Film industry representatives have reacted angrily to the announcement that Section 481 tax reliefs for investment in film production have been extended for just 12 months, "pending full consideration of special studies on film relief to be published by the Minister for Arts, Heritage, Gaeltacht and the Islands".
"This short-term measure does not provide an appropriate framework for the Irish film and television industry to continue its phenomenal progress," said Ms Tania Banotti, director of Film Makers Ireland, which represents film and television producers.
"This is in direct contradiction to Fianna Fail's long-term strategic policy for the industry as outlined in its policy document of December 1998 prior to entering government. This document also promised enhancements to Section 481 which have not materialised as yet."
The "special studies" commissioned by the Minister for Arts, Heritage, Gaeltacht and the Islands, Ms de Valera, include a report delivered before Christmas by an Indecon consultant, Mr Alan Gray, which is believed to be critical of the current tax relief system. The Minister is still awaiting a further report on the industry from a "think tank" comprised of industry representatives and practitioners.
"While we are concerned at the potential uncertainty of the current position with regard to the one-year extension, we are pleased that the Minister has indicated that further extensions and enhancements are possible and urgently request the think tank to make their long-awaited recommendations," said Ms Banotti.
Mr David Collins, executive producer of the film I Went Down, said: "We remain hopeful that the think tank will recommend that Section 481 be extended and enhanced up to 2010 to bring it in line with manufacturing relief, and would ask the Minister to immediately put an end to the current speculation and uncertainty by making a long-term commitment to Section 481."
Mr James Flynn, co-producer of Angela's Ashes, said it was ironic that the week that Steven Spielberg's Saving Private Ryan has received Oscar nominations, "we may now have a period of uncertainty in Ireland which will be immediately highlighted by our many overseas competitors".
Mr Tommy McCabe, director of IBEC's Audiovisual Federation, said Section 481 had generated strong revenues for the economy in recent years, and agreed that the decision could have negative consequences for the film industry here. "Not renewing Section 481 for a longer period sends the wrong message to the international film-making community at a time of intensifying competition from the UK, as reflected in this week's Oscar nominations."
With the Irish Screen Commission (the new body charged with promoting Ireland internationally as a film-making location) due to have its international launch in Los Angeles later this month, the timing of this decision could not be worse, said Ms Banotti. "The sector now employs over 4,000 people and a significant number of these jobs may now be at risk unless a more strategic long-term approach to supporting the sector is adopted."
