Mr O'Donoghue, the Minister for Arts, Sports and Tourism, has assuaged the fears of Irish film producers that the industry will suffer from the abolition of the Section 481 tax relief scheme, which is due to be discontinued from the end of 2004, writes Michael Dwyer, Film Correspondent, in Cannes.
"We are looking forward to where we go from that point," he told over 150 guests when he officially opened the Irish Pavilion at the 56th Cannes Film Festival yesterday evening.
"My message to you here today is that film production is and will remain important to Ireland, that we value the benefits that international production in Ireland brings with it, and we will be looking very carefully over the coming months at the entire context.
"This will involve a complete review of the existing incentive structures, of where they position us strategically and competitively, and where we need to position ourselves after 2004 to ensure that we remain attractive as a filming location. In all of this we will, of course, be working closely with the Irish Film Board."
He described film as a powerful medium of communication that can examine a nation's view of itself, and perhaps even offer humorous alternatives to our viewpoints. His positive comments on the Irish film industry and its future were greeted with warm applause and evident relief.
Afterwards, Mr O'Donoghue told The Irish Times he intends to raise the issue of the post-Section 481 climate for Irish film with the Taoiseach, the Minister for Finance, and Fianna Fáil's partners in government, the Progressive Democrats, "to ensure that we do not fritter away all that has been achieved".
"Our intention is to forward proposals to the Department of Finance to ensure that there is no opportunity for abusing any new arrangement, and I believe, if we can assure them of that, that capital will be made available for the film industry."