Oireachtas Joint and Select Committees

Tuesday, 6 October 2015

Joint Oireachtas Committee on Environment, Culture and the Gaeltacht

Socio-Economic Contributions of Music in Ireland: Irish Music Rights Organisation

2:15 pm

Mr. Victor Finn:

I thank the Senator. "Yes" is the answer to his first question on the task force. We would see it being appointed by the Government, with representatives on it from the Departments of Jobs, Enterprise and Innovation, Arts, Culture and the Gaeltacht, Communications and Natural Resources and, possibly, Finance. We would require representatives from at least three of these Departments. The music industry and wider commercial expertise from outside it should also be available to the task force. In, particular, the task force should comprise people from within the industry, together with representatives of the various Departments involved. It should be time limited and not have an open-ended remit. We believe that within a period of two and a half to three years it should be in a position to drive home most of the recommendations made in this report with the intention of having them become Government policy across the various Departments. We are talking about a focused group, with industry and departmental experts working over a relatively short period. It would provide strategic leadership and direction in tackling some of the main issues we have identified in the report.

The Senator rightly pointed to the significant fall in sales of recorded music, in particular in the past five to six years. IMRO has been to the forefront in ensuring the licensing of new online services providing music, be it through streaming or downloading. This makes music available to consumers in a form they want and at a time they expect. That means that the creative community is receiving remuneration for the use of its work in the online environment, but that does not mean that all uses of music in the online environment are licensed. In the report we have called for the appointment of what we have termed "an IP czar" who would be a copyright expert to lead policy in the area of intellectual property and copyright. There are significant opportunities not just to follow but also to lead European policy in this regard.

There are significant problems with the manner in which European copyright legislation is being implemented in member states. The safe harbour provisions in the European copyright directive, for example, provide opportunities for those who wish to minimise their licensing fees to do so. This is one area where we believe significant progress could be made. The creative community is suffering because its remuneration has dropped alarmingly in the past five to seven years. That is at the expense of large technology companies the income of which is entirely dependent on the use of creative works, but the commensurate level of remuneration for these works bears no relation to the use the companies derive from them. Therefore, there needs to be a rebalancing of the remuneration of the creative sector compared to the benefits the technology industry generates. This issue is high on the agenda in Brussels and Ireland could and should take a leading role in dealing with it.

We believe a music office would provide an opportunity to have more structured support for the music sector. In many organisations, such as the Arts Council, Culture Ireland, First Music Contact and IMRO, funding is available for new entrants into the industry to break into overseas markets. We believe if that was centred in one music office, in the same vein as the film board acts for film, it would be far more beneficial for new entrants into the industry and could lead to significant growth. In many cases, the domestic market is not big enough to sustain a career in the music industry currently and many of our new entrants need opportunities for overseas earnings to subvent their income, especially at the start. We would see a music office as possibly providing repayable grants over a period of time, depending on the levels of success. We believe it would be self-funding. Most of the recommendations in our report are not overly expensive in terms of draws on the Exchequer.

Financing is related to the point the Senator raised and also to the area of a music office. The banking sector and some arms of the State engaged in promoting industry do not seem to understand the creative industries and how they deliver returns to the country not only in terms of copyright but through other invisible earnings. The Senator rightly pointed out the benefits that accrue to tourism directly because of the availability and the popularity of music as an entertainment medium throughout the State. Our tourism industry has grown substantially in recent years. The principal reason many people come to Ireland - research has borne this out - is because of the entertainment value music provides them with when they arrive here. The indirect benefits of music to the economy are also significant. My colleague, Mr. Keith Johnson, will deal with the issue of education and training.