The flight of film companies to low cost locations in countries such as neighbouring Canada has caused as many as 20,000 jobs disappear in Tinseltown.

"Folks may look at this and say, 'That's just a Hollywood issue.' But it's not," said Illinois Republican Congressman Jerry Weller, who plans to lobby Congress in a bid to halt the exodus. "It affects working people all over."

In 1990, overseas productions made up just 14% of all US films and TV shows. Last year almost one third of productions had been filmed abroad.

Hooray for... Toronto?

Studies commissioned by the Directors Guild of America and the Screen Actors Guild suggest this shift has a very real economic impact.

Technicians, extras and caterers are among the hardest hit, with the outlook for these and other movie-related workers expected to remain bleak.

Lost wages, reduced tax revenues and the drop in spending resulting from the "runaway" productions could amount to a loss of $10bn for the United States.

Southern California, the spiritual home of the American movie, is not the only region to be hit by the shift towards foreign production.

Texas, Illinois and North Carolina are all feeling the pinch as movie makers seek to cut their overheads.

These states were once favoured by the very low-budget projects which are now heading to more profitable locations north of the border.

Toronto competes with Tinseltown

Canada has become the location of choice for the "runaway" productions. Tax breaks and a favourable exchange rate has made filming in the country 25% cheaper than in Hollywood.

The improved quality of Canadian film crews and studios has also encouraged the northward flight of US movies.

"Twenty years ago nobody even thought of going to Canada. Now, it's their first thought," said Ron Ver Kuilen of the Illinois Film Office.

Chicago blue over loss of the Brothers

The authorities in cities such as Toronto and Vancover have been keen to capitalise on America's loss.

The Toronto film office asked their counterparts in Illinois how to make their city look more like Chicago for the filming of Blues Brothers 2000.

The original Blues Brothers put Chicago on the moviemaking map, but the sequel shot only a few location sequences in the Windy City before setting up in Canada.

Jerry Weller is pleading with the government to introduce incentives to encourage film-makers to stay in the US, but there is no consensus on how to tackle the migration.

Along with tax incentives, Weller is suggesting that Canada be forced to modify a law which demands that 60% of all TV shows screened in the country must be of domestic origin.

By filming north of the border US TV companies ensure a place for themselves in the sizeable local market.