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Committee on Budgetary Oversight: Film Sector Tax Credits: Discussion (5 Oct 2022)

Ruairí Ó Murchú: Ms Murray and Mr. Arkins have said there are approximately five or six of these producers. Let us imagine I am one of them and I apply for section 481 funding. We all get the idea that there is the culture test and the industry development test. There is meant to be quality employment and other factors. What do I get as a percentage and on what basis do I get it? I imagine I am meant to...

Committee on Budgetary Oversight: Film Sector Tax Credits: Discussion (5 Oct 2022)

Ruairí Ó Murchú: Is it paid up front?

Committee on Budgetary Oversight: Film Sector Tax Credits: Discussion (5 Oct 2022)

Ruairí Ó Murchú: That makes-----

Committee on Budgetary Oversight: Film Sector Tax Credits: Discussion (5 Oct 2022)

Ruairí Ó Murchú: What Ms Murray is saying is that there is an element of due diligence that is not being done.

Committee on Budgetary Oversight: Film Sector Tax Credits: Discussion (5 Oct 2022)

Ruairí Ó Murchú: If I am producer I get section 481 funding and I put the money into a designated activity company, DAC. This DAC will last for the time it takes to make the production. Within this are whatever costs are incurred. We are not quite sure about the end product of this. Whatever about what must be given to the Revenue Commissioners for ticking the boxes, we do not know who owns what...

Committee on Budgetary Oversight: Film Sector Tax Credits: Discussion (5 Oct 2022)

Ruairí Ó Murchú: Beyond that is the question of how the section impacts on film workers. We have referred to the industry development test and, within that, quality employment, but the film workers are all self-employed. A department head either rings people up or does not, whichever the case may be. This is almost a pre-1913 operation.

Committee on Budgetary Oversight: Film Sector Tax Credits: Discussion (5 Oct 2022)

Ruairí Ó Murchú: A number of the witnesses have been involved in advocating for their rights, so they do not get the calls.

Committee on Budgetary Oversight: Film Sector Tax Credits: Discussion (5 Oct 2022)

Ruairí Ó Murchú: Am I right in believing that is happening to a greater degree now?

Committee on Budgetary Oversight: Film Sector Tax Credits: Discussion (5 Oct 2022)

Ruairí Ó Murchú: No, I was going to say there are experienced staff who are not getting the calls. Who is getting the calls?

Committee on Budgetary Oversight: Film Sector Tax Credits: Discussion (5 Oct 2022)

Ruairí Ó Murchú: Are these trainees?

Committee on Budgetary Oversight: Film Sector Tax Credits: Discussion (5 Oct 2022)

Ruairí Ó Murchú: Whose?

Committee on Budgetary Oversight: Film Sector Tax Credits: Discussion (5 Oct 2022)

Ruairí Ó Murchú: The workers are on their own, there is no representation and they have been failed. Many of us would have believed Screen Ireland and so on would have had some element of representation from crews and others working in the industry.

Committee on Budgetary Oversight: Film Sector Tax Credits: Discussion (5 Oct 2022)

Ruairí Ó Murchú: Going back to section 481, people may or may not be aware of a production funded under this provision that seemed to go bust recently. Again, it probably adds to what was said about the lack of due diligence. I would have understood it as being necessary to have all the finance in place before the State would throw any money in. It is just-----

Committee on Budgetary Oversight: Film Sector Tax Credits: Discussion (5 Oct 2022)

Ruairí Ó Murchú: Right.

Committee on Budgetary Oversight: Film Sector Tax Credits: Discussion (5 Oct 2022)

Ruairí Ó Murchú: By whatever means, the one thing we will all agree on is that there needs to be an element of due diligence, which would mean that we would see this process happening beforehand or that there would be protections in place to ensure we did not end up in this type of situation. Turning to another point, when we talk about materials being bought with taxpayers' money and then being leased...

Committee on Budgetary Oversight: Film Sector Tax Credits: Discussion (5 Oct 2022)

Ruairí Ó Murchú: Right. That DAC then disappears.

Committee on Budgetary Oversight: Film Sector Tax Credits: Discussion (5 Oct 2022)

Ruairí Ó Murchú: It is a new DAC by this stage.

Committee on Budgetary Oversight: Film Sector Tax Credits: Discussion (5 Oct 2022)

Ruairí Ó Murchú: It is a good set-up.

Committee on Budgetary Oversight: Film Sector Tax Credits: Discussion (5 Oct 2022)

Ruairí Ó Murchú: I thank Mr. O'Brien and Ms Quinn. I also thank the committee for dealing with this issue. I understand that Irish Equity supports section 481, albeit with a significant number of caveats. Anybody listening in on this would have significant worries and caveats in relation to section 481. In fairness, Mr. O'Brien largely dealt with the issue of copyright. Ms Quinn backed him up in the...

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