law, a director, secretary, executive officer or employee) of:
(a) the production company; or the
parent of that company; or
(b) a company acquiring commercial
exploitation rights in the film.
(iii) Where the director personally acts as the
solicitor, accountant or auditor for:
(a) any person with a production role in
the film;
(b) the production company;
(c) a company acquiring commercial
exploitation rights in the film; or
(d) an investor in the film.
(iv) Where the director, or a company or a
subsidiary of that company of which the
director is also an officer (other than the
FFC), is entitled to receive a payment
from the budgeted cost of the film.
The transactions involving directors and
director-related entities contracted during the
financial year are detailed in Note 17(b) to the
Financial Statements.
Directors’ Benefits
No director has received or become entitled to
receive, during or since the financial year, any
benefit because of a contract made by the
company with the director, a firm of which the
director is a member, or an entity in which the
director has a substantial financial interest,
other than in respect of:
(a) During the financial year, benefits arising
under the contracted transactions detailed
in Note 17(b) to the Financial Statements
(Director and Director-related transactions).
(b) During the financial year, fees of $101,229
were paid to KPMG of which Roger Amos
is a partner. These fees were mostly for
advice in relation to Goods and Services
Tax at normal commercial rates.
(c) Since the financial year up to the date of
this report. Nil benefits.
This statement of directors’ benefits excludes
remuneration benefits included in Note 17(a)
to the Financial Statements (Directors’
remuneration).
Insurance of Officers
Since the end of the previous financial year,
the company paid a premium in relation to a
contract insuring the directors and officers of
the company against a liability arising from
their duties as directors and officers, other
than for conduct involving a wilful breach of
duty in relation to the company.
Signed at Sydney this Fourteenth day of
August 2000 in accordance with a resolution
of the directors.
57
Geoffrey Howard Levy
Chairman
Profit and Loss Account for the year ended 30 June 2000
Balance Sheet as at 30 June 2000
2000
$
Note
Operating (loss) profit
2,3
(4,968,940)
Retained profits at the beginning
of the financial year
Aggregate of amounts transferred
from reserves
–
15
Total available for appropriation
Aggregate of amounts transferred
to reserves
15
Retained profits at the end of the
financial year
The accompanying notes on pages 61 to 80 form part of these Financial Statements
628,274
–
4,968,940
–
Note
2000
$
1999
$
4
5
6
8
10
18,444
61,286
51,715
9,928,179
30,084
8,105
72,741
177,176
26,400,190
27,828
10,089,708
26,686,040
53,196,066
263,139
41,132,342
368,307
Total Non-Current Assets
53,459,205
41,500,649
Total Assets
63,548,913
68,186,689
777,320
355,160
468,303
335,017
1,132,480
803,320
21,417
19,413
1,153,897
822,733
62,395,016
67,363,956
5
62,395,011
–
5
67,363,951
–
62,395,016
67,363,956
1999
$
628,274
–
628,274
–
–
Current Assets
Cash
Receivables
Investments
Committed Funds
Other
Total Current Assets
Non-Current Assets
Investments
Plant And Equipment
Current Liabilities
Accounts Payable
Provisions
6
11
12
13
Total Current Liabilities
Non-Current Liabilities
Provisions
13
Total Liabilities
Net Assets
Shareholders’ Equity
Share Capital
Reserves
Retained Profits
14
15
Total Shareholders’ Equity
Commitments
16
58
59
Statement of Cash Flows for the year ended 30 June 2000
Notes to the Financial Statements for the year ended 30 June 2000
2000
$
Note
1999
$
Cash Flows from Operating Activities
Commonwealth grant received
Interest received
Film investment profits received
Other operating revenue receipts
48,015,000
2,292,339
688,802
1,494,640
48,015,000
2,083,736
473,120
1,065,873
Total operating receipts
Payments to suppliers and employees
52,490,781
(4,434,230)
51,637,729
(4,202,692)
48,056,551
47,435,037
1,532,813
10,873,809
–
225,726
15,396,153
28,041
12,406,622
15,649,920
(1,407,249)
(75,489,779)
–
(54,048,057)
(64,490,406)
(38,398,137)
(27,942)
125
(162,277)
17,240
Net cash provided by operating activities
23.b
Cash Flows from Investing Activities
Loan repayments received
Film investments recouped and underages
Distribution licence advances recouped
Loan advances paid
Film investments paid
Payments for plant and equipment
Proceeds sale of plant and equipment
Net cash used in investing activities
(64,518,223)
(38,543,174)
Net (decrease) increase in cash held
Cash at the beginning of the financial year
(16,461,672)
26,408,295
8,891,863
17,516,432
9,946,623
26,408,295
Cash at the end of the financial year
23.a
Note1
Statement of Accounting Policies
The financial report is a general purpose
financial report which has been prepared
in accordance with Accounting Standards,
Urgent Issues Group Consensus Views,
other authoritative pronouncements of the
Australian Accounting Standards Board and
the Corporations Law. It has been prepared on
the basis of historical costs and, except where
stated, does not take into account changing
money values or current valuations of noncurrent assets. Cost is based on the fair values
of the consideration given in exchange for
assets. The accounting policies have been
consistently applied, unless otherwise stated.
Set out below is a summary of the significant
accounting policies adopted by the company
in the preparation of this financial report.
a. Revenue recognition
(i)
(ii)
(iii)
(iv)
(v)
Commonwealth grant revenue is
recognised as revenue in the year in
which it is received;
Interest income is recognised as it
accrues;
Application and administration fees are
recognised at the commencement of cash
flow investment payments to film
projects;
Film investment profits are recognised on
cash receipt of amounts after recoupment
of the investment or the Director
Valuation (Note 1.i); and,
Sale of plant & equipment. Gross
proceeds are recognised upon change
of ownership.
b. Income Tax
60
The principles of Tax Effect Accounting as set
out in Accounting Standard AASB 1020 do not
apply as the company is exempt from income
tax under Division 50 of the Income Tax
Assessment Act 1997.
c. Fixed Assets
Plant and equipment are brought to account
at historical cost, less any accumulated
depreciation or amortisation.
The depreciation or amortisation, on a
straight line basis, is over the estimated
useful life to the company of each asset
commencing the time the asset is held
ready for use. Leasehold improvements
are amortised over the unexpired portion
of the lease or estimated useful life of
improvements, whichever is shorter.
The carrying amount of plant and equipment
is reviewed annually by directors to ensure
it is not in excess of the recoverable amount
of these assets. The recoverable amount is
assessed on the basis of the expected net
cash flows which will be received from the
assets employed and subsequent disposal.
The expected net cash flows have not been
discounted to present values in determining
recoverable amount.
The gain or loss on disposal of all fixed
assets, including revalued assets, is
determined as the difference between the
carrying amount of the asset at the time
of disposal and the proceeds of disposal,
and is included in operating profit in the
year of disposal.
The depreciation rates used for each class
of depreciable assets are:
Computers, Video and
Office Equipment
33% pa
Motor Vehicles
15% pa
Office Furniture and Fittings
20% pa
Leasehold Improvements are
amortised over unexpired
period of lease.
10% to 21% pa
61
Notes to the Financial Statements continued
d. Employee Entitlements
(i)
Wages, Salaries and Annual Leave
The provisions for employee entitlements
to wages, salaries and annual leave
represent the amount the company has a
present obligation to pay resulting from
employees’ services provided up to the
balance date. The provisions have been
calculated at nominal amounts based on
current wage and salary rates and include
related on-costs.
(ii) Sick Leave
No provision has been made for sick
leave as all sick leave is non-vesting
and the average sick leave taken by
employees is less than the annual
entitlement for sick leave.
(iii) Long Service Leave
The liability for employees’ entitlements
to long service leave represents the
present value of the estimated future cash
outflows to be made by the employer
resulting from employees’ services
provided up to balance date.
Liabilities for employee entitlements
which are not expected to be settled
within twelve months are discounted
using the rates at balance date attaching
to national government securities which
most closely match the terms of maturity
of the related liabilities.
In determining the liability for employee
entitlements, consideration has been
given to future increases in wage and
salary rates, and experience with staff
departures. Related on-costs have also
been included in the liability.
62
(iv) Superannuation
From commencement of employment
all permanent employees are by the
company’s group life and salary continuance insurance in respect of death, or
extended temporary/permanent illness.
All employees join the company’s noncontributory employer accumulation
fund/defined contribution fund which is
administered by an external manager.
The Fund provides lump sum benefits on
retirement, resignation, death or
disablement. The company contributes
varying amounts for each member subject
to a minimum percentage of salary equal
to the Superannuation Guarantee Charge
percentage. Contributions on behalf of
employees by the company are charged
as expenses when incurred. The company
is under no obligation to make up any
shortfall in the Fund’s assets to meet
payments due to employees.
e. Provision for Doubtful Trade Debtors
The collectibility of debts is assessed at year
end and provision is made for any specific
doubtful accounts.
f. Foreign Currency
All foreign currency transactions are
translated to Australian currency at the rate
of exchange applicable at the dates of the
transactions. Amounts receivable and payable
in foreign currencies are translated at the
rates of exchange ruling at balance date.
Gains and losses arising on transactions are
recognised in the result for the year.
Exchange differences arising on hedged
transactions undertaken to hedge foreign
currency exposures are brought to account
in the profit and loss account when the
exchange rates change.
g. Operating Leases
Lease payments under operating leases,
where substantially all the risks and benefits
remain with the lessor, are charged as
expenses over the accounting periods in
which they are incurred.
h. Provision for Loss on Film Investments
Film investments are carried at the lower of
unrecouped cost or directors’ estimate of
recoverable amount. For projects which are in
profit (cost fully recouped), directors value the
investment in accordance with Note 1. i.
Due to the speculative nature of film
investment and the historic performance
generally of Australian films, losses on film
investments are expected to occur.
The carrying amount of film investments is
reviewed annually by directors to ensure it is
not in excess of the recoverable amount of
these assets, and provisions are created to the
extent that the amounts are estimated to be
unrecoverable. When the film is financed, the
recoverable amount is based on the lesser of
management’s minimum recoupment
projection or the company’s actual cost less
standard provision rates of 75% for Features,
70% for Television projects and 86% for
Documentaries. (The rate for Features was
changed in the current year, previously 70%.)
Once films are delivered, commercial
potential can be assessed and recoverable
amounts are then based on estimated
recoupments from actual and expected sales.
The expected net cash flows in these
assessments have not been discounted to
present values in determining recoverable
amounts.
From these assessments provisions for losses
have been adjusted to reflect the recoverable
amount. Where there is little likelihood of
further recoveries, the investments are written
off against the provisions already made.
j. Debt Defeasance
Where the company has extinguished
liabilities through defeasance the
requirements of AASB 1014 are adopted.
Where assets are given up to extinguish the
principal and all future interest of a debt, any
differences in the carrying values of assets
foregone and the liability extinguished are
brought to account in the profit and loss for
the period that the defeasance occurs.
In all cases when defeasance occurs, it is
highly unlikely that the company will again
be required to pay any part of the debt or
meet any guarantees or indemnities
associated with the debt.
k. Debt or Commitment.
Film projects contracted at year end and
drawndown are treated as an investment.
Film projects contracted at year end without
preconditions and not fully drawndown are
taken up in the accounts as a debt for the
amount not drawndown (Note 12).
Film projects contracted at year end, with
preconditions existing and/or film projects
approved and awaiting to be contracted are
treated as film financing commitments
(Note 16 b).
i. Film Investment at Directors’ ValuationIncrement
2000-$194,106 (1999-$169,459). In 2000,
the directors have valued 4 projects (1999 –
4 projects) which are in profit (cost fully
recouped) at $194,106 based on estimated
virtually certain returns to the company from
confirmed sales prior to the financial year
end. This increment in value has been offset
against Provision for Loss in determining the
expense amount charged to the Profit and
Loss account.
63
Note
Note 2
2000
$
1999
$
Commonwealth grant
48,015,000
3.a
3.b
48,015,000
2,286,672
1,494,499
688,802
17
2,082,883
1,065,618
473,120
255
125
17,240
52,485,115
51,654,116
Amounts set aside to provisions:
Employee entitlements
1.d
Loss on film investments
7, 1.h&i & 3.a
Depreciation and Amortisation
1.c
Computers, Office and Video Equipment
Motor Vehicles
Office Furniture and Fittings
Leasehold Improvements
Auditor’s remuneration in respect of:
Auditing the accounts
Other services
Rental expense on operating leases
Other operating expenses
3.a
22,147
52,924,073
48,797
46,472,874
70,837
6,176
1,541
54,343
68,465
5,587
1,685
94,413
22,000
15,500
398,871
3,938,567
22,000
15,500
399,450
3,897,071
57,454,055
51,025,842
53,118,179
46,642,333
194,106
169,459
52,924,073
46,472,874
882,908
642,579
(90)
1,420
The amount expensed as provision for
loss on film investments is made up
of the following components:
Gross amount of provision for loss on
film investments
Less:Profit on film investments arising from
directors’ valuation. (This profit on film
investment is additional to the film
investment profits received and shown
in operating revenue.)
Amount set aside to provision for loss on
film investment
Total profit on film investments included in
operating result for the year
3.b (Loss)/Profit on disposal of plant and equipment
included in operating result for the year
64
1999
$
Operating expense comprises:
Revenue from Operating Activities
Revenue from Outside Operating Activities
Proceeds on disposal of plant
and equipment
2000
$
Note 3 Operating Expense
Revenue
Other operating revenue:
Interest income
Application & administration fees
Film investment profits received
Other
Note
1.i
65
Note
Note 4
Receivables
CURRENT
Sundry receivables
Note 6
16,390
2,054
5,683
2,422
18,444
8,105
61,286
Note
2000
$
1999
$
CURRENT
Loans
Principal & interest b/f from previous year
Add: Principal and interest – current year
Add: Write back of amounts previously written off
Less: Repayments
177,176
1,416,530
–
1,541,991
400,056
6,902
3,220
233,002
51,715
–
177,176
–
Total Loans-Current
51,715
177,176
Total Current Investments
51,715
177,176
116,755,419
75,861,606
157,897,727
54,034,956
2,032,855
194,106
2,307,986
169,459
10,873,809
15,396,153
183,970,177
199,013,975
1999
$
Cash
Cash at bank
Cash on hand
Note 5
2000
$
72,741
Investments
Film Investments:
Loans-carried forward at year end
Less: Provision for loss
NON-CURRENT
Equity film investments
Brought forward from previous year
Add: Investments during the year
Add: Write back of amounts previously
written off
Add: Directors’ valuation
Less: Recoupments and underages
during the year
7 & 1.h
1.i, 3.a
Less: Amount written off to
provision for loss
7 & 1.h
10,033,479
82,258,556
Equity – carried forward at year end
7 & 1.h
173,936,698
120,740,632
116,755,419
75,623,077
53,196,066
41,132,342
–
–
638,590
28,041
–
610,549
7 & 1.h
–
610,549
7 & 1.h
–
–
–
–
–
–
Total Non-Current Investments
53,196,066
41,132,342
Total Investments
53,247,781
41,309,518
Distribution Licence Advances
Brought forward from previous year
Less: Recoupments during the year
Less: Amount written off to provision
for loss
66
Distribution licence advances
– carried forward at year end
67
Note
Note 7
2000
$
1999
$
Provision for Loss
Note
Note 8
Film Investments:
CURRENT
Loans
Provision for loss brought forward
Current year provision (credited)/ charged
to profit and loss
1.h
Write back of amounts previously written off
Less: Loans written off during the year
1.h
Provision for loss carried forward
at year end
NON-CURRENT
Equity Film Investments
Add: Current year provision charged
to profit and loss
Less: Equity investments written off
during the year
Add: Write back of amounts previously
written off
68
(3,220)
3,220
–
–
75,623,077
108,957,037
1.h
53,118,179
46,616,610
1.h
10,033,479
82,258,556
2,032,855
2,307,986
120,740,632
75,623,077
–
581,606
1.h
–
28,943
1.h
–
610,549
–
–
120,740,632
75,623,077
at year end
Total Provisions for loss on
Film Investments
–
–
–
1.h
1999
$
9,928,179
26,400,190
20,996,500
10,157,221
20,996,500
10,157,221
–
–
20,996,500
10,866,145
The amounts included under committed funds
represent Promissory Notes and Certificates
of Deposit which were purchased to fund the
commitments to projects which had been
approved and contracts signed but not all
preconditions for drawdown of funds satisfied
at financial year end, see note 16(b) for
further details.
–
–
at year end
Add: Current year provision charged /
(credited) to profit and loss
Less: Distribution licences written off
during the year
–
Committed Funds
2000
$
Total film financing commitments including
approved projects not yet contracted or funded
(note 16 (b)) exceed committed funds and other
current assets by $16,759,029 (1999 – $2,086,886).
The company expects these additional amounts
will be met from Commonwealth Grant and
other revenue for the financial year 2000 – 2001.
Note 9
Set-off and Extinguishment of Debt
The company at 30 June 2000 (and 1999) had,
with others, entered into production and
investment agreements with producers.
The company’s liability under these agreements
was extinguished by defeasance whereby the
company lodged sufficient funds with a trustee
to service the debts.
i.
Aggregate carrying amount of assets given up
during the year for the purpose of defeasance
ii. Aggregate amount of the debt extinguished
during the year by defeasance
iii. Net gain or loss on defeasance included in
Profit & Loss
iv. Outstanding defeased debt amounts
The company continues to earn interest on
the defeased funds at money market rates
until the debts are paid by the trustee to the
production companies.
69
Note 10 Other Assets
Prepayments
30,084
27,828
Note
Note 11 Plant and Equipment
Computer equipment – at cost
Less Accumulated depreciation
2000
$
1999
$
1.c
Note
1999
$
551,350
20,918
205,052
179,523
54,890
233,890
777,320
468,303
Note 12 Accounts Payable
324,090
274,668
300,434
224,237
49,422
76,197
Leasehold improvements – at cost
Less Accumulated amortisation
769,514
626,286
769,514
571,943
Written down value
143,228
197,571
Motor vehicle – at cost
41,173
9,779
41,173
3,603
CURRENT
Employee Entitlements
355,160
335,017
Written down value
31,394
37,570
139,211
107,104
146,994
96,068
NON-CURRENT
Employee Entitlements
21,417
19,413
32,107
50,926
376,577
354,430
487,729
480,853
485,668
479,898
6,876
5,770
28,924
28,812
28,924
28,651
5
5
112
273
263,139
368,307
67,363,951
66,735,677
(4,968,940)
628,274
62,395,011
67,363,951
Written down value
Office equipment – at cost
Written down value
Office furniture and fittings – at cost
Written down value
Video equipment – at cost
Written down value
Total Written Down Value
Film Investments payable
Trade accounts payable
Other payables and accrued expenses
1.k
Note 13 Provisions
AGGREGATE EMPLOYEE
ENTITLEMENTS LIABILITY
Provisions and accrued expenses
1.d
Note 14 Share Capital
Issued capital
5 fully paid ordinary shares
Note 15 Reserves
General reserve
Balance at the beginning of the financial year
Amount transferred (to) from retained
profits
Balance at the end of the financial year
70
2000
$
71
Note
2000
$
1999
$
Note 16 Commitments
Note
Total income paid or payable, or otherwise
made available, to all directors of the
company from the company or any
related party.
Non-cancellable future operating lease rentals
of premises and office equipment not provided
for in the financial statements and payable:
Not later than one year
349,850
361,825
Later than one year but not later than two years
349,578
348,798
Later than two years but not later than five years
204,379
553,963
903,807
1,264,586
(b) Film financing commitments
1.k
126,295
The number of directors whose income
from the company or any related party falls
within the following bands:
$Bands
$0 to $9,999
$10,000 to $19,999
$20,000 to $29,999
$30,000 to $39,999
The company has entered into various film
financing commitments as an investor, jointly
or otherwise in the normal course of business.
These commitments will be met from funds in
future years, and from Committed Funds invested in
Promissory Notes and Certificates of Deposit. (Note 8)
$190,593
$176,637
$2,614,399
$4,122,797
$2,782,467
$2,876,549
Goods and Services Tax.
These commitments to projects will be taxable
acquisitions on which GST will be payable.
(Corresponding input tax credits will be claimable)
1999
Number
0
6
1
1
5
4
1
0
8
10
Also included are:
12,763,442 25,625,228
Approved projects not yet contracted or funded
$175,630
$4,792,339
$5,200,493
$3,683,555
$216,000
$17,278
2000
Number
Directors’ remuneration represents directors’ fees at
rates determined by the Remuneration Tribunal.
Contracted projects not yet cash funded
due to preconditions
72
150,187
(a) Directors’ remuneration
(a) Operating lease commitments
Losing Layla
Rogue
Cybergirl 6000
Gauguin
Robert Fortune: The Tea Thief
Variations to projects
1999
$
Note 17 Remuneration of Directors and Director
and Director-related transactions
Expenditure commitments
Death in a Small Room
Mr Strehlow’s Films
Lantana
Hildegarde
The Road from Coorain
The Rubicon
2000
$
14,085,295
3,147,698
2,684,874
–
Payable not later than one year
29,533,611 28,772,926
Total Expenditure Commitments
30,437,418 30,037,512
–
Amounts paid to a prescribed superannuation fund for
the provision of retirement benefits for directors at rates
established by the Superannuation Guarantee Charge.
–
Insurance premiums in relation to a contract insuring
the directors of the company against a liability arising
from their duties as directors.
The names of the directors who held office during the
financial year are:
Mr Geoffrey Howard Levy (Chairman)
Ms Jillian Claire Katherine Robb (Deputy Chair)
Ms Jan Chapman
Ms Lynda Mary House
73
Note 17 continued
Jonathan M. Shiff
(b) Director and Director-related
transactions
In 2000 investments totalling
$5,272,962 in one television production
and one variation to a previously
approved investment where Mr Shiff is
the executive producer and the director
of the production company.
Transactions involving directors and
director-related entities occur in the
ordinary course of the FFC’s business.
The commercial terms of transactions
involving directors and director-related
entities are no more favourable than
the terms available to everyone, as
published in the FFC’s investment
guidelines.
For details of policy and procedures
refer to the Directors’ Report.
The following contracted transactions
involved directors, companies in which
directors have an interest and entities
related to those companies. The
amounts stated are the FFC’s investment
in the relevant film and television
productions. The year stated is the
financial year.
Geoff Levy
In 2000, investments totalling
$13,035,142 in five television productions and one variation to a previously
approved investment where broadcast
rights were licensed to the Ten Network.
The Ten Network paid arms length
negotiated licence fees on each project.
Mr Levy is a non-executive director of
the main board of the Ten Group and
Ten Holdings Limited.
74
My Brother Jack
Hope Flies
Horace and Tina
Outback Stripper
The Love of Lionel’s Life
Thunderstone
(Variation to investment)
Horace and Tina
Thunderstone
(Variation to investment)
$5,212,261
$60,701
In the 1999 financial year there was no
equivalent investment. Mr Shiff was
appointed as director on 5 August 1999.
Jan Chapman
In 2000, investment of $2,614,399 in a
feature film where Ms Chapman is the
producer and a director of the
production company.
Lantana
$2,614,399
In the 1999 financial year there was
no equivalent investment. Ms Chapman
was appointed as director on
5 August 1999.
The following directors’ appointment
terms ended in the 1999 financial
year and details are shown below
for financial statement comparative
figure purposes.
Bob Campbell
In 1999, an investment of $997,951
in a television production produced
by Screentime Pty Limited of which
Mr Campbell is a director.
Hugo Weaving
In 1999, an investment of $192,984
in a television production in which
Mr Weaving had an acting role.
Nina Stevenson
In 1999, fees of $28,614 paid to a law
firm to which Ms Stevenson was then a
consultant, for legal services rendered
by Ms Stevenson to the FFC.
In 1999, investments totalling $9,171,906
in eight television and film productions
where Ms Stevenson acted as solicitor
for the production company or acted for
a person with a production role in
the films.
In 1999, investment of $2,303,369 in
one feature film approved by the Board
whilst Ms Stevenson was a director and
Ms Stevenson acted as solicitor for an
investor and a licensee (the licensee of
the merchandising rights) after her term
as a director ended.
$5,276,745
$1,374,177
$5,212,261
$136,847
$974,411
In 1999, investments of $926,928 in
two television productions approved
by the Board whilst Ms Stevenson was
a director and where Ms Stevenson
acted as solicitor for an investor or
for a person with a production role
in the project after her term as a
director ended.
In 1999, investment of $180,012 in a
television production approved by
the Board whilst Ms Stevenson was
a director and where Ms Stevenson
subsequently received instructions to
act as solicitor for the producer.
In 1999, the Board approved an investment of $3,427,600 in one television
production in respect of which Ms
Stevenson was to have acted as solicitor
for the production company but the
FFC’s offer of investment lapsed.
In 1999, investment of $220,000 in a
film production which was approved by
the Board whilst Ms Stevenson was a
director and Ms Stevenson acted as
solicitor for the production company in
relation to various matters during post
production of the film after her term as
director ended.
Roger Simpson
In 1999, investments totalling
$13,602,779 in five film and television
productions where sales agency rights
were acquired by Beyond Films Limited
or Beyond Distribution Pty Limited.
Mr Simpson is a director of Beyond
Simpson Le Mesurier Pty Limited.
Note 18 Contingent Liabilities
$60,701
In 1999 the equivalent investment was
$4,907,486.
There are no contingent liabilities of material amount not
provided for in the accounts at 30 June 2000. (30 June 1999-Nil)
75
Note 19 Additional Financial Instruments Disclosure
Note 19 continued
(a) Terms, conditions and accounting policies
Financial Instrument
FINANCIAL ASSETS
Cash
Receivables
Accounting Policies and Methods
(Including recognition criteria and
measurement basis)
(b) Interest Rate Risk
Nature of underlying instrument
(including terms and conditions
affecting the amount, timing and
certainty of cash flows).
Financial assets are recognised
when control over future economic
benefits is established and the
amount of the benefit can be reliably
measured.
Note 4. Cash at bank and on hand is
recognised at their nominal amounts.
Interest is credited to revenue as it
accrues.
Funds are deposited at call with the
company’s bank. Temporarily surplus
funds are deposited into bank at-call
money market accounts. Interest is
earned on daily balances on bank
and money market accounts and is
credited at month-end.
Note 5. These sundry receivables
are recognised at the nominal
amounts less any provision for bad
and doubtful debts. Provisions are
made when collection of the debts
is judged to be less rather than
more likely.
Credit terms are net 30 days.
Committed Funds
Promissory Notes & Certificate
of Deposit
Note 8. Promissory notes and
certificate of deposit are stated
at the lower of cost and net
realisable value.
These investments have A1+ Rating,
mature in 7 days with an effective
interest rate of 6.14%pa.
Investments
Loans
Notes 1.h&i and 6 & 7. The
accounting policies are set out in
Note 1.h&i. These investments are
recognised at nominal amounts less
any write-offs and provisions for loss
to write down to recoverable values.
Profit projects are valued at
estimated virtually certain returns
from confirmed sales prior to
financial year end.
These investments are largely
unsecured. Interest may be charged
on Loans depending on the
particular arrangements. Recoupment of investments generally are
from earnings for the film projects
following release which could be
two years or more from initial
production funding.
FINANCIAL LIABILITIES
Financial liabilities are recognised
when a present obligation to another
party is entered into and the amount
of the liability can be reliably
measured.
76
Accounts Payable
Note 12. Accounts payable and
accruals are recognised at
nominal amounts, being the
amounts at which the liabilities will
be settled. Liabilities are recognised
to the extent that goods or services
have been received.
The company’s exposure to interest rate risk and the effective weighted average interest rate for classes
of financial assets and financial liabilities is set out below:
Weighted average
interest rate
(due within 12 months)
Financial Assets
Cash
Receivables
Committed Funds–
Promissory Notes
& Cert. of Deposit
Class Value at
floating
interest rate
Class Value
Non-interest
bearing
Class Value
TOTAL
Jun-00
$
Jun-99
$
Jun-00
$
Jun-99
$
Jun-00
$
Jun-99
$
Jun-00
Jun-99
4.16%
2.80%
16,390
5,683
2,054
61,286
2,422
72,741
18,444
61,286
8,105
72,741
6.14%
4.88% 9,928,179 26,400,190
0
Investments:
Loans
0.00%
2.49%
Financial Liabilities
Accounts Payable
0
177,176
9,928,179 26,400,190
51,715
0
51,715
177,176
53,196,066 41,132,342 53,196,066 41,132,342
777,320
468,303
777,320
468,303
The company is precluded by its Constitution from borrowing other than short term facilities for
working purposes.
Off-Balance Sheet interest earnings
At 30 June 2000 $20,996,500 (June 1999, $10,866,145) of defeasance funds was held in a bank money market
account by a trustee to be paid to various producers within a weighted average time of 92 days (1999, 93 days).
Interest earnings on these funds are credited to the company at month-end. Refer Note 9. Set-Off and
extinguishment of Debt. Current interest rate at call 5.84% (1999, 4.55%).
(c) Foreign exchange risk
The only foreign currency Financial Asset or Liability at 30 June 2000 (and 30 June
1999) is foreign currency cash held and at bank equivalent to A$6,490 (1999, A$6,883).
The company’s policy is to enter into forward foreign exchange contracts to hedge
contracted foreign currency net receivables or payables in excess of US$500,000.
The terms of these receivables or payables are generally within two years. No such
transactions occurred during the year to 30 June 2000 (and year to June, 1999) and as
at that date there are no hedged positions.
(d) Credit risk exposure
Credit risk represents the loss that would be recognised if counterparties failed to
perform as contracted.
The maximum exposure to credit risk on Financial Assets is the carrying amount
net of Provisions for Doubtful Debts and Provisions for Loss.
Settlement is usually made net
30 days.
The company minimises concentration of credit risk by undertaking transactions with
a number of counterparties and with limits on investment amounts in projects and
with any one producer and corporate group in a financial year.
Risk is concentrated in the film and television industry in Australia.
77
Note 20 Statement of operations by segment
Note 19 continued
(e) Net Fair Values of financial assets and liabilities
Net fair values of financial assets and liabilities are determined by the company on
the following bases:
The net fair values of Investment-Loans, Equity Film Investments and Distribution
Advances are determined in accordance with the Statement of Accounting Policies
Note – 1.h&i at amounts not exceeding recoverable amounts. These amounts have
not been discounted to present values.
The carrying amounts for Committed Funds-Promissory Notes and Certificates of
Deposit at 30 June 2000 which have a maturity of 7 days (1999 – 8 days) at an effective
interest rate of 6.14% (1999 – 4.88%), Cash, Receivables and Accounts Payable
approximate net fair value.
The company operates predominantly within one
industry and one geographic location, being the
financing of film and television production in Australia.
Note 21 Financing Facilities
The company is precluded by its Constitution from
borrowing for the purpose of financing its activities,
other than short term facilities for working purposes.
No short term facilities have been arranged.
The company has a line of credit of $42,000 through
bank issued corporate credit cards.
The carrying amounts and net fair values of financial assets and liabilities at
30 June 2000 are as follows:
Note 22 Economic Dependency
Financial Assets
Cash
Receivables
Committed Funds
Promissory Notes & Certificates of Deposit
Investments
Loans
Financial Liabilities
Accounts Payable
Carrying Amount
Jun-00
Jun-99
$
$
Net Fair Value
Jun-00
Jun-99
$
$
18,444
61,286
8,105
72,741
18,444
61,286
8,105
72,741
9,928,179
26,400,190
9,928,179
26,400,190
51,715
53,196,066
177,176
41,132,342
51,715
53,196,066
177,176
41,132,342
777,320
468,303
777,320
468,303
The company is substantially dependent on continued
Commonwealth Government support through grants to
maintain its activities at a significant level.
There are no Derivatives or Hedge Instruments entered into during the year or existing
at 30 June 2000 (and at 30 June, 1999).
78
79
Directors’ Declaration
Note
2000
$
1999
$
(a) the financial statements and notes, set out on pages
58 to 80 are in accordance with the Corporations Law,
including:
(i) giving a true and fair view of the financial position of
the Company as at 30 June, 2000 and performance,
as represented by the results of operations and cash
flows, for the year ended on that date; and,
(ii) complying with Accounting Standards and the
Corporations Regulations; and,
(b) there are reasonable grounds to believe that the Company
will be able to pay its debts as and when they become
due and payable.
Note 23 Notes to the statement of cash flows
(a) Reconciliation of Cash
For the purpose of this statement of cash
flows, cash includes cash on hand and in
banks and investments in highly liquid
money market instruments. Cash at the
end of the financial year as shown in the
statement of cash flows is reconciled to the
related items in the balance sheet as follows:
Cash at end of the year is shown in the
balance sheet as:
Cash at bank and on hand
Committed Funds-Promissory Notes and
Certificate of Deposit
In the opinion of the directors of Australian Film Finance
Corporation Limited:
4
18,444
8,105
8
9,928,179
26,400,190
9,946,623
26,408,295
Signed in accordance with a resolution of the directors:
(b) Reconciliation of operating (loss)/profit
to net cash provided
Operating (loss)/profit
80
Adjustments
Depreciation and amortisation
Loss/(Profit) on sale of plant and equipment
Increase in provision for employee entitlements
Current assets-Loans-Provision for loss
Non-Current assets-Investments-Provision for loss
Non-Current assets-Distribution licencesProvision for loss
Non-Current assets-Investments-Directors’
valuation
Current assets-Loans-(Increase)/decrease in
interest receivable
(Increase)/decrease in prepayments
Decrease in sundry receivables-interest
Decrease/ in sundry receivables-other
(Decrease) in trade accounts payable
(Decrease)/increase in other payables &
accrued expenses
Net cash provided by operating activities
(4,968,940)
1.i
628,274
132,897
90
22,147
–
53,118,179
170,150
(1,420)
48,797
(3,220)
46,616,610
–
28,943
(194,106)
(169,459)
(103)
(2,256)
5,770
5,683
(33,972)
374
3,343
479
33,658
(9,943)
(28,838)
88,451
48,056,551
47,435,037
Geoffrey Howard Levy
Chairman
Dated this Fourteenth day of August 2000
81
Independent Audit Report
82
83
For further information contact:
Public Relations Manager
Mandy Kennington
Telephone (02) 9268 2555
The Australian Film Finance Corporation Limited
Sydney
Level 12, 130 Elizabeth Street
Sydney NSW 2000
Telephone (02) 9268 2555
Toll Free Telephone 1800 251 061
Facsimile (02) 9264 8551
Toll Free Facsimile 1800 653 826
Melbourne
221a Bay Street
Port Melbourne Victoria 3207
Telephone (03) 9646 8399
Toll Free Telephone 1800 333 655
Facsimile (03) 9646 2933
Toll Free Facsimile 1800 808 426
[email protected]
www.ffc.gov.au
00

Australian Film Finance Corporation Limited

Transcription

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