I propose to take Questions Nos. 21, 32, 62, 81, 101 and 109 together.
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 the budget for 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. It should be pointed out that my decision to announce a termination date of 31 December 2004 for this relief was made primarily for the reasons already outlined above rather than as a result of specific instances of abuse.
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, Sports 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.