News that tax relief for the film industry would continue for another five years was gratefully received. Mr McCreevy said Section 481 of the Taxes Consolidation Act (1997) would be extended to 2005.
The measure included a modification eliminating the 510 per cent relief on post-production activities which was needed to get European Commission approval.
The Irish film industry was worried earlier this year by rumours that a report by Indecon economic consultant Mr Alan Gray, for the Department of Arts, Heritage, Gaeltacht and the Islands, suggested Section 481 should be phased out or replaced.
The Minister for Arts, Heritage, Gaeltacht and the Islands, Ms Sile de Valera, yesterday welcomed the announcement and said the extension would facilitate the confidence needed for the sector's growth in the digital age.
She said: "This will create an unprecedented period of stability and clearly illustrates the Government's commitment to the long-term strategic development of the industry."
The industry expressed serious concern last year when Mr McCreevy decided to extend the measure for only one year. This is the longest ever extension of Section 481.