HALIFAX -- The group that represents Nova Scotia's film industry says it has given up trying to persuade the province to reverse its decision to scrap a key film tax credit.

Marc Almon, chairman of Screen Nova Scotia, emerged from an emergency meeting Monday with Business Minister Mark Furey to say the industry accepts that a new, $10-million film incentive fund will remain in place even though the industry is shrinking now that the $24-million tax credit is gone.

Last week, Screen Nova Scotia demanded an emergency meeting with Premier Stephen McNeil after two production services companies announced they would be closing their operations in the province.

McNeil rejected the request before he headed to China on Saturday for a trade mission, saying the incentive fund would remain in place and Furey would be meeting with Screen Nova Scotia.

After Monday's meeting, Almon said the talks were productive, but declined to say what potential solutions the industry group presented to Furey, who agreed to meet with the group again within the next four weeks.

Almon said the biggest issue facing the industry is a lack of business confidence.

He said Furey asked plenty of questions and was open to the industry's suggestions for change.

"The fact remains that we don't have much production here and we're in danger of losing our people, our infrastructure, our resources," Almon said after the meeting. "That is a very serious concern."

However, Almon confirmed that his group has accepted that the film tax credit won't be revived.

"We're not looking to have that returned," he said. "We're trying to move forward."

Furey said it was disappointing to learn the two production supply companies were shutting down, but he insisted there are plenty of competing firms in Nova Scotia and in other provinces that can supply the industry. However, he rejected the idea that there has been a loss of business confidence.

"The important thing is to recognize that there's opportunity going forward," he said.

Furey declined to say what changes were discussed at the meeting, though he made it clear he was eager to continue talking with the industry.

"What's important here is that we collectively change the discussion and demonstrate that there is an opportunity for a film industry in Nova Scotia and we have the opportunity to attract those businesses."