Alan Dillon (Mayo, Fine Gael)
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186. To ask the Minister for Finance if he intends to streamline the section 481 tax credit and ensure fundamental governance issues are addressed when film and television productions are receiving this incentive, in order that the rights of performers are not contractually overridden from the lack of adherence to regulation with legislation such as the Copyright and Related Acts 2000 and the European copyright directive, similar to other international jurisdictions; and if he will make a statement on the matter. [10754/23]

Michael McGrath (Cork South Central, Fianna Fail)
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Section 481 provides relief in the form of a corporation tax credit related to the cost of production of certain films. The scheme 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.

I would note that copyright policy and legislation falls within the remit of the Department of the Enterprise, Trade and Employment (DETE). I have been informed by DETE that the main source of Copyright legislation in Ireland is the Copyright and Related Rights Act 2000 (as amended) (the CRRA). Copyright is a property right and the CRRA covers matters such as providing the owners of copyright works the exclusive right to prohibit others from making a copy of the work, performing the work, making the work available to the public or any adaption of the work.  In addition, protection is afforded to others involved in the production of the work such as performers (including actors), producers and broadcasters of works by what are known as ‘related rights’. The CRRA also ensures that copyright holders have an effective means of enforcing their rights should they consider that they have been infringed.

I am further informed by DETE that the CRRA is complimented by a number of Statutory Instruments. The EU (Copyright and Related Rights in the Digital Single Market) Regulations 2021 transposed the EU Directive on Copyright in the Digital Single Market (EU) 2019/790. The Regulations strengthen the rights and protections afforded to various categories of right holders in order to reflect the impact of technological advances and increased digitalisation. They also provide for wider access and use of copyright protected works to the potential benefit of the creative sectors, press publishers, researchers, educators, cultural heritage institutions, and citizens.

I am aware that the issue of copyright is an important one for the Irish culture, arts and media sectors. I am also aware that there have been issues raised in relation to intellectual property rights and remuneration of actors and performers.

Screen Ireland is the national development agency for Irish filmmaking and the Irish film, television and animation industry, investing in talent, creativity and enterprise. I have been informed that Screen Ireland has engaged a consultant to facilitate the process of examining the complex and varied issues on the topic of intellectual property and this will involve engagement with Industry stakeholders over the coming weeks to explore the issues being raised.

In addition, my officials have engaged with film industry representative bodies to gain an understanding of the topic and the various perspectives of those concerned. Department officials will continue to monitor progress in this area, including industrial relations negotiations on this matter, to inform considerations of any proposed amendments to the operation of the relief.

Alan Dillon (Mayo, Fine Gael)
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187. To ask the Minister for Finance if the €70 million cap on section 481 tax breaks will be uncapped for a pilot period on the back of major capital investment in studio space in recent years and the potential for Ireland to attract tent-pole productions of scale following the recent success of Irish film production; and if he will make a statement on the matter. [10755/23]

Michael McGrath (Cork South Central, Fianna Fail)
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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 the Irish culture.

The scheme provides relief in the form of a corporation tax credit related to the cost of production of certain films. The credit is granted at a rate of 32% of the lowest of eligible expenditure, 80% of the total cost of production of the film or €70 million.

The minimum amount that must be spent on the production is €250,000 and the minimum eligible expenditure amount to qualify is €125,000.

Prior to 2015, the scheme operated by giving tax relief to individuals investing in the film industry. In 2015, the relief was restructured from an investor-based relief to a corporation tax credit.

The cap on eligible expenditure was increased from €50 million to €70 million in 2016. The increase to €70 million struck an appropriate balance between providing a sufficient increase to attract big budget films, while also being mindful of the possible cost to the public finances if a number of such films were to come to Ireland.

I am aware that there have been a number of calls to increase the cap, however, there is no plan for its increase at this time.

The Deputy may be aware that Finance Bill 2022 provided for the extension of Section 481 from its current end date of 31 December 2024 to 31 December 2028. This extension is subject to European Commission approval.  Extension of the relief in advance of this date demonstrates this Government’s commitment to the Irish audio-visual industry, and is intended to provide certainty regarding the future availability of the relief. This certainty will foster further confidence in Ireland as a centre of excellence for screen production.