Ireland must work to ensure it remains attractive as a location for film-makers, writes Caroline Madden

Irish film buffs, autograph hunters and celebrity spotters have been spoilt for choice in recent times.

During 2006, homegrown heart-throb Jonathan Rhys Meyers could be spotted in full Henry VIII regalia at scenic locations such as Christ Church cathedral and Kilruddery House for the filming of the major US television series, The Tudors.

Meanwhile, The Devil Wears Pradastarlet Anne Hathaway was on set in Co Meath shooting Becoming Jane, while Kim Cattrall of Sex and the Cityfame was in Dublin and Wicklow acting in A Tiger's Talealongside Brendan Gleeson.

Overall, 2006 turned out to be a bumper year for the Irish film industry - plenty of Hollywood A-listers in town, an Oscar for the short film Six Shooterand a Palme d'Or at the Cannes Film Festival for the political drama The Wind that Shakes the Barley.

In addition, the economic value of film and television projects supported by the Irish Film Board shot up from €35 million in 2005 to more than €100 million last year.

As well as supporting indigenous Irish film-making, the film board is responsible for attracting international film and television productions into Ireland. The Irish Film Commission - which now has an office in Los Angeles - carries out this work on behalf of the board, promoting Ireland internationally as a film- friendly location.

Following a successful year for the film board and the audiovisual industry in general, Minister for Arts John O'Donoghue announced a 15 per cent increase in its annual budget to €17 million for 2007, which will no doubt provide a further boost.

However, there is no denying that several years have passed since a big-budget blockbuster such as King Arthur, Braveheartand Saving Private Ryanhas been filmed here. Where have all the epics gone?

Back in 1993, Ireland became one of the first countries to offer a tax incentive to film-makers. This proved to be a huge attraction for major US producers and underpinned the success of our film industry for several years.

The international film arena has become increasingly competitive since then, however, with many countries such as the UK now offering more generous tax breaks than Ireland.

Although the film relief, known as section 481, was ramped up significantly by Minister for Finance Brian Cowen in his 2006 budget, the industry is calling for further improvements to the system.

Otherwise, industry experts say, Ireland will struggle to compete internationally.

On the upside, the British relief only applies to films for cinema release, whereas the Irish system extends to TV dramas, a niche that Ireland is now exploiting.

Take The Tudors, for example. It was produced mainly at Ardmore Studios, Bray, for US channel Showtime. The budget for the series was about €29 million.

It turned out to be an unexpected hit with US viewers, and the BBC has now bought the series, which will be aired this autumn.

"It wildly exceeded expectations," says executive producer Morgan O'Sullivan.

The Tudors proved to be so popular that Showtime has pushed the button for a second series. According to the film board, the budget will be €20 million, with the Irish spend of the project expected to come in at €15 million.

So what prompted Showtime to choose Ireland as a location?

O'Sullivan, who is from Ireland, says he had built up a relationship with the channel in the past, having worked on Showtime movies which were filmed here. In addition, he says, the Irish film industry is unparalleled for producing period dramas in terms of set building and creating costumes.

However, without the availability of section 481 relief, the series would most likely have gone to an eastern European location. So, like many other Irish industries, the film sector must keep upping its game to avoid losing out to low-cost competitors.