RUNAWAY WORK HURTS VALLEY FEELS STING AS FILMING FLEES.

Byline: Evan Pondel Staff Writer

As Hollywood braces itself, battling the loss of jobs to Canada, Bruce Davis, executive director at the Academy of Motion Picture Arts and Sciences, doesn't foresee a quick fix to curb runaway production.

``It's extremely troublesome,'' he said at the Valley Industry and Commerce Association's annual meeting Tuesday. ``When you look at a budget figure and you can make a film for less money somewhere else, you look at that very hard.''

But the savings associated with producing a film in Canada has a greater impact on the entertainment industry's foundation. And as production companies continue to cross borders to save money, the industry could face further culling.

``The problem is you begin to lose that infrastructure ... and I don't hear people saying that they see this situation resting itself,'' Davis said.

The San Fernando Valley's job market, heavily populated with studios, may continue to feel a squeeze from runaway production. Nearly 44 percent of all industry-related jobs in California are in the Valley and nearly 60 percent of industry-related jobs in Los Angeles County are in the Valley.

``It's not only the studios, though; there's a lot of other support based here (in the Valley),'' Davis said.

Production is so vital to the local economy that Hollywood leaders are calling for a federal investigation of Canadian subsidies for television and film business.

Despite possible scrutiny, though, Davis said the industry isn't completely reeling from production companies that have skipped town.

``Even in hard times, entertainment seems to do well and hasn't been hurt quite as much as other industries,'' he said.

For Fred Gaines, who was named chairman of VICA on Tuesday, the entertainment industry will be in the periphery of his focus over the next two years. And as the entertainment industry is integral to the Valley's commerce, Gaines said there are several other areas that deserve ample attention.

Gaines' top priority: eliminating the city business tax.

``It would help us be competitive with surrounding cities that don't have this tax,'' said the 42-year-old attorney, whose law firm is based in Woodland Hills.

Repealing the city business tax is not an easy matter, but Gaines said he hopes to make serious progress by the end of next year.

Transportation is another issue that peaks Gaines' interest. Alleviating the traffic that clogs the interchange where the 405 and 101 freeways meet and building more busways will help streamline Valley business, according to Gaines.

``And I also want to keep that pressure on the state to improve the transportation,'' he said.

Though the Valley has skated by recession, an economic stimulus package that bolsters the region's resilience will also be a part of Gaines' modus operandi.

``The Valley is the center of many different sectors ... and I want to make sure the light continues to go on,'' he said.