John O'Donoghue (Kerry South, Fianna Fail)

A civil war story with a €6 million budget which received €500,000 in funding from the Irish Film Board, "The Wind that Shakes the Barley" subsequently became the highest grossing independent Irish film ever at the Irish box office. To date, the film has taken more than €20 million worldwide, proving that there is an international market for Irish stories. It is safe to conclude, therefore, that there is real progress and cause for optimism for the Irish film industry.

Film is not just about talent but is a key sector, which has become an international commodity, driven by economic incentives in an ever changing environment. This, combined with the current dollar exchange rate imbalances, domestic US incentives and low cost regimes in some eastern member states of the European Union has resulted in fewer big budget projects from the United States being attracted here than previously. In addition, one cannot deny the effect of the recently approved UK scheme on the Irish position and we will continue to monitor the situation.

The Government is aware of the needs of the sector and the need to react to such changes. We were pleased, therefore, to have been able to improve the scope of the section 481 scheme in the Finance Act 2006 and thereby maintain Ireland's position as an attractive location. In an increasingly competitive international environment, I am pleased the board has been able to continue to effectively discharge its vital role of promoting our indigenous film industry and marketing Ireland as a location for international productions.

This has brought direct results. This year has been an exciting and productive one for the film industry. Production activity returned to high levels. As proof of this, some 38 projects were certified under the section 481 tax incentive scheme in 2006, with a total Irish spend of €115.6 million. This is an increase from 28 projects in 2005 when the spend was €64 million. Included in the 2006 figures is a small number of large budget projects, chief among them being the television series, "The Tudors" and "Rough Diamond", as well as the television movie, "Northanger Abbey". Looking to 2007, the board has succeeded in attracting new projects, including the feature film, "Dorothy Mills", and television film, "My Boy Jack", as well as further series of "The Tudors" and "Murphy's Law".

In 2006 alone, the film sector generated the equivalent expenditure of the Irish Film Board since its inception, a remarkable rate of return by any measure. As can be seen from the board's annual review of 2006, which I had the pleasure of launching last night, the board's film location division succeeded in attracting 13 live action film and television dramas and provided logistical support to a further 13 local and film and television productions. Altogether these 26 projects had combined budgets of approximately €113 million and contributed almost €70 million in Irish expenditure in the Irish film industry.

While Ireland can hold its own due to our talent pool and incentives package, we cannot become complacent. We must continue to search for and avail of any comparative advantage we can find and be active in the marketplace. With this in mind, the Irish Film Board has risen to this challenge with the recent establishment of an Irish Film Board office in Los Angeles, a move I had proposed having visited the city. I expect this office will achieve much in raising awareness of the Irish industry in the United States. The board has also put in place a Dublin film partnership scheme, a one-stop shop for potential producers seeking to produce projects in the city. This grouping, encompassing businesses and public sector interests in the city, facilitates overcoming the practical obstacles inherent in bringing a production to fruition.

Although 2005 and 2006 have been challenging years for production, indigenous films, supported by the Irish Film Board, have continued to perform to critical acclaim both at home and at festivals around the world. Titles such as "Adam and Paul", "The Mighty Celt", "Breakfast on Pluto", "Isolation", "Pavee Lackeen" and, as already mentioned, "The Wind that Shakes the Barley" have been extremely well received by audiences and critics throughout the year. Further affirmation in this respect are the nominations at world-renowned festivals in which Irish talent is well represented.

I appreciate the Deputies' co-operation in expediting the enactment of this short but vital Bill and commend it to the House.

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