John O'Donoghue (Kerry South, Fianna Fail)

I thank the Senators who contributed to this debate for their constructive and considered points on the Bill. I also thank them for taking it at short notice. It is an important piece of legislation and I am grateful to them for their time. I would like to respond to some of the points raised in the debate.

There has been a significant improvement in the number of incoming productions to Ireland in recent years. From 1994 to 2001 the amount approved by way of section 481 was €581.8 million. In 2002 it was €62.2 million and in 2003 €84.8 million. Then there was uncertainty as to whether section 481 relief would continue and in 2004 the amount approved decreased to €58.1 million and in 2005 to €54.8 million. Certainty has been established on section 481 and it is operational. To date this year, the total amount approved under the section is €110.5 million. It is clear that this incentive to inward production is a major attractor. In that context the British have improved their tax relief and we must monitor this carefully. The British Chancellor of the Exchequer, Mr. Gordon Brown, takes a personal interest in film and has been involved in improving the attracting components of British financial legislation for film.

We should not engage in a Dutch auction as there is nothing to be gained from it. In this year's Finance Act the Minister for Finance, Deputy Cowen, increased our cap to €35 million and improved incentives as much as he could. We are unique in that we alone provide tax relief for television productions and that has resulted in a major increase in the number of television productions in the country in recent years. It is difficult to remain competitive. When Ireland first introduced section 481 it was unique and we experienced a large growth in our film industry.

It is important to recognise the role of the Irish Film Board. With limited resources and a small staff it is doing well. It contributed €500,000 to "The Wind that Shakes the Barley", which was made for €6 million. It has grossed €20 million worldwide. It is a wonderful film, even if it takes my side in the Civil War.