The film industry has welcomed of the extension of the Section 481 tax relief scheme, announced by Mr McCreevy today.
The Minister said the he had reviewed the decision not to renew the scheme and as a result it would be extended until the end of 2008. The ceiling per film will be increased to €15 million from 2005, the Minister added.
"Future decisions will depend on there being no further abuse of the scheme. There should also be clear evidence that the film industry can develop on a firmer footing throughout the country and not just close to Dublin," he added.
The Irish Film Board welcomed the decision. "It is all the more welcome in a year when the investment by the Goverment is bringing its rewards with an unprecedented output of successful films made in Ireland", said IFB Chairman, Mr Ossie Kilkenny.
Screen Producers Ireland (SPI), which represents more than 225 independent film and television production companies in Ireland, said the extension would have a positive impact on the industry and would "dispel the uncertainty that had prevailed and allow for productions both domestic and international to now re-consider Ireland as one of the six preferred film locations in the world."
Mr Andrew Lowe of SPI said the decision would "send an important message internationally that the Irish Government and Ireland is 'film friendly'".
"There is no doubt that the 4,300 people whose jobs rely on the sector will be delighted with the news.
"This decision means Irish audiences can continue to look forward to home produced TV dramas as well as quality Irish films. As with all other EU members, an important outlet for national cultural expression has been safeguarded."
SPI says the 4,300 jobs 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.
