Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

It is difficult to estimate these matters because the people commissioning films in Ireland are based abroad and work through Irish associates. I am increasing the limit because it appears to be the case that it was set too low. When I introduced it at €50 million, I promised that I would consider the position in due course. Approximately half of the production costs of a modern movie are incurred in Ireland, with the other half being incurred overseas in casting, finishing, cutting, production, etc. In the initial stages of developing the Irish industry we are unlikely to get these. A cap of €70 million should be able to attract movies with total budgets of approximately €150 million each. The expectation of those who inquired is that this will be the approximate gross budget of some of the movies that might be made in Ireland, but it is difficult to be certain. My advisers examined comparable incentives offered in other countries and they are allowed all over the place. We are not the most generous. Early last year the United Kingdom changed its incentives to make itself more attractive. It offer a lower effective tax rate than our 31% and has no cap. It is claimed that, if one wants to attract big budget movies, one must go higher. It seems there is a queue of film producers who want to shoot in London. We should be able to pick up some of the slack if they cannot find space or facilities there.

According to the analysis conducted across various Departments, while the tax incentive should be sufficient to drive a great deal of activity in Ireland, the lack of sufficient studio space of sufficient quality is an inhibition. I do not want to make strong claims for this measure, but I believed the situation required a change because that was where the argument lay. The Department of Arts, Heritage and the Gaeltacht was supportive of change, even to a higher level. It has the expertise and contacts, but we will see what happens. If little comes of it, it will cost us little in tax. It has been structured in such a way that the cost will be related to the level of activity. Dublin is strong.

The people in Bray identified a premises in Limerick near the university which they have now acquired and they are fitting it out for productions as well. We will see how it runs.

It seems to me that if Northern Ireland can have a significant movie industry - as the Deputy will be aware, "Game of Thrones" is shot and developed in studios in Belfast and on location all up along the north Antrim coast by the Giant's Causeway - there should be a stronger film industry down here as well.