Irish government extend film tax relief incentive until 2008

The Irish government have announced their intention to retain 'Section 481', the 80% tax relief incentive on films, until at least 2008.
Irish Finance Minister Charlie McCreevy also announced that the allowed cap will be raised by a third to €15 million from 2005.
Irish film agencies, who had predicted dire consequences for the national film industry if the incentives were scrapped, warmly welcomed the decision.
The Irish Film Board (IFB) Chairman Ossie Kilkenny said: "The IFB joins the industry in welcoming this affirmation of the governments commitment to the growth of the Irish film industry. It is all the more welcome in a year when the investment by the government is bringing its rewards with an unprecedented output of successful films made in Ireland."
Screen Producers Ireland (SPI), representing over 225 independent film and television production companies in Ireland, said that the measure would have a positive impact on the industry, dispel the uncertainty that had prevailed and allow Ireland to continue as one of the six preferred film locations in the world.
According to Andrew Lowe of SPI's executive committee, Minister McCreevy has been progressive in his decision to view the film tax incentive in a different category to other tax incentives. He noted that this approach would send an important message internationally that the Irish Government and Ireland are 'film friendly.'
Lowe also congratulated the Minister of Arts, Sport and Tourism, John O' Donoghue, for his key role in securing this decision and his consistent endorsement of industry recommendations.
"We very much welcome this decision and look forward to working closely with the government to look at measures to consolidate the industry's success and assist its continued growth. 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," said Lowe.
"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. It is an important day for Ireland internationally too, as there has been great uncertainty for a number of international productions considering Ireland as a potential production location - we are delighted that we now can re-affirm Ireland's place as an international location of choice for filming."
An independent economic report commissioned by SPI showed that the Irish film 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 inject €49 million annually into the Irish labour market. The industry contributes €107 million annually to Irish GDP and attracts an average of €136 million annually through foreign inward investment.
(GB)