Jimmy Deenihan (Kerry North, Fine Gael)

I was only too pleased to facilitate the Minister in introducing the legislation. The Fine Gael Party always facilitates positive measures by the Minister. While the Irish film industry has been successful over the years, nevertheless a number of important questions arise for the future. I will avail of the opportunity afforded by this debate to pose some questions to the Minister.

No feature film has been made in Ireland in the past five years. The last one to be made was "King Arthur". Other competing destinations have improved on our incentive scheme. Some years ago I met members of a committee from the House of Commons who came to examine our scheme when "Braveheart" was filmed here. The United Kingdom now has an incentive scheme which not alone matches ours but has improved upon it. Seven states in the United States now give incentives to the film industry which are greater than ours. Even though we raised the cap and improved the incentives last year, we are not attracting major films with budgets in the region of €100 million. The cap must be raised, while a write-off of more than 80% must be allowed. The Minister must make proposals to the Minister for Finance to include such measures in the Finance Bill to help the film industry.

Statistics contained in the IBEC report referred substantially to 2005 but the Minister has quoted figures for 2006. However, I believe an unpublished PricewaterhouseCoopers report states we are not in contention for major film productions and recommends concentration on smaller indigenous productions with budgets of up to €30 million, as well as more TV productions. Can the Minister respond to the recommendations in this unpublished report?

There is a major question mark against the future of Ardmore Studios. The PricewaterhouseCoopers report states the studio is no longer attractive for major film productions, as it does not have the necessary scope or facilities. The report recommends that it be closed and that the Government provide a film centre. It should be a flexible, multi-purpose centre capable of being used at different locations. The report recommends an investment in the region of €30 million in this project. Can the Minister refer to this? The Government has made huge investments in the Abbey Theatre, the National Concert Hall and the Wexford opera house, while major commitments have been made to the national cultural institutions. If it is committed to the film industry, it should seriously consider the provision of a national film centre.

I have experience of the Irish Film Board through my occasional involvement with film productions. I found it extraordinary that a documentary on Con Houlihan, for whom the Minister has great respect, had been refused funding on four occasions by the board which could not see the merit of the documentary which RTE broadcast on two occasions. It attracted an audience of 350,000, despite being shown late in the evening. I hope the present membership of the Irish Film Board has a greater appreciation of the real culture and heritage of Ireland than the members who refused funding for that documentary and have a greater sense of what projects should be undertaken. I hope individuals currently involved in documentary production will not have the same experience as I had. There are wonderful opportunities to produce TV documentaries, as important stories remain to be told and researched. There is potential for top class indigenous proposals.

We must insist on quality production, better camera and sound work and a high technical standard. Scripting is also very important. We must produce top quality scriptwriters. Most productions depend on a good scriptwriter. Historical accuracy and continuity demand good scriptwriting. Very good work is being done in the Institute of Art, Design and Technology in Dún Laoghaire but we must examine the education system to see how we can encourage the directors, producers, camera people, sound technicians and make-up artists of the future.

The decision of Morgan O'Sullivan who has been one of the great drivers of the Irish film industry to leave the country makes a statement about the future of major film production here. The Minister has a representative in Los Angeles but the person concerned will find it very difficult to attract major productions to Ireland. The production of "The Tudors" has remained here because of the incentives provided by the Irish Film Board. Nevertheless, the fact that Morgan O'Sullivan has left the country and that no major productions have been attracted in the past five years indicates that the international industry is extremely competitive and that it will be difficult to attract major productions to Ireland.

I ask the Minister to refer to the PricewaterhouseCoopers report on the film industry. Will it be published? I understand it contains major recommendations. Will the Minister take the opportunity provided by the Finance Bill to improve section 481 and provide better incentives for film-making? Will he look at what is being done in the United Kingdom, eastern Europe and New Zealand and improve on their incentives?

Filming in Dublin is given a major advantage over filming in the rest of the country by the SIPTU 40 mile rule. Some years ago Hallmark filmed "Jurango", which is based on a book by John B. Keane, in Dublin rather than north Kerry because of this rule. Workers who travel more than 40 miles from home must be given overnight accommodation and greater expenses. Has the Government attempted to discuss this rule with SIPTU? The rule ensures rural areas are disadvantaged. Many production companies would prefer to film in rural areas which are more appropriate to the subject matter of their films, but they are prevented from doing so by the economic constraint of the 40 mile rule. I ask the Minister to respond to the issues I have raised.

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