Mr. Niall Stokes:

The introduction of the artists' tax exemption was a critical moment in the development of Irish culture and it made a difference in one very important sense to begin with, namely, that artists were recognised as having a real importance. The effect of it was that, up to a certain point, there was a cluster of people here. People such as Joe Elliot and Elvis Costello came here to live and it made sense for Irish artists to continue to base themselves in Ireland. Unfortunately, this effect has been lost as a result of the imposition of what was, in the first instance, a relatively low cap on the exemption. The missed opportunity to include the work of producers in the exemption meant it did not make sense for producers to base themselves here. Given that producers are, to a very large extent, the engine that drives which songs and musicians are used and where albums are recorded, a major opportunity was missed.

There are always issues of equity and fairness, and I fully support the concept of equalisation to the greatest extent possible. However, in this area, as in other areas of industry, we must create competitive conditions in places such as Ireland to attract activity, and this applies to film and music. The removal of the cap would not cost the Exchequer an enormous amount, but would offer the opportunity of regaining the sense of the clustering of activities within the music space. This also extends to the film environment. If we got increased film-making activity, it would make sense for composers to come and base themselves here. I do not understand why there is no reference to music in the cultural test in section 481. In the UK, music is a factor that plays into it. It should be changed in order that factors such as where the music is recorded and the nationality of the composer are included as part of the cultural test in section 481. Across games, music, film and all the relevant areas of the creative industry, we want to try to create a level of international calibre people operating here all the time who then go on to educate the Irish guys as they come through.

We see the effect of big international TV productions being made here; Irish actors become big box office attractions and they can attract big budgets for local film productions. If international success can be achieved through global productions and then bring back the effect of this and apply it to local activity, we will have a much more viable model for the film, music and creative industries which works.