Enda Kenny
Question:40 Mr. Kenny asked the Minister for Arts, Heritage, Gaeltacht and the Islands the proposals, if any, she has for the development of the Irish film industry; and if she will make a statement on the matter. [3061/99]
Priority Questions. - Film Industry.
In accordance with the programme for Government, An Action Programme for the Millennium, I established in mid-1998 the strategic review group for the Irish film industry with representation from a broad spectrum of the industry with the objective of preparing for my consideration recommendations for a strategic plan for the industry for the first decade of the millennium. This group has been working intensively and its final report is now imminent. During the course of its deliberations the group has met key groups and agencies, public and private, who are involved in this important sector.
I also assembled a panel of international experts who met last November for a three day discussion forum with the group. It is my intention to publish the group's report and I have no doubt it will be a key contribution to the development of policies to facilitate the growth and consolidation of a self-sustaining Irish film industry which will be well placed to seize the advantage of technological developments which are already radically changing the face of the audiovisual marketplace.
The Deputy will also be aware that in accordance with the programme for Government, I have established the Screen Commission of Ireland on an operational basis. In this regard, I will be travelling to the United States later this month to attend the Locations Expo in Los Angeles at which the Screen Commission of Ireland will have a stand. In the course of my visit, I intend to have follow-up meetings with the various film companies I met on my visit there last April. I will take that opportunity to signal to the American audiovisual sector the Government's strong commitment to the continued development of the Irish film industry as a vital element of Ireland's cultural and industrial policy.
When will the commission's report be available? Has it deliberated on the restoration of section 481?
The final report will be ready very shortly. When I set up the strategic group I asked it to examine the tax incentives as a priority and to examine their long-term effects on the film industry. It submitted an interim report on the impact of tax concessions, what used to be known as section 35, which the Deputy correctly referred to as section 481. I look forward to its final report which will examine all aspects of the film industry, including education and training.
What was the interim report's analysis of section 481? Did it recommend its continuation? How is it possible for the Minister to travel to Los Angeles to the film expo and attempt to promote the Irish film Industry as a vital element of our economy, given that she is not in a position to state to would-be investors that section 481 is being restored not for one year but for three years?
I do not consider the Deputy opposite believes I am naive enough to discuss whether section 481 will feature in the Finance Bill. It must be published before any discussion can take place on it. However, I stated at the last Question Time the importance of section 481. This has been considered and certain views and recommendations were put forward.
I was asked by the think tank to commission the Indecon report on its behalf, which was done. That report will be published, so the Deputy will have an opportunity of seeing the exact recommendations which were put forward. We will have to wait and see the outcome of those deliberations and those of the Minister for Finance. As the Deputy knows, section 481 is, first and foremost, the responsibility of the Minister of Finance of the day.
Will the Minister comment on the concerns expressed by Neil Jordan and Jim Sheridan about the perceived very high costs of filming in Ireland? Will she take into account the example of a company in Galway called Magma, which is to make a £5.6 million drama series this year but which has indicated that without section 481 it will not be able to recruit 40 full-time permanent Irish employees?
Is the Minister aware of the deep concern that is being expressed throughout the entire industry, which has 4,000 full-time employees and up to 4,000 part-time employees, about these high costs? For example, some electricians can earn up to £2,000 per week during filming. The consequence of that is that major documentaries and blockbusters are being filmed in Great Britain instead of Ireland. Is the Minister concerned about that?
In regard to the concerns which have been expressed in the industry about section 481, I am aware that section 481 is an extremely important element of the film industry. I am concerned about the views which have been put forward by those working in the industry.
I see the screen commission playing a very important part in the indigenous industry here and in promoting Ireland as a location and a centre of excellence. That obviously covers the whole area of building an indigenous industry, which would also have very important ancillary industries and jobs coming on stream, in the form of crafts and other employment opportunities. We can be proud of this industry, which was small but is growing very rapidly. I am very aware of the take-up rate of section 481 and its importance in the building of an indigenous industry.
The Finance Bill is due to be published on 11 February and the Minister is due to travel to Los Angeles at the end of the month. Is it her intention to use the undoubted economic advantage and the leverage of being able to say that section 481 is available for investors, once the Finance Bill is published? Does she intend to do that promotion on the basis that it would be included in whatever form in the Finance Bill, as published, before she leaves?
The indications from the Department of Finance, which appears to be against this despite the Minister's best wishes, are that it might grudgingly concede the inclusion of section 481 for one further year. That should not be tolerated by the Minister under any circumstances. It should be included for a minimum of three or five years, so that long-term investment decisions and budgets can be made well in advance.
The Deputy is trying to elicit information from me about the Finance Bill, but I have no intention of giving information in that regard until the whole Finance Bill is published. I am sure we can then look forward to a further in-depth discussion on section 481 and many other aspects of that Bill.
As I said, I am going to Los Angeles as part of the screen commission's thrust for the film industry in the United States, particularly in Los Angeles. I will be promoting Ireland as a location and a centre of excellence. It is most important that we take these opportunities to promote the facilities we have here, in order to see further prosperity in the industry as a whole.