Noel Grealish (Galway West, Independent) | Oireachtas source

It has been a terrible year for people involved in the arts and the creative economy generally, with no end in sight to the suffering. It should have been an amazing year in Galway, showcasing the best of what the region has to offer, not just in culture and arts but in the tourism offering too. The Galway 2020 European Capital of Culture programme had been forecast to bring many tens of thousands of extra visitors and tourists from abroad to the west of Ireland and to pump many millions of extra euro into the local economy. It is a perfect example of how the creative economy is such an important part of economic success and even survival of an area. Of course, many events associated with Galway 2020 have gone ahead but in a very different way from what had been envisaged. I wish them the very best in the rest of their endeavours for the rest of the year and into the new year. I also extend good wishes to the organisers of Baboró, the wonderful international children's festival in Galway which got under way this week and runs until 18 October. It is a mix of in-person performances and online events. It has to be a struggle to put on such a festival in the middle of a pandemic but they have done a fantastic job.

The arts and culture sector is likely to be among the last to recover when the coronavirus pandemic is over. That is according to a report published by the Department of Business, Enterprise and Innovation in August. The Focus on Sectors 2020 report on the audiovisual sector highlighted the fact that efforts to get film and television production back up and running would be complicated by social distancing requirements. It also forecast a bottleneck in demand for film crews and services. A particular problem it stressed was the inability to secure vital insurance for various projects. According to the western audiovisual forum, the creative economy is estimated to be worth almost half a billion euro in counties Galway, Mayo and Roscommon. It creates more than 7,000 jobs directly and indirectly. The prediction is that losses as a direct result of the Covid-19 pandemic in these counties will be at least 25%. In real terms, that is up to €150 million lost to the region's economy and the jobs of up to 2,000 people lost or in serious jeopardy. A report carried out by NUI Galway for the Western Development Commission a few years ago came to similar conclusions about the value of the creative sector, including everything from craft and culture to creative industries. The report, which is published as part of a wider European study, stressed that the creative economy plays a strong role in the enhancement of the local economy in the western region. In other words, this is not just about preserving and enhancing our cultural offerings.

It is also very much about euro and cents and putting food on the table for thousands of families. The NUIG report stressed that the creative sector can generate important social and cultural impacts. These include a greater sense of community, the inclusion of marginalised groups, social interaction at creative events and regeneration of relatively deprived areas. The creative sector can also play a key role in improving the image of an area and increasing its attractiveness as a location to live, visit or set up a business.

A vital contribution to the growth of film and TV animation and creative documentary production in Ireland has been section 481, which provides a tax credit worth up to 32% of eligible Irish expenditure. An additional incentive called the regional film development uplift has been in place for such projects outside the main industry hubs in counties Dublin, Wicklow and Cork in an effort to boost industry in the regions. That provided an additional 5% credit on top of the standard rate for this year and last year. The problem is that the regional uplift is due to be reduced to 3% next year and 2% in 2022. In the dire circumstances the industry finds itself in, it is vital this regional uplift be maintained at its current 5% level. I urge the Minister and the Minister for Finance to include that adjustment in the upcoming budget and finance Bill. I hardly imagine there has been much take-up of the regional uplift or even the section 481 tax credit generally this year so such an extension will not cost the Exchequer much.

It should be stressed that such aids and incentives such as this are not a one-way benefit. There is a return for such money as was highlighted in a report commissioned by the Government two years ago entitled An Economic Analysis of the Audiovisual Sector in the Republic of Ireland. The report showed that while Government support has played an important role in assisting the audiovisual sector to grow, the film tax relief delivers value for money on both the fiscal net benefit and economic benefit basis. Every euro of section 481 outlays generated an average €2.82 in economic net benefit for the economy and it returned a minimum of €1.02 in tax revenue to the Government.

I also support the budget submission of the western AV forum calling for the allocation of €1 million for the Project Ireland 2040 national development plan in annual funding to the Western Region Audiovisual Producers Fund, WRAP. The fund helps to sustain and promote regional audiovisual development across film, television, animation and games.

As I said at the outset, it has been a terrible year for everyone involved in the arts and the creative economy but nowhere more than in County Galway, which had such a promising year in store. I am aware there is a huge demand from all sectors for a share of the limited pie of the country's finances. It is, however, an area that badly needs support and will be among the last to eventually recover as the Government has acknowledged.

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