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Film Industry

Dáil Éireann Debate, Tuesday - 2 October 2018

Tuesday, 2 October 2018

Questions (61)

Peadar Tóibín

Question:

61. Deputy Peadar Tóibín asked the Minister for Culture, Heritage and the Gaeltacht the steps she has taken to implement the specific conclusions and recommendations that were detailed in the Oireachtas Joint Committee on Culture, Heritage and the Gaeltacht's report on the development and working conditions in the Irish film industry. [39897/18]

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Oral answers (6 contributions)

Ireland is a highly attractive place for both indigenous and foreign film productions. Irish workers are known throughout the world for their skill and their craft. It is our objective as a party to build, strengthen and improve the experience of all the stakeholders within the sector and to grow it further. To that end, last July, an all-party Oireachtas committee carried out significant research on the film industry in Ireland and produced a report with 11 key recommendations to reform the industry. It identified significant difficulties that needed to be reformed. What steps has the Minister taken to implement these reforms?

I thank the Deputy and the members of the Oireachtas Joint Committee on Culture, Heritage and the Gaeltacht for the work they undertook to produce the report on the development and working conditions in the Irish film industry. I note it was launched last July just a few weeks after the Government published its audiovisual action plan. Both the committee's report and the action plan have similar objectives in that they both seek to develop and improve employment in the audiovisual industry.

The committee's report highlights the fact that "Section 481 is a key and central component within the Irish Film Industry" and that it should "remain central in the industry into the future". Likewise the audiovisual action plan identifies section 481 as a "critical support for the Irish production sector, generating jobs, and providing a strong value proposition for the public purse". There is significant overlap across recommendations of the action plan and the Oireachtas committee report, of which the Deputy is probably aware, particularly in the areas of section 481 and training.

One of the key inputs to the audiovisual action plan is a report by international audiovisual consultants Olsberg SPI with Nordicity that identified the challenges faced by the Irish audiovisual industry and provided policy responses. One of the consultant's key recommendations was the establishment of an oversight steering group charged with the overall implementation of the plan's recommendations. This steering group has been established and has met twice since the action plan was published last July. The group includes representatives of all Departments and State agencies with involvement in the audiovisual industry.

I am pleased to advise that the report of the Oireachtas committee was discussed at the recent meeting of the steering group which took place on 27 September. This included discussions regarding the importance of section 481, compliance of the industry with aspects of tax and employment law, and the holding of specific conferences and workshops to consider the development of the industry, including the need for an appropriate forum to consider employment issues. Further work is being carried out on all these initiatives and announcements in regard to them will be made in due course. The steering group will report to me at regular intervals. I thank the Deputy for his question.

As the Minister indicated, the committee stated that section 481 was an essential part of the industry, and most of the elements within the industry would indicate that, but that does not mean section 481 is perfect or without fault. Recently, as the Minister will know, Mel Gibson's attorneys have accused the producer of "The Professor and the Madman" of seeking to swindle Ireland's tax authorities. Allegations have been made that expenses related to the making of the film have been inflated so that the amount of tax relief achieved by the film is higher than it should be and, therefore, the workers and the taxpayers of this country would be at a loss if those allegations are true. If they are true, it means that section 481 is not rigid enough. There has been a review of section 481 by another Department recently. The Minister might advise the Dáil the results of that review. Did it seek to close those loopholes?

The report also contains the finding that €73 million of section 481 relief is concentrated within 12 companies. That was considered to be a very uneven spread of that tax relief and that this relief might be militating against jobs coming to Ireland due to the oligopolistic nature of the Irish producers sector. The committee called for an international comparative study. Perhaps the Minister will commit here today to the carrying out of an international comparative study with regard to the way in which section 481 could be strengthened.

That is certainly something we can consider. I am not going to comment on any specifics the Deputy mentioned regarding section 481. That is a matter for the Revenue Commissioners and others to investigate, but suffice it to say section 481 film relief is a very valuable asset to the film industry in Ireland. It is one of the primary mechanisms by which the Government supports the film industry and attracts new film projects to Ireland. The existing scheme concludes on 31 December 2020. It provides support in the form of a corporation tax credit related to the cost of film production. The minimum amount that must be spent on the production is €250,000 and the eligible expenditure amount to qualify is €125,000. The extension of section 481 beyond 2020 and its administration will be considered further in light of the recommendations arising from the consultant's report.

I remind the Deputy of the key points of the audiovisual action plan. One of the recommendations was to consider extending section 481 tax relief as well as increasing the expenditure ceiling, revising the regulations and, inter alia, extending the relief to Ireland's games sector.

I want to bring another issue to light. The Minister mentioned training in the first part of her response. I am still receiving allegations of production companies crewing their staff with a massive number of trainees to try to keep down their crew costs. That is a difficulty in some elements of the industry. One of the recommendations in our report related to the disconnect between craft grades and the Irish Film Board. I mentioned to the Minister previously that someone from the craft grades should be nominated as a member of the Irish Film Board to ensure there would be proper communications between all elements of the industry here.

Last March and again in July, I mentioned to the Minister the idea that a film forum would be set up as part of Screen Ireland. I do not believe that has happened yet, and I ask the Minister to push for that as well.

Also, the precarious nature of workers within the sector is a grievance. The Minister mentioned there would be an examination of that element. I urge her to ensure that work within the sector is not precarious because, when it is precarious, serious problems such as the exploitation of workers can arise. Given we are funding the sector so much, there should be zero tolerance of any exploitation.

The Department, through the audiovisual steering group, will work with all partners to ensure the industry operates to the highest standards. As we know, new legislation from the Minister, Deputy Regina Doherty, will address all of these issues. Protections for workers in the film industry will be part of that legislation she will bring forward.

There will also be improved training and education as a key objective of the audiovisual action plan. Screen Ireland has taken steps to strengthen its training arm. It is also considering the practical issues around the establishment of a suitable forum, which is something that could be considered also. The Olsberg report identified the importance of section 481 in underpinning the Irish industry. The Department of Finance is undertaking an economic analysis of the relief. We have to make sure, however, that people who are working, even if it is on an ad hoc or loose contract basis, are protected regardless of the industry they are working in, but especially in the film industry.

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