Dáil debates

Thursday, 15 February 2007

Other Questions

Film Industry Development.

4:00 pm

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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Question 10: To ask the Minister for Arts, Sport and Tourism the latest efforts being made to attract more international film-makers to produce their films here; his views on the drop-off in the number of films being produced here; and if he will make a statement on the matter. [5562/07]

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Fianna Fail)
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I refer the Deputy to my previous replies of 26 October 2006 and 30 November 2006 regarding the incentives available for film production in the State. I explained at that time that the task of attracting international production to Ireland is dependent on a number of elements, not all of which fall within the sphere of influence of my Department or of the Irish Film Board. Decisions to site a film project in a particular territory involve complex funding, cultural, logistical and project-specific elements, all of which must gel for a successful result. As described in these previous replies, primary responsibility for the support and promotion of film-making in Ireland in respect of both the indigenous sector and inward productions is a matter for the Irish Film Board. This agency is funded through my Department and is independent of the Department in its operations.

My Department's primary role in supporting the film sector relates to the administration of elements of the section 481 tax relief scheme. I have previously outlined the Government's initiatives and enhancements of the scheme contained in the Finance Act 2006 in recognition of the changing dynamics of this industry, aimed at increasing Ireland's attractiveness as a film-making location. These incentives are kept under review in conjunction with the Irish Film Board and any necessary amendments to retain or regain competitiveness will be addressed and brought to the attention of the Minister for Finance as appropriate.

The Irish Film Board has been the driving force in such endeavours and, with its overall funding for 2007 increased to €19.7 million, it will be enabled to continue with its key role of developing and supporting film production in Ireland. The increased current allocation will facilitate the board in marketing Ireland as a film location and, in particular, will assist the work of the newly appointed film commissioner in Los Angeles in raising the profile of the Irish audiovisual industry abroad.

The welcome additional funding provided by me to the Irish Film Board in 2005 and 2006, totalling €3.5 million, was directed to supporting international productions that could demonstrate clear economic, industrial and cultural benefits to Ireland. The Irish Film Board's judicious selection of projects to support in 2005 resulted in significant additional Irish production activity worth €30 million in 2005 and €34 million in 2006. Therefore, €3.5 million generated €64 million. The evidence in employment, training and turnover is clear, going some way to restoring the health of the sector which had to rely on low scale indigenous production in 2004 and 2005.

The continuing increases in capital funding to the Irish Film Board since 2004 have ensured support to meet the demands of the industry in the areas of project and talent development, training and indigenous film and television production. The increased support enables the Irish Film Board to fulfil its aim of sustained growth of the industry, increasing the number and quality of films produced in Ireland each year.

Photo of Jack WallJack Wall (Kildare South, Labour)
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Was it last year or the year before the Minister went to Hollywood?

Photo of Jimmy DeenihanJimmy Deenihan (Kerry North, Fine Gael)
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He brought back a great sheepdog, Lassie.

Photo of Jack WallJack Wall (Kildare South, Labour)
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I am not sure which year he went to Hollywood.

Photo of Jimmy DeenihanJimmy Deenihan (Kerry North, Fine Gael)
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Lassie is now rounding up sheep around Cahirciveen.

Photo of Jack WallJack Wall (Kildare South, Labour)
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In leading that delegation to attract international films to Ireland, was there a positive outcome? Given that we are approaching St. Patrick's Day, with Ministers attending pageantry around the world, are any Ministers attending Hollywood? I have always supported this practice because it provides a great opportunity to develop tourism. Visiting Hollywood could create an image that may assist employment and the development of the arts and actors by attracting more international films.

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Fianna Fail)
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Irrespective of when I went to Hollywood, it feels as if I never left it.

During the St. Patrick's Day festivities and over the course of that week many Ministers travel to different parts of the world. It affords us an opportunity to advertise Ireland on the world stage. As a small nation on the periphery of Europe, we must take advantage of it. No other country of comparable size is afforded the publicity Ireland receives on that day. The ministerial visits have been a catalyst for economic growth and development on this island. It is possible that one of my colleagues will be in Los Angeles, one of the designated cities, during the week. I will ask my colleague to promote the Irish film industry. Since I became the Minister for Arts, Sports and Tourism it has been traditional to brief each of my colleagues visiting a foreign location on the advantages that may accrue from tourism. They act as ambassadors, bringing visitors back to the country.

We have a permanent film ambassador in Los Angeles whose job it is to liaise with the major studios to attract film production to the country. I will ask whichever colleague goes to Los Angeles to see if it is possible for him or her to meet the representative and liaise with Hollywood production companies with a view to attracting film productions to Ireland.

Photo of Jimmy DeenihanJimmy Deenihan (Kerry North, Fine Gael)
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Will the Minister expand on the job description for the film ambassador? Does that person have other responsibilities? Does that person have an office in Los Angeles and has he or she been successful?

Will the Minister commit to the continuation of section 481 beyond 2008? The capping on the level of investment in a film is too low to attract the type of blockbuster film that would travel internationally. Typically, that would require €100 million.

What is the future viability of Ardmore Studios? I understand that little is happening there. In the event that anything does happen to Ardmore, does the Government have any plans to provide services that will keep the industry going and developing?

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Fianna Fail)
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Last year was extremely successful for the Irish film industry. The number of certified productions at the end of the year was the highest in several years. The total certified spend last year was €202.5 million, which was a significant increase on previous years, except 2003. The section 481 amount last year was the highest in several years, at €110.8 million.

The British have changed their rules on film and offered good incentives to the industry. We are in competition with them. The Minister for Finance increased the cap to €35 million from €15 million and increased the relevant percentages, which did a great a deal for the industry. The British Chancellor, Mr. Brown, however, took a personal interest in the reliefs available there which makes it more difficult for us to compete. The question is whether to get involved in a Dutch auction, which is not the preferred option, or to see if we can enhance the co-production arrangements which we have with Britain and examine whether it is possible to reach a mutually compatible and acceptable position.

We are far ahead of other jurisdictions in terms of television production. We are the only one which offers section 481 type of relief to television production, which has resulted in some major television series being made here. I have no reason to believe that this will not continue during 2007 although I accept that, in the absence of changing section 481 to bring it into line with British laws, inward film production could be more difficult.

I understand that the ambassador, or representative, of the Irish film industry in Los Angeles is located in the Enterprise Ireland building and that he liaises with Hollywood production companies with a view to bringing productions to Ireland. I hope that this will be successful.

The future of Ardmore is contingent on the success or otherwise of the Irish film industry which I hope will continue to grow as it did in 2006. I have no doubt that there will be such growth in television production.