HBO Executive Lobbied Changes To Icelandic Legislation

An executive at American television network HBO influenced legislation passed by Alþingi, RÚV reports in an extensive coverage based on sources acquired from the Ministry of Culture. According to RÚV, the executive was sent a draft bill composed by Minister of Culture and Business Affairs Lilja Alfreðsdóttir that promised the company higher rebates for the network’s production True Detective, which was filmed in Iceland from October 2022 to April 2023

Through the government compensation scheme Film in Iceland, film and television productions in Iceland can apply for a 35% refund on production costs. The proportion was increased from 25% after Minister Lilja’s ongoing communication with HBO in 2022, when the company started work on the show’s fourth season.

HBO’s costs in Iceland surrounding the production amounted to about 11 billion ISK. Through the compensation scheme, the company was refunded approximately 4 billion ISK (ca. US$ 79 million).

The system has been criticised by the Association of Icelandic Filmmakers, which argues that reimbursements were increased at the expense of the Icelandic Film Fund.

Iceland a key factor

Among the documents RÚV cites is a declaration of intention signed by Lilja in March 2022 and handed to True North CEO Leifur Dagfinnsson after her meeting with HBO executives. The declaration states Lilja and the government’s intent to increase the reimbursement ratio for large-scale film projects from 25% to 35%.

Subsequently, a task force was assigned the work of delivering legislative suggestions to a finalised bill which Lilja aimed to pass in January 2023.

Six days later, Lilja delivered a memo to the government, confirming her plans and informing she met with True North and HBO’s representatives.

Two days after the government meeting, Lilja received a letter from Senior Vice President of HBO Jay Roewe. In it, he pressed Lilja to promise the company a 35% refund, even if the bill won’t pass. In the letter, he claims that Lilja’s commitment is a deciding factor for choosing Iceland as a film location.

A change of heart

In late April 2022, Lilja replied, stating she cannot make that promise and emphasises that a bill is being drafted which could potentially have a retroactive clause, giving HBO the right to apply. A few days later, Lilja met with Jay again and, on May 2, she sent him another letter.

In it, Lilja backtracks her initial hesitation, now saying that they do not have to wait for the task force’s suggestions. The bill could be introduced before Alþingi much sooner than originally planned and it could take immediate effect.

A few days later, Lilja delivered another memo to the government, outlining these changes. Ultimately, the legislation was formally introduced on May 20 and passed in June with 54 votes.

According to daily newspaper Morgunblaðið, True Detective is the only project which utilised the legislation. However, RÚV claims that Baltasar Kormákur’s upcoming series King and Conqueror will also apply for the beefed up rebate.