Filmmakers have called on the government to lend them money directly to help them make movies. They say it is too difficult to get loans through the Film Guarantee Fund and banks were asking for collateral even though the loans were guaranteed by the government. 'We propose the government offer us loans directly,' Licko Chan, administration manager of the Federation of Hong Kong Filmmakers, said yesterday. 'Some industry players say banks ask them to use property as collateral when applying for the funds,' Ms Chan told a meeting of the Legislative Council's information technology and broadcasting panel. The fund was set up in 2003 when the government drew HK$50 million from the Film Development Fund to allow film productions to obtain bank loans with the government acting as a guarantor. Movie Producers and Distributors Association of Hong Kong executive secretary Tony Shu Tat-ming said that even if the government had approved the loan applications, banks had stringent requirements and might not approve them. And even if they did offer a loan, 'banks will come up with many terms before they are willing to lend the money', Mr Shu said. Undersecretary for Commerce and Economic Development Greg So Kam-leung said the government would consider suggestions raised by the movie industry. He said the government was undertaking a year-long review of the Film Development Fund, which received a HK$300 million injection in July 2007 but has handed out just HK$30 million. The fund provides financial support for the production of small to medium films with a total budget of no more than HK$12 million. At the meeting, movie industry representatives urged the government to raise the ceiling to HK$15 million and the cap on the government's contribution from the current 30 per cent to 50 per cent of the cost.