I have received two reports, including one from Screen Producers Ireland which set out a very cogent case for the retention of section 481. I have also received the PricewaterhouseCoopers report, the contents of which I am not prepared to divulge at this stage as they are the subject of my ongoing discussion with the Minister for Finance. On a number of public occasions, the Minister for Finance has stated – and I agree with him – that the present section 481, as constituted, is open to abuse and has been abused in the past. There is more than anecdotal evidence of this. Any Minister for Finance must ensure, in the interests of Irish taxpayers, that a situation is not tolerated whereby a section can be abused by a minority. Accordingly, I considered it incumbent on me to bring forward concrete proposals to the Minister for Finance to show him that we could continue with section 481 and, at the same time, eliminate to the greatest possible degree the opportunity for abuse of the system.
Undoubtedly, section 481 has been of enormous benefit to the Irish film industry. It is true that when it was first introduced in this country it was a pioneer of its kind. Unfortunately, other countries followed suit and even improved on the incentive we were offering. It is true that some countries now offer a greater incentive than we do to attract film makers. The cap on the present section 481 seems to cause difficulty for the industry. The figure is approximately €10.5 million and the industry is of the view that it needs to be increased. It is also argued that the cap on the amount which an individual taxpayer can contribute should be increased from €38,000.
I believe the fact that the cap is at €38,000-odd illustrates section 481 relief is not a haven for the very wealthy – it is not a tax shelter in that sense. It is my fear that if section 481 goes, we will not be in a position to attract the type of films we have been able to attract in the past. That, in turn, has serious consequences not only for those involved in the industry but for the country's overall image. One of the best ways to sell the attractions of one's country is through film, as evidenced by several examples which I need not mention.
The current position is that the Minister for Finance and I are getting on with our discussions in relation to section 481 and other matters relevant to my Department. I will not divulge the contents of the PriceWaterhouseCooper report and it would be quite wrong to do so until the current discussions have been completed. I hope we can achieve a fair balance, on the one hand addressing the concerns of the Minister for Finance and, on the other hand, retaining a system which will attract film makers to Ireland, assisting the film industry and the country's general image into the future.