Vol. 572 No. 1
122 Mr. Durkan asked the Minister for Finance if adequate support for the film industry with particular reference to tax concessions previously enjoyed under section 481 tax relief will be provided; and if he will make a statement on the matter. [22633/03]
Tax relief for the film industry was first introduced in 1984 under the business expansion scheme and has continued in various forms for the past 19 years. This makes it one of the longest running sector specific tax reliefs in the economy and has seen an Exchequer contribution, in terms of tax foregone, of the order of some €265 million in the last ten years alone. It should be noted that this relief has continued over time against a backdrop of the widening of the tax base and the reduction of rates generally. In budget 2003, I referred to the generally accepted principle that such reliefs narrow the tax base and that a widened tax base is the price that must be paid to retain the current low tax rates. Consequently, all tax reliefs must be subject to ongoing review. In that context, I announced in the budget that a number of these reliefs across a range of sectors, including film relief, would not be extended beyond 31 December 2004.
I am aware of the views of many in the film sector which have been expressed either directly to me by way of representations or indirectly through the media with regard to the economic and social impacts of the termination of this relief in December 2004. The Minister for Arts, Sport and Tourism recently forwarded to me a copy of a study reviewing the relief which was commissioned jointly by his Department and the Irish Film Board. I have asked officials from my Department to examine this study. However, as things stand, the position with regard to the 31 December 2004 termination date for this relief remains unchanged.
