The Ripple Effects of Late Payments from Public Entities to the Creative Sectors
PRESS RELEASE
12th November 2024
The Malta Entertainment Industry and Arts Association (MEIA) is raising alarm over the significant ripple effects of late payments in funding and services to creative professionals from public entities, particularly the Malta Film Commission (MFC). Recent reports indicate that local film producers are facing unprecedented delays in receiving promised funding, and cash rebates with some waiting months to pay their crews and service providers. Such delays can cripple production, forcing filmmakers to halt work or scramble to cover payroll. The MFC’s cash rebate scheme, which offers up to 40% back on qualifying expenditures, is intended to attract international productions and stimulate the local economy. However, when payments are delayed, this objective is undermined, jeopardizing the financial viability of local projects.
While MEIA has been working closely with the Ministry of Tourism to address these issues, resulting in most of our members finally receiving their payments for pre due funding, some remain pending and issues keep being raised. We have received complaints that emails are also being ignored. Industry insiders express concerns that these payment issues reflect deeper instability, raising critical questions about the commissions operational efficiency and financial management, as well as yet again lack of respect towards creative professionals. The perception that the MFC struggles to honor its commitments continues to deter public trust and ultimately harm the incentives themselves. The pressing question remains: What steps are being taken to ensure accountability and transparency in this ongoing issue?
“While we appreciate the Ministry’s efforts in facilitating late payments to our members over the past month, we cannot accept that it takes such pressure for people to receive their due compensation. We have allowed sufficient time for this issue to be fully resolved, yet it persists.”
“ We must demand greater accountability to ensure our artists and professionals receive the support they deserve, free from systemic inefficiencies.”
Complaints regarding late payments extend beyond the MFC; many members have expressed frustration with other public entities as well. Delays in payment for services rendered and logistical support have also become increasingly common, with some waiting over four months for compensation. These delays significantly impact timelines and budgets, forcing professionals to absorb additional costs and creates stress on financial stability. The ramifications of late payments threaten not only individual projects but also the overall health of the creative sector. Such delays create an atmosphere of uncertainty that stifles productivity and leads to compromised projects or service quality.
Moreover, there have been instances where contracts were issued only after work had commenced or even completed. This practice raises ethical concerns and complicates financial planning for creatives who must operate under uncertain contractual obligations. When contracts are finalised post-factum, it creates an environment where professionals cannot confidently forecast their income or secure necessary resources for upcoming projects.
As MEIA advocates for reform, it is clear that establishing clear payment timelines, enhancing communication with industry professionals, and implementing robust accountability measures are essential steps toward restoring confidence in public institutions. When funding mechanisms lack transparency and accountability, they erode trust between creative professionals and governmental bodies.
In conclusion, despite the recent progress that has been made in addressing payment delays for members after sustained pressure on the Ministry of Tourism and Malta Film commission, the current state of late payments from both MFC and other public entities continues, these inefficiencies not only disrupt project timelines but also place undue pressure on creative professionals. It is imperative that we confront these issues head-on across all public entities involved directly or indirectly with the creative sectors.
We urge any members or non-member facing similar issues to contact us on admin@meia.org.mt