Pre-Budget Submission 2019 - Page 1 of 9 - Screen Producers Ireland
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Page 1 of 9 Pre-Budget Submission 2019 © 2018 | SCREEN PRODUCERS IRELAND
Page 2 of 9
August 2018
Contents
Screen Producers Ireland Budget 2019 Key Asks ................................................................ 3
Section 481 Tax Credit ......................................................................................................... 4
Funding Irish Film and TV .................................................................................................... 7
Conclusion ........................................................................................................................... 8
© 2018 | SCREEN PRODUCERS IRELANDPage 3 of 9
Screen Producers Ireland Budget 2019 Key Asks:
1) Extend Section 481, in its current form, beyond 2020 to reflect the long lead
time required in the film, TV and animation production sector.
• Legislate for this extension in the forthcoming Finance Bill
2) Allocate €20m of Project 2040 funding annually to Screen Ireland from 2019.
About Screen Producers Ireland
Screen Producers Ireland (SPI) is the national representative organisation of over 130
independent film, television and animation production companies.
SPI promotes the growth and sustainability of a strong independent production sector
and the overall creative screen sector. We address the needs of the sector and, using
our knowledge and expertise, we aim to deliver a strong and sustainable offering for
Irish production companies.
SPI is focused on shaping an independent production sector that is comparable to best
international standards. SPI encourages state organisations charged with developing the
industry to put in place development plans and policies for the sector that will maximise
its potential.
© 2018 | SCREEN PRODUCERS IRELANDPage 4 of 9
Section 481 Tax Credit
• Extend Section 481, in its current form, beyond 2020 to reflect the long lead
time required in the film, TV and animation production sector.
• Legislate for this extension in the forthcoming Finance Bill
Importance of S481 to the industry
The film and TV tax incentive Section 481 is essential to Ireland’s production landscape.
Section 481 provides a competitive tax incentive which is of benefit to indigenous
productions, international co-productions and gives independent producers leverage to
attract incoming productions which creates high value industry jobs in Ireland.
In 2017 Irish productions committed to spend €292m in the year in the Irish economy as
a direct result of Section 481 certified projects. This is the highest level ever achieved.
To ensure the long-term sustainability and development of our sector, it is vitally
important that Ireland continues its long history of maintaining a tax incentive for
production.
The lead-in time for film, TV and animation projects from initiation, development to
financing and production can span several years. Certainty around the long-term
availability of Section 481 is crucial to provide confidence and security to the indigenous
industry and to position Ireland as a sustainable location for highly mobile, direct inward
investment by international studios and producers.
The importance of the earliest possible announcement of the continuance of Section
481 beyond 2020 must not be underestimated.
OSN Economic Analysis of the Audiovisual Sector in Ireland
The recently released OSN Economic Analysis of the Audiovisual Sector in Ireland noted
the significant role that S481 in sustaining the industry and the wider economy.
“Government support has played an important role in assisting the audiovisual sector to
grow. Section 481 – the Irish government’s film tax relief delivers value for money on
both a fiscal net benefit and economic net benefit basis.” 1
1
OSN Economic Analysis of the Audiovisual Sector in Ireland, p6
© 2018 | SCREEN PRODUCERS IRELANDPage 5 of 9 The report also noted the high levels of employment in the Film, TV and animation sectors: “The largest contribution to employment came from the film, TV, and animation sub- sector, which generated 11,960 FTEs of employment of which just over 7,000 was direct employment such as cast and crew.” 2 Having conducted a comprehensive review of the AV Sector and S481, the report went on to recommend that: “Section 481 is a critical support for the Irish production sector, generating jobs, and providing strong value propositions for the public purse; as such, we recommend that the Irish Government signal its intention to extend the scheme as soon as possible.” 3 It also recommends that the tax incentive should be extended, “ideally on an indefinite basis”, to ensure that we are competitive against other territories which have a similar tax incentive. Creative Ireland Audiovisual Action Plan The Creative Ireland Audiovisual Action Plan has also identified Section 481 as a key component for the predicted growth of the AV Sector in the next 5 years. It notes that “The Section 481 tax credit system is a vital part of the financial infrastructure of the audio-visual industry in Ireland.” 4 Growth potential of the industry Both the OSN report and The Creative Ireland AV Sector Action Plan forecast that the sector could, over 5 years, double employment in the “film, television and animation” sectors. The Irish film and TV sector is a vibrant industry with a sophisticated infrastructure of production companies, studios, service companies and personnel, all of which provide valuable employment in the Irish economy. S481 is a part of the financial infrastructure that sustains this sector. S481 attracts incoming production and has a positive impact on the creation of high end jobs. It contributes to Ireland’s reputation as a global hub for high-tech digital and creative content. 2 ibid, p6 3 Ibid, p7 4 Creative Ireland Audiovisual Action Plan, p16 © 2018 | SCREEN PRODUCERS IRELAND
Page 6 of 9
The result is that Ireland has become an attractive location for incoming film and
television production whilst also supporting indigenous production.
Operational issues
As noted in both the OSN and Action Plan recommendations the operation of the
incentive needs to be reviewed to ensure that it can accommodate both the current
workload and the potential growth of the industry over the next 5 years. SPI supports a
review of the operation of the incentive so that the Revenue Commissioners have the
resources necessary to deal with applications in a timely and efficient manner. SPI has
engaged with the Revenue Commissioners over the past year and would welcome the
opportunity to participate in any formal review.
Governmental support for S481
Speaking in the Dáil in July 2018, the Taoiseach supported this view when he said:
“Many different countries have tax incentives to encourage the film and
audiovisual industries. Without such incentives, we could lose out entirely. If we were to
remove tax incentives, rather than having a better outcome, we would end up with
fewer jobs and less investment all around.” 5
It is imperative for the Irish animation, film and television industry that a fiscal incentive
is maintained and operated efficiently to keep pace with international market
competitors, particularly given the increase in the number and augmentation of similar
incentives across Europe, including the UK.
SPI supports the OSN report recommendations and Creative Ireland AV Sector Action
Plan recommendations that maintaining Section 481 is essential to ensure growth in the
sector.
Announcing the extension of Section 481 as part of Budget 2019 would give the industry
the certainty it needs to begin to plan productions beyond 2020. Legislating for the
extension as part of the forthcoming Finance Bill would copper fasten the ability of the
industry to plan and give comfort to international production companies who are
considering investing in Ireland.
5
https://www.kildarestreet.com/debates/?id=2018-07-04a.306&s=film+industry+leo#g339
© 2018 | SCREEN PRODUCERS IRELANDPage 7 of 9
Funding Irish Film and TV
• From 2019 allocate €20m annually to Screen Ireland from €200M Project 2040
fund.
SPI welcomed the April 2018 announcement of the Project 2040 Culture plan ‘Investing
in our Culture, Language and Heritage 2018 – 2027’ as we have been calling for the
reinstatment of Screen Ireland grant funding to its pre-recession levels of €20m a year
since the early 2010s.
The plan notes that:
“Under Pillar 4 of the Creative Ireland Programme, the Government is committed to
developing Ireland as a centre of excellence in media production through supporting the
development of the Irish film, television and animation sectors.” 6
The €1.2BN plan included a commitment to €200M in media production through Screen
Ireland over the 10 years of the plan. The additional investment in the sector is
welcome.
However, there remains a lack of clarity about how the €200M fund will be
proportionally allocated over the 10-year life span of the plan.
SPI is calling for €20M to be allocated annually to Screen Ireland for the duration of the
plan. This will give Screen Ireland and the industry clarity and certainty as to the level of
funding that will be able available for investment in projects.
6
Investing in our Culture, Language and Heritage 2018 – 2027, p38
© 2018 | SCREEN PRODUCERS IRELANDPage 8 of 9
Conclusion
Screen Producers Ireland Budget 2019 Key Asks:
1) Extend Section 481, in its current form, beyond 2020 to reflect the long lead
time required in the film, TV and animation production sector.
• Legislate for this extension in the forthcoming Finance Bill
2) Allocate €20m of Project 2040 funding annually to Screen Ireland from 2019.
The success of the indigenous production sector is of vital importance to the Irish
economy. The OSN report highlights the positive impact that the industry has on the
wider economy. The industry creates quality employment, expresses an outward vision
of contemporary Ireland, preserves and promotes our cultural heritage, and attracts
international inward investment on major film, animation and TV drama productions for
global markets.
It is critical for the film, TV and animation production sector that the Government
announce the extension of Section 481, in its current form, in the coming months so
that this can also be communicated to the international production industry, studios
and financiers who are considering or planning to make their projects in Ireland beyond
2020.
Certainty in future planning is essential to how the industry operates, and this reality
needs to be accounted for in Government announcements.
For further information on any of these issues please contact Anthony Muldoon:
(e) anthony@screenproducersireland.com
(t) 01 662 1114
© 2018 | SCREEN PRODUCERS IRELANDPage 9 of 9
SPI Pre-Budget 2019 Submission
77 Merrion Square, Dublin 2, Ireland
Tel: + 353 (0)1 662 1114
Web: www.screenproducersireland.com
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