John Perry (Sligo-Leitrim, Fine Gael)
Link to this: Individually | In context

Question 70: To ask the Minister for Arts, Sport and Tourism his views on the present down-turn in the film industry; and if he will make a statement on the matter. [8275/06]

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 138: To ask the Minister for Arts, Sport and Tourism the number of films currently in production here; if this represents a desirable variation from previous years; and if he will make a statement on the matter. [8582/06]

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 139: To ask the Minister for Arts, Sport and Tourism if he is satisfied with the current production levels in the film industry here; if his attention has been drawn to the concerns in the industry; his proposals to address the issues; and if he will make a statement on the matter. [8583/06]

John O'Donoghue (Kerry South, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 70, 138 and 139 together.

The Irish Film Board is responsible for the promotion and support of film-making in Ireland. The board is funded by my Department, but is independent on a day to day basis.

My Department does not have information on the number of films in production at any given time. However, the section 481 scheme provides a tax-based incentive for investors in film production. Twenty-eight projects were certified under section 481 in 2005, representing a total project spend of €125.5 million and a total Irish spend of €63.9 million.

I am aware that difficulties have been experienced in the Irish film industry in recent times. These were due to various factors, including improved enhancements and incentives in other jurisdictions, unfavourable exchange rates, and increased competition from jurisdictions perceived to have lower cost structures than Ireland can offer.

The Government has acted decisively to address the position. Funding for the Irish Film Board has increased from €15.950 million in 2005 to €17.126 million this year, an increase of over 7%. It should also be noted in this context that the 2005 figure includes a supplementary provision of €1.5 million, which I made available to the board late last year to provide an extra stimulus to film activity. The increase in 2006 over the initial 2005 provision is of the order of 18.5%.

Critically, the Minister for Finance has announced his intention to make important enhancements to the section 481 scheme, a tax-based scheme to encourage investment in film production. The maximum amount that can be raised will increase from €15 million to €35 million, and it will now be possible to raise up to 80% of the total cost of making a film, instead of the existing limit of between 55% and 66%. While these changes require EU approval, they have been extremely well received in Ireland and overseas and are seen as doing much to restore our competitiveness as a location for international film-makers.

Informal indications are that the industry is already seeing some strengthening of activity and the changes referred to above, once they feed into the system, should make a very significant additional difference.