Oireachtas Joint and Select Committees

Wednesday, 18 January 2023

Committee on Budgetary Oversight

Film Relief Section 481 Tax Credit: Discussion (resumed)

Mr. Ian Kavanagh:

Not at this time, as far as we are aware. The regional uplift was mentioned in the opening statement. The Deputy may be aware it is in its last year of existence. Were we to examine it or advise the Minister on it, he would have to be cognisant of a number of factors. First and foremost, it is an approved state aid so it was notified to the European Commission on the basis that it would be time-bound and tapered. That is very much what is happening now. If we were to depart from that process in any way, it would require a new process of notification to the European Commission. There is another factor that would have to be considered. The Deputy may be aware it is based on a regional aid map. It is designated for areas called assisted regions. It is currently available to an expired regional aid map. Our previous regional aid map covered the period 2014-20. It was used up to 2021 but we have a new map which covers a smaller area of Ireland. There is a reduction of around 15% in the area within which the uplift is available. Were the Minister to consider extending the uplift, that is another factor he would have to consider in that there is a smaller population coverage there. There are a number of factors for the Minister to consider. If we were asked to look at it, of course we would do so, but those are some of the major policy issues that would have to be looked at were we to extend it.