The film industry has reacted with dismay to the recommendation in the draft ESRI report that public funding for the industry be "much less generous from now on".
The draft report pointed out that the film industry had received "very substantial support" through the tax system.
"Further support for the industry should be provided as part of broad support for cultural activities outside the National Development Programme," it said.
"The industry should then compete against other cultural activities to attract future funding. This approach, providing a more competitive environment for support, is in character with the recommendations we have made for other measures in this and other OPs [operational programmes]."
Mr Andrew Lowe, film producer and chairman of Screen Producers Ireland's film committee warned that the removal of the film tax incentive would kill the film industry in Ireland.
He said the ESRI report seemed to be viewing the film business solely as a cultural activity, and not an industry. The Irish film industry had a global reach, Mr Lowe said, and it was part of the whole Hollywood system.
The Section 481 tax incentive, or something similar, was essential if the industry was to compete on a level playing field.
Mr David Kavanagh of the Irish Playwrights' and Screenwriters' Guild said the ESRI recommendation was "definitely not" what the film industry wanted to hear.