Sgrîn lacks the 'savvy' to land all its film projects, the report says
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The media body set up to promote and develop the film industry in Wales has been attacked in a highly critical report leaked to the BBC.
The Arts Council of Wales report claims the media agency, Sgrîn, lacks the business "savvy" to see many of its big screen projects completed.
The assembly government is reviewing the work of Sgrîn, which has a £2m annual budget.
Sgrîn has declined to comment on the leaked report.
The study, leaked to BBC Wales' Maniffesto programme, questions whether the Cardiff-based agency delivers value for money.
It says that, despite successes such as the BAFTA-winning film, A Way of Life, there needs to be a shake-up in the way the agency is run.
The report notes what it calls a lack of industry "savvy". It says Sgrîn struggles to sell projects to partners and has an "historic shortage of completed projects".
It attacks the agency's marketing strategy, questioning the value of attending international events, like the Cannes film festival.
The report concludes that the current management structure is to blame for many of the problems.
Film studios
Sgrîn has declined to comment on the Arts Council of Wales report.
Filmmaking in Wales has enjoyed mixed fortunes in recent months.
A couple of south Wales locations beat off competition from Iceland and Morocco for background parts in the new movie The Hitchhiker's Guide to the Galaxy.
Trefil Quarry in Blaenau Gwent was transformed into the planet Vogsphere, and the Gower Peninsula also made a cameo appearance in the sci-fi fantasy.
However, building work on £330m film studio complex, dubbed Valleywood, has been delayed again while developers wait for a grant to come through.
The complex, with five silent stages, on outdoor street set and film production facilities, is planned at Llanilid, near Bridgend, south Wales.