CEO of Screen Producers Ireland Susan Kirby said SPI welcomed the Budget 2023 announcement that Section 481 has been extended to 2028.
The Oireachtas Budgetary Oversight Committee today discussed the film and tv tax credit.
Ms Kirby said Section 481 is one of the most crucial incentive schemes for independent producers in Ireland, providing much-needed tax relief for eligible productions.
This extension provides much-needed clarity for independent producers seeking to undertake long-term production planning.
However, she said, SPI was disappointed that there was no extension of the 'regional uplift', which proved very valuable in bringing productions out of Dublin and Wicklow.
Ronan McCabe of Animation Ireland also welcomed the extension, saying animation is a global business and the announcement will give certainty to its members.
Around 2,500 people are employed full time in animation across the island and regions. He also said he was disappointed that the 'regional uplift' element of Section 481 was not extended.
Eoin Holohan of Screen Guilds Ireland said SGI was committed to establishing and promoting a fair working environment for all TV and film crews working in Ireland.
He said the screen sector is undergoing growth and welcomed the extension of 481 which he said continues to be crucial to the development of the industry.
Richard Boyd Barrett of People Before Profit said he didn't see jobs being created in the live action film industry. He said you either create quality employment or you don't and either you contribute to culture or you don't, and according to European rules you shouldn't get state aid if you are not doing those things.
He said people who work on successive Designated Activity Companies have to start from scratch every time, and he asked how you can get a job in Irish film.
Film producer Aoife O'Sullivan said the industry is not the "wild west", adding that it's heavily regulated. She said it is a project-based industry, adding that you cannot offer continuous employment to crew members as they don't want it.
But, she said, the industry is busy and booming, adding that if she wanted to get the same crew for three projects she cannot get them as they have moved on.
Ms Kirby said it's a project-based industry and in large part involves fixed-term contracts.
"That's the global norm and the norm here in Ireland. It's a career choice. What's really key is that all of the contracts are fully covered in terms of relevant employment legislation," she said, adding that Section 481 provides the taxpayer and the Government with a high level of compliance.
She also strongly refuted claims that there is "blacklisting" in the industry, and said great progress had been made in reaching agreement across five unions.
Sinn Féin's Mairead Farrell asked about a cost-benefit analysis of Section 481 which showed that the net economic cost was €75m, and asked if this was worrying for the taxpayer.
Ms Kirby said they had welcomed that CBA report as it set the policy context of the investment and pointed to a rigorous process. She said that if issues like the shadow cost of labour were removed then the CBA would be positive, and she pointed to the intangible aspects of the industry and the cultural dividend it brings to the country.
She said anyone in receipt of Section 481 is an Irish production company so there is a benefit to the Irish production ecosystem, and she said the idea of inbound production is that there is a balance between both.
The Chief Executive of Fís Eireann/Screen Ireland, Desiree Finnegan, said that as a result of the Cine4 scheme and Section 481, there are now more Irish-language feature films being produced than ever before, ensuring that Irish filmmakers' voices can be heard as Gaeilge as well as in English.
She also said that in March 2019, Screen Ireland was asked by the Department of Arts to take on a new role to develop and then oversee a new process for tracking training and skills development opportunities on Section 481 funded projects, which is a requirement of the tax credit.
She said this was a new departure for the agency, providing an opportunity for Screen Ireland to introduce a more structured approach to work-based learning and skills tracking, making Ireland the first country in the world to link such a formal skills tracking process to a tax credit.
She also said that this year, Screen Ireland in collaboration with Screen Guilds of Ireland has launched a 'competency framework' that captures all of the skills, knowledge and competencies for over 80 crew roles across 17 departments, which will open up access and career progression roles within the sector.
