Dáil Éireann Debate, Tuesday - 20 June 2017
59. Deputy Bríd Smith asked the Minister for Arts, Heritage, Regional, Rural and Gaeltacht Affairs if her attention has been drawn to film companies availing of section 481 relief that are recruiting workers as trainees on film sets but providing no training to these workers; and if she will make a statement on the matter. [27565/17]
View answerHas the Minister's attention been drawn to film companies availing of the section 481 relief of the Taxes Consolidation Act 1997? These companies are recruiting workers as trainees on film sets but are providing no training to the workers.
The Government supports the Irish audiovisual industry through the Irish Film Board and through section 481 of the Taxes Consolidation Act 1997 - the film tax relief scheme. This twin approach of direct funding and tax expenditure measures maximises the benefits of the Government’s support to the audiovisual industry.
The Irish Film Board is the national development agency for Irish film making and the Irish film, television and animation industry. Screen Training Ireland is part of the Irish Film Board and is the national training and development resource specifically created for Ireland’s film and television industry. Screen Training Ireland works with national and internationally recognised industry professionals to identify, design and deliver training for Irish professionals. Training programmes are offered to enhance expertise in film, television, animation and interactive screen content.
Section 481 is an incentive to film and television production in Ireland. One of the requirements for receipt of the tax relief is the employment of trainees by the producer company. Specifically, the project must employ a minimum of two trainees for each €355,000 of corporation tax credit claimed, up to a maximum of eight trainees.
The Irish Film Board and the Broadcasting Authority of Ireland have commissioned a report on the skills needs of the audiovisual industry in Ireland, which is currently being finalised and will make recommendations on the operation of section 481 as it applies to skills development. The Department will consider any recommendations contained in the report, in consultation with the Irish Film Board, once the report is published.
It should also be noted that the Department has commissioned an economic analysis of our screen based creative industries, in partnership with the Departments of Communications, Climate Action and Environment and Jobs, Enterprise and Innovation. Last month, as part of this process, the Minister hosted a successful media production workshop at the Royal Hospital Kilmainham for stakeholders in the film, broadcast, animation and gaming industries. The recommendations of the economic study will inform the development of Government policy and a plan envisaged under the Creative Ireland programme for the overall development of the audiovisual sector in Ireland.
The concern is not about the large number of tax breaks that are given to the film industry but about the way the scheme is being used. Recently, many companies have been using specific clauses in the legislation that are meant to encourage the training of workers in the industry but are not training them. There is evidence of false training schemes, with no curriculum, no start, middle or end dates, no accreditation and no promise or prospect of jobs at the end of the training period. There are also many examples of fully qualified, trained and skilled workers in the industry being offered posts on film productions only as trainees, despite the fact that they are already trained and qualified. At the same time they are being told the posts are being filled. The generous nature of section 481 means there has been approximately €7 billion in tax rebates over 15 years. The companies must employ two trainees for every €355,000 corporation tax allowed. There is a generous scheme in place but my question is not about the generosity of the scheme but about whether it is being used in the way it was intended to be used and whether there is evidence for that. We have evidence that it is being used to undercut fully qualified people in the industry. Various claims are being made about people employed in the industry. What is the Department's comment on that issue?
I can outline the number of projects certified for film tax relief from 2013 to 2017. There were 66 in 2013, 66 in 2014, 65 in 2015, 76 in 2016 and 21 in 2017 to date. To be fair to the Deputy, she raises this question in the context of concern about taxation. The Department is anxious to know if somebody is misusing the scheme. If the Deputy can give such information to the Department, it will certainly investigate it to ensure the scheme is not abused. These tax schemes are in place to support the industry, not for people to misuse or abuse them. If the Deputy has any information that would be helpful to the Department or the Revenue Commissioners, they would be delighted to receive it. The economic study points to the issues. We will be happy to address the issues the Deputy raises if she can provide us with any information or assistance in that regard.
I do not wish to be accused in any way of not supporting the development and enhancement of the arts and the film industry. The Revenue Commissioners guidelines state:
The Minister, in considering whether to give Revenue an authorisation in relation to a film, will:
- examine the professional capability (creative and technical) of the producers and creative collaborators;
- examine the anticipated net contribution that the s.481 Scheme and other State Aid Schemes will make to the project; and
- consider those opportunities provided by the project for quality employment and training.
I am alleging that it is not providing quality employment and training, but is being used in a spurious way to displace professional and qualified operatives in the film industry. I welcome the Minister's suggestion I provide him with that evidence. I will do so immediately after this. However, I seek a further comment on the matter. It appears the questions we should be asking relate to what type of training modules these companies are engaged in, what type of certification they are giving to the people who complete the training and whether their training systems have a start, middle and end or are simply open-ended recruitment to replace professional jobs.
I accept that the Deputy raises this question in the best interest of the industry. The Deputy wishes to support that industry, as does the Government. We do not wish to see people being displaced as a result of initiatives that are in place. This is to help and support people into the industry and to get the industry to take on trainees and support and train them. I appreciate and accept the Deputy's offer. She might let the Department know about the issues in this regard and the Department will certainly deal with them. I thank her for that.
