REPORTS of the imminent demise of the Irish film industry in the wake of new tax breaks for film-making in Britain are greatly exaggerated, according to producers and financiers here. But it may be necessary to fine- tune Ireland's Section 35 tax reliefs for film production.
"There are no reasons for apocalyptic pessimism, though," said Mr Rod Stoneman, chief executive of the Irish Film Board.
The provisions announced in last week's British budget allow for a significant extension in tax relief available for film production, at an estimated cost of Pounds 30 million over three years. British newspapers have reported that the Heritage Secretary, Mr Chris Smith, believes "a tax incentive like this would have prevented Braveheart being shot in Ireland."
But, according to Mr Stoneman, there are many reasons Ireland attracts foreign film and television productions. He cites the provision of extras from the FCA as being one of the determining factors in the choice of location for Braveheart, and for the Steven Spielberg production Saving Private Ryan, which is currently shooting in Wexford.
"Every film is a unique financing proposition," said Mr David Collins of Samson Films, who co-produced the television series, The Governor, which was set in Britain but shot in Dublin.
"Section 35 is very important, but there are other factors, such as attractive locations for period films, and a welcoming attitude from government bodies like the Garda and the local authorities.
"On the other hand, the international impression is that Ireland is an expensive place to shoot a film, although the changes in the exchange rate are helping that now.
In recent years some British producers have described Section 35 as merely helping to offset some of the higher costs of shooting here. But in general the tax incentives have been seen as a definite success.
"It's quite clear that the British government was inspired by the Irish example," said Mr Stoneman. With the then minister for arts, culture and the Gaeltacht, Mr Michael D. Higgins, he met Mr Smith and the film producer Mr David Puttnam 18 months ago in London.
"They told us they were very interested in what we were doing, and that they were planning to do something similar," Mr Stoneman said.
At that meeting Mr Stoneman pointed out that Section 35 was dependent on the high rates of marginal tax in Ireland, and was unlikely to be as effective in the UK.
"They agreed that they had to do more thinking on the subject, and they now seem to have gone for a more corporate approach, similar to the Australian incentives in the 1980s."
Both Mr Collins and Mr Stoneman believe that the changes in the UK should be taken on board by the new Government here.
"The Film Board is asking the Government to look at ways of strengthening Section 35," said Mr Stoneman. "We always have to look at ways of improving the situation, as things are continually changing."
Mr Collins agreed that some changes may be needed. "Section 35 is a very complex mechanism for accessing 10 to 12 per cent of your budget. I think we'll have to look at restoring 100 per cent tax relief, or at accelerated incentives for indigenous projects backed by the Film Board.
"It's very important that we have a regular, focused review of these questions. But the real core question here is when are RTE going to face up to their responsibilities in indigenous drama production?"
The Republic of Ireland may not lose out to the new British incentives. But it is Northern Ireland, with its relatively undeveloped film and television industry, which stands to gain the most.
For many years feature film producers were reluctant to shoot on location in the North, but this year sees a higher level of production than ever before, according to Mr Richard Taylor of the Northern Ireland Film Commission.
"I think the new incentives will certainly help," he said. "Most of us are surprised and delighted that they have been brought in so quickly."
Mr Taylor also cited the importance of funding from the British lottery, which is having, a significant impact on production across the UK. But he believes that "What's really driving things here is the huge amount of creative energy that has been suppressed for, so many years. For anybody who wants to make films in Northern Ireland, it'll be easier now than ever before."
The reality is that Ireland has little to fear and much to gain from a healthier British film industry. Irish productions already benefit substantially from British financial sources such as Channel 4 and the BBC.
"Of the 30 films the Film Board have backed so far, at least 20 have had financial investment from the UK," said Mr Stoneman. "The real problem for all of us is the domination of the global audiovisual market by the bottom left-hand corner of the United States.
