Olivia Mitchell (Dublin South, Fine Gael)
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Question 108: To ask the Minister for Arts, Sport and Tourism the measures planned to encourage the revitalisation of the film industry; and if he will make a statement on the matter. [4989/08]

Séamus Brennan (Dublin South, Fianna Fail)
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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 the Department and is independent of the Department in its day to day 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 the Department or 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.

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. In his budget speech of 2008, the Minister for Finance announced that he was extending the scheme for a further four years, until the end of 2012, following a review of the scheme by Indecon International Economic Consultants. I welcome this extension of the scheme and the proposal in the Finance Bill to increase the overall ceiling on qualifying expenditure from €35 million to €50 million.

Furthermore, the proposal in the Indecon report to extend the Exchequer support even further, through an enhanced grant scheme of direct aid to film makers, as an optional alternative to section 481 is a very positive one. I will finalise the details on that proposal with my colleague, the Minister for Finance, over the coming months so that it is ready, if possible, for 2009. That enhanced scheme would mean more direct investment in film and television production and will also allow an increase in both the rate and quantum of support at no additional cost to the taxpayer. It has the potential to address the twin objectives of restoring Ireland's competitiveness for international film production and providing a more effective incentive for lower budget indigenous productions.

An area which I considered needed examination was measuring and capturing the full scale, value and potential for growth of the audio-visual production sector in Ireland. I am pleased that the Irish Film Board has recently commissioned a major independent survey of the audio-visual production sector in Ireland. The survey is under way and is due to be completed by the end of April 2008. The survey will provide a complete and accurate description of the character, scale and value of the entire industry as it currently exists and provide an objective starting point from which to chart a plan for the future and act as a benchmark from which to accurately measure progress.

Another important element of a successful film industry is the availability of adequate, fully equipped studio resources that can cater for the needs of indigenous and incoming film and television productions and this is a key factor in the Irish Film Board's role of marketing Ireland as a film location. The Irish Film Board was asked to prepare a report on the future options available for film studios in Ireland. The report was received and is being examined in my Department.

The industry in Ireland has never been stronger in terms of international recognition and commercial success. This is evidenced by the Oscar nominations this year and the critical and financial successes of numerous films in recent times. Our challenge is to continue to build on those successes and I am examining the possible establishment of a high powered film commission to assess all aspects of the industry and its future potential.

Olivia Mitchell (Dublin South, Fine Gael)
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I am sure other Members, including the Ceann Comhairle, will join me in congratulating Mr. Damian Foxhall, the first Irish co-skipper to win a round-the-world yacht race. That is a remarkable achievement. He is from the same maritime county as the Ceann Comhairle. It is a first and we should send our congratulations to him and his co-skipper.

The Minister was heavily lobbied on the tax incentives and there were minor tax enhancements but not enough to significantly rescue the film industry, which is on its knees. I welcome additional funding to the Irish Film Board but that is for Irish film, and it is right that it should be. However as the Minister knows, to get the economies of scale needed in the film industry to retain crews and actors and get the facilities needed we must attract international films, such as we have done in the past. The Minister knows that Ardmore Studios is on its knees. It just lost the film "Mary Queen of Scots". The production team was here interviewing and has pulled out because of the better incentives available in Scotland. It is another nail in the coffin of a significant part of our indigenous industry. It behoves the Minister to be active on this. What is envisaged if the tax incentive is not available? We have a successful indigenous industry but it has not, and never will have, the economies of scale to sustain itself unless supplemented by something from abroad.

Séamus Brennan (Dublin South, Fianna Fail)
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I spoke to Mr. Foxhall and conveyed our best wishes on his great victory. We are proud of his achievement.

I share many of Deputy Mitchell's views. The Irish film industry has done well but is only scratching the surface. There is enormous potential and I have made this clear to the Irish Film Board. The Government will do what it can in financial supports. In my reply I said we have extended the tax relief to 2012 and are studying whether the direct grants outlined in the Indecon report would be practical. The industry has the equivalent of 1,800 full-time jobs, which is significant. Expenditure in the industry last year was over €280 million, which is considerable. Studies by the Irish Film Board show that for every euro it invests, it generates a return of approximately €10. We are doing very well in television and short production. We could do much more in feature films. We are examining implementing the Indecon report and the direct grant scheme alongside the tax breaks scheme. We will keep in mind the existing performance.

I am examining the possible establishment of a high powered film commission that might advise Ireland. I am looking at the possibility of finding some international expertise, separate from the day-to-day operation of the film industry and the Irish Film Board, who might have a view on where the Irish film industry might take itself in the next five years.

Olivia Mitchell (Dublin South, Fine Gael)
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Will the Minister clarify what he said about direct grants in the 2009 budget? Is he talking about direct grants to international film producers rather than home-produced films?

Séamus Brennan (Dublin South, Fianna Fail)
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The Indecon report recommended direct grants and I said we would study that coming up to the 2009 budget.

Olivia Mitchell (Dublin South, Fine Gael)
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I hope we still have a film industry in 2009.