State intervention in the functioning of the culture industries is limited to regulating access of different producers to the marketplace, providing direct subsidies to selected activities and introducing tax incentives and allowances which could facilitate the development of different areas of the industry.
For many years the major instrument used to support the book market was the 0% VAT rate for publishing and printing, domestic sale of books, newspapers and periodicals bearing ISSN and ISBN numbers, and publications in Braille. Yet, by the decision of ECOFIN from December 2007, VAT for these goods was raised to 5% starting from 2011. Items without ISSN and ISBN numbers have a 7% VAT rate, as well as books, magazines and printed goods imported from abroad. So far, there exist no data on the impact of the VAT raise to the sector.
Some of the state’s policies and programmes towards the specific sectors of culture industries (mostly publishing and cinematography) are described below.
The Book Institute (see http://www.bookinstitute.pl/en,ik,site,42,87.php for viewing the profile) finances translations of Polish literature into foreign languages in the framework of the Translation Programme © POLAND.
Unfortunately, there is no Act on Public Lending Rights or other system of compensation for authors for making books accessible in libraries.
In the field of cinema, the new Cinematography Act (2005) was a very important step forward. Under this Act, the Polish Film Institute, which acts de facto as a non-departmental public body, was created.
The Polish Film Institute is the newest film institute in Europe. It is responsible directly to the Minister of Culture and National Heritage. The Institute has a Board appointed by the minister which comprises eleven people chosen from the film community. The Institute’s principal task is to provide the Polish film industry with a modern mechanism of support – from the development of film projects, through production, to promotion, distribution and circulation of Polish and European films. The Institute supports films from concept to screening, with particular emphasis on international co-productions. The Institute’s tasks, specified in the Act on Cinematography, are among others: to create conditions for the development of Polish film production and international co-production; to inspire and support the development of all types of Polish film creativity, in particular artistic films, including the development of film projects and the production and distribution of such films; to support film debuts and the artistic development of young filmmakers; to subsidise enterprises in developing film projects, film production, distribution and dissemination of films, and in providing assistance and expert services to public administration and to support the upkeep of film archives. At least 60% of the budget of the Institute is allocated for film production.
The Polish Film Institute manages its income according to an annual financial plan. The co-financing granted by the Institute for film production cannot exceed 50% of the film’s cost and, respectively, the amount of 4 000 000 PLN in the case of feature films, 500 000 PLN in the case of documentaries and animated films, and 2 000 000 PLN for documentaries addressed primarily to a cinema audience. At the same time, it has been decided that grants for difficult films can cover up to 90% of their budget. The criteria upon which the co-financing is granted are: artistic merit, cultural significance, reference to tradition and European diversity and economic conditions (for more information see: http://www.pisf.pl).
The Minister of Culture is involved in organising the project Multimedia City (in Nowy Sącz – Małopolskie Voivodeship), which was included on the list of key projects of the Operational Programme “Innovative Economy”. The Multimedia City project will cost over 100 Million PLN (26.5 million EUR) from which 80% can be financed in the framework of the European Regional Development Fund. The project is to be realised in the years 2010-2012. The official opening of one of the main components of the project, the technology park “Brainville”, is due in the fourth quarter of 2012.
According to the regulation of the Minister of Culture and National Heritage, producers or publishers of literary, musical, artistic, photographic and cartographic works, which by law are not required to pay authors’ rights’ fees, are required to donate 5% from sales to the Fund for the Promotion of Creative Activity. The Fund was originally created in 1994 under the Act on Copyrights and Related Rights, and the regulation mentioned above is in force since 2003.
Since 1950, the Institute of Industrial Design promotes effective use of design among Polish businesses and the public sector. The Institute also organises training for companies from different sectors, institutions and local governments. It promotes innovation and good design practices through organising exhibitions and competitions such as “Dobry Wzór” (Good Design).
The subject of cultural industries and the creative sector has gained popularity according to the European Year of Innovation and Creativity 2009. Over 250 projects have received patronage of the EYIC and over 100 have fought for the title of the Leader of European Year of Innovation and Creativity, from which the best 10 projects gain the title (for more information see the website http://www.innowacje2009.pl).
Moreover, on the commission of the Ministry of Economy, a consulting group ECORYS has prepared a report entitled “The Analysis of needs and development of the creative industries” (Analiza potrzeb i rozwoju przemysłów kreatywnych) – the first such comprehensive study in Poland in years, containing a set of recommendations for the governmental administration aimed at facilitating development in the sector. In 2010 the Institute for Structural Research (Instytut Badań Strukturalnych – IBS) prepared a report on the economic value of Polish creative industries – for more information see chapter 7.3. Nonetheless, there is still a lack of comparative quantitive data on the creative sector, mostly due to the approach of the Central Statistical Office, which in its yearly reports takes into consideration only the “chosen” culture industries such as cinematography or publishing.