Written answers
Thursday, 1 February 2024
Department of Finance
Film Industry
Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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125. To ask the Minister for Finance the penalties he is considering on film production companies found to be in breach of their requirement and obligation for receiving section 481 film tax credit funding, given the recent Workplace Relations Commission rulings against a company (details supplied) for its failure to uphold the employment rights and blacklisting of 38 film crew; if he intends to undertake an investigation into whether the practices at play in these cases are widespread in the film industry; and if he will make a statement on the matter. [4573/24]
Michael McGrath (Cork South Central, Fianna Fail)
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I am aware of the Workplace Relations Commission rulings to which the question refers, but the Deputy will understand that I cannot comment specifically on the tax affairs of any individual entity.
By way of general comment, I would note that there is provision in section 481 of the Taxes Consolidation Act 1997 (TCA 1997) for the withdrawal of the film tax credit in certain circumstances, including where:
- the producer company or qualifying company fails to comply with the provisions of section 481 TCA 1997 or the Film Regulations 2019;
- the producer company or qualifying company fails to comply with the conditions specified in a certificate issued by the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media; or
- the producer company, qualifying company or any person who is either the beneficial owner of, or able directly or indirectly to control more than 15% of the ordinary share capital of the producer company or the qualifying company, is not fully tax compliant within the period of 12 months from the date of completion of the qualifying film.
- With regard to investigations, the Workplace Relations Commission conducted an audit of the film and TV drama production industry in 2020 to:
- examine industrial relations, employment practices and procedures;
- assess any issues arising; and
- make recommendations for their improvement where appropriate.
As part of this process the WRC issued an open call for submissions from interested parties, and responses were received from 34 groups and individuals across the sector. In August 2020, the WRC reported on the outcome of its audit and made four recommendations, and progress has since been made in the sector in respect of each recommendation. The report is available online at www.workplacerelations.ie/en/news-media/workplace_relations_notices/wrc-audit-of-the-independent-film-and-television-drama-production-sector-in-the-republic-of-ireland.pdf
The Deputy will also be aware that officials in my Department have for some time engaged with representatives from across the sector and, where issues have been identified, changes have been introduced. Engagement with all representative bodies will continue going forward, including at an upcoming industry stakeholder forum on the 8th of February.
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