Cablegate: Poland: Debate On Film Act Heating Up

This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS WARSAW 001371

SIPDIS

SENSITIVE BUT UNCLASSIFIED

E.O. 12958: N/A
TAGS: ETRD EFIN KIPR PL
SUBJECT: Poland: Debate on Film Act Heating Up

REF: February 3 Birdsey-Erath/Sessums/Errion Email

Summary
-------

1. (SBU) Legislation being drafted by the Polish
Parliament (Sejm) to impose a tax on foreign broadcasts into
Poland is being hotly debated in the government. Sejm
deputies want to use the collected revenue to subsidize the
domestic film industry. Although the Ministry of Culture
sees no problem with the subsidy measure, the Ministry of
Finance and the Office of Competition and Consumer
Protection (UOKiK) have misgivings over the efficacy and
legality of the measure. A major question is whether the
Sejm can pass the law before elections scheduled for June.
An English translation of the law is not yet available;
however, below is a translation of Article 19, which
contains the substance of Post's and industry's concerns.
End Summary.

Split in Government and Parliament on Bill
------------------------------------------

2. (SBU) Econoff spoke with Pawel Ziolek, a consultant for
major U.S. broadcasters in Poland, regarding the status of
the Film Act. Ziolek said he was not surprised that, in a
meeting between the Ambassador and the Minister of Culture
last month, the Polish position on the Film Act was firm: no
WTO/Trips incompatibility, and no real "injury" to foreign
broadcasters. In earlier discussions with Ministry of
Culture staff, one Polish official raised and then dismissed
the issue of copyright infringement, although we had not
raised copyright as a particular problem (NOTE: If there are
copyright or other IPR-related concerns to state aids for
broadcasters that Post is missing, request Washington
agencies to let us know. End Note).

3. (SBU) Ziolek said that the Finance Ministry and UOKiK
are exerting pressure on the Ministry of Culture to abandon
support for the legislation. Finance does not believe the
measure will be cost-effective; UOKiK sees potential
competition policy inconsistencies. Within the Sejm there
is also debate, with the Citizens' Platform (PO) and Law and
Justice (PiS) parties lined up against the bill. The
Democratic Left Alliance (SLD), Polish Peasant Party (PSL)
and League of Polish Familes (LPR) support the measure.
Given the political dynamics in Poland, it is not clear that
the measure can be made into law before elections in June.
Nonetheless, industry representatives remain concerned that
a bill with onerous tax levies may be pushed through soon.

Article 19
----------

4. (U) Entities running movie theatres shall transfer to
the Institute a constant two percent write-off from the
revenue obtained from showing films and advertisements in
their theatres--this is to be performed before the revenue
is shared with the distributing entity.

5. (U) Distributing entities shall transfer to the
Institute a constant three percent write-off from the
revenue obtained from the sales and lease of carriers with
recorded films, as well as from agreements authorizing other
entities to such sales and lease.

6. (U) Television broadcasters shall transfer to the
Institute a constant two percent write-off from the revenue
obtained from presenting TV-shopping advertisements and
sponsored programmes.

7. (U) Entities collecting payments for access, on the
territory of the Republic of Poland, to programmes
originating from broadcasters from abroad but broadcast in
the Polish language or translated into Polish shall
transfer to the Institute a constant two percent write-off
from the revenue obtained from the above payments.

8. (U) Cable TV operators shall transfer to the Institute
a constant two percent write-off from the revenue obtained
from the rendering of the re-emission service.

Munter

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2005WARSAW01371 - Classification: UNCLASSIFIED

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