09/12/2002

In his annual budget announcement made on Wednesday (4 December), the Irish Minister of Finance, Charlie McCreevy, said he was bringing forward to 31 December 2004 the termination date for the film relief scheme “Section 481” from April 2005. The minister said, “given the current and prospective budgetary position of the government and the desire to improve equity in the tax system, there is no justification for a continuation of this relief beyond 2004.”
. Despite that this tax scheme will now finish earlier than originally legislated for in the 1999 Budget (when the scheme was extended to April 2005), the Irish government has confirmed its support of the continuation of Section 481 for another two years. It is hoped that this will give the local film industry some breathing space and enough time to strengthen and consolidate its position both domestically and internationally.
Commenting the news to the Irish Film and Television Network (IFTN), Rod Stoneman of the Irish Film Board said, “it would be extraordinary if the Government denies itself the significant net financial benefits to the Irish economy which are generated by Section 481. Apart from underpinning the continued success of the indigenous industry, this tax incentive is essential to maintaining Ireland’s attraction as a location for international productions”.
Indeed, according to statistics from the Irish government’s Department of Arts, Sport &Tourism, a total of 20 feature film projects were certified in 2002 for a total cost of Euros131.1million. The Irish expenditure on these projects amounted to Euros84.8million, with the contribution made by Section 481 amounting to Euros58.9million.
The films that benefited from Section 481 this year were Jerry Bruckheimer Films’ Chasing The Dragon and Company of Wolves’ The Actors with Michael Caine.

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