Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I am committed to ensuring the different schemes in place deliver what they should. It is important we take that approach. As the Deputy will be aware, the training issue is intrinsically linked with the film tax credit. Some of the amendments I am introducing to the film tax credit for this year are a first step in addressing some of the matters raised. The splitting of the certification process between the Revenue Commissioners and the Department of Culture, Heritage and the Gaeltacht, and the requirement for the production company to apply to the Department before the commencement of the main production, will allow for earlier engagement on the training requirement associated with the credit.

An audiovisual steering group has been established and it now includes officials from my Department, the Revenue Commissioners and other Departments. The effective and sustainable operation of the film tax credit is one of the items on its agenda. It will participate in the newly established screen industry education forum, the first meeting of which was held on 19 November. The aim of this forum is to focus on the skills development challenges and opportunities within the audiovisual sector in Ireland. My officials are participating in this process with a view to ensuring that the State's investment in the sector via the film tax credit delivers an appropriate return in the development of a skilled workforce.

In addition, employees in the film industry are entitled to the same legal protection afforded to all employees in all industries and sectors. The Deputy asked what I thought good employment was. He made the point that at a minimum, it should adhere to employment law in the sector and the effect of Commission regulations on the sector as well. I agree with him that at a minimum, there must be adherence to the law in the area. It is something I would expect to happen in any area of employment and particularly in an area where an important tax credit is in place.

Deputies Burton and Pearse Doherty commented on the social and economic impact of the relief. My Department has carried out a cost-benefit analysis of the operation of this scheme, including taking into account quantifiable benefits associated with the credit, such as taxes on direct and indirect wages, social welfare savings, VAT, corporation tax and taxes on earnings of foreign labour. The report was published on budget day and is available on the budget website. It is for that reason that I do not propose to accept the Deputy's amendment. Instead, I believe our participation in the audiovisual group, as I outlined, is a more appropriate way of dealing with the matter.

Deputy Pearse Doherty raised concerns about allegations of inflated claims for the credit. I am aware of the different stories to which he referred. I am also aware of the case that he mentioned, which will be subject to testing in court. I would point out that, in the changes that I have made to the Bill, it will provide for the credit to be moved to a self-assessment basis. This will allow for the normal penalty and prosecution provisions for any claim that is subsequently proven to be incorrect.

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