Cinemagoer levy urged to assist Irish film industry

The Government should consider imposing a levy on cinema-goers as a means of funding Ireland's fledgling film industry, a new…

The Government should consider imposing a levy on cinema-goers as a means of funding Ireland's fledgling film industry, a new report proposes.

The recommendation is one of the key proposals of the Film Industry Strategic Review Group, whose report is due to be presented to the Minister for Arts, Heritage, Gaeltacht and the Islands, Ms Sile de Valera, this afternoon.

The expert committee, commissioned to formulate a strategic plan for the future of the industry, does not specify the extent of such a levy, but recommends that the Government explores the option. Such a levy is operated in France.

The report urges an end to the uncertainty surrounding tax incentives for the film industry, by extending them for at least another seven years.

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A major question mark was placed over incentives for outside investors last year when they were renewed for just one year. The chief executive of the Screen Commission of Ireland, Mr Roger Greene, believes uncertainty over the future of the tax breaks has scared off investors and contributed to the current downturn in the level of film-making in Ireland.

"What this means to us, if it is confirmed, is that the industry can get back on its feet again," Mr Greene said.

The review group is chaired by accountant Mr Ossie Kilkenny. Its members are drawn from the film-making and broadcasting sectors, with representatives of the Department of Arts, Heritage, Gaeltacht and the Islands and the Department of Finance.

The thrust of today's report is that the future of the industry lies in tax breaks to encourage investment rather than State-funded grant-aid.

Even if the Government adopts the recommendation on incentives, it may not attract films to Ireland in the coming year, Mr Greene noted, as production companies had already finalised their budgets for next year, unaware whether the tax incentives were going to be extended.

The Screen Commission of Ireland promotes Ireland as a film location. "I have already received a letter from Twentieth Century Fox saying they cannot plan for any productions here until there is a formal and final verdict on incentives," Mr Greene said.

However, today's report could aid the Screen Commission's efforts to bring a $65 million production, Band of Brothers, to Ireland. The 13-part war series is being produced by Tom Hanks and Steven Spielberg for HBO, the American cable channel.

They are currently trying to decide between Ireland and Britain for the location of the series. It will take up to nine months to shoot and would be worth an estimated £17 million to the economy.

"The extension of the incentives would make Ireland more attractive, but locations and logistics are more important," Mr Greene said.

A Department of Arts, Heritage, Gaeltacht and the Islands spokesman rejected claims that uncertainty about tax incentives had contributed to the downturn in interest by filmmakers in Ireland. "There is a downturn internationally," he said. "There are fewer mobile international projects going around this year than in previous years."