Bernard Durkan (Kildare North, Fine Gael)
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Question 113: To ask the Minister for Arts, Sport and Tourism the extent to which he has supported the film industry here in the past 12 months; and if he will make a statement on the matter. [28548/05]

John O'Donoghue (Kerry South, Fianna Fail)
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State support for the Irish film industry is directed through two principal channels, namely, 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. It results from a combination of circumstances, including the euro-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, which all have an effect.

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 film makers at all levels of the business, from those new to the business, to those who are established on the international stage.

The board places great emphasis on its role in marketing Ireland overseas as a film making location. To 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 €14.15 million, or by almost 22% in 2005 over the 2004 figure.