John O'Donoghue (Kerry South, Fianna Fail)

Deputy Wall is correct to state that films are planned a long way in advance and that a certainty in the marketplace in necessary. People can be satisfied that this relief will continue. The former Minister for Finance, Mr. McCreevy, increased the cap to €15 million and extended the relief to the end of 2008. The current Minister for Finance has increased the cap to €35 million, which is unprecedented. He has more than doubled the relief available under section 481. I am deeply grateful to him for it, as is the film industry. The Minister recognised that to remain competitive, it was necessary to increase the cap significantly. He has increased it by a higher amount than any of his predecessors and that is indicative of his own commitment to the film industry. He also increased the percentage of the total production to 80%, which is very welcome. These factors all indicate the Minister's good faith towards the film industry. He would not have bothered increasing the cap at all if he had another motive and was thinking of terminating the relief.

The Deputy can take it from me that the Government has no intention of terminating the relief. If the Government is still in office in 2008, I believe that relief will be continued. I am pleased that we are again competitive in attracting inward film production. The benefits to the economy of such production should never be underestimated. Many people are influenced by films to come to Ireland. I sincerely hope the new arrangements ensure that Ireland receives a good share of large productions from the US and elsewhere. I recently visited Bollywood in India, where great interest was shown by those in the Indian film market in coming to Ireland. This will bear fruit in the not too distant future.

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