Dáil debates

Thursday, 6 July 2023

Report on Section 481 - Film Tax Credit: Motion

 

6:20 pm

Photo of Jennifer Carroll MacNeillJennifer Carroll MacNeill (Dún Laoghaire, Fine Gael) | Oireachtas source

On Deputy Nash's point, the Department has met with Irish Equity, Screen Guilds Ireland, Screen Producers Ireland, Screen Ireland and Animation Ireland on several occasions. The Department has reviewed the credit regularly under the tax expenditure guidelines. It was reviewed in 2018 and 2022. In 2015 it was restructured from an investor led credit to a corporation tax credit, following a review.

The point was raised about open calls. A new register has been developed for crews so they can register their availability for work and their skills, and more open calls are being used for staff productions regarding closed shop hiring processes. I want to put that on record. The other piece is on language, and terms like "blacklisting", "1930s tactics", and "1930s industrial revolution". From my perspective, we live in a country with an extraordinarily complex and advanced employment law architecture. That language is very much of that era, and is not relevant to the vibrant Ireland of today. Individual cases must be assessed through the Workplace Relations Commission. I do not think any Deputy in this House would like to undermine that, or in any way step away from the industrial and workplace relations architecture, which has been developed. It is really important that individual cases are litigated or assessed in that forum.

I recall reading quotes from workers' representatives, who spoke at the Select Committee on Budgetary Oversight and who spoke positively about the industry. I do not want to read those because I do not want any allegation that they represent this or that. In my constituency, I know and work with people who work in the industry, and I also have friends who work in the industry. They speak positively about it. I have constituents who work in it and who tell me they are happy with the environment as it is. They are happy working from project to project. They are happy with the opportunities it creates. I do not accept the picture that has been created today. I think it is perhaps one-sided and does not represent the complete suite of experience in the industry, and the working practices in the sector. I think in reality there is more nuance with what is going on.

I thank Deputy Boyd Barrett for bringing this forward. I reiterate that the recommendations outlined in the report cover a broad spectrum of areas that impact the audiovisual sector. On quality employment, Ireland has a comprehensive body of employment, equality and industrial relations legislation. All employers regardless of sector are responsible for ensuring their employees receive all protections afforded them under employment legislation.

What I never hear about is the risk employers or producers take in terms of financing and creating projects. I am not saying that one supersedes the other in any way. It is just that I do not hear that side of this articulated. Of course, there is nowhere to work unless people go out and try to create projects.

As I understand it, the international norm for this industry is to operate on a project to project basis. That is the result of the life cycle of audiovisual productions, in particular live action, encompassing concept development, pre-production, filming, editing and post-production. In an industry of that nature, quality employment for cast and crew does not necessarily mean continuous long-term year round employment with a single employer. There is rather a focus on a steady pipeline of work opportunities, skills development and career progression. That is where this tax credit is so important. It enables the development of an industry at scale, which gives people opportunities without difficulty to try, insofar as possible, to get the projects they want to work on at any given time in a fluctuating economy. That sort of resilience in a sector gives people the best possible opportunities. It also allows for maximum creativity, which allows people to move between different types or projects, whether international films, smaller indigenous productions or regionally focused productions to gain a wide breadth of experience and have a varied and stimulating career.

The nature of the sector was considered as part of the collective bargaining process. It is something different, and it is reflected in agreed pay rates and in the industry pension scheme, which operates under the construction workers pension scheme.

Training and skills will continue to develop and be a strong focus in the sector. The sector cannot continue to develop without it. It is absolutely essential and we want people to have the highest skills development possible. I understand the competency framework for crew developed by Screen Ireland in conjunction with Screen Guilds Ireland is providing a concrete system for section 481 skills tracking. Shadowing, training and access schemes for industry skills across the country are extending the reach of training and upskilling as part of the national training academy steering group's network.

It is also worth noting that a large amount of information is submitted to the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media as part of a section 481 application. That allows a thorough and in-depth examination by the Department of each section 481 application. A skills development officer is nominated by each production to deal with queries. That individual oversees the skills needs analysis process, the implementation of the proposed skills development plan and the recording of skills activity carried our during production. As part of the post project compliance report, a producer company is required to declare that all conditions contained within the section 481 certificate were complied with. They must then be able to provide evidence of compliance with the conditions of the section 481 certificate, including skills development and employment.

On copyright, I must again point out that efforts are under way to understand the issues from the perspective of the concerns of those impacted. An independent facilitator has been appointed to meet key stakeholders to endeavour to understand the issues of concern and this process is ongoing. Similar to the position of employment rights, the relevant copyright legislation applies in any event, whether or not it is referenced as part of the process for section 41.

Returning to the committee's recommendations concerning the enhancement of the credit, as I have said, these matters will be considered by the Minister for Finance, Deputy Michael McGrath, in advance of budget 2024.

Several Deputies asked me about the stakeholder forum. I said I would address this matter during my concluding comments. I can tell Deputies that the officials in the Department of Finance are discussing this with officials in the Department of Tourism, Culture, Arts, Gaeltacht, Sports and Media in respect of how to move forward with a recommendation. What is important is that anything created in this regard must be an opportunity to constructively address issues and will not be a forum for adjudicating workplace relations issues, because this would undermine the statutory process of the WRC.

I am aware this matter arose during the deliberations of the Committee on Budgetary Oversight twice in October 2022. I am also aware that in July 2018 the joint committee published a report relating to this issue. The joint committee called on the then Irish Film Board, now Screen Ireland, to constitute its film forum. I understand that efforts in this regard began in 2018 but that a difference arose between people in the industry as to what this forum would look like, what this mechanism might be and what it would do. It is important, therefore, that the officials in the Department of Tourism, Culture, Arts, Gaeltacht, Sports and Media can reflect on that engagement and work out how to create a forum where issues can be addressed in a collaborative way that does not step across any employment law architecture, which I do not believe would be permissible or necessarily helpful.

I thank the Deputies for the report and the debate.

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