Tax reliefs pledged to woo Bollywood to Ireland

CHANGES to film-making tax incentives have been promised to overseas filmmakers by Arts Minister John O’Donoghue, who wants Bollywood producers to make movies in Ireland for Indian audiences.

Mr O’Donoghue said other countries had copied Section 481 of the Finance Act, which gives up to €15 million in tax allowances to investors who fund major productions in Ireland.

“Other countries have been very innovative in the way they had made tax relief available and we have to see if we can match them,” Mr O’Donoghue said.

He pointed to Britain, where generous allowances have been introduced.

Mr O’Donoghue, who is accompanying Taoiseach Bertie Ahern on a trade mission to India, said that Bollywood producers, the world’s second biggest film industry, have been asking him about film tax allowances in Ireland.

“We are not as competitive as we were and bringing in a change like this is a sure and certain way of firing up the industry,” said Mr O’Donoghue.

Over the last two years, scenes for 11 productions have been shot in Ireland by Indian filmmakers, and Mr O’Donoghue said Ireland needs to become more competitive to capture these and other large productions.

He stressed no agreement had been reached with Finance Minister Brian Cowen to introduce changes to the Finance Act, but said he was confident of getting a fair hearing.

He wouldn’t be drawn on what new tax relief ceiling he would like to see introduced, but said the advantages in Ireland begin to increase once a film budget exceeds €35m. He said the Disney movie King Arthur, which was shot in Ireland, had a budget of €134m.

Film Commissioner Naoise Barry and Irish Film Board Business Affairs chief Teresa McGrane are also participating in the trade mission and are accompanied by Irish producer Brendan Goss, of Pucan productions, who has serviced a number of Indian productions filmed in Ireland.

“The Irish Film Board recognises the importance of this growing market and is looking at ways in which the number of Indian productions choosing Ireland as a location can be increased,” said Ms McGrane.

“Closer links between our two countries will mean that we can get more Irish films into India and more Indian filmmakers to film in Ireland,” said Ms McGrane.