Members of the Irish film industry last night welcomed recommendations that the industry's tax breaks should continue at least for the next four years.
Following public hearings into the section 481 tax breaks, the Dáil Finance Committee concluded that the incentives should remain in place until the end of 2007.
Mr Andrew Lowe, joint chair of Screen Producers Ireland, which represents 250 film production companies in the country, said he hoped the Government would accept the recommendations.
Leading actors have been campaigning to keep the country's special tax position, claiming that without it the Irish film industry would collapse. Stars including Neil Jordan and Jim Sheridan have spoken out against abolishing the scheme.
Many actors have signed a petition, claiming that the industry relied on the crucial funding in order to develop and compete with the European film sector.
The tax legislation was introduced as a temporary measure in the 1980s, but the Minister for Finance, Mr McCreevy, said recently that the incentives were not justified.
However, chair of the Dáil Finance Committee Mr Sean Fleming TD said that in addition to recommending an extension of the provision, the Committee was asking the Revenue Commissioners to recoup an estimated loss of €23.3 million to the exchequer which resulted from abuses of the tax break.
"Section 481 has been instrumental in the development of a vibrant film industry in this country," he said. "The annual cost to tax payers is €25 million; however, the existence of the relief led to the expenditure of approximately €107 million per annum in the film industry in Ireland.
PA