Mary Hanafin (Dún Laoghaire, Fianna Fail)

As Deputies will be aware, the benefits of film and television production in Ireland include not only job creation in the industry but positive spin-off effects for promoting Ireland as a tourist destination and as an industrial location for all aspects of creative endeavours. The Irish audiovisual sector was valued at €557.3 million in 2008, equivalent to 0.3% of GDP, and it employs almost 7,000 people in about 570 companies.

Government support for the industry through section 481 tax relief and the Irish Film Board has helped to attract major productions to Ireland and give the Irish film industry invaluable experience. For its own part, the industry has demonstrated consistently high quality standards of work, earned several prestigious international awards and developed valuable connections. In 2008 the section 481 scheme was extended for a further four years until the end of 2012. Improvements were also made to the scheme by increasing the overall ceiling on qualifying expenditure, raising the cap that applies to individual investors and increasing the relief available on that investment from 80% to 100%. These changes gave the Irish audiovisual sector a major boost in challenging times and resulted in 44 film projects being approved in 2009, up from 38 in 2008, with a total Irish spend of €106.7 million.

In 2010, the film industry has attracted 46 productions to Ireland so far with accompanying expenditure of €135 million. These projects will support employment for crew, cast and extras of more than 10,000 individuals and will maintain and create jobs in a very difficult climate, while at the same time producing a product that will help to sell Ireland abroad. Significant projects this year include "Camelot" and "This Must Be The Place", starring Oscar winning actors Sean Penn and Frances McDormand.

I have received representations from the audiovisual sector regarding extending section 481 beyond its current deadline of the end of 2012. The Irish film industry has the potential to sustain and increase employment in the coming years and make a far greater contribution to the economy than the cost of the tax relief. I consider the existence of section 481 to be vital to the future of the industry and have made representations to the Minister for Finance regarding the need to retain it. The four year plan unveiled today does not indicate removal of section 481. Given the sensitivity of budgetary matters, the Deputy will understand that I cannot provide any more detail.

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