Film industry pays a high price for success

IN common with other developed economies, Ireland has seen the movement of transnational capital across the globe.

Tue, 04 Nov, 2003 - 00:00

This has meant a steady stream of job losses in the manufacturing and technology sectors.

Taskforces are hastily formed and targeted initiatives are quickly announced to deal with global economic factors beyond the control of government.

But how does a government create a local employment crisis? By ending a highly successful tax relief scheme.

The Government decision to end the tax incentive for the film industry, known as Section 481, is placing 4,000 direct jobs in the film sector at risk in addition to 3,000 other indirect jobs in the transport, catering and tourism sectors.

This incentive has attracted up to €140 million of inward investment annually. The yearly cost of the scheme is approximately €25 million.

The imminent Government decision defies all reasonable financial analysis especially when the cost benefits involve sustainable employment and investment in regional economies.

It appears that wealthy individuals can benefit from tax avoidance schemes to the detriment of the Irish economy while an industry which generates employment, and much foreign direct investment, is penalised for its success.

The Minister for Finance must think again.

Jimmy Jordan,

SIPTU Film and Entertainment Branch,

Jane Boushell,

SIPTU Irish Actors’ Equity Group,

John Swift,

SIPTU Musicians Union of Ireland,

Denis Farrell,

BATU,

Paddy Coughlan,

INPDTG,

Hugh Doyle,