Jimmy Deenihan (Kerry North-West Limerick, Fine Gael) | Oireachtas source

I welcome this opportunity to contribute on the Finance Bill, particularly in reference to two matters of considerable importance to my Department. First, I am pleased that section 481 on the film tax relief scheme has been extended to the end of 2020. This was one of the important recommendations included in the creative capital report that I published in 2011 and that sets out a strategy for building Ireland's audiovisual creative economy. The extension will give a great deal of certainty to the Irish audiovisual sector during the next seven years and allow it to maintain existing jobs in the sector and, hopefully, create new ones.

Supporting and creating employment across all sectors is a priority for the Government. The film and audiovisual sector is playing its part and has managed to maintain a significant level of production in difficult economic circumstances. In 2012, a total of 55 projects were approved for funding under the section 481 scheme, with an Irish spend of €143 million. This compared with an Irish spend of €119 million in 2011, indicating a significant increase of some €24 million.

The major projects approved in 2012 in terms of Irish spend were "The Vikings", with a spend of €25 million, "Ripper Street", with a spend of €10.7 million, "Quirke", with a spend of €7.3 million, and "Foyle's War" with a spend of €5.9 million.

The section 481 funding across the 55 supported projects helped to maintain and create more than 17,000 jobs involving crew, cast and extras during 2012. That is a real, tangible and important contribution to our domestic economy. It is anticipated that a similar number of jobs will be supported this year by film projects funded by section 481. The change to a tax credit model from the current investor model will obviously be a significant change, but I am confident that with the extended lead-in period to the new arrangements the sector will be able to adapt to the new regime.

As Deputies are aware, section 481 is an important part of the architecture that underpins the Irish audiovisual sector. Another very important part of the architecture is the Irish Film Board, IFB. The IFB has primary responsibility for the support and promotion of film-making in Ireland, in respect of both the indigenous sector and inward productions. The agency is funded through my Department and is independent in its day-to-day operations.

As part of its remit, the IFB has regular meetings with international film makers, as well as attending major international film festivals to promote Ireland as a location for film making. I support that effort and, with An Taoiseach, recently met at Government Buildings with the renowned film director, Mr. Stephen Spielberg and the leading actor Mr. Daniel Day Lewis. The Irish film and screen industry can be a positive force for change and can drive economic growth by providing high quality local employment, increasing inward investment and promoting Ireland abroad and contributing to tourism.

Already in 2013, the IFB has attended a number of international film festivals and industry gatherings to promote Ireland as a world-class location for making films. This is very important work and it is hoped that it will pay dividends with major international productions coming to this country to give the opportunity to the wonderfully talented crews and actors from this country to display their skills for an international audience.

As Minister for Arts, Heritage and the Gaeltacht I also wish to welcome especially the introduction by the Minister for Finance of the living city initiative. It is a targeted tax incentive which seeks to promote the regeneration of urban historic areas on a pilot basis by focusing on encouraging people back to the centre of Irish cities to live in historic buildings, and encouraging the regeneration of the retail heartland of central business districts. The initiative will provide tax incentives for works performed to refurbish residential and retail buildings either to bring them up to a habitable standard or to make improvements to buildings which are currently inhabited.

The pilot will be delivered initially in two locations - Limerick and Waterford - given the deprivation index in these urban areas. The incentives will be targeted at owner-occupiers and will be subject to a commencement order which will be dependent on EU state aid approval. I fully support the development of a scheme for urban historic areas. The proposed pilot has the potential to assist the State, both at central and local government levels, in its responsibility to protect the nation’s architectural heritage, encourage sustainable development and the re-use of urban historic core areas. The scheme complements recent policy developments by my Department which include the historic towns initiative and the publication of a new guidance manual, Shaping the Future, aimed at the re-use of protected structures.

We must be pragmatic on this as on all other issues. The budget available to me to allocate to the built heritage has declined significantly. Between 2008 and 2011 the budget for the built heritage was reduced by the previous Government by approximately 75%. That leaves me in a difficult position in terms of the allocation of sufficient resources to the built heritage. I do not have the level of resources required to fund built heritage regeneration or restoration works that was available in the past. This means we must consider more creative ways to encourage people to live in protected structures, to work in buildings in the core of these cities, and to be able sensitively to adapt them to meet the requirements of 21st century use while protecting them for future generations. We see good examples around the country of the adaptation of buildings. It is something I strongly recommend. This is a challenge, but one in which the new living cities initiative will, I hope, play a pragmatic role in resolving.

The living city initiative will assist in preserving existing heritage assets, stimulate heritage-led regeneration and add to the long-term sustainable development of the locations. It is manifestly a positive development for the core areas of Limerick and Waterford cities. I thank the Minister for Finance for introducing the initiative in the Finance Bill.

I have designated Limerick as a city of culture in 2014. The Georgian built heritage is very much part of the celebration. I hope there will be a positive response from property owners in Limerick to the initiative. I hope we can celebrate the built heritage in the context of the initiative as well, apart from celebrating the other rich culture the city has to offer.

I have attended numerous events in Limerick city in the past two years and I am very impressed with the level of activity there in both the visual and performing arts. In addition there is a positive contribution by the various colleges - the University of Limerick, Mary Immaculate College, Limerick Institute of Technology and other institutions - and the various arts centres and venues in the city. I hope the initiative will give people in Limerick a further incentive to rise to the challenge of celebrating as the city of culture in 2014.

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