asked the Taoiseach the plans, if any, he has to assist in the development of an indigenous Irish film industry; and if he will make a statement on the matter.
Written Answers. - Irish Film Industry.
47.
The Government made provision in section 35 of the Finance Act, 1987, to encourage corporate investors by enabling them to secure taxation relief on investments in Irish-based film productions of up to £100,000 each year. Taxation relief on those lines had been sought by the industry on the grounds that a major input of investment capital would be attracted to help Irish film production become a genuine business activity and produce a wide range of film projects.
This new investment opportunity will complement existing tax-based incentives to investment in film-making. Such incentives include:
Film-making is taxed at a rate of only 10 per cent as compared to the normal corporation tax rate of 50 per cent.
Investors in film-making companies can get relief from full rates of income tax on dividends.
Film-making comes under the Business Expansion Scheme.
The development of an indigenous Irish film industry will also be facilitated by various public sector bodies, including NADCORP, RTE and the Arts Council. NADCORP has already invested in excess of £0.5 million in the Irish film production sector and will continue to evaluate opportunities for further investments of venture capital in that sector. Under the Government's Programme for National Recovery, RTE will divert £1 million to the independent film/video producing sector to produce more homeproduced programmes. Finally, the Arts Council has a statutory function in relation to film and has operated a successful film scripts award scheme.