Dáil debates

Thursday, 6 July 2023

Report on Section 481 - Film Tax Credit: Motion

 

5:50 pm

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein) | Oireachtas source

In 2018, some brave workers came forward and called out a lack of protection for workers in the film industry. They spoke in front of the Oireachtas committee at the time believing they would be protected and that their action would help to get the issue they were raising with the committee addressed. That those workers have not worked a day since in the industry – 40 have been affected – speaks volumes. It indicates that there is blacklisting. I have been assured over the years that this is not the case but the failure of those men and women to get work since speaks volumes. We need to ensure there is no blacklisting. I was the Chairman of the committee after the report was produced and was assured by the various stakeholders that there was no such thing as blacklisting, yet the people who put their heads above the parapet have not got work. That suggests something is wrong or rotten.

The key demand made at the time was reflected in recommendation No. 4 of the Joint Committee on Culture, Heritage and the Gaeltacht:

The Committee calls on the Irish Film Board to constitute the Board's Film Forum, with an independent Chair, in order to allow all stakeholders within the sector to meet and work together to develop mutually beneficial solutions for the industry.

Five years later, this same demand is included in the current report, which states:

The Committee recommends that the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media and the Department of Finance convene a stakeholder forum as a priority to discuss how to maximise the benefits of the Section 481 credit for all concerned stakeholders, and to facilitate best practice in employment rights, industrial relations, collective bargaining, address Copyright and Intellectual Property issues and any other relevant issues.

Key in all the demands is ensuring that everybody benefits across the board in terms of workers' rights and best employment practice, basically meaning that the industry should do what it says and what section 481 was meant to set out, namely the establishment of a grade 1, top-of-the-class film industry in Ireland.

I want to celebrate Irish film and have done so. I want to scream from the rooftops about all those in the film industry – the workers, actors, screenwriters and producers – and I will do so. Irish film has had much to celebrate in recent years, including this year. Tá jab iontach á dhéanamh acu agus tréaslaím leo, ach is gá dúinn déanamh cinnte de go bhfuil muidne agus na hoibrithe ag fáil an bhuntáiste ar chóir dúinn as an infheistíocht mhór mhillteach atá ag tarlú ó thaobh an cháiníocóra san earnáil thábhachtach seo. Infheistiú an-mhór atá i gceist. Táimid ag caint faoi na céadta milliúin euro d’airgead na gcáiníocóirí atá ar fáil le scannáin a dhéanamh tríd Fís Éireann, RTÉ nó TG4, agus Údarás Craolacháin na hÉireann roimhe seo. Tá an t-airgead á infheistiú againn. Táimid ag déanamh iarracht a bheith cinnte ach níl muid ag fáil an toraidh iomláin. We are getting some product for the investment by the State but not all of it.

There are two tests involved in section 481, one being the culture test, which means a production must be of importance to the promotion, development and enhancement of the national culture, including, where applicable, the Irish language. Earlier this year, we celebrated the success of the Irish film sector's Oscar nominations, which demonstrated to the world and us in particular the value of film in promoting Irish culture. My party and I believe passionately in supporting Irish culture and language through film, but we also see a role for the tax credit in supporting the economic and cultural benefits and the development of Gaeltacht areas, for instance, and parts of our country that have been left behind.

The Minister of State spoke about regional uplift, which is being phased out. There was a demand from the industry that the regional uplift provision be extended, given it takes more than five years to put in place exactly what was envisaged when it was introduced. There was also a request by TG4 that in the event of there being no further regional uplift, or even running side by side with such provision, that there be a Gaeltacht uplift. That was prior to "An Cailín Ciúin" getting the award nominations and doing so well across the world in the past year. Serious consideration should be given to continuing the regional uplift provision and-or a Gaeltacht uplift, particularly as the proof is in the pudding. A lot more can be done. However, delivering additional tax relief to film producers should only come with additional safeguards, which are those mentioned in the committee's 2018 report and its latest report.

The second test was the industry development test. The committee, during the course of its hearings, heard evidence of instances where the spirit of the test, particularly in regard to the quality employment and training requirement, has not been honoured in the industry. We need to ensure there is provision of quality employment and training. People understand that some of the employment in the film industry will be only on a short-term basis. They have always understood that. However, to be blacklisted or sidelined because they have raised issues about health and safety or the like is against the law in most other areas of industry of Ireland. It is strange that it continues in the film industry.

Issues were raised by members of the Irish Film Workers Association, as were raised by others previously, about people who were employed by the designated activity companies and were advised that due to the temporary nature of the work, they had insufficient recourse to employment dispute mechanisms. It was explained to the committee that the DACs are only required to remain in existence for 12 months following the completion of a project. If an employee of a DAC wishes to bring a case to the Workplace Relations Commission or the Labour Court, by the time such a case reaches the court, the employer or the DAC is no longer in existence. The Irish Film Workers Association representatives further advised the committee that due to the qualifying company or DAC having been the employer of the crew for the production, workers are unable to seek recourse from the production company despite that company being the beneficiary of the tax credit. Those issues can be addressed. The committee made recommendations, which we hope will see the light of day by way of provisions in the Finance Act or specific changes to the provisions for section 481 relief.

Issues were raised by witnesses from Irish Equity regarding intellectual property. They noted that in the same way the contracted crews are protected by a range of employment legislation, all performers and creatives are protected by the Copyright and Related Rights (Amendment) Act 2007 and the EU's directive on copyright in the digital Single Market. However, they noted that although productions must sign a statement to the effect that they will comply with the relevant employment legislation to avail of section 481 credit, the Copyright and Related Rights (Amendment) Act and the EU copyright directive are not specifically listed in that statement. Irish Equity highlighted the importance of these protections and advised that the real value of the film and television industry does not exist at that point of the production but is contained in the copyright and intellectual property of all parties contributing to the final product. The committee made recommendations in this regard that I endorse.

The PwC assessment in 2020 found that for every euro that is paid out under the section 481 tax credit, the Irish economy benefits to the tune of €3.50. If that is the case, we need to ensure its continuation and that everybody, particularly the workers, rather than only a few, benefit to the same tune. The State, because of that benefit, can put more pressure on those who are behind some of the blacklisting and the like. The key is the stakeholders' forum.

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