Two separate reviews of the legislation incentivising investment in film and TV production in Ireland are to take place, that is according to Galway West TD Seán Kyne who was informed of the decision in reply to a parliamentary question.
The question posed in the Dáil asked the Minister of Finance Michael Noonan and the Minister for Arts, Heritage, and the Gaeltacht Jimmy Deenihan to give strong consideration, in view of the recent measures announced in the UK, to the introduction of new measures and the strengthening of existing ones to ensure Ireland maintains its competitive advantage in the film and TV industry over other competitors and, in particular, in extending tax relief to include not only film and TV production but also animation and gaming.
Speaking this week Deputy Kyne further explained that Minister Noonan and Minister Jimmy Deenihan have confirmed that the reviews will take place, adding “In light of the UK annnoucement it is vital that we maintain our competitive advantage over neighbouring countries in this area. I note from Minister Noonan’s reply that the Government’s incentives to the film and TV industry last year supported 58 projects which generated €114 million for the economy and sustained more than 15,000 jobs.
“The monetary benefits are, however, far outweighed by the less tangible but very real boost films and TV programmes filmed and produced in Ireland have on showcasing Ireland to a global audience. This in turn has very positive effects for tourism and also for investment. I am further encouraged by Minister Deenihan’s reply which reveals that the Irish Film Board has been instructed to analyse the possible impact of the UK treasury proposals and report to the Minister.
Deputy Kyne concluded: “The tax reliefs and incentives are as important to the creative industries as the 12.5 per cent Corporation Tax rate is to business and industry. I’m certain both reviews will demonstrate this and provide a compelling case to increase and enhance our incentives so that Ireland stays ahead of the competition.”
In his reply to the parliamentary question Minister Noonan confirmed that he has asked his department to undertake a review later this year in order to inform future policy making in relation to these issues and that no major changes will be made until the review is complete. Minister Deenihan replied: “Primary responsibility for the support and promotion of film-making in Ireland, in respect of both the indigenous sector and inward productions, is a matter for the Irish Film Board. This agency is funded through my department and has been allocated €15.7 million in 2012 to carry out its functions. Under section 481 of the Taxes Consolidation Act 1997, tax relief is allowed for investments in certain films. The types of film eligible for certification are feature film, television drama, creative documentary and animation. The scheme is kept under regular review in conjunction with the Irish Film Board and any enhancements considered necessary to retain or regain competitiveness are brought to the attention of the Minister for Finance, as appropriate. The scheme has been extended to the end of 2015. I have asked the Irish Film Board to provide an analysis of the likely impact of the proposed move by the U.K. Treasury.”
