Budget 2027

132. Deputy Aengus Ó Snodaigh asked the Minister for Culture, Communications and Sport the engagement his officials had with the Department of Finance in advance of budget 2027 in relation to tax relief for arts and culture, specifically in relation to developing a regional uplift for section 481 and to extending the tax relief for donations to certain sports bodies to apply also to arts bodies; and the consideration his Department has given to these proposals. [74474/26]

I am back to the budget. Budget 2027 was a disappointment for the arts. Not only was capital funding cut and Arts Council funding failed to keep pace with inflation, but there were only vague commitments to examine tax reliefs for theatre in the future, the regional uplift sought for the film industry was nowhere to be seen and the tax relief available to sports remains closed to the arts. This is a chance for the Department to explain what discussions took place with the Department of Finance on these matters.

I thank the Deputy. Officials in my Department have ongoing engagement with the Department of Finance on matters relating to tax reliefs that apply to the culture sector. In this context, the Minister wrote to the Tánaiste and Minister for Finance in advance of budget 2027 to consider a sustained uplift of 8% to the section 481 tax relief for regional productions for a period of eight to ten years. He also met with the Tánaiste in advance of the budget to discuss a number of items, including a regional uplift for section 481. In addition, he requested the Tánaiste examine extending the unique sports philanthropy marginal rate tax relief scheme to the arts; increase from €8 million to €12 million the capacity of the section 1003 scheme, which provides tax relief in respect of donations of cultural goods and heritage items to public collections in Ireland; and signal that his Department would engage with the Department of Culture, Communications and Sport on reviewing the tax treatment of theatre production costs and supports for the wider night-time economy. All proposals for change in tax relief are brought forward for consideration by the Government in the context of competing demands, an agreed fiscal framework and significant increases in reliefs in recent years, especially in the area of section 481. I am pleased the Government approved a significant increase to the section 1003 tax relief on donations of cultural goods to public collections in Ireland and will over the next 12 months review the tax treatment of theatre production costs and supports for the night-time economy.

Gabhaim buíochas leis an Aire Stáit. So, it is the Tánaiste and Minister for Finance's fault that we do not see the 8% regional uplift. It is the fault of the Tánaiste and Minister for Finance that we do not see the 8% regional uplift. The Minister of State said that the Minister, Deputy O'Donovan, wrote to him and asked for it and it did not appear. This is another promise not kept. Are we anywhere closer to some commitment to that film industry regional uplift of 8% being achieved next year? For the night-time economy, what is the timetable for the consultation to see what additional support can be given, rather than the vague idea that the matter will be looked into?

Work will continue with the Department of Finance on the proposal. While it was not secured in the budget on this occasion, it is fair to say that the Government has delivered significant additional benefits for our screen sector, with increased expenditure and new and enhanced tax credits. There were two separate enhancements to the section 481 tax credit over the past period. In 2025, an additional 8% tax relief was introduced under the Scéal enhancement for lower budget feature films. In 2026, an additional 8% was introduced for the visual effects enhancement, to help promote Ireland as a VFX centre of excellence and a destination with talent and huge potential for growth. I know the sector is pressing for the regional uplift and it would be of significant benefit. The Minister, Deputy O'Donovan, has pressed it with the Minister of Finance and we will continue to pursue it.

I welcome the ceiling being raised for the tax relief for heritage donations and the artistic measures which were included in the budget to allow people to make donations to national cultural institutions and several other approved bodies. We need to look beyond that. There is the need to fund artists and art spaces in particular and to allow donations or philanthropy to be encouraged through some form of tax relief similar to that which exists for certain sports bodies which have been designated by the Department. We should extend that type of tax relief from sports into the arts field. Ireland is getting richer. Some people have a lot of money and are willing to contribute when asked or sometimes when it is of benefit to them.

It is important that we provide opportunities and facilitate people who wish to contribute their own resources and to donate through philanthropy to support our arts sector. The key point the Deputy is raising is that of the regional uplift. I have met people from the film industry in my own county in relation to that as well. We all have to recognise that a certain amount is available to the Minister of Finance in the context of a budget, when taking into account supporting businesses, supporting people with personal taxation and addressing the cost of living challenges. The Minister, Deputy O'Donovan, and I will support this and we will continue to engage with the Minister for Finance on the potential for it in the future.