Screen producers welcome Section 481 decision

Screen Producers Ireland (SPI) has welcomed Charlie McCreevy’s decision to retain Section 481 until the end of 2008.

The film tax incentive which was under threat of being abolished would have a positive impact on the 225 independent film and television production companies in Ireland.

The Minister for Finance also announced that the cap on investment will be increased to €15m from 2005.

Andrew Lowe of the SPI said Minister McCreevy has been progressive in his decision to view the film tax incentive in a different category to other incentives being removed.

He said today: “It had been widely acknowledged by independent parties as well as the Joint Oireachtas Committee on Finance that Section 481 has provided a return to the exchequer on its investment.

"A long-term commitment to strategic financial incentives for the film industry will be a vital catalyst for the continued growth and development of a quality indigenous film and television drama industry."

An independent economic report commissioned by SPI showed that the industry currently employs 4,300 directly and a further 3,000 through the influence of film on the attraction of international tourists.

The 4,300 jobs alone in the film industry injects €49m annually into the Irish labour market.

The industry contributes €107m annually to Irish GDP and attracts an average of €136m annually through foreign inward investment.