Jim O'Keeffe (Cork South West, Fine Gael)
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Question 45: To ask the Minister for Arts, Sport and Tourism the steps he will take to support the film industry; and if he will make a statement on the matter. [28093/05]

John O'Donoghue (Kerry South, Fianna Fail)
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State support for the Irish film industry is directed via two principal channels, the section 481 tax-based incentive scheme for investment in film production and the Irish Film Board.

The section 481 scheme will now operate until at least the end of 2008. The amount that can be raised has increased from €10.48 million to €15 million with effect from 1 January 2005. This was a very welcome development, but I am very aware that the competitive position has become less favourable for Ireland in recent times, particularly with regard to the attraction of inward international productions. This is not because of any one factor, but results from a combination of circumstances. When it was instituted, section 481 was ahead of our competitors. Other jurisdictions have, however, caught up with and, in some cases, improved on what we can offer. My analysis suggests that section 481 needs further revision, particularly with regard to big budget productions.

Other factors are also impacting on the position. The euro to dollar exchange rate, new and enhanced competition particularly from low cost jurisdictions in eastern Europe and the perception that Ireland has become relatively more expensive all have an effect.

I am in discussion with the Minister for Finance about how this competitive position might best be addressed, but I must emphasise that Government can only do so much. The industry must also constantly review its competitive position by re-evaluating what it can offer in comparison to what is available elsewhere. Only with this kind of approach can we hope to remain successful into the future.

The Irish Film Board is the State body under my Department's aegis which is responsible for the promotion of an indigenous film industry in Ireland, and for marketing Ireland abroad as a location for film-making.

The report of the film industry strategic review group published in August 1999, usually referred to as the Kilkenny report, recommended that the Irish Film Board be given a more central co-ordinating role for the industry, and the board works proactively to fulfil this role. The board provides support, assistance and funding to Irish filmmakers at all levels of the business, from the neophyte who is new to the business, to those who have established themselves on the international marketplace.

The board places great emphasis on its role in marketing Ireland overseas as a filmmaking location. Towards that end, the board will shortly implement a proposal of mine to appoint a resident representative in Los Angeles, to establish much closer contacts with the leading studios in their home base, to identify what is needed to secure productions for Ireland, and to work with the board and my Department in devising appropriate responses.

My Department's funding for the board increased to €14.45 million or by almost 22% in 2005 over the 2004 figure.