Jimmy Deenihan (Kerry North-West Limerick, Fine Gael)

I thank Deputy Donohoe for raising this matter. The background of the State's involvement with the Light House Cinema goes back to February 2006 when the then Minister for Arts, Sport and Tourism, Mr. John O'Donoghue, approved an offer of a capital grant of €1 million towards the development of the cinema in Smithfield, Dublin. Construction began on the project in March 2007 and it was officially opened in May 2008. The grant was provided for the fit-out costs of the project rather than the construction costs. Further State funding of €750,000 was provided from the Cultural Cinema Consortium, which comprises the Irish Film Board and the Arts Council.

The capital funding for the Light House Cinema was provided from the Department's capital development subhead for arts infrastructure.

The purpose of the subhead is to support the development of arts and culture in Ireland. Integrated arts centres, theatres, museums, cinemas and galleries, as well as arts studios and other creative and performance spaces, have been provided with funding. The programme has been widely acknowledged as a significant intervention in the provision of quality cultural spaces throughout the regions.

The State's investment in the Light House Cinema is protected through a legally registered charge on the property. This charge allows, that in the event of the Light House Cinema ceasing to operate from the premises in Smithfield in the first five years of its operation, I as Minister can choose either the repayment of the State grants or agree to allow another art house or cultural cinema to occupy the building for the remainder of the lease so that the premises remains in use as an art house or cultural cinema centre. As the cinema was opened in 2008, this five-year agreement has a further two years to run.

On 15 April 2011, the High Court placed the Light House Cinema into involuntary liquidation and appointed a liquidator. As this House is aware, the Chief State Solicitor represents the Government in cases such as this and my Department was represented at the various court cases by officials from the Office of the Chief State Solicitor. Officials from my Department are continuing to work with the Chief State Solicitor's office which, in appropriate legal consultation with the Office of the Attorney General, will advise me and my Department on the next steps necessary to protect the State's interest.

It is a tragedy that such a fine facility has closed and I am deeply disappointed that an amicable solution was not found to resolve the difficulties involved. I hope that a new tenant can be found to continue to operate the premises as an art house and cultural cinema centre. Film and film making is of great value to Ireland, both financially and as a cultural asset for the country. Now more than ever there is greater global competition in securing film and television productions. Despite our recent economic difficulties, Ireland continues to hold its own in the audiovisual and film sectors. This is thanks to the work of the Irish Film Board and our impressive talent pool of directors, writers, actors, technical crews and various State supports on offer. The most important of these is the section 481 tax incentive for film and television production in Ireland, which runs until the end of 2015.

The Irish audiovisual sector plays an important part in Irish society, both in economic and cultural terms. Film, as part of the audiovisual medium, is an area in which Ireland continues to excel, as evidenced by the success of Irish productions which have secured numerous awards at international level in the last few years. Deputy Costello has raised this matter as well and requested that I meet a delegation of people interested in this project. I would suggest that the Deputies accompany that delegation next week.

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