Olivia Mitchell (Dublin South, Fine Gael)
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Question 1: To ask the Minister for Arts, Sport and Tourism his views on whether the retention of the Irish Film Board as a singular entity is important for the future development of the film industry; and if he will make a statement on the matter. [32886/09]

Mary Upton (Dublin South Central, Labour)
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Question 2: To ask the Minister for Arts, Sport and Tourism his views on the recommendation of the special group on public service numbers and expenditure programmes that the Irish Film Board should be merged with Enterprise Ireland and the capital funding stopped; his further views on the Government's Building Ireland's Smart Economy document; and if he will make a statement on the matter. [32890/09]

Martin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 1 and 2 together.

The Irish film industry is one of our most important industries, providing substantial levels of employment and significant inward investment. In 2007, the value of the audio-visual production sector in Ireland was more than €500 million. It provides direct employment of 6,000 people according to the Irish audio-visual content production sector review prepared for the Irish Film Board and published last December. Direct employment in the industry grew from just 1,000 in 1992. This palpably demonstrates an industry that has grown very significantly and with the potential to grow even further with the correct nurturing and support.

The Irish film industry is dependent on the combined supports provided by the Irish Film Board, the tax relief afforded by the section 481 scheme, the continued presence of a studio infrastructure - currently Ardmore Studios - and a stock of world-class talent. The sector is further subject to external competitive influences and incentives that require our systems to be continuously updated and upgraded. It is an internationally traded sector.

The Irish Film Board has primary responsibility for the support and promotion of film making in Ireland. This responsibility extends to both the indigenous film industry and inward productions such as "The Tudors". The Irish Film Board is the national development agency for the Irish film industry, investing in talent, creativity and enterprise.

In 2009 the Irish Film Board will receive funding of €21.8 million to develop and support film production in Ireland. The €3 million it receives in current funding facilitates the marketing of Ireland as a film location and, in particular, raises the profile of the Irish audio-visual industry abroad. The Irish Film Board has been extremely successful in its role of marketing Ireland over the years, so much so that it now has a key role at the heart of the new creative knowledge economy.

The capital funding of almost €18 million provided to the board in 2009 has ensured that it can facilitate the growth of the film industry by funding the areas of project and talent development, training and indigenous film and television production. It enables the board to fulfil its aim of sustained growth of the industry, increasing the number and quality of films produced in Ireland each year. The IBEC audio-visual review estimated that for every €1 invested by the Irish Film Board, close to €10 is generated.

In tandem with supports from the IFB, 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 recently published report of the Commission on Taxation has urged the retention of section 481.

The benefits to Ireland of having a vibrant film industry and audio-visual sector are obvious and the Government recognises this. Last July it approved the finalisation of a ten-year strategy for the sector and that is proceeding apace. I remind the Deputy that the proposals in the report of the special group on public service numbers and expenditure programmes have not been adopted by the Government as policy but rather are proposals for consideration by the Government in the context of addressing the current budgetary challenges.

The international success of Irish film speaks for itself. On the employment front this year two projects alone, "Leap Year" and series four of "The Tudors", will employ more than 3,600 people between crew, cast and extras. These are high-level jobs which are highly prized at this time of rising unemployment.

The significant issue now is to continue to provide as supportive an environment as is possible. There are many great projects coming down the line such as Neil Jordan's "Ondine", starring Colin Farrell, Ian Fitzgibbon's "Perrier's Bounty", starring Cillian Murphy and Conor McPherson's new film, "The Eclipse". Our films are continuing to reach international audiences and they continue to showcase Ireland abroad.

Olivia Mitchell (Dublin South, Fine Gael)
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What motivated this question, both for myself and I am sure for my colleague, is the recommendation in the McCarthy report and the concern it would cause to those in the industry and to me. All of us are conscious that not everything which was funded in the past will be funded in future. Nevertheless, it is important to begin establishing priorities to save so we can have something to build on when the good times return, as I hope they will.

We must be careful not to throw out the baby with the bath water. We should not stop the marketing of Ireland by the likes of Culture Ireland or the marketing budget of Tourism Ireland. We must be careful not to take our foot off the pedal in that regard. Putting the role of the Irish Film Board into a Department is not appropriate. I understand there may be a loss of some of the funding in the short term but it is important to keep the board as an entity.

The Minister was very vocal at the weekend at Farmleigh in support of culture as a whole. Is he making a commitment to retain the Irish Film Board? I have more questions but perhaps I will come back to them.

Brendan Howlin (Wexford, Labour)
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I will call the Deputy again.

Martin Cullen (Waterford, Fianna Fail)
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I agree with the Deputy's comments. The economic facts speak for themselves but there has been a very focused effort in recent years to raise the ability of Irish film to a new level, and that has been very successful. We have gone from approximately 1,000 employees in the early 1990s to approximately 6,000 today. These people are recognised worldwide as being very creative and talented, both behind the camera and in front of it. Everybody would probably recognise those in front of the camera much more easily but there is a wealth of talent recognised as being at the top end of excellence in productions.

At a time when we are under strain, it is important for us to keep the emphasis on productive activity within the economy and to sustain jobs. As the Deputy has rightly said, we must use all the levers available to us through the best brand we have, the broad generic brand of culture in which our film industry fits.

We have had a golden period in terms of the awards our films and television productions have won in the past decades. Quality film actors, both male and female, have won awards, and Irish productions have also won Oscars, Golden Globes, prizes at the Cannes film festival and even over the weekend there were Emmy triumphs. All of this helps to foster Ireland's image and history worldwide.

I am very committed to maintaining the Irish Film Board. It has worked and the efforts we have made with the Department of Finance with the section 481 scheme is winning business for us. Neil Jordan told me the other day that it is currently very difficult in Hollywood - it has been a bad year for the film industry worldwide - but we have grown our indigenous business and business coming into the country this year. That is the reasoning behind our approach.

Mary Upton (Dublin South Central, Labour)
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I agree with the Minister's comments on the film industry, which has been very positive for Ireland in many ways. As well as being a benefit to our local economy, it has also brought tourists to the country. My question is key. Will the Minister oppose the inclusion of the Irish Film Board into Enterprise Ireland? If that happens the board will be gobbled up and become a non-entity. It will have no defined or separate role, which is very important for the film industry.

Martin Cullen (Waterford, Fianna Fail)
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I will address two specific concepts. It is important to see this in context. The report prepared by Mr. Colm McCarthy is excellent and he has looked across all Departments before presenting a menu. Nobody would anticipate that every single line written by him would be taken verbatim and implemented but he has provided important food for thought. I do not want to put this in a space of I, as Minister, being for or against it. A rationale must be applied.

I agree with both Deputies that there is a strong rationale for the retention of the Irish Film Board because it is delivering jobs and is a positive international marketing message for this country. It is winning indigenous jobs and creating inward jobs and investment. Akin to the IDA in some respects, it is our international arm for winning that sort of business, which is highly mobile in its movement from different markets and countries.

That success guides me in stating that the board should be retained as it is and with current functions. It is achieving the goals we set out for it.

Olivia Mitchell (Dublin South, Fine Gael)
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The McCarthy report stated that an objective case had not been made on this issue but, strictly speaking, that is not true. As the Minister indicated, there are direct benefits and these were highlighted in the PricewaterhouseCoopers report. However, there are also the intangible benefits and these are immense.

If, as I believe, we are all making the case to retain the Irish Film Board as a single entity independent of any Department, we must ensure it is extremely efficient and is not, for example, supporting uncompetitive practices. Has the Minister discussed with the Irish Film Board the possibility of its showing leadership? We appear to be extremely uncompetitive with regard to trade pay rates and it costs more to make films here than it does in any other country. In a sense, therefore, the investment fund is being used to support uncompetitive practices. The Minister should raise this matter with the board and inquire with regard to whether it needs two offices, one in Galway and the other in Dublin. Is there a way to ensure the board will become super-efficient in order that the entire industry might be more competitive when the good times return?

Mary Upton (Dublin South Central, Labour)
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The Irish Film Board earns a substantial amount of money for the Exchequer. Even allowing for the tax breaks on offer, the net profit for last year was €303 million. In Building Ireland's Smart Economy - A Framework for Sustainable Economic Renewal 2009 to 2014 it is stated, "We will support the creative industries and film/media which have a key role in driving and enabling technological convergence across platforms". We are, therefore, concerned with more than just the film industry. Perhaps the Minister will comment on this matter from the point of view of the smart economy.

Martin Cullen (Waterford, Fianna Fail)
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Deputy Upton is right. That is why, when Building Ireland's Smart Economy - A Framework for Sustainable Economic Renewal 2009 to 2014 was being compiled, I was very strong in my view that the creative sector has a legitimate role to play. This matter is not just the preserve of Intel and similar companies. Many of those who work in the creative industry move among the sectors therein. We have a massive wealth of talent in this country and the Deputy is correct to state that the people who work in the creative industry are huge potential earners. In fact, they are already proving this to be the case. In that context, it is vital not just to sustain employment but also to encourage the industry to expand. By doing this we can enhance Ireland's reputation abroad and attract business from an even wider range of interested parties.

I take a deep interest in the matter to which Deputy Mitchell referred. I met the chairman of the Irish Film Board who is extremely impressive, possesses a great knowledge of the industry and is highly respected, both nationally and internationally. The Deputy is correct with regard to competitiveness. A natural driving down of costs is occurring at present. It is important that the hard costs of production should be priced competitively in order that we might seek to win business internationally. Until a couple of years ago we were losing our competitive edge in many areas. Now, however, there is a greater understanding and acceptance that in order to continue to sustain ourselves internationally, we must be competitive in all areas. As a result, the costs in the industry must be analysed and we must seek to obtain greater productivity. In addition, we must also maximise the benefits available through section 481, etc.