Dr. Dermot Coates:

I thank the Cathaoirleach and members for the invitation to present to the Committee on Budgetary Oversight. I am chief economist with the Department of Enterprise, Trade and Employment. I am accompanied by my colleagues, Ms Áine Maher, principal officer for employment rights, policy unit; Ms Tara Coogan, principal officer for industrial relations, workplace relations and construction contracts adjudication; Caroline Savage, assistant principal in the intellectual property unit; and Mr. Pádraig O'Sullivan, assistant principal in the economic and tax policy unit. On behalf of the Department, we welcome the opportunity to comment on the committee's report on section 481, film tax credit, as published last year, and the recommendations contained therein. The report and its recommendations have been assessed and reviewed by the relevant officials within this Department.

While decisions pertaining to design and operation of the tax credit fall outside the remit of this Department, a number of important areas are explored within the report, including employment rights, company law and the use of copyright within the film industry. I will strive to provide a high-level overview of these important areas in particular regarding recommendations pertaining to the Department of Enterprise, Trade and Employment.

As for recommendation 6, the committee has committed to write to the EU Commission requesting an examination of fixed-term contracts for film crews working across multiple productions, particularly with a view to ascertaining whether there is a breach of EU directives in terms of both the fixed-term workers directive and EU directives relating to State aid for the audiovisual sector. As a starting point, Ireland already has a comprehensive body of employment equality and industrial relations legislation which offers the same protection to all employees legally employed under a contract of employment. All employers, regardless of sector, are responsible for ensuring their employees receive all protections afforded them under employment legislation.

The Protection of Employees (Fixed-Term Work) Act 2003 transposes Council Directive 1999/70 concerning the framework agreement on fixed-term work. It provides for the improvement of the quality of fixed-term work by ensuring the application of the principle of non-discrimination. The Act also provides for the establishment of a framework to prevent abuse arising from the use of successive fixed-term employment contracts. Deputies will be aware that in December, the Workplace Relations Commission released decisions in respect of a sample group of complaints made by members of the film industry under this Act. Further cases are still in adjudication and as such, I can simply confirm the Department has noted the decisions made.

Recommendation 8 proposes that compliance with the Copyright and Related Rights Act 2000, as well as the EU copyright directive, should be a specified requirement in order to avail of the credit we are discussing this evening. I underline that copyright legislation applies in this instance as the rights of creators, including actors and performers, are protected by the legislation when their rights are transferred to another party. These rights apply whether or not the party to whom the rights are transferred applies for tax relief under this credit.

It should be recalled that the Department of Enterprise, Trade and Employment does not have a role in the enforcement of copyright. Copyright legislation outlines the ways in which rights holders themselves enforce their rights, should they consider they have been infringed, and that neither the Minister nor his Department have any role to play in that process.

Recommendation 2 of the report refers to the six-month limit currently in place to submit a complaint or complain to the Workplace Relations Commission. While complaints to the commission should in general be within six months of the date of the alleged breach, provision already exists to extend the time limit by a further six months where, in the opinion of the adjudication officer, the complainant has demonstrated reasonable cause for the delay.

I will also make additional remarks with regard to an ongoing assessment of working conditions in Ireland. As members will be aware, the National Competitiveness and Productivity Council, in its annual report for 2022, proposed that an assessment of the impact of cumulative measures to improve working conditions be undertaken. This assessment is currently being finalised by the Department of Enterprise, Trade and Employment in conjunction with the Department of Social Protection. It will examine a range of measures including auto-enrolment retirement savings, parents' leave, statutory sick pay, the introduction of an additional public holiday, the transition to the living wage and the introduction of remote working arrangements. It is important to note that these measures are being introduced by the Government on a staggered basis over a number of years. The Department is aware that while the introduction of these measures will deliver economic and societal benefits and improve working conditions, and in doing so bring Ireland in line with other advanced economies, the reality is they will also bring additional costs for some businesses, particularly in those sectors with highly labour intensive, customer-facing staff. This impact must be understood in terms of the differences across sectors and by firm size. The report will set out the impact and will be supported by substantive quantitative and qualitative evidence as received from both employer and trade union representatives. That report is currently being finalised. I anticipate it will be published over the coming weeks at the discretion of the Minister.

The Department of Enterprise, Trade and Employment has no direct decision in the design and operation of the tax credit. However, the Department feeds into the review process for the scheme and other tax policy measures on an ongoing basis. Furthermore, the Department plays an important function in addressing issues related to section 481 relief, as outlined in earlier remarks, and remains committed to identifying and addressing issues of relevance.

I look forward to the discussion and we will seek to address any queries as they arise.