Report Released on Runaway Films

A federal study released Friday details what entertainment industry people have said for years - that studios are taking billions of dollars a year from the U.S. economy by shooting films and television shows outside the country. The practice, known as ``runaway film production,'' is fueled by countries like Australia and Canada offering huge tax incentives to studios willing to shoot there. ``Runaway film production has affected thousands of workers in industries ranging from computer graphics to construction workers and caterers,'' Commerce Secretary Norman Mineta said in a statement about the report, which was released on the last day of the Clinton administration. ``These losses threaten to disrupt important parts of a vital American industry.'' The report does not recommend specific solutions, but does mention some from people in the industry, including federal and state tax credits for filmmakers, loans for independent film companies, and the creation a federal film commission. An earlier, industry-funded report that said the percentage of films from major studios produced outside the country jumped from 29 percent in 1990 to 37 percent in 1998. The industry study also said that $10.3 billion in direct expenditures, wages and taxes were lost in 1998 because of foreign production.