Funferal

MDH slams scrapping of film incentives

Former Minister for Arts, and Labour Party President, Deputy Michael D Higgins, has accused the Minister for Finance, Charlie McCreevy, of “jeopardising the future of the Irish film industry through his decision to scrap Section 481 of the Finance Act (previously known as Section 35) as a tax incentive aid to the Film Industry after December 2004.”

“Minister McCreevy has reiterated his intention to close down Section 481. The film industry seems to be particularly in his sights, for reasons he has not yet adequately explained. If he is concerned about any continuing abuse of the Section 481 relief, he should clearly detail those concerns.
“This tax relief was part of the comprehensive measures I introduced in 1993 as Minister for Arts. The initiatives included not just tax relief but also refunding The Irish Film Board, the establishment of Telifis na Gaeilge, and the implementation of detailed studies which demonstrated the employment potential and value of the Film Industry to the economy.
“It is especially galling that just as the first wave of film students graduate from courses started on the back of these initiatives, the government is wrecking the industry by scrapping tax relief and putting nothing in its place.
“Film activity expanded dramatically in the 1990s. Gross film expenditure jumped from £11 million in 1992 to £168 million in 1996, and in 2003 is now worth £207 million. Meanwhile, 4,300 fulltime staff are employed in the industry with the potential for that to reach 18,000 by 2010.
“Yet all this is jeopardised by Charlie McCreevy’s proposal to end tax- based support for the Film Industry, and in the absence of any alternatives such as direct funding. The threat to employment of those who already work in the film industry and particularly those who will graduate from the third level colleges is of huge concern.
“The film industry is of inestimable value to Ireland. All studies recognise its contribution not only to revenue, but also to tourism. Yet, the Department of Finance has had a consistent antipathy to film which it recognises as neither a service nor an industry.
“I am determined to pursue the Minister on this matter prior to the December budget, and have requested the Chairman of the Dail Finance Committee to arrange a public hearing to allow the matter be discussed in detail both by representatives of the film industry and the Department of Finance.
“Film is an industry but, more importantly, it is a form of cultural expression and the most exciting art form of our time. Ireland’s reputation worldwide as a venue for filmmaking is at stake.”