Government no longer invests in film - and the focus is on other forms of media.

Enterprise Minister Laurence Skelly and his department’s chief executive Mark Lewin were giving evidence to the Public Accounts Committee.

The committee is investigating whether there is a need for further inquiry into the £26m losses made by the island’s film industry.

More than 100 films and TV shows were produced in the island, generating over £300m in VAT and other taxes.

But when the VAT rules changed in 2007, the number of films made here dwindled.

In total, £20.6m was written off on films made during the time CinemaNX was managing the media development fund. A further £6.2m was written off on films made when Pinewood advisors were in charge.

At its latest hearing, the committee was told that government financial support was no longer available for film.

But a new digital creation fund has been set up under the Enterprise Development Scheme, specifically aimed at media businesses.

Mr Lewin told the committee: ’We have a legacy of films. We don’t provide support into films, that’s not something we do anymore.

’Our focus is about long-term sustainable jobs.

’We as the Department for Enterprise don’t have any powers or schemes that would enable us to take a financial investment in a one-off for a financial return like Isle of Man Film did in the past.

’Ours is investing in businesses based on exchequer benefit, based on what the business is going to return, and jobs ultimately.

’We’ve gone from a transition in terms of film into an economy of substance.’

Minister Skelly said there were ’significant opportunities’ for media businesses but the criteria had to be jobs, with physical businesses with ’real jobs right here’.

’We want media businesses here - if they are right here on the Isle of Man, creating jobs,’ he said.

Mr Lewin said media is no different from other sectors like manufacturing in being eligible for financial assistance. The digital creation scheme was set up to ’give clarity’, he said.