Oireachtas committee to report on film tax break

A powerful Oireachtas committee is to look into claims that thousands of jobs could be at risk if the Irish film industry loses…

A powerful Oireachtas committee is to look into claims that thousands of jobs could be at risk if the Irish film industry loses its special tax relief.

The industry is concerned that the Minster for Finance, Mr McCreevy is considering axing the provision in December's Budget.

It widely accepted that Ireland, one of the top six locations for film-making in the world, has proved a popular choice for producers because of its favourable tax provision.

Today, the chair of the Oireachtas Finance Committee, Mr Seán Fleming, announced that interested parties would appear before it on November 5th.

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The Fianna Fáil TD acknowledged the provision "has allowed this country to develop a thriving movie industry which is a large source of employment".

However, he said: "we must establish the benefits of continuing the incentives and balance that against the cost to the exchequer."

A report will be drawn up and brought before the Dáil and Seanad. The Committee will then ask the Government to consider its findings before finalising the Budget.

Fine Gael arts spokesperson Mr Jimmy Deenihan believes the loss of Section 481 would leave 80 per cent of the approximately 4,300 workers in the industry out of a job.

He said "many producers have acknowledged that they would not have chosen Ireland without the tax break".

"There is clear evidence that Section 481 contributes more money to the economy than it costs the Exchequer, and the financial argument for its abolition is weak," Mr Deenihan said.

He urged Mr McCreevy to end the uncertainty surrounding Section 481 and give it a ten-year extension.

He said films produced in Ireland served as a "tremendous ambassador for the country ... providing invaluable publicity for Ireland as a tourist destination".