Dáil Éireann Debate, Thursday - 17 February 2005
10 Ms O’Sullivan asked the Minister for Arts, Sport and Tourism the value to the Irish economy in 2002, 2003 and 2004 of the film industry here; his plans for the expansion of the industry; and if he will make a statement on the matter. [5337/05]
Amharc ar fhreagraThere are various measures of the value to the economy of the film sector, and methodologies and approaches can differ from one analyst to another. A strong focus in my Department in recent years has been the retention of the section 481 incentive scheme for investors in film production in Ireland. In this context, a report commissioned from PricewaterhouseCoopers by the Irish Film Board, in conjunction with my Department, concluded in September 2003 that the discontinuation of the scheme would result in the displacement of more than 3,500 jobs within the economy, an annual reduction of circa €60 million in national output and a reduction of more than €35 million on the current account of the balance of payments.
A review of film production in Ireland, published by the audio-visual federation of IBEC, concluded that total expenditure on feature films and major television drama, independent TV productions and animation came to €190.9 million in 2002 and €320.2 million in 2003. Of these amounts, €122.6 million was spent in Ireland in 2002 and €151.4 million in 2003.
IBEC estimates that a total of 16,424 people were directly placed on 148 productions in Ireland in 2002, of which 67% were Irish. These figures exclude direct and indirect employment generated through total Irish expenditure of €122.6 million in the Irish economy. A total of 2,111,560 work hours were generated, which translates into 1,198 full-time equivalents.
For 2003, a total of 12,238 placements were directly made on 179 productions, of which 94% were Irish. These figures exclude direct and indirect employment generated through a total Irish spend of €151.4 million in the economy. A total of 2,629,824 hours were generated, translating into 1,491 full-time equivalents. The figures for 2004 are not yet to hand.
The Government's decision, taken in conjunction with the Finance Act 2004, to extend section 481 relief to 2008 and to increase the ceiling on the amount which may be raised from €10.48 million to €15 million with effect from 1 January this year enables film makers both here and abroad to plan their projects in a climate of greater certainty. I underlined this message in my visits to a wide range of film studios in the course of my visit to the United States last week. I have also increased by 20% the funding available to the Irish Film Board.
I welcome the Minister's reply which indicates the value of the film industry here. It is important to provide the necessary expertise and incentives to ensure the continued progress of the film industry, which is of vital importance. Recently, I met the young Irish film makers group which has made a submission to the Minister for funding. It is seeking grants to develop its involvement in film making. Obviously, those people are the experts of tomorrow and unless they receive basic training we will have problems. What is the status of the group's application and can it be developed further to ensure that progress is made?
I welcome the decision on extending the application of section 481 which will have a positive effect. The Minister's recent visit to America has demonstrated the benefits that can accrue from such incentives. Nonetheless, can something be done for the young Irish film makers group? It has a major interest in the industry but it has become bogged down in its quest for vital funding.
The issue of young Irish film makers was also brought to my attention by Deputy McGuinness who said there is a major problem with funding for them. Deputy Wall has buttressed that argument here today. On the previous occasion the matter was raised by Deputy McGuinness, I referred it to the Irish Film Board. Following Deputy Wall's intervention now, I will again refer the issue to the board to see if progress can be made. In the final analysis, funding of young Irish film makers is a question for the Irish Film Board whose budget was increased by 20% this year. I will refer the Deputy's query to the board.
I thank the Minister.
