CINEMA LOSSES

Rotorua Morning Post, Volume 2, Issue 241, 1 June 1932, Page 3

CINEMA LOSSES

ENTERTAINMENT TAX COSTS LONDON EXHIBITORS THOUSANDS. Striking figures of the losses of the ci'nemas from the combined effects of trade depression and higher rates o£ entertainment tax were quoted at a meeting of cinematograph exhibitors in London recently. It was stated that 'during a period of twelve weeks, during which the higher rates of tax were in operation, there was a decrease in admissions to cinemas of approximately 36,000,000. This was equivalent to almost 12 per cent. Takings fell by 15 per cent, During those twelve weeks the increased amount that the Chancellor received compared with the same period in the previous year was no less than 36.8 per cent. This was equivalent to £2,000,000 per annum. These figures were based on the answers to a questionnaire received from 1204 of the 4000 cinemas in the country. The returns further disclosed that attendances at cinemas in one year range from oue thousand three hundred millions to one thousand four hundred millions. The meeting, held at the Faculty of Arts Theatre, Piccadilly, was called by the Cinematograph Exhibitors' Association of Great Britain and Ireland, as the beginning- of a national compaign to secure a reduction of the tax. Mr. Thomas Ormiston, M.P., moved a resolution urging the Chancellor' of the Exchequer to remove the entertainment tax from all prices up to and including 6d. The resolution was carried. "We never ■ ahticipated," he said, "that the extra penny on 6d seat would have such a terrible effect upon our business. But, coupled with the economy cuts, particularly in regard to unemployment relief, which diminished the spending power of our patrons, the effect of that extra penny had been to kill the cheaper form of entertainment, and particularly the cheaper form of cinema entertainments." Mr. Ormiston added that there had been an enormous tranference from the higher priced seats to the lower priced ones. The difference between profits of the previous year and those of the current year would he at the rate of £3,250,000.