British tax break for films will increase competition

BRITISH budgetary measure to provide similar type tax breaks for filmmakers as exist in Ireland would not have a detrimental effect on movie production, spokespeople for the industry said yesterday.

But the British Department of National Heritage said that, where finance was a decisive factor, films would now remain in production in Britain, where before Ireland would have been considered.productions at which Chancellor Brown's announcement is aimed.

He is allowing a 100 per cent tax write-off on production and acquisition costs for films with a budget of Pounds 15 million or less. The Irish Section 35 provision allows 80 per cent of investment costs to be written off against tax.

But the Minister for Arts, Culture and the Gaeltacht, Ms de Valera, said the new situation should be viewed positively, with further opportunities fir co-productions being opened up. She intended to set up a film industry think-tank.

The former minister, Mr Michael D Higgins TD, said the new British changes would help create a "European cinematic space". "Yes, it will make it more competitive, but the drift all over Europe is increased competition on that side of things," he said.

The British National Heritage spokesman said that the former tax regime had undoubtedly been a sticking point for some filmmakers.