The Republic's film industry had a record 2003, but the post-production sector is facing a crisis as competition from the UK increases. The Audiovisual Federation yesterday said that total output in 2003 came to €320.2 million, a 68 per cent increase on the previous year.
Projects like Laws of Attraction and Mr Jerry Bruckheimer's King Arthur drove a lot of the growth, the federation said yesterday. Independent production output rose to €47.8 million, from €44.2 million in 2002.
However, foreign film-makers are shifting the post-production element of Irish projects to Britain because that country's tax regime makes it more attractive to carry out those activities there.
Mr Tony O'Connor, who acts as a co-ordinator for the post-production industry, told The Irish Times yesterday that producers were increasingly taking advantage of the tax regime in both jurisdictions. The practice has become known as "double dipping".
"One company has already had to close down while at least one other is having serious difficulties," he said. Mr O'Connor added that the sector employed 200 people and pointed out that those were mainly full-time jobs.
Earlier this year, the directors of editing specialist Edit Line wound up the company with a deficit of €200,000 after work dried up. It had been involved with high-profile projects like Michael Collins and Braveheart.
The directors cited uncertainty over the future of the tax break for film production funding. EU Commissioner and former finance minister, Mr Charlie McCreevy, extended that incentive and increased the ceiling for the break to €15 million in his last budget 12 months ago.
The Audiovisual Federation, an affiliate of business and employer's body IBEC, said that the tax break gave a net return to the Exchequer of €30 million in 2003.
The federation's director, Mr Tommy McCabe, said yesterday that a report written by PricewaterhouseCoopers for the Department of Arts, Sport and Tourism, found that the incentive was vital to the industry.
The uncertainty surrounding its future led to a slowdown in the number of blockbuster projects coming into the country, according to Mr McCabe. That slowdown lagged into this year, but the flow of productions coming in has picked up.
Major productions filmed here during that period included Paramount's The Honeymooners, Mr Neil Jordan's Breakfast on Pluto and Mr Noel Pearson's Tara Road.
Producer, Mr James Flynn, chairman of the federation's financing committee, said that the weak dollar has made it less competitive for US film makers to come to Europe.
