New Zealand Film Commission

New Zealand Film
Commission
Statement of Intent
2011-2013

Cover images: A Bend in the Road,
The Most Fun You Can Have Dying,
Sione’s 2 (working title), Uphill

Contents
2
4
4
8
12
14
20
21
41
44
46
Statements from the NZFC and the
Minister for Arts, Culture & Heritage
Part 1: Overview and
Strategic Issues
What We Do
Our Environment
The Nzfc’s Outcome Framework
How We Will Achieve These Outcomes
Part 2: Service Performance and
Financial Management
Statement of Service Performance
Appendix 1
NZFC Board Members
Glossary

2 Statement of Intent 2011 – 13
Statements from the
NZFC and the Minister for
Arts, Culture & Heritage
In preparing this year’s Statement of
Intent, two things have been foremost
in our minds:
–– the Jackson/Court Review that was
published in July 2010 and on which
we reported to the industry late last
year (“the Review”); and
–– our static funding and diminishing
reserves in a recessionary economic
environment.
We had pushed ahead with many
changes to our activities prior to
the publication of the Review but
we were also eagerly awaiting
its recommendations. We then
considered our responses to those
recommendations along with
feedback from the industry and the
Ministry. This year we will be working
with the Ministry on implementing
actions arising from the Review,
these wider industry discussions and
our own initiatives. In particular, we
are keen to refocus our long-term
strategy towards a “talent partnership
approach” targeting more resources
at fewer, but higher quality, projects
and people. We also want to build a
stronger relationship with the sector.
We are actively looking at how
we can supplement our funding
in recognition of our financial
constraints, for instance, by
encouraging private investment in
film. We need to find more innovative
and cost effective ways of delivering
our services within existing funding.
We are aware that the Christchurch
earthquake is likely to affect
New Zealand’s broader fiscal outlook
and weigh on the Government’s
budget decisions.
Last year also highlighted the number
of different viewpoints within the film
industry as well as much discussion
on the cultural and economic
benefits the film industry can bring
to New Zealand. One of our statutory
functions is to encourage and promote
cohesion within the industry and we
hope to work with the various unions
and guilds to better achieve this as
well as working to promote, here and
abroad, what our industry brings to
New Zealand.

New Zealand Film Commission 3
This year both the Large Budget
Screen Production Grant and Screen
Production Incentive Fund are up
for review. As administrator of these
schemes we will be working with
the responsible Ministries as the
government reviews its interventions
in the screen sector.
With the above in mind, our key
priorities this year are to:
–– adopt an integrated approach
addressing both cultural
and economic outcomes in the
film sector;
–– find more innovative and costeffective
ways of delivering services
within existing funding;
–– encourage further private sector
investment; and
–– address and implement
recommendations from the Review.
This Statement of Intent represents
our aims and objectives for the period
to 30 June 2014. This Statement of
Intent is presented by the NZFC in
accordance with sections 138 to 148
of the Crown Entities Act 2004.
Patsy Reddy
Chair
June 2011
Andrew Cornwell
Board Member
In accordance with section 149 of the
Crown Entities Act 2004 I present this
Statement of Intent to the House of
Representatives.
Hon Chris Finlayson
Minister for Arts, Culture and Heritage

4 Statement of Intent 2011 – 13
Part 1:
Overview and
Strategic Issues
What We Do
Vision
The NZFC aims to get New Zealand
films made that are seen and
valued by local and international
audiences. We want the New Zealand
film industry to be productive,
flourishing and to become more
self-sufficient. We want to help
New Zealand film-makers make their
first film, support them for subsequent
films and ensure that those who are
successful continue to make films
in New Zealand.

New Zealand Film Commission 5
Functions
The NZFC touches just about
everything to do with film in
New Zealand. We don’t just provide
development and production funding,
although these are our core activities.
We also assist in the marketing and
selling of New Zealand films here and
abroad, provide funding to industry
guilds and film festivals and provide
training opportunities for filmmakers
at all stages of their career.
Our complete functions are set out in
Section 17 of the New Zealand Film
Commission Act 1978 (see Appendix 1).
We certify New Zealand films for tax
purposes and we are the “competent
authority” that approves film and
television projects as official coproductions
under the various treaties
that the New Zealand government has
entered into over recent years. We also
administer the Large Budget Screen
Production Grant (LBSPG) Scheme
and the Screen Production Incentive
Fund (SPIF) and provide administrative
services to The Film Fund.
“The NZFC touches just
about everything to do with
film in New Zealand.”
Our specific outputs can be
summarised as follows:
–– talent and capability building;
–– script development funding and
feedback;
–– production financing and advice;
–– film incentive scheme
administration and certification;
and
–– distribution support, sales and
marketing.
Since inception we have invested
more than $200m in 148 New Zealandmade
feature films and fully funded
almost 300 short films. The success
of those films both here and abroad,
in addition to the work of our film
professionals worldwide, has seen the
birth of an internationally-acclaimed
film industry and a pool of world-class
film-makers and infrastructure.
We aim to support the industry and
films in a variety of ways both in
advisory and financial capacities.
This support can vary across any
stage of a project’s life and in level
of significance. We are proud to have
been able to provide support to such
celebrated films as: Goodbye Pork
Pie, Once Were Warriors, An Angel At
My Table, Heavenly Creatures, Whale
Rider, The World’s Fastest Indian, Sione’s
Wedding, and In My Father’s Den. More
recently we have supported domestic
hits Home by Christmas and Boy.

6 Statement of Intent 2011 – 13
Our existence means that
New Zealand stories, talent and
landscapes are celebrated at home
and showcased to the world.
This is an important part of our
evolving national identity, and also
underpins a sector which brings
significant benefit to the economy.
“Boy perfectly captures a
moment and a place in
recent New Zealand history
and then shakes it down
for everything it’s got.”
Graeme Tuckett
Values
When deciding whether to invest in
a film we consider the following:
––
Cultural: Will the film reflect
New Zealand and New Zealanders
––
Connection: Will the film connect
with the audience it is targeting
––
Creative: Will the film achieve
critical acclaim
––
Career: Will the film develop the
careers of the film-makers involved
Our ideal outcome is that every
film we fund achieves all four of
the considerations above. We know,
however, that this is unrealistic and
when making funding decisions our
intent is to achieve as many of these
as possible. In any year, we aim that
the slate of films we fund will have a
good spread across these elements.
Overarching these considerations is
the requirement for us to demonstrate
Value For Money. This means, for
instance, that when we consider the
likely audience for a film we also
consider whether our investment
is relative to that audience. We also
need to balance building talent with
maintaining audiences.
Audiences are at the heart of what we
do and a key measure of success for
us is the number of admissions at the
New Zealand box office. We use this
measure rather than gross box office
figures so that we can easily compare
year on year. At the moment, a gross
box office figure of $1.1m equates to
about 100,000 admissions.
The graph opposite shows the
estimated number of admissions
for all NZFC-funded feature films
released in that year.
Looking at the 20 year period since
we have been recording audience data,
we can see that for every successful
film there are a number of other films
that have not performed so well;
this is the same for all film funding
entities including commercial studios.
The peaks that can be seen in the
graph (films achieving more than
500,000 admissions) relate to Once
Were Warriors in 1994, Whale Rider in
2003, The World’s Fastest Indian in 2005
and Boy in 2010. All of these films have
high levels of cultural content and,
with the exception of Boy, have also
sold well internationally.

New Zealand Film Commission 7
Annual admissions for NZFC funded features
Trend
1400
1200
1000
800
600
400
Estimated admissions (000)
200
0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2003 2004 2005 2006 2007 2008 2009 2010 2011
Year of Release
What is heartening to see is that,
despite the peaks and troughs, the
trend for domestic admissions is on
the increase. This is a trend we want
to continue and, in addition, increase
the hit rate for successful films. We
aim to achieve more than 100,000
admissions at the New Zealand box
office for two films every three years.
International sales are a secondary
aim but will also be important as
they are the key way of recouping
our investment.
“Audiences are at the
heart of what we do and
a key measure of success
for us is the number
of admissions at the
New Zealand box office.”

8 Statement of Intent 2011 – 13
Our Environment
In July 2010 the Jackson/Court Review
was published and left us in no doubt
that the NZFC needs to exist.
“Movies showcasing
New Zealand culture and
character would be virtually
impossible to make if we
were to lose this critical
funding provided by the
Government and the State
Lottery. We believe it is
in every New Zealander’s
interest to have a strong,
successful film industry of
which we can all be proud.”
Sir Peter Jackson and David Court, Review
of the New Zealand Film Commission, p2
Our income comes from two main
sources; Government via either Vote
Arts, Culture & Heritage or the Lottery
Grants Board (LGB) and income
generated from our own activities
(film income, distribution fees and
interest). Occasionally, films that we
have offered investment to in the
previous financial year do not go
ahead and this figure is written back
and shows as income the next year.
The graph below shows our actual
funding for the last three years and
forecast funding for this year:
NZFC Income by Funding Source
25
20
15
10
5
0
2008/09 2009/10
Other Income
Funding Year
Lottery Grants Board
2010/11 2011/12
Vote Arts, Culture & Heritage
As can be seen from the graph, our
funding from Vote Arts, Culture &
Heritage is largely static. Funding
from the LGB is significant but can
vary year on year; for instance, in
2010/11 we received an additional
one-off payment from this source.
Income from films and interest varies
the most and the impact of the global
financial crisis on our other income
can be seen in the graph above. For
many years we have had access to
reserves to smooth funding but these
reserves are now diminishing quickly.
Income ($m)

New Zealand Film Commission 9
Set out below are some of the key
external and internal factors which
could impact on our activities over the
near future:
––
Jackson/Court Review: The
Review made a number of
recommendations, some of which
had already been implemented
and others that we are still
considering. However, many of the
recommendations required more
money, not less, either from our
resources or external sources.
––
Global economy: With the
worldwide recession, there is less
international financing for film
production than in recent years;
there are fewer film distribution
companies, fewer slots at film
festivals and a marked decrease in
ancillary income. Consequently it
is harder than ever to finance the
production of films and there are
fewer companies willing and able
to buy the films that do get made. It
has become increasingly important
that the shape and size of the
audience is reflected in the level of
finance required.
––
Domestic funding: In the past,
funding from broadcast agencies
such as NZ On Air and Te Mangai
Paho and broadcasters have
helped to meet budgets but
with the decrease in television
advertising, broadcast licence fees
and a reduction in the number of
films these agencies are willing to
support, these sources of funding
are featuring less in finance plans.
This has made our role even more
critical but also increased the debate
on cultural versus commercial
benefits and increased the call on
our funding.
––
Diminishing NZFC funding: Our
projected income for 2011/2012
is $16.7m, down from $19.6m
in 2010/2011. Based on current
projections, by 2013/14 we will have
minimal reserves available to bolster
our funding and consequently
would expect to see a decrease in
the number of feature films we
can support.
––
Film Fund: This successful
independent funding mechanism
which was established with a
Government grant in 2001 has
allocated the final production equity
available to it. Unless further funds
are provided it will cease to be a
source of production funding.
––
Decline in film sales: The
downturn mentioned above has
resulted in a decline in film sales
income which in turn means that
there will be less available for
industry recoupment and NZFC
re-investment in other films.

10 Statement of Intent 2011 – 13
––
Industrial environment: The role of
unions and guilds was put in the
spotlight during the issues regarding
The Hobbit and highlighted a need
for ongoing dialogue between these
bodies. Although we do not contract
directly with cast and crew, we
are interested in the outcome of
discussions between SPADA and
Actors’ Equity in particular and the
impact they have on the certainty
of the projects we fund and the
schemes we administer on behalf
of MCH and MED. In addition, one
of our statutory functions is to
encourage and promote cohesion
within the New Zealand film
industry.
––
Reduction of interest rates: Whilst
there has been a slight increase in
rates in the past few months they
remain substantially lower than
in the past and continue to reduce
monies put into funding from
returns and cash at hand.
––
SPIF: The scheme is due for review
at the end of 2011 and as well as
factors of process and rules we
believe there will be a focus on
issues such as how to cash flow
the grant and how to raise money
to leverage the grant. Like other
industry bodies, we will be giving
feedback to the Ministry to help
them advise Government on the
best ways for SPIF to operate in the
period covered by this document for
the greatest benefit to the industry
and the country.
The chart below shows how we spent
our funding over the last three years
and how we plan to spend it in the
coming year.
NZFC Expenditure by Activity
25
20
15
10
5
0
2008/09 2009/10
Funding Year
Corporate & Personnel
Sales
Development
2010/11 2011/12
Distribution & Marketing
Professional Development
& Industry Support
Production
Expenditure ($m)
Our film production budget for
2011/12 will be approximately $12.45m
including low-budget Escalator
feature films and short films ($10.1m
excluding those items).

New Zealand Film Commission 11
We have traditionally aimed to
invest in at least four feature films
per year but with an ambition to do
more. With depleted reserves going
forward, we will need to place more
emphasis on value for money in order
to be able to continue to fund this
number of films. This will involve a
reduction in the percentage of the
budget we are able to invest and a
reduction in the cash amount we put
in per project. As such, this year we
will review our funding guidelines and
place more emphasis on working with
film-makers to find other sources of
funding to supplement our own.
We will encourage film-makers to
be very aware of the audience they
are making the film for relative to the
size of the budget needed to reach
that audience and the stage they are
at in their career. Film is an expensive
medium and budgets need to reflect
the likely demand from the audience.
Sione’s 2
“We have traditionally
aimed to invest in at least
four feature films per year
but with an ambition to
do more.”

12 Statement of Intent 2011 – 13
The Nzfc’s Outcome Framework
Culture &
Heritage Sector
Outcome
Culture &
Heritage Medium
Term Outcomes
New Zealand’s distinctive culture enriches our lives
Connecting our taonga, our people, our place in the world
Create
Cultural activity flourishes in New Zealand
NZFC Outcomes
NZFC Impacts
The New Zealand film industry is productive, flourishing and increasingly
self-sufficient.
–– We identify filmmaking
talent
and enable career
pathways
–– New Zealand filmmakers
have access
to professional
development
opportunities
–– We maintain a pool
of market-ready
scripts
–– New Zealand filmmakers
have access
to markets to fund
their films
–– New Zealand
film-makers are
increasingly selfsufficient
and able
to attract alternative
sources of funding
–– New Zealand films
are made
–– We maintain
strong stakeholder
relationships
NZFC Outputs
Talent & capability
building
Script development
funding & feedback
Production financing
& advice
Inputs
Vote Arts, Culture & Heritage / Lottery Grants Board / Other income

New Zealand Film Commission 13
Preserve
Our culture and heritage can be enjoyed by future generations
Engage
Engagement in cultural activities is increasing
New Zealand films have
lasting cultural value.
–– We make iconic
New Zealand films
that are treasured by
New Zealanders
–– New Zealand is perceived
as an attractive filming
location
Film incentive scheme
administration &
certification
Domestic and international audiences see and value
New Zealand films.
–– New Zealand films achieve
a significant domestic
theatrical audience
–– New Zealand films have
similar distribution
and access in the local
marketplace compared to
international productions
–– New Zealanders have
an opportunity to see
New Zealand films at local
festivals
Distribution support, sales & marketing
–– New Zealand films
achieve a good profile at
international markets
–– New Zealand films sell in
the international market
Vote Arts, Culture & Heritage / Lottery Grants Board / Other income

14 Statement of Intent 2011 – 13
How We Will Achieve
These Outcomes
Outcome 1: The New Zealand
film industry is productive,
flourishing and increasingly
self-sufficient (Create)
Talent & capability building
If we are to meet our target of
investing in at least four feature
films per year (excluding low-budget
features) then every year we need
several new production-ready scripts,
each with a talented team attached.
We constantly replenish the pool from
which these scripts emerge, growing
new writers, producers and directors
and giving them opportunities to
forge alliances with each other.
We identify new talent with a number
of schemes designed to give them a
pathway through to feature films:
––
Short films: The Fresh Shorts
scheme allows for 8 short films at
$10,000 each and 8 short films at
$30,000 each to be made annually.
We also have a Premiere Shorts
scheme which selects 6 films at
$90,000 each.
––
Low-budget feature films: The
Escalator Scheme is a 3 year
initiative giving 4 teams annually
the opportunity to make a feature
film on a low budget.
––
Trainee Feature Director Scheme:
A scheme giving an emerging filmmaker
the opportunity to shadow a
feature film director.
We are committed to fostering the
career development of writers,
directors and producers. Staff meet
regularly to track talent. Strong
scripts across a range of genres will
be far more likely if the industry is
also supported through a range of
workshops and schemes that focus
on professional development. We
collaborate with industry bodies
to bring local and international
film-makers together to advance
individuals, projects and the industry
across all sectors. We also support
schemes to allow our industry
professionals to travel offshore to
learn and enhance their skills for
the future.
For those that have achieved a level of
success with at least one feature film,
we have the Talent Awards scheme;
a contestable fund awarding grants
of up to $50,000 to producers, writers
or directors who present a strategy
for building their slate of films and/
or developing their career in the
coming year. From time to time our
Chief Executive may also offer a CEO
Talent Award to film-makers who have
achieved outstanding success in the
preceding year.

New Zealand Film Commission 15
We support a cohesive New Zealand
film industry by providing core
funding to industry guilds: the
New Zealand Writers Guild, the
Screen Producers and Development
Association, the Screen Directors
Guild of New Zealand, Nga Aho
Whakaari, Women in Film & Television
and Script to Screen, although this
method of funding will be reviewed
this year.
We also contribute to the funding of
Film NZ. Funding for the Film Archive
has now been removed from the NZFC
and is provided directly from the
Ministry for Culture & Heritage. We
will continue to work closely with the
Film Archive and Film NZ this year.
Script development funding
& feedback
We view the development of scripts
as a structure like a stepped pyramid
with a broad base of projects that
decreases at each step towards
the pinnacle. We encourage the
development of a large number of
ideas at an early stage to develop
both talent and allow for the many
factors which affect a project’s journey
to production. We currently offer
development loans at different levels:
to writers at the initial idea stage and
then, once a producer has become
attached to a project, to producers for
further script drafts.
As the size of the loan against a
project increases, and it moves higher
up the pyramid, the criteria against
which it is judged become more
rigorous and more market focused.
Experienced industry professionals
sit as advisors at the advanced
development stage.
We offer creative feedback to writers
and producers of supported projects
through notes and meetings, in
person or via phone or skype, at each
stage of the development process.
Changes are underway in this area so
that notes will not be given at the very
first stage of application in order to be
able to deal with increasing numbers
of applications and provide quicker
feedback on funded scripts. We also
introduce teams to independent script
consultants as required or requested.
We have a continued commitment
to Māori film-makers and stories and
developing distinctive voices. Together
with Nga Aho Whakaari, which
represents Māori interests in the
screen industry, we provide specific
support to the Māori development
funding organisation Te Paepae Ataata.
Māori film-makers may choose the
process that best suits their needs and
their project – working with Te Paepae
Ataata or with our development staff.

16 Statement of Intent 2011 – 13
Production financing & advice
One of the major problems
confronting producers who are trying
to forge international relationships
with potential co-producers and
financiers is the tyranny of distance.
We therefore offer International Travel
Assistance to producers with a slate
of projects in development. We want
to be more proactive in this area
and will give more tailored advice
to producers and other industry
practitioners prior to these trips so
that they can make the most of the
opportunities provided.
When a project is sufficiently
advanced, producers can apply to
us for production funding or, if the
film has already been shot, postproduction
funding. This year we
intend to improve our communications
around the production funding
process, including revised guidelines
and application forms. We will offer
feedback quickly if we foresee issues
with projects as we believe the next
best answer to a “yes” is a “fast no”
supported with clear reasons.
We will commission an independent
survey of our stakeholders to be
undertaken annually to ensure
our initiatives, processes and
communications are effective.
Staff assess projects from many
perspectives, e.g. script, team,
market, budget, financing plan
and recoupment and the expected
outcomes of a project based on
our values (cultural, connection,
creative, career, value for money).
We may also provide other forms
of financial assistance such as
sales advances, short-term loans
and pre-closing advances. Staff
make recommendations to the
Board on funding applications as
they are more closely involved
with each project. The Board have
a governance role and ensure that
recommendations are consistent
with our values and policies but it is
staff that are accountable for these
recommendations.
Although we aim for at least four
feature films a year, most years the
NZFC funds about six films. These
films range from low budget features/
documentaries or first-time films
where NZFC can contribute upwards
of 90% of the film’s budget, to
international co-productions where
our contribution might be around
30%. In recent years the ratio of New
Zealand government funding to the
total budget of a film has increased.
In the medium-term, we would like to
bring this figure back to 70%; in order
to do this we will assist film-makers to
identify other financing sources.

New Zealand Film Commission 17
Average percentage of New Zealand government funding to total budget for
NZFC funded films
90%
85%
80%
75%
70%
65%
60%
Estimated admissions
55%
50%
2006 2007 2008 2009 2010 2011 2012 2013 2014
Average Ratio
Projected
The graph above shows the
average percentage of New Zealand
government funding for films funded
that year compared to the total budget
for those films. For the purposes
of the calculations below we have
included NZ Film sales advances, Film
Fund funding (which is now all but
exhausted), SPIF grants, NZ On Air and
Te Mangai Paho funding in addition to
NZFC equity funding.
Film incentive scheme administration
& certification
We want the New Zealand screen
industry to flourish. We believe the
SPIF and LBSPG schemes help the
New Zealand screen industry by
keeping cast and crew in work and,
in the case of SPIF, giving producers a
larger share of equity in their projects.
Both schemes also encourage inward
investment to New Zealand. Although
we are not directly responsible for
these schemes, we do administer
them and need to ensure that the
industry knows how they work, that
applications are processed efficiently
and that grants are paid promptly.
An evaluation of both schemes will
be undertaken by the Ministry of
Economic Development and the
Ministry for Culture & Heritage this
year and we will provide input to this
process as necessary. We also certify
films as New Zealand films and official
co-productions. Co-productions are
able to obtain benefits such as the SPIF
grant and tax benefits.

18 Statement of Intent 2011 – 13
Outcome 2: New Zealand films
have lasting cultural value
(Preserve)
The Ministry for Culture & Heritage
has a Preserve outcome that “Our
culture and heritage can be enjoyed by
future generations”. We aim to fund
culturally-specific films which will
contribute to this outcome. Once a
film is made it needs to be accessible
to the public. In the past, we have
been the sales agent for most of the
films we fund and have therefore
had access to the physical film and
associated publicity materials. Now
that we are not always the sales agent,
we will ensure that we still have
access to these materials for all films
we fund so that future generations
can enjoy them.
Each year we aim to invest in at least
one SPIF film. SPIF films must have
significant New Zealand content to
qualify for the SPIF grant. We also take
cultural elements into account when
deciding which films to fund.
Outcome 3: Domestic and
international audiences see
and value New Zealand films
(Engage)
Distribution support, sales
& marketing
We want all the films we fund to
be seen in New Zealand cinemas.
New Zealand films are generally at a
distribution disadvantage because they
do not have the benefit of economies
of scale in marketing and print costs
that international films have. If local
films had to carry all distribution and
marketing costs, distribution would
be uneconomic in most cases. To this
end we provide a proportion of the
print and advertising budget of local
films and work with the producer
and distributor to determine the
best release strategy to offset the
disadvantage local films have and
maximise audience and revenue.
We continue to explore the
potential for new distribution
strategies to take advantage of
established festival audiences and
new digital technologies. We seek
promotional opportunities in new
media as part of release campaigns.

New Zealand Film Commission 19
In addition, we help to build local
audiences for the New Zealand film
industry through our support for
local film festivals and awards. In the
last year we provided grants from a
contestable fund to The New Zealand
International Film Festival, The Qantas
Film and Television Awards, The
48HOURS Film Festival, The Wairoa
Māori Film Festival, Show Me Shorts
Film Festival and The NZ Federation
of Film Societies.
We have been a consistent and
successful international marketer
and sales agent for New Zealand films
since 1979. For international branding
purposes the sales operation is
referred to as NZ Film.
As we are geographically isolated
and operating in a small market
we need to provide a link to the
international markets. We do this
through the active, annual market
participation of our sales agency at
major film festivals and film markets,
in partnership with producers and
the wider industry. It is now the
producer’s choice if they wish to use
NZ Film or an offshore sales agency.
In addition to the sales function
through NZ Film, we also:
–– Develop and sustain relationships
with a wide range of international
distributors who are interested in
releasing New Zealand productions;
The Most Fun You
Can Have Dying
–– Ensure that every New Zealand
film gets promoted at relevant
international festivals and markets,
with an international strategy
tailored to the needs of each film;
–– Provide key market intelligence to
New Zealand film-makers;
–– Promote the New Zealand film
brand in partnership with trade and
foreign affairs agencies; and
–– Maintain relationships with key
film festival directors aiming at
maximum festival exposure for
new films.

20 Statement of Intent 2011 – 13
Part 2:
Service Performance and
Financial Management

New Zealand Film Commission 21
Statement Of Service Performance
Output 1: Talent & capability building
Links to NZFC Outcome and Impacts
NZFC outcome
The New Zealand film industry
is productive, flourishing and
increasingly self-sufficient.
Impact
We identify film-making talent and enable career
pathways.
New Zealand film-makers have access to professional
development opportunities.
This output is particularly focused on productivity and self-sufficiency. Growth
is measured by the number of people employed in the industry.
Impact measure
2009/10
Actual
2010/11
Forecast
2011/12
Target
2012/13
Target
2013/14
Target
Number of directors of NZFCfunded
short films gone on to direct 1 in 7 1 in 7 1 in 7 1 in 7 1 in 7
feature films *
Number of Escalator key creatives
gone on to write, direct or produce - - - - 1
a feature film †
Number of people employed in the
New Zealand screen industry ** 6,700 7,000 7,000 7,000 7,000
Number of NZFC-funded short films
selected for A-list film festivals ‡ 3 7 5 5 5
* Figure is derived from total number of shorts funded from 1985 onwards and adjusted to reflect directors which
have directed more than one short film.
† Key creatives are defined as a writer, director or producer. It often takes several years for a feature film to get
made, therefore for films funded in 2010/11 and released in 2012, we would expect there to be a significant time
lag before another feature is funded.
** Measure taken from Statistics NZ Screen Industry Survey which covers the period from 1 April to 31 March.
Target is static due to current high level of activity due to The Hobbit and limits on infrastructure.
‡ Measure is based on qualifying A-list film festivals (as set out in NZFC Short Film Post Production Guidelines
available on our website) as these events assist film-makers in achieving financing for future projects.

22 Statement of Intent 2011 – 13
Output Description
This output comprises initiatives specifically
designed to identify new talent and give them a
pathway to feature films; Fresh Shorts, Premiere
Shorts, the low budget feature scheme Escalator
and the Trainee Feature Director scheme.
Professional development initiatives such as
Talent Awards and support for industry guilds
and Film NZ are also included in this output.
We make a call for applications for most
of these initiatives on an annual basis and
decisions are made for most schemes by a panel
comprising staff and industry experts.
Budget 11/12: $3,713,000
Short films $1,025,000
Escalator $1,250,000
Creative Development/
Talent Awards $948,000
Guilds & Film NZ $490,000
Output measure
Number of short films fully funded
by the NZFC
Number of Escalator films funded
by the NZFC
Number of professional
development initiatives funded by
the NZFC
Percentage of participants
in training initiatives who rate
initiatives as good, very good
or excellent
2009/10
Actual
2010/11
Forecast
2011/12
Target
2012/13
Target
8 22 * 22 22 22
0 † 4 4 4 -
15 11 ‡ 11 11 11
2013/14
Target
N/A N/A 75% 75% 75%
* In 2009/10 we only ran the Premiere Shorts scheme. Fresh Shorts which funds 16 lower budget short films was
introduced in 2010/11 and the number of Premiere Shorts films reduced.
† Escalator was launched in 2010/11 and we have currently committed to the scheme for 3 years.
‡ In 2009/10 Escalator was counted as an initiative but has not been counted subsequently. Reduction due to
impending review of existing initiatives. This measure excludes Talent Awards and Professional Development
Awards made to individual film-makers as these Awards are demand-based and discretionary.

New Zealand Film Commission 23
Output 2: Script development funding & feedback
Links to NZFC Outcome and Impacts
NZFC outcome
The New Zealand film industry
is productive, flourishing and
increasingly self-sufficient.
Impact
We maintain a pool of market-ready scripts.
New Zealand film-makers have access to markets to
fund their films.
This output is particularly focused on productivity and self-sufficiency.
Impact measure
2009/10
Actual
2010/11
Forecast
2011/12
Target
2012/13
Target
2013/14
Target
Percentage of films entering
production with NZFC production
finance that also received NZFC
100% 80% 80% 80% 80%
development funding †
† Percentage is derived from total films receiving NZFC production finance in the financial year (excluding
low-budget features and documentaries). Low-budget features include Escalator films and films with budgets
under $1 million. Development funding includes devolved development funding (funding given to producers to
develop their slate rather than on a project-specific basis).
Output Description
This output comprises funding for feature
film scripts in various stages of development.
At the early stages we fund writers to write a
first draft based on a synopsis and/or treatment.
If the project progresses, a producer may come
on board and seek more development funding
to produce further drafts of the script until it
is in a state where it is ready to seek production
financing. Writers and producers can apply
at any time for funding and meetings are
convened to consider applications as necessary.
We also provide assistance to producers with
projects in advanced development to travel
to markets to attract finance for their films.
Producers can apply at any time prior to the
deadline for registration for the relevant market.
Budget 11/12: $1,037,000
Feature films $894,000
Producer travel assistance $143,000

24 Statement of Intent 2011 – 13
Output measure
2009/10
Actual
2010/11
Forecast
2011/12
Target
2012/13
Target
Number of scripts at advanced
development stage that received 14 12 10 10 10
NZFC development funding *
2013/14
Target
Time taken to provide feedback and
advice from receiving a new draft † - - 4 weeks 4 weeks 4 weeks
Number of producers receiving
travel assistance to attend overseas 17 9 8 8 8
markets ‡
* Measurement includes devolved development funding (funding given to producers to develop their slate rather
than on a project-specific basis).
† No data recorded in 2009/10 or 2010/11.
‡ Reduction is due to more rigorous assessment of producer plans to ensure value for money.

New Zealand Film Commission 25
Output 3: Production financing & advice
Links to NZFC Outcome and Impacts
NZFC outcome
The New Zealand film industry
is productive, flourishing and
increasingly self-sufficient.
NZ films have lasting cultural value.
Impact
New Zealand film-makers are increasingly self-sufficient
and able to attract alternative sources of funding.
New Zealand films are made.
We maintain strong stakeholder relationships.
We make iconic New Zealand films that are treasured by
New Zealanders.
Impact measure
Ratio of New Zealand government
funding to total budget (average for
all films funded that year)
Level of stakeholder satisfaction
2009/10
Actual
2010/11
Forecast
2011/12
Target
2012/13
Target
2013/14
Target
74% 83% 75% 75% 70%
N/A
N/A
Baseline*
data to be
developed
Increase
Increase
* This data will be sourced from an independent annual external survey.
Output Description
This output comprises funding of feature
films either for production or post-production.
$2m of this funding is provided from MCH
specifically to co-invest in a SPIF film. There
are six application rounds per year and
applications are considered by the Board based
on recommendations by staff.
Budget 11/12: $10,175,225
Feature films $7,910,225
SPIF co-investment $2,000,000
Feature post-production $150,000
Other production costs $115,000
Output measure
Number of NZFC funded
feature films
Percentage of NZFC funded feature
films reflect NZ culture and/or
promote NZ talent
2009/10
Actual
2010/11
Forecast
2011/12
Target
2012/13
Target
8 * 8 4 4 4
2013/14
Target
100% 100% 100% 100% 100%
* 9 offers were made in 2009/10 but one offer lapsed and was written back. Actual figures in 2009/10 and 2010/11
are higher than targets set for that year due to low-budget features and feature documentaries which we do not
specifically allow for. Figures exclude Escalator films which are measured in Output 1.

26 Statement of Intent 2011 – 13
Output 4: Film incentive scheme administration & certification
Links to NZFC Outcome and Impacts
NZFC outcome
The New Zealand film industry
is productive, flourishing and
increasingly self-sufficient.
Impact measure
Number of SPIF grants made (based
on final certificates issued)
Number of LBSPG & PDV
grants made
Impact
New Zealand is perceived as an attractive
filming location.
2009/10
Actual
2010/11
Forecast
2011/12
Target
2012/13
Target
5 10 8 8 8
LBSPG: 7
PDV: 2
LBSPG: 7
PDV: 1
LBSPG: 7
PDV: 2
LBSPG: 7
PDV: 2
2013/14
Target
LBSPG: 7
PDV: 2
* SPIF scheme currently ends in 2012/13 but figure in 2013/14 is to allow for time lag between projects going into
production and applying for grant.
Output Description
This output comprises administration of
the SPIF and LBSPG schemes as well as
certification of films for significant NZ content
and co-productions. Applications are received
throughout the year as projects are completed.
Many of these projects do not receive equity
financing from the NZFC as they may be
television series or studio-funded projects.
Therefore, the number of grants made is an
additional measure of the New Zealand film and
television industry’s productivity and growth.
Budget 11/12: $101,000
Regulatory costs $101,000
Output measure
SPIF and LBSPG applications are
processed in a timely manner*
SPIF and LBSPG Frequently Asked
Questions (FAQs) are updated as
required
2009/10
Actual
2010/11
Forecast
2011/12
Target
2012/13
Target
2013/14
Target
3 months 3 months 3 months 3 months 3 months
N/A†
N/A
Every 2
months
Every 2
months
Every 2
months
* This timeframe is based on fully-completed applications being received. Occasionally further information is
required to process an application.
† Previous performance measure was that criteria and FAQs be available on the website but time for updates
not specified.

New Zealand Film Commission 27
Output 5: Distribution support, sales & marketing
Links to NZFC Outcome and Impacts
NZFC outcome
Domestic and international
audiences see and value
New Zealand films
Impact
New Zealand films achieve a significant domestic
theatrical audience.
New Zealand films have similar distribution
and access in the local marketplace compared to
international productions.
New Zealanders have an opportunity to see
New Zealand films at local festivals.
New Zealand films achieve a good profile at
international markets.
New Zealand films sell in the international market.
Impact measure
Number of NZFC-funded films
with domestic admissions of
over 100,000
2009/10
Actual
4 films
in last 3
years
2010/11
Forecast
2 films
in last 3
years
2011/12
Target
2 films
in last 3
years
2012/13
Target
2 films
in last 3
years
2013/14
Target
2 films
in last 3
years
Total annual domestic admissions
for all NZFC films * 1,063,800 156,600 400,000 400,000 400,000
Distribution fees earned by NZ Film $246,738 $370,000 $195,000 $200,000 $200,000
Percentage of people who say they
value NZFC-funded films
N/A N/A 75% 75% 75%
* This measure reflects the peaks and troughs of the film industry. The 2009/10 actual figures represent the
success of Boy. All admissions are allocated to the financial year the film is released even if admissions occurred
in the next financial year.

28 Statement of Intent 2011 – 13
Output Description
This output comprises:
–– prints and advertising (P&A) grants to
producers to supplement distribution and
marketing of their films in New Zealand;
–– sales agent activities for New Zealand
films that choose to use NZ Film as their
sales agent;
–– marketing of New Zealand films locally and
internationally.
Producers can apply for P&A grants as their film
nears completion and delivery to the distributor.
Budget 11/12: $1,519,500
P&A Grants $525,000
Other advertising/promotion $127,000
Marketing $342,500
Sales agency $390,500
NZ Festivals/Awards $134,500
Output measure
Number of prints & advertising
grants made
Number of local film festivals
funded
Total number of festivals/markets
attended by NZ Film
2009/10
Actual
2010/11
Forecast
2011/12
Target
2012/13
Target
6 7 7 7 7
5 4 5 5 5
4 5 4 4 4
2013/14
Target

New Zealand Film Commission 29
Prospective Statement of Comprehensive Income
For the three years to 30 June 2014
Income
Forecast
Actual
10/11
$000s
Budget
11/12
$000s
Budget
12/13
$000s
Budget
13/14
$000s
Government Grant 3,401 3,401 3,401 3,401
Government Grant -SPIF (NZFC co-invest) 2,000 2,000 2,000 -
SPIF Surplus 263 - - -
Lottery Board Grant 11,039 10,075 10,075 10,075
Film Income 450 450 400 400
Sales Commission 370 195 200 200
Interest Rec'd 850 600 500 400
Writebacks 1,224 - - -
Other Income 30 10 - -
Operating Income 19,627 16,731 16,576 14,476
Government Grant -SPIF 16,893 14,111 14,112 -
Total Income 36,520 30,842 30,688 14,476
Expenditure
Development 2,128 1,985 1,750 1,550
Short Films 1,101 1,025 925 750
Feature Film Production
NZFC Features 9,964 8,060 8,050 8,050
SPIF - NZFC co-invest 2,000 2,000 2,000 -
Escalator Features 1,200 1,250 1,250 -
Other production costs 115 115 115 115
Industry Support 763 625 500 500
Domestic- Distribution Initiatives 639 652 500 500
International -Sales/Marketing 641 733 650 600
Administration 1,215 1,226 1,220 1,200
Depreciation 180 180 150 140
Financing Costs - - - -
Personnel Costs 1,902 1,903 1,897 1,859
Operating Expenses 21,848 19,754 19,007 15,264
Government Grant -SPIF 16,893 14,111 14,112 -
Total Expenditure 38,741 33,865 33,119 15,264
Total Comprehensive Income (2,221) (3,023) (2,431) (788)

30 Statement of Intent 2011 – 13
Prospective Statement of Movements in Equity
For the three years to 30 June 2013
Forecast
Actual
10/11
$000s
Budget
11/12
$000s
Budget
12/13
$000s
Budget
13/14
$000s
Public Equity 1 July 10,221 8,000 4,977 2,546
Total Comprehensive Income (2,221) (3,023) (2,431) (788)
Public Equity 30 June 8,000 4,977 2,546 1,758

New Zealand Film Commission 31
Prospective Statement of Financial Position
For the three years to 30 June 2014
Current Assets
Forecast
Actual
10/11
$000s
Budget
11/12
$000s
Budget
12/13
$000s
Budget
13/14
$000s
Cash & Cash Equivalents 3,500 3,500 2,500 2,500
Term Deposits 12,500 8,000 6,300 5,600
Accounts Receivable 2,000 2,000 1,800 1,600
Total Current Assets 18,000 13,500 10,600 9,700
Non Current Assets
Plant, Property & Equipment 600 500 400 300
Total Non Current Assets 600 500 400 300
Total Assets 18,600 14,000 11,000 10,000
Current Liabilities
Accounts Payable 1,800 1,600 1,000 1,000
Project Commitments 8,400 7,023 7,054 6,942
Film Income Account 400 400 400 300
Total Liabilities 10,600 9,023 8,454 8,242
Public Equity 8,000 4,977 2,546 1,758
Total Liabilities & Public Equity 18,600 14,000 11,000 10,000

32 Statement of Intent 2011 – 13
Prospective Statement of Cash Flows
For the three years to 30 June 2014
Cash flows from operating activities
Cash was provided from:
Forecast
Actual
10/11
$000s
Budget
11/12
$000s
Budget
12/13
$000s
Budget
13/14
$000s
Grants and other income 17,553 16,131 16,076 14,076
Interest Received 850 600 500 400
Net GST 0 0 0 0
Cash was applied to:
Production funding, marketing industry support,
suppliers and employees (22,874) (20,790) (19,337) (15,136)
Net GST 0 0 0 0
Net cash (outflow) from operating activities (4,471) (4,059) (2,761) (660)
Cash flows from investing activities
Cash was provided from:
Decrease in Short Term Deposits 13,011 14,500 11,700 10,700
Sale of Property, Plant, Equipment 0 0 0 0
Cash was applied to:
Increase in Short Term Deposits (10,000) (10,000) (10,000) (10,000)
Purchase of Property, Plant, Equipment (149) (80) (50) (40)
Net cash inflow from financing activities 2,862 4,420 1,650 660
Cash flows from financing activities
Cash was provided from:
Short Term Loans Received 160 510 361 250
Cash was applied to:
Short Term Loans Issued (1,417) (871) (250) (250)
Net cash inflow/(outflow) from financing activities (1,257) (361) 111 0
Net Increase/(Decrease) in Cash at Bank (2,866) 0 (1,000) 0
Opening Cash & Cash Equivalents 6,366 3,500 3,500 2,500
Closing Cash & Cash Equivalents at Bank 3,500 3,500 2,500 2,500

New Zealand Film Commission 33
Financial Planning
Assumptions
In the projected financial statements
for the three years through to June
2014, we have assumed that:
a) Our core business will remain
unchanged, with financing the
production of New Zealand feature
films remaining the most important
activity.
b) We will continue to market and
sell many of the feature films we
invest in, and will continue to take
commercial recoupment positions
in those films.
c) There will be film income returns
ranging between $400,000 -
$450,000 per year to augment
Government and Lottery funding.
If this is not achieved the total
production funds will be reduced
pro rata by the required amount.
d) Reserves will be utilised in a
manner that allows for depletion
over the next 5 financial years, on
the assumption that no additional
Government funds become
available in that time frame.
Statement of Accounting
Policies
Reporting Entity
Pursuant to the New Zealand Film
Commission Act 1978, the NZFC was
established on 13 November 1978 as
a Crown Entity in terms of the Crown
Entities Act 2004. Our functions and
responsibilities are set out in the New
Zealand Film Commission Act 1978.
Our primary objective is to encourage
and also participate and assist in the
making, promotion and exhibition
of films and has been established
exclusively for charitable purposes in
New Zealand. Accordingly, we have
designated ourselves as a public
benefit entity for the purposes of New
Zealand equivalents to IFRS (NZ IFRS)
Basis of Preparation
Statement of compliance
Our financial statements have
been prepared in accordance with
the requirements of the Crown
Entities Act 2004, which includes
the requirement to comply with
New Zealand generally accepted
accounting practice (NZ GAAP).
They comply with NZ IFRS and
other applicable Financial Reporting
Standards, including FRS 42, as
appropriate for public benefit entities.

34 Statement of Intent 2011 – 13
These prospective financial statements
have been prepared solely for the
2011/12 – 2013/14 Statement of Intent.
They comply with the Crown Entities
Act 2004, and may not be appropriate
for purposes other than complying
with the requirements of this Act.
The actual financial results for the
period covered are likely to vary
from the information presented and
variations may be material.
The accounting policies set out below
have been applied consistently to all
periods presented in these financial
statements.
Measurement base
The reporting period for these
forecast financial statements is
the three years ended 30 June 2014
and they have been prepared on a
historical cost basis.
Functional and presentation currency
The financial statements are
presented in New Zealand dollars and
all values are rounded to the nearest
thousand ($000) dollar. Our functional
currency is New Zealand dollars.
Judgements and estimates
The preparation of financial
statements to conform with NZ
IFRS requires judgements, estimates
and assumptions that affect the
application of policies and reported
amounts of assets and liabilities,
income and expenses.
The estimates and associated
assumptions are based on historical
experience and various other
factors that are believed to be
reasonable under the circumstances.
Actual results may differ from
these estimates.
The estimates and underlying
assumptions are reviewed on an
ongoing basis. Revisions to accounting
estimates are recognised in the period
of the revision and future period if
the revision affects both current
and future periods.
Significant Accounting Policies
The accounting policies set out below
have been applied consistently to all
periods presented in these forecast
financial statements.
Revenue
Revenue is measured at the fair
value of considerations received
or receivable.
Crown Revenue
We are primarily funded through
revenue received from the Crown,
which is restricted in its use for the
purpose of meeting our objectives as
specified in the Statement of Intent.
Other grants
Non-government grants are
recognised as revenue when they
become receivable.

New Zealand Film Commission 35
Interest
Interest income is recognised using
the effective interest method.
Returns from Film Investments
Returns from film investments are
recognised as revenue when either
a sales contract is executed or in the
case of film royalty “overages”, when
the royalties have been reported and
become receivable.
Leases
Operating Leases
Operating lease payments, where the
lessor effectively retains substantially
all the risks and benefits of ownership
of the leased items, are charged as
expenses in the periods in which they
are incurred.
Financial Instruments
We are party to financial instruments
as part of our everyday operations
and these have been recognised in the
statement of financial position.
These instruments include cash
on hand, bank balances, short
term deposits, accounts receivable,
accounts payable and project
commitments.
Financial assets and financial
liabilities are initially measured at fair
value plus transaction costs, unless
they are carried at fair value through
surplus or deficit, in which case the
transaction costs are recognised in the
statement of comprehensive income.
Cash and cash equivalents
Cash includes cash on hand and funds
on deposit with banks with original
maturities of three months or less and
is measured at its face value.
Investments and Advances
Funding for film development and
production, while in the nature of an
investment, is treated as expenditure
because of its high-risk nature. This
expenditure is recognised at the time
the commitment is approved and
includes funds committed but not
paid out at year-end. The exceptions
to this policy are:
a) Investments for which a certain
level of income is contracted
and reasonably assured. Such
investments are treated as assets
and valued at the minimum level
of expected income.
b) Short term advances made on
a fully recourse basis where the
payment is secured by some
means so as to give a reasonable
expectation of repayment.
c) Investment classification includes
transferable certificates of
deposit and short term deposits.
Investments are valued at the lower
of cost or market value. Interest has
been accrued at year-end.

36 Statement of Intent 2011 – 13
Trade and other receivables
Trade and other receivables are
initially measured at fair value
and subsequently measured at
amortised cost using the effective
interest method, less any provision
for impairment.
Impairment of a receivable is
established on a case by case basis,
when there is objective evidence that
we will not be able to collect amounts
due according to the original terms
of the receivable.
Significant financial difficulties of the
debtor, probability that the debtor
will enter into bankruptcy, and
default in payments are considered
indicators that the debtor is impaired.
The carrying amount of the asset is
reversed and written off against the
unpaid invoices account in the Film
Income Account. Overdue invoices that
have been renegotiated are reclassified
as current (i.e. not past due).
Loans are initially recognised at
the present value of their expected
future cash flows, discounted at the
current market rate of return for a
similar asset/investment. They are
subsequently measured at amortised
cost using the effective interest
method. The difference between
the face value and present value of
expected future cash flows of the
loan is recognised in the statement of
comprehensive income.
Property, Plant & Equipment
Property, Plant & Equipment is shown
at cost or valuation, less accumulated
depreciation and impairment losses.
Additions
The cost of an item of property, plant
and equipment is recognised as an
asset if it is probable that future
economic benefits associated with the
item will flow to us and the cost of the
item can be measured reliably.
Disposals
Gains and losses on disposals are
determined by comparing the
proceeds with the carrying amount
of the asset. Gains and losses
on disposals are included in the
statement of comprehensive income.
Subsequent Costs
Costs incurred subsequent to initial
acquisition are capitalised only
when it is probable that future
economic benefits or service potential
associated with the item will flow to
the NZFC and the cost of the item can
be measured reliably.

New Zealand Film Commission 37
Depreciation
Depreciation is provided on a straightline
basis on all property, plant and
equipment at rates that will write
off the cost of the assets to their
estimated residual values over their
useful lives. The useful lives and
associated depreciation rates of major
classes of assets have been estimated
as follows:
Computer Equipment –
Hardware 3 years 33.33%
Office Equipment 5 years 20.00%
Furniture and Fittings 7 years 14.29%
Leasehold Alterations 9 years 11.11%
The residual value and useful life of
an asset is reviewed, and adjusted if
applicable, at each financial year-end.
Intangible Assets
Software acquisition and development
Acquired computer software licences
are capitalised on the basis of the
costs incurred to acquire and bring to
use the specific software.
Costs that are directly associated
with the development of software
for internal use by us, are recognised
as an intangible asset. Direct costs
include the software development,
employee costs and an appropriate
portion of relevant overheads.
Staff training costs are recognised
as an expense when incurred. Costs
associated with maintaining computer
software are recognised as an expense
when incurred. Costs associated
with the maintenance of our website
are recognised as an expense when
incurred.
Amortisation
The carrying value of an intangible
asset with a finite life is amortised on
a straight-line basis over its useful life.
Amortisation begins when the asset
is available for use and ceases at the
date that the asset is derecognised.
The amortisation charge for each
period is recognised in the statement
of comprehensive income.
The useful lives and associated
amortisation rates of major classes of
intangible assets have been estimated
as follows:
Computer software 3 years 33.33%
Trade and other payables
Trade and other payables are
initially measured at fair value
and subsequently measured at
amortised cost using the effective
interest method.

38 Statement of Intent 2011 – 13
Employee Entitlements
Employee benefits that we expect
to be settled within 12 months of
balance date are measured at nominal
values based on accrued entitlements
at current rates of pay. These include
salaries and wages accrued up
to balance date and annual leave
earned to, but not yet taken at
balance date. We recognise a liability
and an expense for bonuses where
contractually obliged or where there
is a past practice that has created a
constructive obligation.
Superannuation Schemes
Obligations for contributions to
Kiwisaver are accounted for as a
defined contribution superannuation
scheme and are recognised as
an expense in the statement of
comprehensive income as incurred.
Project Commitments
This amount represents financial
commitments and advances for
film development and production
committed by us, but not paid out
at year-end.
Writebacks
Writebacks represent commitments
for investments and advances treated
as expenditure in previous years and
subsequently revised or cancelled and
therefore written back to the current
year’s income.
Goods and Services Tax (GST)
The financial statements are prepared
on a GST exclusive basis, except for
receivables and payables, which are
stated GST inclusive. Where GST is
irrecoverable as an input tax, then it is
recognised as part of the related asset
or expense.
The net amount of GST recoverable
from, or payable to the Inland Revenue
Department (IRD) is included as part
of receivables or payables in the
statement of financial position.
The net GST paid to, or received from
the IRD, including the GST relating to
investing and financing activities, is
classified as an operating cash flow in
the statement of cash flows.
Commitments and contingencies are
disclosed exclusive of GST.
Income Tax
We are exempt from income tax in
accordance with Section 29 of the New
Zealand Film Commission Act 1978.
Statement of Cash Flows
Operating activities includes all
activities other than investing and
financing activities. The cash inflows
include all receipts from the sale of
goods and services and other sources
of revenue that support our activities.
Cash outflows include payments made
to employees, suppliers and taxes.
Investing activities are those activities
relating to the acquisition and disposal
of current and non-current securities
and any other non-current assets.

New Zealand Film Commission 39
Financing activities are those
activities relating to changes in equity
and our debt capital structure and
those activities relating to the cost of
servicing our equity capital.
Organisational Health and
Capability
Core services
We need to ensure we have the
capability to deliver core services,
meet increased levels of compliance
and expectations, and make
improvements to our business. Last
year we had significant staff changes
and we have taken this opportunity
to review our structure. Our staff
were divided into three areas:
Corporate, Development, Sales &
Marketing (including Short Films). Our
structure is now better tailored to our
outputs, for example, we now have
a Production & Development Team
which encompasses Short Films to
recognise that our shorts programme
is aimed at talent development. We
have employed a Communications
Advisor to better communicate to
the industry and other stakeholders
what it is we do and how we are doing
it. This role will also provide better
linkage with the wider film industry.
Our Corporate staff will continue to
assist with our production financing
and film incentive schemes. Sales and
Marketing was reviewed last year and
will continue in its current form as
marketer for New Zealand films and
sales agent (where appointed by
the producer).
Good employer principles
Our culture and work environment
reflects a genuine commitment to the
principles of being a good employer
as outlined in the Crown Entities
Act. We maintain a positive, dynamic
and safe environment to enable the
employment and retention of skilled
staff with recent industry experience.
We encourage our staff to attend
industry functions, gain industry
experience in their spare time and
we organise regular screenings of
short films and feature trailers so that
all staff are familiar with the films
we have invested in. All staff have
an opportunity to attend courses on
te reo and tikanga and are actively
encouraged to do so.
We maintain a fully capable and
effective senior management team
with a second tier of competent
and professional staff who are able
to cover the roles. Recruitment to
senior positions in the NZFC is a mix
of internal promotions and external
appointments to ensure a freshness
of approach, and meet the criteria of
recent industry experience.
Employees are treated fairly.
Different skills, talents, experiences
and perspectives are recognised
and valued, and different cultural
values and beliefs are respected. The
needs of Māori, ethnic or minority
groups, women, and persons with
disabilities, are recognised. We do not
tolerate harassment, bullying and
discrimination.

40 Statement of Intent 2011 – 13
Equal employment opportunity
Our culture and work environment
reflects a genuine commitment to
the principles of equal employment
opportunities by elimination of all
aspects of procedures, practices or
any institutional barriers that may
cause or perpetuate inequalities in
respect of employment opportunities
for any person or group of persons.
We have 22 full-time equivalents. Our
workforce is younger compared to
most with an average age of 32 years
and predominantly female (80%). We
have two staff identifying as Pacific
Island and two staff as Māori.
Recruitment
We appoint the best candidates after
a strict selection process, which
incorporates equal opportunity
principles. Staff selection is on the
basis of merit – for any position the
best available person is appointed
irrespective of gender, race, colour,
ethnic or national origins, religious
or ethical beliefs, disability, marital or
family status, age, sexual orientation
or any other irrelevant factor.
However, we are keen to ensure our
workplace reflects New Zealand’s
diversity and will take this into
account where we are able. Industry
development programmes have a
secondary benefit for us because they
provide a talent pool from which staff
can be recruited. Most recruits return
to the industry after a period with us.
We believe this porous border between
the organisation and the industry is
healthy and seek to encourage it. We
have adopted a recruitment policy
based on such cross-fertilisation.
Remuneration
Fair and appropriate and genderneutral
remuneration is an
important aspect of developing
long-term capability at the NZFC.
The remuneration framework
balances competitive pay and reward
with affordability. Remuneration
policies are focused on attracting
and retaining skilled, flexible and
knowledgeable staff.
Professional development
We provide individually tailored
professional development
opportunities for all staff based on
identified needs. We are committed
to developing and up-skilling staff
to work towards our objectives.
The effectiveness of training and
development activity is evaluated to
ensure that key objectives are met.
Succession
Our small size and our close
relationship with the industry
means that succession plans will
always depend on the available
industry talent pool (both national
and international) as well as the
experience of our own staff.

New Zealand Film Commission 41
Appendix 1:
Functions, roles and
responsibilities
We are a body corporate established
by the New Zealand Film Commission
Act 1978. We have functions and
powers under Section 17 and 19 of
the Act relating to the support and
encouragement of New Zealand film
and the New Zealand film industry.
We are required to carry out our
statutory obligations using and/
or administering funds provided
for that purpose, by Parliamentary
appropriation. We also receive
substantial annual funding through
the New Zealand Lottery Grants Board
and a small level of earned income.

42 Statement of Intent 2011 – 13
Section 17 – Functions of
the NZFC
The NZFC shall have the following
functions:
(1) To encourage and also to
participate and assist in the
making, promotion, distribution
and exhibition of films:
(2) To encourage and promote
cohesion within the New Zealand
film industry, and in particular:
a) To encourage and promote
the exchange of information
among persons engaged in the
film industry; and
b) To encourage and promote
the efficient use of available
resources within the
New Zealand film industry; and
c) To co-operate with other
interested or affected bodies
and organisations in order
to encourage and promote
employment in the New
Zealand film industry, and the
productivity of that industry:
(3) To encourage and promote
the proper maintenance of films
in archives:
(4) To encourage and promote, for
the benefit of the New Zealand
film industry, the study and
appreciation of films and of
filmmaking:
(5) To gather, collate, disseminate
and publish information that
relates to the making, promoting,
distribution, and exhibition
of films:
(6) To advise the Minister on matters
relating to or affecting the
functions of the NZFC. The NZFC
may carry out its functions within
and beyond New Zealand.
Roles and responsibilities
We have several decision making
bodies:
a) The full Board (currently seven
members) which meets on average
every two months to set policy
and budgets, monitor progress
against targets and budgets, and
consider applications for feature
film production financing. Our
Board members are appointed by
the Minister for Arts, Culture and
Heritage, usually for terms of
three years.
b) Finance & Audit Committee: a
subcommittee of the Board which
takes responsibility for financial
issues to maximise the time
available for policy and financing
decisions at full Commission
meetings.
c) SPIF Committee: a subcommittee
of the Board which takes
responsibility for considering
all provisional and final SPIF
applications. Currently three
industry personnel are members
of the Committee.
d) LBSPG Panel: this panel was
established by the NZFC to consider
LBSPG and PDV applications. NZFC
staff, one MED representative and
four industry personnel currently
sit on the panel.

New Zealand Film Commission 43
A Bend in the Road

44 Statement of Intent 2011 – 13
NZFC Board
members
NZFC Board members
to 30 June 2011
Patsy Reddy (chair), Charles Finny,
Rhiannon McKinnon, Witi Ihimaera,
Andrew Cornwell, Cameron Harland,
Christopher Hampson
Board subcommittees
Finance and Audit – Andrew Cornwell
(chair), Rhiannon McKinnon,
Patsy Reddy
SPIF Committee – One Board member,
Chief Executive, Deputy Chief Executive
(chair), Head of Business Affairs and three
industry representatives.

New Zealand Film Commission 45
NZFC operational units and staff as at 30 May 2011
Corporate
Graeme Mason
Fiona Mulder
Mladen Ivancic
Naomi Wallwork
Sarah Allerby
Erin Banks
Claire Watson
Janka Palinkas
Sophie Hathaway
Dominique Fromont
Gina Rogers
Production and development
Kath Akuhata-Brown
Katherine Fry
Chris Payne
Bonnie Slater
Faith Dennis
Marketing and sales
James Thompson
Robin Laing
Jasmin McSweeney
Beth Brash
Lisa Chatfield
Lizzie Dunn
Lauren Granshaw
Consultant
Henrietta Hall
Chief Executive
PA to Chief Executive
Deputy Chief Executive
Head of Business Affairs
Business Affairs Executive
Business Affairs Assistant
Receptionist
Accountant
Accounts Assistant
Film Income Manager (part-time)
Senior Communications Advisor (part-time)
Script Executive
Script Executive
Script Executive
Professional Development Executive
Development Co-ordinator
Head of Sales and Marketing
Film Materials Manager
Marketing Executive
Sales and Marketing Assistant
Short Film Manager
Short Film Assistant
Fresh Shorts Assistant
ICT Consultant

46 Statement of Intent 2011 – 13
Glossary
We interact with a number of
organisations and use a number
of terms throughout this Statement
of Intent that readers may not be
familiar with and have defined
these adjacent to assist with
understanding of this document.

New Zealand Film Commission 47
NZFC
MCH
MED
The Film Fund
LBSPG
PDV Grant
SPIF
New Zealand Film Commission
Ministry for Culture & Heritage
Ministry of Economic Development
The New Zealand Film Production Fund Trust, an independent charitable
trust with a limited active, life span (NZFC appoints 2 of its 5 trustees)
Large Budget Screen Production Grant (funding via MED)
Post-production, Digital & Visual Effects Grant (part of the LBSPG)
Screen Production Incentive Fund (funding via MCH)
Escalator A low budget feature film initiative started by the NZFC in 2010
Fresh Shorts A low budget short film initiative started by the NZFC in 2010
LGB
Premiere Shorts
Review
Film NZ
NZ On Air
Te Mangai Paho
Nga Aho Whakaari
Te Paepae Ataata
Actors’ Equity
SPADA
SDG
NZFVTG
NZWG
WIFT
Script to Screen
Lottery Grants Board, a body set up by Parliament to distribute the
proceeds of state lotteries
Higher budget short film initiative
The Review of the New Zealand Film Commission conducted by
Sir Peter Jackson and David Court and published in July 2010
An independent industry-led organisation facilitating access to
New Zealand as a screen production destination
Broadcasting Commission – TV funding body
Māori Broadcasting Commission – TV funding body
Organisation representing Māori interests in the screen industry
Māori film development organisation
Industrial and professional organisation representing
New Zealand performers
Screen Production and Development Association
Screen Directors Guild of New Zealand
New Zealand Film & Video Technicians’ Guild
New Zealand Writers Guild
Women in Film & Television
Charitable trust developing the craft and culture of storytelling
for the screen in New Zealand

48 Statement of Intent 2011 – 13
Notes

New Zealand Film Commission 49
New Zealand Film
Commission
PO Box 11-546
Wellington, 6142
Tel 04 382 7680
www.nzfilm.co.nz

www.nzfilm.co.nz