Dáil Éireann debate -
Thursday, 23 Oct 2003

Vol. 573 No. 2

Written Answers. - Film Industry.

Charlie O'Connor

Question:

98 Mr. O'Connor asked the Minister for Finance if his attention has been drawn to the concerns expressed by the Irish film industry in respect of the section 481 issue; the discussions he has had with its representatives in the matter; and if he will make a statement on the matter. [24702/03]

Minister for Finance (Mr. McCreevy):

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 past 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 that 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 has recently forwarded to me a copy of a study reviewing the relief that 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.

Aengus Ó Snodaigh

Question:

99 Aengus Ó Snodaigh asked the Minister for Finance if he will report on the revenue generated to the Exchequer by the Irish film and television drama industry in total over the past ten years, and each year over the past ten years. [24714/03]

Minister for Finance (Mr. McCreevy):

I have been informed by the Revenue Commissioners that the information furnished on income tax, VAT and corporation tax returns does not require the yield from a particular sector of trade to be identified. In these circumstances, the amount of tax revenue collected in respect of film and television drama activities cannot be readily identified from the overall yield from taxation. Accordingly, the specific information requested by the Deputy is not readily available and could not be obtained without conducting a protracted examination of the Revenue Commissioners' records.

For the Deputy's information the following table gives a breakdown for the years 1993-94 to date, of the number of film productions certified by the Revenue Commissioners as qualifying for relief under section 481 of the Taxes Consolidation Act 1997, the total amount of tax forgone and the total amount invested under section 481 in respect of such film productions.

Tax Cost	Amount Invested	Number of Films	Tax Year	Notes
€m	€m
25.35	55.38	30	1993-1994
48.67	105.23	44	1994-1995
24.28	54.47	35	1995-1996
14.30	38.52	18	1996-1997
22.86	59.52	27	1997-1998
34.28	93.25	32	1998-1999
24.22	65.80	28	1999-2000
29.20	82.97	25	2000-2001
11.27	33.55	13	2001	Short year
21.51	64.02	23	2002
10.49	31.22	7	2003	To date