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

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 approved a capital grant of €1 million towards the development of the Light House 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 for the project from the Cultural Cinema Consortium, which comprises the Irish Film Board and the Arts Council.

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, the Minister can choose either the repayment of the State grants or agree to allow another arthouse cinema or cultural cinema to occupy the building for the remainder of the lease so that the premises remains in use as an arthouse/cultural cinema centre.

The Cultural Cinema Consortium has further liens on the premises. 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. On 27 April Mr. Neil Hughes of Hughes Blake was appointed receiver and manager by Bord Scannán na hEireann/the Irish Film Board and the Arts Council with the agreement of my Department. Following appropriate examination and analysis of the emerging situation, my Department will be advised by the Chief State Solicitor and the Attorney General on the best approach to take in conjunction with Bord Scannán na hEireann/the Irish Film Board and The Arts Council.

I understand that the receiver will seek expressions of interest in taking over the management and running of the Light House Cinema by placing advertisements in the national media.

It is regrettable that such a fine facility is currently closed, but I hope that a new tenant can be found to continue to operate the premises as an arthouse and cultural cinema centre. I am constrained in saying much more at this juncture.

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