The audiovisual sector generated more than £21 million for the Exchequer in 1996, a new report has found. It says the industry generated 1,187 full-time jobs and a further 1,200 indirect jobs.

The report, by the Audiovisual Federation, which is allied to IBEC, said that Section 35 investments - which are eligible for generous tax relief - amounted to £40 million in 1996.

Mr Tommy McCabe, director of the Audiovisual Federation, said the future of Section 35, which is up for renewal next year, was of particular concern to the industry.

He said the federation was urging the Government to retain it as a measure "which is underpinning the development of the sector and giving good returns to the Irish economy". The federation also called on the Government to restore to 100 per cent, from 80 per cent, the proportion of eligible expenditure which can be set against tax.

The sector's output in 1996 included 122 productions, of which 19 were feature films or major TV dramas and 96 were independent TV programmes. The total budgets for these was £97 million, of which £62 million was spent in Ireland.

The report also said that other support for the industry came from State agencies and organisations, including RTE and TnaG who commissioned more than £12 million between them from the independent production sector.

Mr McCabe said that the level of activity in the audiovisual sector was the same last year as in 1996, but both years were less active than in 1995.

"In an industry which is expanding throughout the world, the Irish audiovisual sector ought to be expanding at least as rapidly," he said.