747. Deputy Malcolm Byrne asked the Tánaiste and Minister for Finance the progress on the Programme for Government commitment to examine the tax treatment of production costs for theatre productions. [60458/26]

The Programme for Government commits to examining the tax treatment of production costs for theatre production.

This work will involve engagement with the sector to understand how it operates, the challenges it is facing, and what policy levers may be effective and efficient in supporting the sector. The design and policy objectives of comparable initiatives in other jurisdictions will also be examined.

In considering any future decisions on new tax incentives, regard will be had for the sound management of the public finances and my Department's Tax Expenditure Guidelines. The Guidelines make clear that any policy proposal which involves tax expenditures should only occur in limited circumstances where there are demonstrable market failures and where a tax-based incentive is more appropriate and efficient than a direct expenditure intervention. It must also be noted that targeted measures are likely to be constitute State aid and there are limitations on the abilities of Member States to introduce such measures.

The Deputy may be aware that there are non-tax supports currently available to theatre productions. Under the Arts Act 2003, the Arts Council has primary responsibility for the development of the arts in Ireland – supporting theatre artists at all stages of their careers to create work that reflects Ireland out to the world and back on itself. Ireland is renowned for producing world class theatre, from a proud tradition of literary and canonical plays through to more contemporary and experimental work that borrows from other artforms including music, dance, visual arts and film.

Overall, the Arts Council develops theatre in Ireland by supporting artists, collectives and companies who create, develop and present theatre to audiences. These artists range from playwrights writing new plays to companies devising new pieces, also funding a range of theatre artists and organisations, from production companies to producing theatres and resource and representative organisations. Support for theatre production is primarily through Strategic Funding, Arts Grants Funding and Project awards. Additionally, the Arts Council funds individual artists and organisations on a once-off basis through the Project Award.