Decisions in relation to the further extension of section 481 of the Taxes Consolidation Act, 1997, ‘formerly section 35 of the Finance Act, 1987, as amended', beyond 1999 will be taken in the context of decisions relating to the 1999 budget.
In view of the need for strategic decisions to be taken later this year, I am establishing an industry think tank to conduct an objective evaluation of existing schemes and incentives which will be fully informed by the views and depth of experience of our industry professionals and to formulate a strategic plan for the future of the film industry for my consideration.
I have stated publicly that I believe that a longer term strategy is now required, and that we need to look to a timescale of from five to ten years, and this will be reflected in the terms of reference of the think tank.
As regards the question of restoring the level of tax relief from 80 per cent to 100 per cent, the decision to reduce the level of tax relief to 80 per cent was taken by a Government of which Deputy Higgins was a member, following an extensive review of the film relief by an independent consultant. That decision was based on the recommendations made in the INDECON report.
This is an issue which will clearly fall to be considered by the think tank and I look forward to receiving its views in due course.