Written Answers. - Tax Reliefs.

Richard Bruton

Ceist:

166 Mr. R. Bruton asked the Minister for Finance the cost of tax relief to the film industry in each of the past three years; the estimates of the associated film productions; and the assessments which he has available of the benefits accruing from this industry relative to the cost of the tax forgone. [19142/03]

Income Tax Year

Estimated costof Tax Relief€m

Number of Films Certified

2000-01

29.2

25

2001 (9 month tax year)

11.3

13

2002

21.5

23

The report by economic consultants INDECON entitled "Supporting the Effective Continued Development of the Irish Film Sector" which was prepared in 1998 and commissioned by the then Minister for Arts, Heritage, Gaeltacht and the Islands included,inter alia, assessments in relation to the benefits accruing from the industry as a result of the relief available under section 481 of the Taxes Consolidation Act 1997. This report concluded that best estimates suggest that the cost of the incentives for the sector exceeded the direct tax contribution of the sector and that even if the indirect tax contribution of suppliers were to be included, there would still be an excess of costs.