The Government could boost jobs, industry and the economy by extending the tax write-offs available to film-makers and guaranteeing the scheme for the next decade, the Irish Business and Employers Confederation (IBEC) said yesterday.

Releasing the annual report of its audio-visual federation, IBEC said that, while the sector was almost twice the size it was in 1994, an atmosphere of financial uncertainty was undermining future projects.

In 1997, the latest year for which figures are available, there was record production in the Irish audio-visual sector, IBEC said. Output reached £123 million (€156 million), a 23 per cent increase over the previous year.

"This output supported the provision of 1,450 full-time job equivalents in direct employment, compared with 1,187 in 1996," said IBEC director Mr Tommy McCabe. "Irish direct employment numbers as a percentage of total employment amounted to 93 per cent of this."

According to the report, the sector is now almost twice the size it was in 1994, reflecting the arrival of TnaG, and RTE's outsourcing policy.

"On the other hand, a major disappointment was the virtual disappearance of animation production," the report added.

IBEC argued that the benefits to the Exchequer of the audio-visual industry amounted to an estimated £31 million in 1997, but admitted this figure included not just £13 million in direct taxes, but also an estimated £18 million in indirect taxes.

The cost to the Exchequer of the industry in 1997, measured in tax revenue foregone on the £54 million invested under the Section 481 tax break provision, was £21 million, IBEC said.

The audio-visual industry therefore effected a net return to the Exchequer of £10.5 million in that year, the report said.

Not counting indirect taxes, however, the document's figures indicate the Exchequer would make a loss of around £8 million.

The grants through tax relief to the film industry, while minuscule, compared with the volume negotiated by IDA Ireland with other sectors, are high on a per capita basis. According to the report, the grant per job is around £14,000. This compares to around £11,500 per IDA Ireland post.