Written answers

Tuesday, 21 September 2021

Photo of Holly CairnsHolly Cairns (Cork South West, Social Democrats)
Link to this: Individually | In context | Oireachtas source

184. To ask the Minister for Finance if south-west County Cork will be designated as an area for inclusion in the regional film development uplift. [33300/21]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Section 481 is intended to act as a stimulus to the creation of an indigenous film industry in the State, creating quality employment opportunities and supporting the expression of Irish culture.

Finance Act 2018 introduced an additional, time-bound, tapering regional uplift to the section 481 film tax credit for productions being made in areas designated under the State aid regional guidelines and subject to conditions regarding limited availability of sufficiently skilled workers in the relevant location. The purpose of the regional uplift is to support the development of new, local pools of talent in areas outside the current main production hubs, to support the geographic spread of the audio-visual sector.

When originally introduced, the regional uplift was to be phased out on a tiered basis, with 5% available in years 1 and 2 (2019 & 2020), 3% available in year 3 (2021), 2% available in year 4 (2022), and 0% available from year 5 on. However the COVID-19 crisis had a detrimental impact on the audiovisual sector, with the majority of production companies suspending activity for a significant portion of 2020. As a result much of the intended incentive effect of the regional uplift in 2020 was lost.

Therefore Finance Act 2020 amended the regional uplift to provide for an additional 5% year in 2021, in effect to replace the incentive year lost as a result of the Covid-related public health measures. The tapered withdrawal of the uplift then restarts, reducing to 3% in 2022, 2% in 2023, and Nil thereafter.

The regional uplift is an approved State-aid. As approved, the regions which may avail of the uplift are limited to areas in Ireland sanctioned to receive regional aid under the EU Regional Aid Guidelines. This currently excludes Dublin, Cork and the Mid-East generally (i.e. Kildare, Meath and Wicklow).

Therefore I am unable to commit to amending the regions which may avail of the regional uplift as this is dictated by the EU Regional Aid Guidelines.


No comments

Log in or join to post a public comment.