“In five minutes, he never once explained how these numbers are being spent,” Nationalist Party MP Darren Carabott said during a conference on Tuesday, referring to a video published by Film Commissioner Johann Grech in which he defended the Film Commission’s spending. Carabott was accompanied by MP Julie Zahra.

Carabott said that in 2021, 2022, and 2023, the Film Commission had been allocated €8.5 million, €9 million, and €14 million in incentives respectively. “How has, in five years, the commission spent €137 million in cash rebates only to foreign companies?”

The PN MP said that there have been a series of indications which have occurred over the years, including a document published by the Auditor General in 2021, in which he said that the Auditor General had referred to the use of public funds as ‘extravagant’. Carabott said that as a result, the PN decided to request for the Auditor General to conduct an investigation into how this spending by the film commission is being carried out.

Carabott explained that in collaboration with members of the Public Accounts Committee (PAC), which he is the current Chairperson of, five requests have been made to the Auditor General:

“For the Auditor General to establish if the film commission used due diligence and governance in the spending of these €137 million in funds towards foreign companies in the film sector

If the ministry, cabinet, or other government entity diligently scrutinised the film commission’s spending, and how this spending of funds was being approved as well as by who

For the Auditor General to make a distinction between how the allocation is being made for Maltese producers and companies compared to the €137 million which has been given to foreign companies. Why is there such a discrepancy, and is it holding back progress in Maltese culture and talent?

To see and establish if there was scrutiny or rigorous procedure in the process of approval and spending these millions in funds. Is it benefitting the country, and what documents are being requested?

What was the process of the funds being spent; was it done properly?”

He said that they are currently waiting for the Auditor General to reply with the terms of reference.

“From a political point of view, let us make an appeal for responsible spending of our public funds,” He continued that when you are in Government, you have been entrusted to lead the country and show diligence when spending public funds. He added that there needs to be procedures and diligence which ensures that this type of spending benefits the Maltese economy.

“Others have called this an attack. The PN says no, this is not an attack. This is a request for a proper investigation to reveal the truth … The PN is doing its job to ensure that there is proper scrutiny in the expenditure of public funds,” Carabott concluded.

Fellow MP Julie Zahra explained that between 2018 and 2023, the Maltese Film Commission spent €143 million, with €137 million being spent on foreign companies coming to Malta to produce their films. “We are obligated to request for the Auditor General to conduct an investigation and see where this spending is going exactly.”

She said that the spending of millions on the film awards, film festival, and the €37,000 spent on three statues of dinosaurs along with the money spent on a presenter who is not Maltese makes her doubt if these funds are being used to incentivise local artists. She added that compared to other European countries, Malta places first in terms of money spent on cash rebates.

“We also ask why these millions, which are coming from the taxes that we pay, are not improving the economy.” She questioned what real benefits these films produced by companies outside of Europe are bringing to Malta. “I hope it is not another scheme for those within the Labour Party to benefit.”

“Our country is already €9 billion in debt, and we are seeing these millions going out like pastizzi,” she commented.

Zahra said that the PN is not attacking the cash rebate system, and referred to it as a good scheme for producers in Malta. However, she said that one needs to seriously look into where this money is being spent and if the country is truly benefiting. “To ask this question is not an attack on our country or on our workers,” she said.

“Johann Grech is out to scare people. He conducted the attack himself when he opened up the cash rebate to countries outside of Europe rather than our local workers.”

She said that she wanted to ease the minds of producers and crews in Malta. “These foreign companies, who come from outside of Europe, are coming here and bringing their crews with them because it benefits them, and it comes at less expense for them because of the cash rebates.” She urged Johann Grech to explain how this is helping Maltese and Gozitan workers if these companies are bringing their crews with them.

Zahra said that Malta is practically paying and subsidising the pay of the foreign film crews as well as paying for their food throughout the day. “We are providing these crews with spending money, and if you check, you will realise that this spending money used to be €70 per day and has now gone up to €300 per day.”

She said: “We are saying this because it is in our interest to seriously see how we are going to protect local workers who are trying to keep up and compete with foreign producers.” Zahra added that instead of spending millions on big foreign productions, the focus should be put on the co-production fund to allow for local productions to compete with foreign production houses. “This would ensure that the work and money being produced would benefit our country … There needs to be a cap on the cash rebate for each production so we can avoid situations where one film is getting €47 million in rebates.”

The Nationalist Party either does not understand or is lying about cash rebate scheme, Minister of Tourism says

The Opposition does not understand the film industry or the cash rebate incentive, the Minister for Tourism Clayton Bartolo said in a statement responding to a Nationalist Party.

Minister Bartolo said that the opposition's continued attacks on the industry show that "it only cares about losing work for Maltese and Gozitans in the film industry, destroys investment, and buries the successes which have been achieved in the industry". He said that the PN showed its lack of understanding in how the cash rebate scheme functions when it alleged that cash rebates are issued on money which productions do not spend in Malta. The Minister said that this is an "absurd fabrication" and that the PN is either lying or does not understand the scheme.

Every film which benefits from a cash rebate is subject to a rigorous audit by an independent company not affiliated with the Government, Bartolo said, he continued that cash rebates are only approved once the production passes the scrutiny and is approved in compliance with European rules. The Minister said that the scheme's serious scrutiny strengthens Malta's reputation "and continues to ensure the work and the creation of works linked to the film industry in our country".

Bartolo defended the cash rebate, saying that the scheme ensures that Malta is competitive in the global film market. He said that the PN's insistence of a cap on the cash rebate scheme would mean the limiting of work in Malta and the potential risk that the industry may face shock as a result. "Today there are more than 1,300 people working in films, and this industry benefits from back-to-back productions which are creating many jobs for Maltese and Gozitan workers." He said that the cash rebates are responsible for ensuring that the "great majority" of workers on the productions are Maltese.

The Minister said that "faced with the dangerous behaviour of an irresponsible opposition", the Government remains committed to continuing investing in the film industry, incentivising work, and creating a sustainable industry for all to enjoy.