Vol. 419 No. 10
30 Mr. Callely asked the Taoiseach if, due to the success of some recent Irish films such as The Commitments, The Field, My Left Foot and others, he will consider introducing special incentives to help develop the Irish film industry; and if he will make a statement on the matter.
There is already a number of important incentives, most notably by way of special tax reliefs, to facilitate the development of the Irish film industry. Film-making is taxed at a rate of 10 per cent as compared to the normal corporation tax of 40 per cent. Tax relief is also provided for corporate investment in film production under section 35 of the 1987 Finance Act. The maximum ceiling on relief was increased to £600,000 under section 28 of the 1989 Finance Act and the investment may be made either over three years in one or more projects or in a single film in one year. The time limit for the qualifying investments is being extended by this year's Finance Bill to end March, 1995. In addition, the business expansion scheme applies to film-making as it is classified as manufacturing and individual investors in film-making companies can get relief from full rates of income tax on dividends.
The development of the Irish film production sector is also being aided by a number of State agencies, including RTE, the IDA, An Bord Tráchtála, the Arts Council. Údarás na Gaeltachta and FÁS.
The provision of these various forms of assistance, coupled with the more professional and commercial approach adopted in recent years by Irish filmmakers, has facilitated a considerable expansion in the value of our audio-visual exports. The value of such exports is estimated by An Bord Tráchtála to have increased from £12 million in 1987 to £33 million in 1992.
I understand that two studies of the Irish film production sector are at present nearing completion and I will ensure that the feasibility of their recommendations are examined carefully so as to consolidate the development of that industry.
