Non-Payment of Employees or Freelancers who Work with Production Companies that Receive Government Grants

Ms Janice Koh asked the Minister for Information, Communications and the Arts (a) what is the Ministry's position on production companies that have received MDA funding for film or television projects but who do not pay outstanding fees owed to employees or freelancers who have worked on those projects; (b) whether MDA will consider implementing penalty measures to discourage such practices, including the withholding of new project funding or publishing a blacklist of such production companies; and (c) what is the total number of companies reported for such practices of non-payment since 2007.

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Assoc Prof Dr Yaacob Ibrahim: MICA and MDA recognise that freelancers play an important part in developing and growing the local media industry. We have noted from past dialogues with the Association of Independent Producers or "AIPRO" and with MediaCorp that their relationships with freelancers are generally good and payments have generally been timely. Cases of late payments and contract disputes between production companies and freelancers have arisen from time to time but are not systemic. Since 2007, there have only been two cases reported to MDA. Nonetheless, such cases do highlight certain gaps in the industry that should be addressed, and MDA, together with industry partners, has sought to put in place a series of interventions.

To begin with, MDA assesses a company's track record and financial health to look out for potential risks when evaluating the company's application for funding for production projects. If MDA has knowledge of misconduct by companies, including a practice of late payment to freelancers and their employees, MDA can withhold new project funding. In past cases of late payment reported to MDA, MDA had sought to facilitate resolution among the production companies and freelancers involved and would be prepared to do so for future cases. The co-operation of freelancers to report such cases early is sought so that necessary assistance can be rendered to quickly address the issue.

Further, MDA has been working with AIPRO to establish a code of industry best practices to guide relations between production companies and freelancers. The Code will address terms of payment and cover other areas to ensure freelancers' welfare, including recommended contractual terms, insurance coverage and dispute mediation. This is in addition to existing channels of dispute resolution for freelancers, such as the Small Claims Tribunal.

In its preparation of the Code, AIPRO has consulted with MediaCorp, the freelancer community, other industry and public organisations, such as NTUC, the Institute of Employment & Employability or "e2i" (e2i), as well as Six Degrees – an enterprise which seeks to provide a common platform for the arts and media freelance community.

The Code is targeted for completion by mid-2012 and will be applicable to AIPRO members. To encourage its wider adoption beyond AIPRO, MDA is prepared to explore with MediaCorp the possibility of awarding projects to independent production companies that observe the recommended best practices.

I would like to assure this House that MDA will continue to monitor the developments as part of its broader goals of growing a vibrant and attractive sector for creative talents.