Written answers
Tuesday, 13 May 2025
Department of Culture, Heritage and the Gaeltacht
Revenue Commissioners
Conor McGuinness (Waterford, Sinn Fein)
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648. To ask the Minister for Culture, Heritage and the Gaeltacht if he will reconsider the introduction of a content production levy given recent developments in the United States where there is now a proposed introduction of a 100% tariff on movies coming into the US from abroad. [24413/25]
Patrick O'Donovan (Limerick County, Fine Gael)
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Article 13(2) of the revised Audiovisual Media Services Directive ('AVMSD') provides that Member States may require media service providers under their jurisdiction to make a financial contribution to the production of European works.
To exercise this option under the AVMSD, section 159E of the Broadcasting Act 2009 (as amended) currently provides Coimisiún na Meán with the option to impose a content production levy on media service providers (i.e. providers of broadcasting and video on demand services) to fund a scheme (termed ‘the European works scheme’) to support the production of European works, including Irish works.
Coimisiún na Meán appointed consultants Nordicity & Saffrey LLP to undertake research and make recommendations in relation to the feasibility of an audiovisual content levy and fund. Stakeholders were consulted throughout the feasibility report process. The report was received by my Department on 29th January 2025 and was published by Coimisiún na Meán on 8th May 2025. The report in full can be accessed here: www.cnam.ie/read-the-feasibility-study-on-the-audiovisual-content-levy/ .
As the levy would place an additional operational cost on services in scope, I am of the view that there is a substantial risk that such services would pass on this additional cost to consumers. Accordingly, having considered Coimisiún na Meán’s report fully, I am of the firm view that introducing this levy risks placing an additional financial burden on Irish households already experiencing cost of living pressures, particularly in the context of recent international developments.
I obtained Government approval on 8th April 2025 for the Revised General Scheme of the Broadcasting (Amendment) Bill. The Revised General Scheme will add a layer of protection for the Irish consumer by ensuring that Coimisiún na Meán may only impose a content production levy on broadcasters and video-on-demand providers following a direction of the Minister, which I have no intention of directing or allowing until such a time that I am satisfied that such a levy will not impose an undue burden.
Separately, and in order to support the independent production sector, the Revised General Scheme of the Bill provides that RTÉ will be required to spend at least 25% of its public funding on content commissioned from the independent production sector. RTÉ and TG4 will also be excluded from receiving direct public funding from the Media Fund, in order to ensure that all funds go to independent producers and commercial media outlets. This is on the basis that RTÉ and TG4 are already in receipt of significant public funding to deliver on their statutory public service objects. While RTÉ and TG4 are excluded from directly applying, independent producers will still be able to use RTE and TG4 as broadcast partners.
The provision of content by the independent production sector has always been a key element of public service broadcasting in Ireland, and our two national public service broadcasters commission a significant amount of their content from the sector. The measures set out in the Revised General Scheme will ensure that our national public service broadcasters will continue to support the production of diverse and innovative content in the long term.
As Minister, I fundamentally believe in supporting the Irish independent production sector, as is reflected by the many ongoing supports provided to the sector through grant funding from Screen Ireland and Coimisiún na Meán’s Sound and Vision Scheme, as well as the Section 481 film tax relief. The tax relief is being enhanced this year through the Scéal uplift for smaller independent films. Along with the Minister for Finance and the Chairman of the Revenue Commissioners, I hope to sign the regulations commencing this uplift shortly. Furthermore, in line with the Programme for Government commitment, the Minister for Finance included a new tax relief for unscripted production - Section 487 – in the Finance Act 2024 and I am advised that the Department of Finance has notified the new relief to European Commission and it is now being examined by the Commission.
In respect of the proposed tariffs on the film industry, I would firstly note that details of the exact nature of the film levies being proposed are still unclear and engagement with the Irish film sector will continue as further details emerge. As Ireland is a member of the EU, any response to the introduction of these or other tariffs will require a unified response from EU partners.
I will continue to engage with all relevant stakeholders to ensure that the independent production sector continues to be appropriately supported in the longer term.
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