Ostry cautions Ontario gov’t to re-examine tax credit as he prepares departure

The outgoing head of the Ontario Media Development Corp. (OMDC) says he’s leaving Ontario’s new media industry in better shape than at the beginning of his tenure. Calling the OMDC’s interactive content tax credit and professional development programs a net positive contribution to the industry, Adam Ostry still departs his post next month cognizant that the tax credit continues to be of limited use. He has recommended the Ministry of Citizenship, Culture and Recreation examine the issue over the coming months. Discussing his three-year administration of the agency, Ostry says he’s most proud that he and his team were able to convince Ontario’s Conservative government of the need for a consolidated entity to work with the province’s various media industries. "I made the case for building on technological and convergence building opportunities in order to retain jobs – not only create them, but retain them – in the province in order to capitalize on convergence opportunities so that the content production sectors as a whole could operate as a cluster and could contribute more effectively than they already are to the economic diversification of the province – and to putting the province on the map in terms of the world industry." Ostry says when he first took the job in 1999, the agency was struggling to find a mandate under the new Tory government, which had made clear its preference for business development, deficit reduction, health and education as priorities, as well as its opposition to grants. "Culture was not as high a priority as these other matters, so they didn’t really know what to do with the agency," he tells Canadian NEW MEDIA. Ostry notes that the agency’s operating budget had fallen to about $2 million a year from the $30 million it was disbursing in the late 1980s and early 1990s. With the change in mandate to include management of the tax credit regime for all of Ontario’s media industries, and an infusion of $30 million in new cash over four years announced in 2000, Ostry says the organization can again make a positive contribution. A series of new programs is set to be announced later this spring to spend that money (CNM, Dec. 13/01). Still, Ostry admits disappointment with the performance of the Ontario Digital Media Tax Credit. "We’re one of the only jurisdictions to have an interactive digital production tax credit, which is really important. There are limitations on the utility of that tax credit that need to be addressed, but it’s better than a kick in the teeth. It’s not as useful as it could be, and we’ve advised the ministry to take a look at that, and I know the Ministry of Culture is looking at it." He notes that skills enhancement programs and trade missions such as those to E3, Milia and New York City have been more successful in creating opportunities. Ostry can’t say where he will go when his appointment ends next month. He was asked, he says, whether he wanted to stay, but declined the opportunity. He says one possibility, as a federal public servant on leave without pay, is to return to Ottawa. He also cites private sector opportunities in Toronto as one avenue.

Ostry cautions Ontario gov’t to re-examine tax credit as he prepares departure

Broadcast | April 8, 2002

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