Mr. Joe O'Connell:

Ashford Studios is a new facility that has been in operation since May 2012. Since opening, we have had three seasons of the very successful "Vikings" production, and are currently filming the fourth. There are 450 employed by the "Vikings" production, excluding extras. The series is trying to attract up to 8,000 extras to be available during the period of the shooting.

Ireland is essentially providing a good incentive to encourage international film and television production to this country but we have not provided the infrastructure for them in which to operate. We have not built any large film studio infrastructure in the past 30 years and the reason for this is that such infrastructure in itself is not commercially viable. An issue is that these facilities lack the dedicated and appropriate classification when it comes to calculating the local authority contributions and rates. Large-scale studio infrastructure is incorrectly classified as commercial buildings and is therefore significantly overcharged. A legislative amendment that will help investment to take place is required.

Large-scale studio infrastructure should not be in the same classification as commercial buildings for the following reasons. Film production is cyclical and leaves the building empty for part of the year. Actors and crews move on to their next projects while awaiting the results of the ratings. During this waiting period sets are left standing in preparation for the following season. There is no guarantee of occupation or lease. There are no leases from production companies because success of the projects depends on ratings. The result from these ratings can be seen only weeks prior to the commencement of the next year of filming for the subsequent season. Due to incentives offered in other jurisdictions, film production companies have little loyalty or permanency in one jurisdiction and the nature of film production is transient and uncertain. The money paid to the studios for use of the facility is not a commercial return based on the cost of putting the infrastructure in place.

Despite the uncertain environment there is one fact of which we can be sure, that is, that film and television content is a permanent product and offers significant potential in terms of jobs, direct and indirect investment, and tourism. The recommendations that we suggest would be a considerable help include an amendment to the Valuation Act 2001 to include a dedicated classification for new large purpose-built studio infrastructure which would qualify this type of infrastructure for a more accurate rate of charges. Under the new classification of "studio infrastructure", an exemption or nominal percentage of commercial rates and local authority planning contributions should apply. Due to the limited studio space that currently exists, we have been unable to accommodate incoming inquiries from large international production companies. Despite our efforts to facilitate these productions in revamped warehouses, we have been unsuccessful. Film and television production companies have expressly stated on numerous occasions that these revamped facilities are not suitable for purpose.

The putting in place of a competitive section 481 incentive without the availability or provision of modern infrastructure in which to operate is not sound. There is a requirement for large studio infrastructure, which could cater for up to 10,000 jobs and significant inward investment. Persons using transferable skills in previous employment can fill many of these jobs. Large-scale purpose-built studio infrastructure requires large capital investment to be put in place and does not generate a commercial return and therefore should not incur a commercial level of rates and local planning contributions. For example, based on our first three years in operation, not only have we not paid back any of the capital on our loan, we have not paid back any of the interest.

In order to resolve this, we suggest that a new classification be added to the legislation for this specific type of infrastructure. Under the new classification of "studio infrastructure", an exemption or nominal percentage of commercial rates and local authority planning contributions should apply.

The suggestion is that the Valuation Act 2001 be adjusted appropriately. In Part 1, preliminary and general, the description should be that "studio infrastructure" means:

a) large scale new purpose-built studio infrastructure consisting of stage and office-workshop buildings solely used for the purpose of film and television production, and

b)"Office-workshop buildings" that hold departments needed for the production company using the stage facilities.

This eliminates the possibility that it would spread and be used by other sectors. It would not include buildings previously used for an alternative purpose other than film and television production.