Liz McManus (Wicklow, Labour)
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Question 97: To ask the Minister for Arts, Sport and Tourism the number of new film and television projects that have begun since the amendments to section 481 tax relief; and if he will make a statement on the matter. [2259/09]

Martin Cullen (Waterford, Fianna Fail)
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At the outset, I extend my congratulations to all of the team behind "New Boy" on its Oscar nomination last week in the best short film category. In that regard, I congratulate the Irish Film Board, IFB, which funded the production. I also extend my congratulations to the other Irish nominees, Mr. Martin McDonagh and Mr. Nathan Crowley. I also heartily congratulate Mr. Colin Farrell and Mr. Gabriel Byrne on their Golden Globe wins. In a truly amazing month for the creative community in Ireland, I am sure the House will join with me in congratulating Mr. Sebastian Barry on winning the Costa Book Award last evening.

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 IFB, which is funded through my Department but is independent of the Department in its operations. I have no role to play in the day-to-day conduct of its business. My Department's primary operational role in supporting the film sector relates to the administration of elements of the section 481 tax relief scheme. The scheme is kept under regular review in conjunction with the IFB and the Department of Finance and any enhancements necessary to retain or regain competitiveness are addressed as appropriate.

The most recent amendments in 2008 related to extending the scheme until the end of 2012, increasing the overall ceiling on qualifying expenditure from €35 million to €50 million for any one production, increasing from €31,750 to €50,000 the annual investment limit for each individual taxpayer and an increase from 80% to 100% in the amount of the investment that can be offset for tax purposes.

Amendments relating to the increase in the ceiling on qualifying expenditure and the increased percentage in the amount of investment that can be written off for tax purposes have not commenced yet. These amendments are awaiting the approval of the European Commission because, as the Deputy knows, they involve State aid. This approval is expected shortly. Accordingly, no film or television project commenced under the new amendments in 2008. However, in 2008 a total of 38 film, animation and television projects received approval for section 481 funding, an increase of four projects when compared to 2007. The film and television production sector is the core activity of the Irish audiovisual industry, which employs approximately 7,000 people and was worth approximately €550 million to the economy in 2007. Its importance to Ireland's smart economy is essential.

Mary Upton (Dublin South Central, Labour)
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I join with the Minister in congratulating all of our successful actors and films and Mr. Barry. Yesterday evening was a great tribute to the traditional value of the arts and is to be welcomed and recognised.

While I welcome the increase by four in last year's number of start-up films, are any plans in place for 2009? What is the status of the supports available to Ardmore Studios, the major studio in Ireland, to encourage and promote film making? In a previous reply, the Minister stated that the IFB was conducting a review of audiovisual productions. If the report is available to him, will he comment on it and inform the House of what the overall review entailed?

Martin Cullen (Waterford, Fianna Fail)
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I thank the Deputy for her compliments for all of our artists who have been successful in the past month. This year's pipeline is very strong. Although we have not signed off on the changes to section 481, the market has been made aware of the position. I expect that the amendments will put Ireland back at the centre in terms of attractiveness to the film industry.

Some years ago, we set the tone with some innovative approaches to bringing major film productions into Ireland. We were not only matched by other countries that saw our approaches' value, but surpassed. In recent years, we have needed to consider what we have been doing and what we can achieve. This year's changes to section 481 have been warmly welcomed, as they are what the industry wants. On the basis of its advice, the changes will add to Ireland's restoration greatly and increase the number of productions that come here.

I am informed that this year's pipeline looks good and that there is potential for much business to come our way. I am sure that, like all industries, the film industry is not immune to the economic climate, but the situation looks good.

Olivia Mitchell (Dublin South, Fine Gael)
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I want to be associated with the congratulations offered to our successful authors and those films that have done so well in recent months. I read Mr. Barry's wonderful book and recently saw "In Bruges".

Martin Cullen (Waterford, Fianna Fail)
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It is a great film.

Olivia Mitchell (Dublin South, Fine Gael)
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From an arts point of view, it is interesting to see two quintessential Irish works travelling so well. The story of the girl in The Secret Scripture could only occur in Ireland and the dark humour of "In Bruges" is very Irish.

Martin Cullen (Waterford, Fianna Fail)
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Yes.

Olivia Mitchell (Dublin South, Fine Gael)
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Continuing investment in the arts would seem to be a good idea. While section 484 has been enhanced——

Martin Cullen (Waterford, Fianna Fail)
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481.

Olivia Mitchell (Dublin South, Fine Gael)
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Yes. Those enhancements are slight. Given the industry's genuine problems, a cap of €50 million means that large American movies will never be produced here. Many individual investors must also be gathered together because of the cap on the amount that each individual may invest.

Martin Cullen (Waterford, Fianna Fail)
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That is why we have changed it.

Olivia Mitchell (Dublin South, Fine Gael)
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The amount is not significant.

Martin Cullen (Waterford, Fianna Fail)
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I am informed that it is more than enough. The industry is happy with the amount.

Brendan Howlin (Wexford, Labour)
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Allow the Deputy to continue.

Martin Cullen (Waterford, Fianna Fail)
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I am positively interacting with her.

Olivia Mitchell (Dublin South, Fine Gael)
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The industry is worried that the provisions will be set in stone until 2012. Is that correct? I was not clear on the matter.

Martin Cullen (Waterford, Fianna Fail)
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That is what is currently in place.

Olivia Mitchell (Dublin South, Fine Gael)
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All of the incentives in question have been up for grabs for several years. There is a feeling in the industry that it is living from year to year and does not know what will occur. The industry, one of the few that is still successful, is important to Ireland and we should cherish it.

Martin Cullen (Waterford, Fianna Fail)
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I agree with the Deputies. When people discuss the film industry, they often consider it in a small box to one side. However, a considerable portion of the knowledge economy and our creative energy lies within the audiovisual sector. It is from where all of the people in question are coming and where the creative genii lies. Actually, I should have said "genius".

Olivia Mitchell (Dublin South, Fine Gael)
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Genii, too.

Martin Cullen (Waterford, Fianna Fail)
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It employs more than 7,000 people compared to fewer than 1,000 five or six years ago. The amount of talent available in Ireland is recognised worldwide. I am told that €50 million will attract some large movies. Exceptional blockbusters might rightly cost more, but we may be able to catch some films up to the €50 million mark. The indications I have received are that 100% tax relief and the €50,000 cap will have a substantial impact. There is much confidence in the industry generally about what may be attracted to Ireland this year, notwithstanding the stresses under which this industry, like others, is being placed.