Dáil debates

Wednesday, 11 May 2011

1:00 pm

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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Question 30: To ask the Minister for Tourism; Culture and Sport his future proposals in relation to section 481 - film relief; and if he will make a statement on the matter. [10947/11]

Photo of Jimmy DeenihanJimmy Deenihan (Kerry North-West Limerick, Fine Gael)
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Primary responsibility for the support and promotion of film making in Ireland, in respect of the indigenous sector and inward productions, is a matter for the Irish Film Board. This agency is funded through my Department and is independent in its day-to-day operations.

My Department's operational role in supporting the film sector relates to the administration of elements of section 481 of the Taxes Consolidation Act 1997. Under that provision, tax relief is allowed for investments in qualifying films, which involves the administration of certain elements of the scheme regarding satisfying cultural criteria. The types of film eligible for certification are feature film, television drama, creative documentary and animation. This scheme is kept under regular review in conjunction with the Irish Film Board and any enhancement necessary to retain or regain competitiveness is addressed and brought to the attention of the Minister for Finance, as appropriate. The scheme has now been extended to the end of 2015.

It is important to underline that the audiovisual sector makes a strong contribution in employment and economic terms. The Irish audiovisual sector was valued at €557.3 million in 2008, equivalent to 0.3% of GDP, and employs almost 7,000 people in about 570 companies. I am sure the Deputy appreciates that the benefits of film and television production in Ireland include not only job creation in the industry itself but also huge positive spin-off effects for promoting Ireland as a tourist destination and as an industrial location for all aspects of creative endeavour. Currently, I am finalising a five-year strategy for the sector and I propose to bring that strategy to Government in the near future.

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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I thank the Minister and welcome his commitment to retaining section 481 until 2015. Would he consider extending this tax relief to computer and video games and other forms of content creation? This is an enormous global industry with great potential and benefit for job creation.

Photo of Jimmy DeenihanJimmy Deenihan (Kerry North-West Limerick, Fine Gael)
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I will certainly consider it and will suggest it to the Minister for Finance. I will publish a report shortly on the creative industry and although it will not deal directly with this issue it will obviously bring much attention to the entire sector. Section 481 has been very successful and has been replicated throughout the world. When we won major blockbusters to this country such as "Braveheart", the UK Government asked why the film companies located to Ireland. "Saving Private Ryan" was a great success and this continues with "The Tudors", "Camelot" and others such as "The Vikings" which will be made here shortly. We have done very well with section 481. Successive Governments have used this section very successfully and have adapted it to suit the competition. When other countries caught up with us we went ahead again by making the country an attractive location.

If relief were extended would it take away this effect and be too much of a loss to the Exchequer? That should be considered. However, the gaming industry is very topical and much mentioned. I will consider the issue and make a presentation to the Minister. If the Deputy has any ideas I would welcome them. The provision has been very successful. We lead the world in the number of films made in Ireland. This is something we have done well as a country and it should be recognised.