Cape Town — Cape Town Councillor Simon Grindrod has proposed an increase in funding for the Cape Film Commission (CFC) from just under R500 000 to R2.5 million for the 2007/2008 financial year.

"Rand for rand, investment in the film industry in Cape Town represents exceptional value for money in terms of job creation, enhanced global profile and its associated benefits," he said.

Mr Grindrod who is also a Mayoral Committee Member for Economic, Social Development and Tourism added that international studies show that film can play a singular role in unlocking the creative potential of people living in poor areas.

"In Cape Town, where years of inequity have inhibited the development of natural talent, this increased funding becomes all the more imperative."

Laurence Mitchell, Commissioner of the CFC, welcomed the city's recognition and additional investment into the industry.

In terms of the CFC's strategy of growth, integration and transformation, this will go a long way in the promoting the city as a global film industry player and a key creative economic capital in the world, he said.

The CFC, Mr Mitchell said was also implementing a strategy to satisfy the increasing demand for small and large productions leading up to, during and beyond 2010 which will require an increase capacity within the industry.

A study by Barry Standish, economist at the UCT and Antony Boting, a consultant at Strategic Economic Solutions found that the Western Cape film industry contributed R3.5 billion to South Africa's gross domestic product in the 2006 financial year.

The study, commissioned by the CFC, and funded by the city found that the total turnover of the Western Cape's film industry for the previous year was R2.65 billion of which about 77 percent (R2.03 billion) occurred in Cape Town.

It is estimated that the film industry created more than 6000 full time and 2500 indirect jobs in the Western Cape.

According to the research, between 7.9 percent and 8.2 percent direct and indirect jobs are created in South Africa for every R1 million spent on film production.

Of these jobs, between 2.6 percent and 3.8 percent are in the Western Cape and between 2.0 percent and 2.9 percent are in Cape Town.