Jack Wall (Kildare South, Labour)
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Question 84: To ask the Minister for Finance the revisions he may be considering to the section 481 scheme for investment in film production here; the reason these revisions may be required; if section 481 relief will be extended beyond the end of 2008; and if he will make a statement on the matter. [2509/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Section 18 of the 2006 Finance Bill provides for an overall increase to 80% in the proportion of the total cost of film production that can qualify for relief under section 841 from the existing levels, which range from 66% for films with budgets of €5.08 million to 55% for bigger budget films. In addition, the ceiling on the amount of section 481 funding that can be raised in respect of an individual film production is to be increased from €15 million to €35 million per film. These new limits are subject to the approval of the European Commission in the context of the Commission's state aid rules and are subject to the signing of a commencement order pending such approval.

The decision to change the relief was made on the basis of a case put forward by the Minister for Arts, Sport and Tourism and the Irish Film Board which advised me that such changes would be necessary in light of the increasingly competitive international environment for attracting film production, including forthcoming changes in the UK tax relief for films.

This relief is not due to terminate until 31 December 2008 and no decision has been taken in regard to any possible extension of the scheme beyond that date.