Jack Wall (Kildare South, Labour)
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Question 35: To ask the Minister for Arts, Sport and Tourism his views on the provisions made in the recently published Finance Bill 2006 regarding relief available for investment in film; his plans to extend the qualifying investment period for this relief beyond 2008; if the changes proposed require the approval of the European Commission; and if he will make a statement on the matter. [8179/06]

John O'Donoghue (Kerry South, Fianna Fail)
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I warmly welcome the announcement by the Minister for Finance that the amount that can be raised under the section 481 scheme is to be increased from €15 million to €35 million, and that a new limit of 80% of the total production cost will replace the existing limits of 55% and 66%. This will do much to restore Ireland's competitiveness in the international marketplace, particularly for medium to large-scale projects. I support the scheme, as it is critical to the future of Irish film-making. The extension of the scheme beyond 2008 is a matter in the first instance for the Minister for Finance. The changes proposed require the agreement of the European Commission.

Jack Wall (Kildare South, Labour)
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I compliment the Minister on this issue. He always led from the front in ensuring this initiative would not be removed. These changes for 2006 will restore confidence in the film market. This is for a two year span until 2008, when it will then be removed. Would it not be better to review it rather than remove it? It takes years to plan a major film and this initiative is all about attracting some of the major American companies to make those films here. This initiative is far more beneficial and more interesting from the perspective of those companies, but if it is only available for two years, we may not get as much benefit from it as we think. It would be much better to state that the initiative will be reviewed on 31 December 2008, rather than that it will expire on that date.

I am aware the matter is for the Minister for Finance in the first instance, but does the Minister not feel it should be reviewed rather than expire at that stage? We are seeking to give confidence to the major film makers to come here. If the incentive is reviewed in 2008, we will attract most of those American companies which recently seem to be going to other countries.

John O'Donoghue (Kerry South, Fianna Fail)
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Deputy Wall is correct to state that films are planned a long way in advance and that a certainty in the marketplace in necessary. People can be satisfied that this relief will continue. The former Minister for Finance, Mr. McCreevy, increased the cap to €15 million and extended the relief to the end of 2008. The current Minister for Finance has increased the cap to €35 million, which is unprecedented. He has more than doubled the relief available under section 481. I am deeply grateful to him for it, as is the film industry. The Minister recognised that to remain competitive, it was necessary to increase the cap significantly. He has increased it by a higher amount than any of his predecessors and that is indicative of his own commitment to the film industry. He also increased the percentage of the total production to 80%, which is very welcome. These factors all indicate the Minister's good faith towards the film industry. He would not have bothered increasing the cap at all if he had another motive and was thinking of terminating the relief.

The Deputy can take it from me that the Government has no intention of terminating the relief. If the Government is still in office in 2008, I believe that relief will be continued. I am pleased that we are again competitive in attracting inward film production. The benefits to the economy of such production should never be underestimated. Many people are influenced by films to come to Ireland. I sincerely hope the new arrangements ensure that Ireland receives a good share of large productions from the US and elsewhere. I recently visited Bollywood in India, where great interest was shown by those in the Indian film market in coming to Ireland. This will bear fruit in the not too distant future.