Enda Kenny
Question:18 Mr. Kenny asked the Minister for Arts, Heritage, Gaeltacht and the Islands her views on section 481, formerly section 35, in relation to the film industry; and if she will make a statement on the matter. [24943/98]
Priority Questions. - Film Industry.
When I established the Irish Film Industry Strategic Review Group last June on foot of a commitment in the Government's programme, An Action Programme for the Millennium, to establish an industry think tank, I assigned it the following terms of reference: Having regard to the fact that the statutory authority for the section 481 scheme, formerly section 35 of the Finance Act, 1987, as amended, expires at the end of the current fiscal year: to carry out an objective evaluation of the effectiveness of the existing schemes and incentives to develop the industry; to analyse and identify the fundamental issues facing the industry and to make recommendations in regard to future measures in support of the film industry; and to formulate a strategic plan for the future of the film industry into the next decade.
An interim report on the section 481 measure which was submitted to me in September this year recommended the retention of section 481. Furthermore, the report of the independent economic consultant examination commissioned by my Department at the request of the think tank has just been received by me. I am referring this report to the think tank to assist it in its examination of existing schemes and incentives. I am also having this report examined by my Department.
Deputy Higgins, when Minister, was responsible in a major way for enabling the film industry to thrive. Why was it necessary to change the name from section 35 to section 481? Section 35 was an internationally branding instrument that was clearly understood within the film sector. From the Minister's examination of the interim report, is it not clear that with 4,000 full time and 4,000 part time workers in the film industry, it is now important to extend the section's provision which allows a clear timeframe for those in the film industry? The film product can then be sold. If this is not done, the Minister will allow uncertainty to creep into the industry. Does the Minister intend extending section 481 based on the interim report and, if so, when?
Reference to section 481 refers to a section in the Taxes Consolidation Act, 1998. It is popularly known as section 35, which refers to section 35 of the Finance Act, 1987. I asked the think thank to give me an interim report on the question of the continuation of what is colloquially known as section 35 as soon as possible. It did that and I explained that in my reply. The final report will go into far greater detail on analysis and identifying the fundamental issues in the film world. It is also part of the remit of the think tank to formulate a strategic plan for the next decade. It submitted an interim report on section 35 and will submit a full report next year. My views on this issue do not matter, what matters is what the Government will decide on this issue. The Deputy can be assured that these issues are being considered by the Government.
Regarding a decision on this matter, I take it from the Minister's reply that she will have to wait until she gets the final report from the board and the think tank. That means there will be a period between when the section 481 scheme will lapse at the end of this fiscal year and when the final report is submitted. The Minister said her views on this do not matter, but if it is her view that this provision should be extended, will she put forward a request to that effect to Government and allow the film industry to continue its work with a degree of confidence in the knowledge that the section 481 scheme will be extended by Government order for a five or ten year period? She should do that now to avoid the uncertainty that will be created in the industry as a consequence of it not knowing the Government's decision on this section.
If there is any uncertainty in the industry, it will have been created by Deputy Kenny this evening. I said I received an interim report on section 35. The obvious reason for that interim report was to ascertain the recommendations on that section rather than waiting until the final report is submitted next year.
Will the Minister accept them?
I am only too well aware that the statutory authority for the section will expire at the end of the year. My views on this do not count as a decision but they will be put forward in the usual way to Government. The reports I requested will be carefully considered and the recommendations will be examined in great detail and given every consideration by the Government and me. I cannot see the logic of asking for reports if one is not prepared to consider them and examine what can be done in regard to their recommendations. I do not want the message to go out from this House that there is any prevarication on this issue. This issue is extremely important for the film industry. The Deputy can be assured the Government and I are considering this and will make a decision in time. There will be no need for the industry to wonder about the Government's decision on this matter.
I take it the Minister will extend the provision before the statutory authority for the section expires at the end of this year.
This is not a matter for me but for the Minister for Finance and the Government. I have no intention of stating here what will be the position or of pre-empting any decision that may be made by another Minister or the Government.
By saying the industry need not worry, the Minister is saying that statutory authority for the section will be extended.