Film and television production in the Republic reached £100.1 million last year, and what the Government lost through Section 35 tax breaks it recouped through wage taxation, the employers' lobby group IBEC said yesterday.

Releasing a report, The Economic Impact of Film Production In Ireland - 1995, IBEC said £64.1 million of the output was spent on Irish personnel and the purchase of goods and services in Ireland. "That translates into 16,031 people on 97 productions, making the equivalent of 1,266 full-time jobs," IBEC said.

The Government's policy of promoting the Irish audio-visual industry had been working successfully, said IBEC director Mr Tommy McCabc, and the various tax incentives and grants were making significant contributions towards investment in independent productions.

IBEC warned that there was increasing competition from other countries for film and television production work. Early indications for 1996 suggested the reduction in the Section 35 tax relief had driven down the output for the year to around £80 million.

The Government should devise new grants and tax incentives to stay ahead of the competition, Mr McCabe added. In particular, it should introduce a Business Expansion Scheme.