Olivia Mitchell (Dublin South, Fine Gael)
Link to this: Individually | In context

Question 4: To ask the Minister for Arts, Sport and Tourism if his attention has been drawn to the now critical disadvantage suffered by the Irish film industry [i]vis-À-vis[/i] other European countries; and if he will make a statement on the matter. [31686/07]

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

Primary responsibility for the support and promotion of film-making in Ireland in respect of both the indigenous sector and inward productions is a matter for the Irish Film Board, IFB. This agency is funded through my Department and is independent of the Department in its operations.

The task of attracting international production into Ireland is dependent on a number of elements, not all of which fall within the sphere of influence of my Department or that of the Irish Film Board. Decisions to site a film project in a particular territory involve complex funding, cultural, logistical and project-specific elements, all of which are crucial for a successful result. At present, the unfavourable exchange rate against the US dollar continues to affect the level of United States production in Ireland.

My Department's primary operational role in supporting the film sector relates to the administration of elements of the section 481 tax relief scheme. This scheme is kept under regular review in conjunction with the Irish Film Board, and any enhancements necessary to retain or regain competitiveness are addressed and brought to the attention of the Minister for Finance as appropriate. The scheme was amended and enhanced in the Finance Acts of 2000, 2003, 2004, 2005 and most recently in 2006. The Department of Finance, in conjunction with my Department, is currently examining a report prepared by Indecon International Economic Consultants on the case for further improvement in respect of the scheme. Indecon's terms of reference were to identify a structured and innovative way forward to develop and consolidate the Irish film industry, taking account of the serious international competition issues now apparent.

My aim is to support and encourage the Irish Film Board in its role of marketing Ireland as a film location. In 2006, the board opened an office in the heart of Hollywood in Los Angeles specifically to market Ireland as a film and television location. The role of that office is to facilitate inward production from the key United States market by building key relationships and providing a focal point for the Irish industry and talent in the United States. The industry in Ireland has never been stronger in terms of international recognition and commercial success. This is evidenced by both the critical and financial successes of films, including, for example, the Palme d'Or at Cannes in 2006 for "The Wind that Shakes the Barley"; the Oscar for the short film "Six Shooter"; the CICAE Art and Essai Cinema Prize at Cannes in 2007 for "Garage"; a number of awards at film festivals for "Once", including festivals in the USA, London and Moscow; and two Emmys for the television series "The Tudors".

Our challenge now is to continue to build on those successes and we are committed to doing so.

Olivia Mitchell (Dublin South, Fine Gael)
Link to this: Individually | In context

There is no point in the Minister telling us how good things are when the reality is the income from film is a tenth of what it was in 2003. We have spoken before about section 481 of the Taxes Consolidation Act, which is one element of what is wrong. As the Minister knows, the British have wiped our eye in that regard by copying our incentives and trumping them. That left us in a very difficult position. The very fact we have had an office in Los Angeles for over a year without even a sign or nibble at a chance to bring movies to Ireland is indicative of how serious is the matter.

There are more fundamental problems and the Minister cannot sit back and argue the Irish Film Board has to do it all. The Minister should have a hands-on approach and there is a need for some kind of direction. Our industry costs are way above everywhere else, we are uncompetitive and the only studio we have is half the required size. We have no computer-generated imaging facilities or film laboratory. With these types of serious systemic and structural problems, the industry will not grow. The Minister must show leadership and take the industry's problems seriously.

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

There is fantastic potential in this area. I have no problem agreeing with the Deputy if she is saying we are only scratching the surface, as we can do much more. It is very large and competitive business. Section 481 is one aspect of our attractive features and there are issues to tackle with regard to Ardmore studios. Some of the matters of a technical nature raised by the Deputy must also be dealt with.

If the Deputy's message is that there is an enormous amount that we can do, I would agree. I am reviewing this area fairly urgently to see if we can ramp up efforts substantially. There is fantastic scope here.

Olivia Mitchell (Dublin South, Fine Gael)
Link to this: Individually | In context

I accept that.