FILM INDUSTRY:The film industry has welcomed the retention of tax breaks along with a significant boost in funding for the Irish Film Board.
The retention of the Section 481 tax reliefs until 2012 will restore certainty to the film industry. The reliefs, which have been key in attracting major Hollywood productions to Ireland, were due to run out at the end of next year.
The Minister for Finance, Brian Cowen, said there will be adjustments to the Section 481 reliefs which will be based on the recommendations of the Indecon report into the industry which is currently with Department of Finance officials.
The adjustments will be announced as part of the Finance Bill.
Andrew Lowe, the chairman of the Audiovisual Federation Film Financing Committee, which represents the industry, said he was "delighted" by the decision to retain the reliefs, but the federation will continue to lobby the Government in advance of the Finance Bill.
"The devil is in the detail. We have not seen the Indecon report, but we will be lobbying the Department of Finance between now and the Finance Bill to ensure we restore our competitiveness relative to the UK," he said.
The federation has claimed that generous tax allowances in the UK have had a devastating impact on the industry here, attracting large-scale Hollywood productions away from Ireland.
The federation wants the individual investment limit to be increased from €31,750 to €150,000 with tax relief on the entire sum rather than the 80 per cent limit at present.
Another significant measure would involve the definition of eligible spend to cover all film-making activities including, for instance, the salary of a big-budget Hollywood star.
The Irish Film Board welcomed an 18 per cent increase in funding from €19.6 million in 2007 to €23.2 million in 2008. It followed a year with a number of notable Irish successes including Once and Garage.
IFB chairman James Morris said: "It is an endorsement of the IFB's policies for promoting and developing Irish filmmaking talent and Irish film enterprises. We are confident that Irish films will continue to grow in success and international recognition with all the wider benefits to the economy that flow from this".
