RAI cutbacks to hit Italo film biz

ROME -- Italy's film community is up in arms over prospected cutbacks in local cinema coin at pubcaster RAI, just as the country's new government is being installed to implement a draconian austerity plan. RAI general manager Lorenza Lei has warned of probable budget cuts at its RAI Cinema, prompting Italo motion picture association ANICA to cry out that they would cause a "collapse of our film industry system," at a time when local movies are thriving, ANICA said in a statement. On Wednesday respected economist Mario Monti replaced Silvio Berlusconi as the country's prime minister, with a mandate to act radically and rapidly to shore up Italy's spiralling national debt. RAI, which has a workforce of more than 11,000, and has an estimated Euros 200 million ($270 million) of debt, is trying to push through a plan comprising a reported 1,000 pink slips, extensive pay cuts and across-the-board budget slashes. RAI Cinema pumps more than Euros 45 million ($60 million) annually into the local film industry. Luckily, however, direct state film funding and Italy's generous tax incentives will not be affected by Monti's upcoming austerity measures. Italy's so-called FUS fund for the arts and also film production tax incentives are drawn from an automobile fuel tax, which is considered to be safeguarded. Monti on Wednesday appointed Lorenzo Ornaghi, a Catholic academic, as the country's new Culture Czar, replacing Giancarlo Galan who had been a staunch supporter of the film industry sector. Among top priorities on Ornaghi's agenda is appointing a new Venice Biennale topper who, in turn, will decide whether Marco Mueller will stay on as director of the Venice Film Festival. Contact Nick Vivarelli at nvivarelli@gmail.com