Bernard Durkan (Kildare North, Fine Gael)
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Question 81: To ask the Minister for Arts, Sport and Tourism his plans for the development of the film industry; and if he will make a statement on the matter. [15100/06]

John O'Donoghue (Kerry South, Fianna Fail)
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My Department supports the film industry in Ireland at a number of levels. The Irish Film Board, is the independent statutory agency under my Department's aegis, charged with the delivery of a number of supports to the industry. These supports are provided to a range of operators in the industry, from emerging producers to more experienced players at the international level. The board is also responsible for overseas marketing of Ireland as a filming location. My Department's support for the Irish Film Board increased from €11.85 million in 2004 to €17.126 million in 2006, a significant increase of 44%.

As the Deputy is aware, the tax incentive for film production available under section 481 of the Taxes (Consolidation) Act 1997 is a critical part of what we can offer international film producers. Just over a year ago the Government decided to extend the availability of this incentive to 2008 at least. The value of the incentive has been further increased by the enactment of a provision in the Finance Act 2006 increasing the maximum amount that can be raised per film from €15 million to €35 million. It will now be possible to raise up to 80% of the total cost of making a film, which represents a significant improvement over the previous 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 filmmakers. 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.