The Minister for Tourism, Sports and Arts, Mr O'Donoghue, has vowed to fight for the retention of the Section 481 tax relief for films, despite a plan by the Department of Finance not to renew it when it expires at the end of 2004.
Section 481 is of importance to the Irish film industry, and film has the capacity to contribute very generously to our national well-being and to the Exchequer, Mr O'Donoghue said.
He told The Irish Times he has commissioned his own report from Price Waterhouse into the tax relief which he will present to the Minister for Finance, Mr McCreevy.
He said if the likelihood of abuse of the tax relief can be eliminated, there is "a very strong case for the retention of Section 481."
"For my part I would strongly be urging that the relief be maintained," he added.
Mr O'Donoghue pointed out that other countries were offering major tax incentives to attract international film.
"We have an awful lot here to offer in terms of our landscape and our people, and it would be a great shame were we to lose major films as a result of the fact that we have no incentive at all.
"I think that it is almost inevitable that we would lose some of the major films as a result of the abolition of Section 481."
The Minister was speaking in his first major interview on his arts brief since taking over the portfolio a year ago.
Earlier this month Screen Producers Ireland published a report arguing for the retention of Section 481. Mr O'Donoghue said he recognised there clearly was some abuse of the tax relief.
He added he was aware of the industry's need to plan ahead and said it was important that it should be known "relatively soon" if the tax incentives were to be retained for a period.
"There is considerable evidence of the advantages of film to the economy. For example, it is estimated that 14 per cent of people who visit Ireland have been influenced to come here by film, which is the highest percentage influenced by any single event or other form of persuasion." The Minister also said that, following the passing of the Arts Bill and the temporary sub-committee on traditional arts, he plans to set up a second committee, on the arts in education.
During an interview in The Irish Times today he also talks about his appointment of the new Arts Council; the Abbey Theatre; his personal interests in art, and how, for him, the poet "Sigerson Clifford in Kerry terms is a god".