The value of film and television production in the Irish market will increase by some 81 per cent his year to an estimated €175.7 million, new figures on the industry reveal.
Industry group Ibec's annual audiovisual report said that as a result of a number of initiatives, the value of film and television production had increased significantly this year, but warned that Ireland faces strong international competition for film production.
Ibec report
Ibec said Minister for Arts, Sport and Tourism John O'Donoghue had given extra funding to the Irish Film Board last year and increased the 2006 budget by 21 per cent to respond to low production levels in the film industry in 2005.
There were also improvements to the film tax incentive legislation, known as section 481.
"This year projects produced with funding from the Irish Film Board have combined budgets of over 120 million, which in turn has generated over 80 million in Irish spend," the Ibec report said.
"The impact on the industry of this resurgence in production activity has been an increase in employment levels and a significant return on government investment in the sector. However, the future of this high level of production activity remains in doubt as Section 481 becomes more internationally uncompetitive for feature film production."
Over 30 film projects have been certified for production in Ireland this year.
"Strong government support has had a beneficial effect on the Irish film industry this year and has enabled the Irish Film Board to develop and support more Irish filmmakers."
Ten Irish films, including John Boorman's The Tiger's Tail, were produced this year and about 15 international film and television projects chose Ireland as a film location.
James Morris, chairman of the Irish Film Board said, however, that the industry continued to face challenges "not least with regard to the ever increasing international competition in attracting film production".
The Minister said he was pleased that overall expenditure on film and television production in Ireland was likely to increase by 50 per cent this year, despite a 10 per cent decrease in overall production expenditure between 2004 and 2005.
He said further consideration of the operation of the Section 481 scheme will be based on !the experience of its success over time"
He confirmed his commitment to examining "new and innovative ways" of developing the Irish film sector and supporting Ireland's competitiveness aboard as a production location.
"Attracting major international productions to the State is a particularly complex business, subject, as it is, to the dynamics of international competition, including new and enhanced incentives, lower cost structures and exchange rates."