Ms Mary Nash:

I thank the Chair and members. On behalf of the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media, I thank the committee for this evening’s invitation. Mr. Donnelly and I are delighted to have the opportunity to help the committee.

Almost all member states of the European Union offer tax incentives for the development and promotion of their audiovisual industries. Australia, New Zealand, Canada and the United Kingdom, as well as many individual states in the USA, also offer incentives to internationally mobile film productions. In Ireland, we have had a film tax relief since the 1980s. Over the years, the tax relief has been modified many times. In this context, 2019 witnessed the most significant changes in the relief for a generation, placing the emphasis firmly on individual and industry skills development.

The examination of the qualifying conditions for section 481 is undertaken by the Department's film unit. Before a section 481 certificate can issue, officials carry out a range of tests, including an industry development test, a culture test, a producer company and track record test, a check on dates of commencement, length of production, a category test, checks on the budget and a state aid compliance test.

An application for section 481 is only made after a project has spent a long time - often years - in preparation. All financing must be in place and provided to the Department along with an itemised budget, a full script, a person days schedule listing the individuals who will work on the project, the number of days and their payments, a detailed training plan agreed with Screen Ireland when eligible expenditure is over €2 million, and many other documents. As a result, it is to be expected that the failure rate would be low or non-existent. Over the past seven years, 27 projects have been formally refused a certificate. Of these, 17 were deemed to have met the conditions at a later date and subsequently received certificates. The Department provides advice to potential applicants in advance of application, if requested, and also expects applicants to engage and address issues with applications.

In 2019, the industry development test was changed to place a specific emphasis on creating a highly skilled audiovisual workforce in Ireland. The old training system was replaced and the focus is now on upskilling, training and life-long learning, with individual participants being upskilled at all levels. Our brightest and best are given opportunities to shadow internationally acclaimed film directors, producers and other lead creative roles. This is a precondition of receiving a certificate under section 481 and it has been a game changer over the past three years. Other EU countries, having expressed admiration for this model of structured skills training linked to the tax credit, are seeking to emulate it.

In the period 2020 to 2022, 317 certificates were issued to 124 different producer companies. The 317 certificates comprised 85 for animation projects, 78 for films, 91 for television dramas and 63 for creative documentaries. Of the 124 producer companies, 69 received a certificate for just one project in this three-year period while nine companies received certificates for six or more projects. Of note are the 29 certificates issued in respect of visual effects, VFX. In recent years, growth in postproduction, VFX and special effects, SFX, has seen Ireland emerging as a leading hub underpinned by a highly skilled talent pool. Irish VFX work is now globally recognised, competing at the highest levels internationally and nominated for BAFTAs, Emmys and Visual Effects Society awards.

Passing the culture test requires a project to meet at least three of eight criteria. Over the past three years, 78 projects, or 25%, met three criteria, 82, or 26%, met four criteria, 87 met five criteria, 58 met six criteria and 12 met seven criteria. None met all eight.

As a dignity at work initiative, the Department is rolling out the Safe to Create programme, which aims to eliminate damaging behaviours such as bullying, harassment, humiliation and victimisation from the audiovisual sector and, indeed, all creative workplaces. We have developed three online courses: tackling bullying and harassment; unconscious bias; and bystander intervention. These are being incorporated into the section 481 upskilling system with the intention that everyone in the industry will ultimately undertake all three courses.

The Department's approach is consultative and collaborative and, in concert with Screen Ireland, we engage with stakeholders across the audiovisual industry. This approach was intensified during the pandemic years when industry forums were held via Zoom on various issues including sustainability in the industry and increasing gender equality, diversity and inclusion. A process of engagement on copyright is planned to be undertaken over the coming months, with inputs invited from all relevant stakeholders.

In Ireland, productions are made possible only because of funding from section 481. There is a symbiotic relationship between incoming productions and the indigenous industry, with inward investment providing the key to developing the latter. Large incoming productions not only provide employment and investment, but bring a level of expertise and opportunities for talented Irish cast and crew to work at a level that would not otherwise be possible or available in Ireland. Our audiovisual industry crucially supports the dissemination of Irish culture and language, creating opportunities to export Irish culture on screen.

I accept that this overview touches only briefly on section 481, so we are happy to take questions.