Brian O'Shea
Question:66 Mr. O'Shea asked the Minister for Arts, Heritage, Gaeltacht and the Islands the plans, if any, she has for the development of the Irish film industry for 1999; and if she will make a statement on the matter. [6896/99]
Other Questions. - Film Industry Development.
Miss De Valera
My time frame for the Irish film industry extends beyond one year, as does the planning time frame for the industry itself. I am working to put in place a strategic plan that will bring the industry into the new millennium. To this end, 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.
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. I have already informed the House that I recently travelled to the United States to launch in Los Angeles the Screen Commission of Ireland. I also used the opportunity to make and renew contacts with key people in the Hollywood studios whose investment decisions also span a time frame greater than one year. On all of these occasions, I took the 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.
The one year extension of section 481 is giving rise to concern in the industry. Does the Minister believe the present uncertainty is conducive to confidence in the industry when it is borne in mind that it probably takes three years from start to finish to procure the money for a production? Will she state categorically that the present situation is conducive to protecting the existing 4,000 jobs and building on that base in an industry with great growth potential? Has she taken into consideration that a similar provision to section 481 is now available in Wales and Scotland which puts our film industry at a competitive disadvantage?
I have made it no secret that section 35, now known as section 481, has been a tremendous boon to the industry and has given it great strength and direction. I am well aware that other countries are trying to put a structure in place to encourage film production in their countries not least, Scotland and Wales. I wish them luck. However it is most important that we do not sit back and think the provisions of section 481 are sufficient. We need a strategic plan. I established the strategic review group for the film industry to look at the plans for the next ten years and that is why it is imperative to have people who are involved in the industry on a day to day basis to be part of the strategic group. Recommendations based on their views will be drawn up as a result of in-depth discussions.
I am awaiting the report from the strategic review group which I understand will be with me in a number of weeks. I look forward to seeing their recommendations. Once the information comes to hand I will publish the INDECON report as an appendix to the report of the strategic review group.
It is important to point out – and I took the opportunity to do so on a number of occasions in the United States – that we should await the recommendations of the strategic review group before taking action to bolster the Irish film industry. One should view the continuation of section 481 for a further year in that context because I hope we will have a number of recommendations that will further strengthen the industry.
I take the Minister's point about the importance of a strategic long-term plan, however, my basic concern is that we may be losing the momentum that led to our stunning success specifically because the provisions of section 481 will apply only for a further year. I am concerned that the industry does not lose the momentum. I accept we need to move forward on a strategic basis but if confidence is lost in Ireland as a centre for film making the strategic plan will be working from a base that has been considerably weakened.
I assure the Deputy that figures for the take up of section 481 in 1998 are just as healthy as they were in 1997. The figures in recent years have been steady. I share the Deputy's concern about weakening the industry but the figures do not substantiate that argument. The strategic review group will make its recommendations in coming weeks and I hope to start working on that as soon as I get them.
Has the Minister been in contact with the film makers of Ireland recently on their consultants report called The Bigger Picture which made a number of recommendations on section 481 provisions? Will she clarify what she meant when she referred to "questions about the future of section 481" during her speech in Los Angeles. The Minister said it would be a central part of the Irish industry for the next ten years. Does that mean if the strategic review group recommend the extension of section 481 for a period of years she will support it? Has she examined the implications of taxation policy in the current structure of section 481? It is of value to taxpayers at the higher rate as the write off is up to 80 per cent, but with the lowering of the higher rate of tax, its value is being reduced. How does the Minister propose to deal with that?
I am interested at all times in the views expressed by the film makers of Ireland particularly at a time when a great deal of work is being done to strengthen the industry and in putting forward its recommendations. I am rather amused that the Deputy has been trying to put words in my mouth in regard to what I am purported to have said in Los Angeles. I have always recognised the strength of section 481, which will continue for the next year. We await the film industry's recommendations and it is important not to rule out improvements to the provision. We should not let things stay as they are simply because they have worked so far. Given the competition from many other countries and the industry's potential, we should be among the leaders in encouraging further investment from outside and within Ireland to build our indigenous film industry.
The Minister's speech in Los Angeles mentioned looking forward over a decade. Was that a throwaway line to let the film industry believe the Government was planning for the next ten years? This has not been done properly. The Minister for Finance has cut the scheme short and it is a dead duck on a year's probation. What was the Department's role—
Cur cheist, le do thoil, a Theachta.
An raibh an tAire i ndáiríre nuair a bhí sí ag labhairt faoi deich mbliana i Los Angeles? The progress made by the industry will be stunted by this move. How will the start up date be monitored? What guidelines did the Minister give to the film industry about the start up date? How will this administrative problem be faced?
To enlighten the Deputy, I referred to a decade in the context of the strategic review group which was set up to look at the film industry over that period, because we do not want a short-term view. I am interested in receiving the recommendations of those directly involved in the industry. If I had wanted to I could have decided what I thought it required, which might have been much quicker but I doubt it would have been better. I wanted those involved on a day to day basis to be able to make their recommendations directly to me. I asked them specifically to consider section 481. That was their first task which I wanted done as quickly as possible. I also asked them to look at every aspect of the industry over the next ten years, including education and training.
Since 1994, when the Department commenced certifying full projects as qualifying to raise investment under section 481 of the Taxes Consolidation Act, the following number of projects have been certified. In 1994, 11 projects were certified with an Irish spend of £44.8 million; in 1995, 48 projects were certified with an Irish spend of £73.9 million; in 1196, 31 projects were certified with an Irish spend of £53.2 million; in 1997, 32 projects were certified with an Irish spend of £78.7 million; in 1998, 32 projects were certified with an Irish spend of £81.9 million; and in 1999 to date, four projects have been certified with an Irish spend of £6.9 million. Although the film industry fluctuates from year to year, those figures show there has been a consistent use of section 481. I hope in future we will not have to rely on one item of the tax code to build our film industry. We want further initiatives and to be able to implement them as best and as quickly as possible.
Does the Minister expect to receive the strategic review group's plan in the next few weeks? When does she envisage a strategy will be put in place? Uncertainty, particularly about section 481, must be dispelled as speedily as possible because it is damaging. Will the Minister assure us she will work with all haste?
I want to ask the Minister about another aspect of the industry.
Please make your supplementary question brief, Deputy. We want to move to the next question.
I am sure some scenic films will be shot in your constituency, a Leas-Cheann Comhairle.
I have no doubt of that but we do not want to spend too long on one question.
The Minister did not say whether guidelines were in place for the current operational year as opposed to a three year period. The longer period allowed great flexibility but it is doubtful whether the same could be said of a year. We could do other things. For instance, Wexford County Council has a screen commission – when will the Minister encourage all local authorities to set up such a body? Will the Minister be in touch with Clare County Council to set up a commission? The county has many areas of scenic beauty, such as Mullaghmore, which would do justice to Ireland if they were shown abroad. The Department should be pro-active in this area. Why did it not ask other counties to follow the lead of Wexford County Council and set up a screen commission?
I remind the Deputy that he had the privilege of being Minister of State at the Department of Arts, Culture and the Gaeltacht, as it then was and, if he had been interested, could have initiated such proposals for County Clare, but that did not happen.
In response to Deputy O'Shea, it was said earlier on Question Time that it is easy to talk up a crisis or create uncertainty, and I hope that is not the basis for his question. There need be no uncertainty for the film industry about how we wish to progress. The precise timetable for the submission to me of the report of the strategic review group is out of my control. I will receive it when it is finalised. I am given to understand its completion is imminent and I will have it in a number of weeks. I can assure the Deputy that when I have it I will see how we can implement its recommendations.
I thank Deputy Carey for acknowledging that we set up the screen commission, which was the purpose of my visit to Los Angeles. It will be of great help to the film industry and will give it further direction and focus. People in the industry have wanted such a commission for many years and I am pleased I was able to bring it to fruition.
The Deputy is right that some counties have been to the fore in establishing their own screen commissions. Deputy Deenihan has kindly invited me to attend the launch of the Screen Commission in County Kerry. When I visited the locations exhibition in LA, I was pleased to see, on display at the Screen Commission's desk, information about the Screen Commission of County Kerry. I have always been interested in furthering the cause of regionalisation and I would encourage the establishment of further screen commissions, not least in County Clare.