Martin Cullen (Waterford, Fianna Fail)

The Deputy raises an interesting question. The use of tax breaks can be very positive, although they have not always worked and may have been available for too long in some areas. Nevertheless, it is wrong to take a general view that no tax breaks should be provided.

I agree with Sir Gerry Robinson that we must be able to compete internationally, as we do through section 481, and must be ahead of developments internationally if we want to strengthen the industry. When we introduced section 481 it was copied by many other countries as they tried to win business. There is legitimate scope for action.

In fairness to the Minister for Finance, he publicly acknowledged that of all the tax incentives we fought over for the 2009 budget, the outstanding success was section 481 which is provided to the film industry. The reason was that the level of production in the sector and its return to the economy were visible. We should not be afraid to extend the scope of the section and identify what type of additional revenue and job creation the audiovisual sector can secure for the country. The sector is an excellent example of how Ireland could be positioned and fits extremely well with the smart economy.

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