James Reilly (Dublin North, Fine Gael)
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Question 46: To ask the Minister for Arts, Sport and Tourism if he has put in place measures to track job losses in the arts sector due to the economic downturn; and if he will make a statement on the matter. [8669/09]

Bernard Durkan (Kildare North, Fine Gael)
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Question 57: To ask the Minister for Arts, Sport and Tourism his priorities for the promotion and funding of the arts during the current economic climate with particular reference to the need to ensure the survival of the arts throughout this period; and if he will make a statement on the matter. [8569/09]

Bernard Durkan (Kildare North, Fine Gael)
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Question 291: To ask the Minister for Arts, Sport and Tourism his proposals for the promotion and development of the arts at various local levels here with particular reference to projected needs in the current economic climate; and if he will make a statement on the matter. [9037/09]

Martin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 46, 57 and 291 together.

The State appreciates and values the contribution the arts sector has made to the internationally renowned artistic reputation of this country. Even within the current economic constraints I do not consider investment in the arts, culture and creative sectors as somehow discretionary. As Minister for Arts, Sport and Tourism, I was pleased to secure overall funding of €185 million for the arts, culture and film sectors in this year's budget.

The Arts Council is the State agency charged primarily with the promotion and funding of the arts. I continue to monitor and review the resources at my disposal to facilitate the council in its vital work. To this purpose, funding for the arts and culture sectors has increased significantly in recent years. For example, funding to the Arts Council had increased by 72.2% since 2002, from €47.67 million to €81.6 million in 2008. Due to the serious budgetary constraints now confronting us the level of funding for the Arts Council had to be reduced for 2009 to €74.439 million, but with reductions to arts organisations being minimised as much as possible.

I am acutely aware of the employment potential which the arts and culture areas represent. According to 2007 Pocketbook on Cultural Statistics, EUROSTAT estimates that there were 48,000 employed in the cultural sector in Ireland in 2005 representing 2.5% of the total number employed in Ireland. This figure compares well with other EU member states and is marginally higher than the 2.4% EU average. Other EU studies estimate that the culture and creative sectors in Ireland contributed 1.7% to GDP in 2003.

The arts, culture and creative sectors are key elements of the cultural tourism agenda. As Deputy Mitchell recognised earlier, the sectors are real and enduring employers and the fulcrum of a smart economy.

I am optimistic regarding the spirit, ability, and willingness of those involved in the arts to adapt and mobilise in not only facing future challenges but in turning them into opportunities. In that regard the key findings of the recent Creative West report are worth reciting. The western region has 4,779 businesses in the creative sector employing 11,000 people, accounting for 3% of total regional employment, and generating €534 million in annual turnover. Creative sector businesses in the region are mainly indigenous, small scale and rooted in their western location with 98% headquartered in the region. Quality of life and inspiration are among the strongest motivators for creative people to live and work in the western region. Currently there is relatively little networking among creative businesses in the region and economic opportunities may be lost because of this. Greater linkages between the creative sector and other sectors can enhance innovation across the economy. There is potential for overseas market growth as currently only €74 million of total turnover is exported.

In the current economic conditions the arts and culture sectors will not be immune from the knock-on impact on revenues. I have asked the Arts Council to keep my Department informed on trends in this area.

Olivia Mitchell (Dublin South, Fine Gael)
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We all recognise that money is tight and that there will be cutbacks. The purpose of these questions is to ensure that cutbacks will be made in a way that causes the least damage in terms of employment. I accept what the Minister said about the Western Development Commission's report. It is precisely because those jobs are dispersed throughout the country that is difficult to track what happens when cutbacks are made. Is there any possibility of tracking, through the CSO, the Arts Council or some mechanism within the industry, be it through theatre companies or the Irish Film Board, the impact of the economic downturn on the industry?

I am aware that the film industry is suffering in this respect. The Irish Film Board is commissioning less work, as is RTE, TV3 and TG4. Reports from within the film industry suggest there has been a loss of almost half of the jobs in the industry. That would be catastrophic because, as the Minister knows, it is an important sector and a big employer. It is one that can disappear from the country overnight as it is very mobile. That is the reason I am anxious to ascertain if there is any way of checking the impact of economic downturn on the industry and if, for example, the Irish Film Board should commission several smaller films rather than big one, given that our tax system is not very conducive to the funding of big movies.

Martin Cullen (Waterford, Fianna Fail)
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The Deputy raised a number of points. I agree with her that the industry is dispersed throughout the country. It percolates down into small communities and villages and the people involved in it get good employment. The industry plays an important role in the heart and spirit of many communities. Unlike many other businesses, it has the capacity to get into areas.

Through the Arts Council, we are trying to monitor the effect of the economic downturn. We have tried to maximise the allocation of resources to maintain jobs in all the activities that occur in the arts sector.

I am surprised at the information the Deputy has received about the film industry. I have not had any such indication. There was a significant Irish presence at the Oscar Academy Awards in Los Angeles last week and a significant Irish event was held leading up to the ceremony. It was an event I was supposed to attend, but in the current circumstances I thought if I was seen near the Oscar Academy Awards it would be misunderstood.

Approximately €150 million worth of business was on the table, which is a substantial increase on the figure for last year. We made changes to section 481 of the legislation in the budget on the basis of advice received from the Irish Film Board and others in the industry. The move to provide 100% tax relief for investment and to increase from €31,750 to €50,000 the limit for such investment, has had a significant impact. Everyone everywhere is feeling the pinch and we have to monitor how many of these projects will materialise. Last year the Irish Film Board funded approximately 25 feature films. I gave this figure the other day, and I can be corrected on it if I am wrong, but it was a significant number, which generated approximately €75 million in terms of activity in the country. Therefore, that was the right approach. The Irish Film Board funded a large number of small films.

I would not want the film board to put all its resources into funding one large film. It has a role and recognises it to be that of investment in generating jobs for young artists and creating opportunities for new directors, producers and actors to get involved in the film industry. The sector has had a very successful year. Gabriel Byrne and Colin Farrell won Golden Globes. The Costa Book of the Year Award was won by an Irish author. Success was enjoyed across the spectrum in that the Irish short film, "New Boy", which was fully funded by the Irish Film Board, won a Global Globe — it did not win an Oscar.

People tend to talk about this industry as a nice added extra, but given the current digital era, the creative talent we have, in terms of those who work in these major international digital companies, is fermenting in the film industry. Some 1,000 people were employed in the industry five or six years ago while more than 6,000 of the best of people are employed in it now. In terms of the quality of people working in the Irish film sector, it is seen as one of the best in the world. We were being passed out by other countries, as Deputy Mitchell corrected pointed out, in terms of the incentives they give to get films produced. We have now corrected that imbalance. That was reflected in what happened last week in Los Angeles. I am optimistic that the business this year will be as good and hopefully better than in previous years.

Mary Upton (Dublin South Central, Labour)
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I agree with everything the Minister said in both parts of his reply, which is basically all about the importance of the arts. I fully subscribe to that and agree with the Minister. My concern is that there will be job losses in the industry, which the Minister has acknowledged. It is almost inevitable. There is no reason this, no more than any other industry, should be insulated from that.

I wish to raise two points. We have a tracking mechanism for many of the industries such as the construction industry, the catering industry and so on. Could we not find a way to establish exactly what jobs in the industry have been lost or are likely to be lost? My other point is that two or three jobs will be lost here and there, the immediate effect of which may not be noticeable, but for the individuals concerned it will be just as damaging and as important as if 100 jobs were lost in another area.

Those with arts related jobs must keep up to speed. The Minister mentioned the development in the digital area, which is rapidly advancing. If people in this industry lose their jobs, will the Minister discuss with the Minister for Enterprise, Trade and Employment ways to refocus or redirect those people into jobs to enable them to keep their skills up to date and to be effectively employed in a valuable way, for example, in schools or in communities? There are various ways in which they could be employed.

Martin Cullen (Waterford, Fianna Fail)
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I hope we took the right decision and the early indications are that we did. Rather than people losing their jobs, I expect all the jobs in the film sector will be sustained this year in Ireland because it was indicated in Los Angeles last week that there is €150 million worth of potential projects in the pipeline.

Mary Upton (Dublin South Central, Labour)
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I was not referring to only the film industry but the wider sector.

Martin Cullen (Waterford, Fianna Fail)
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I am aware of that but I am referring directly to the people involved in the specific high end of the digital sector, the television film sector. That indication is very positive. I hope that is the outcome at the end of the year.

There is an informal tracking of jobs through the Arts Council and I can examine whether we can put it on a formal tracking basis through the CSO or some other mechanism. It is probably more difficult to do that because it is diffuse in the sense of its dispersement, not in the sense of its importance.

I am very conscious of that and I have tried hard to address it with support from the Deputies. It is very important when we talk about the arts sector to continually make the point that it is not some added extra in good times. It is very much at the heart of economic activity of this country and very much at the heart of the broadest creative sector including in technology — in companies like Intel. Many of the creative people that are developing come out of this area or are formed in this type of situation and I think we need to try and do that. I accept that there will be some pain to be borne. There is no point in denying it. However, I believe we have done as much as we can to protect the primacy and importance of the jobs in the sector. I recognise that the sector makes an enormous contribution to tourism and the hard economy rather than simply cultural tourism and in addition brings international respect for Ireland.

Olivia Mitchell (Dublin South, Fine Gael)
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I agree with the Minister. The importance of the arts goes beyond the importance of the jobs — important as they are. The only good news stories coming out of Ireland in the past six months have been from the arts, including the Oscar awards and the achievements of our writers, which is of great value to Ireland.

While it is great that we now have so many regional arts venues, as the Minister knows I have expressed concern in the past about them always being on the breadline and on the cusp of being unviable. With the reduction in touring, some of them will be in very dire financial straits. The safety net of local authority funding will probably disappear, as their income will be greatly reduced. Is there any way to track the viability of those venues over the next 12 months or so in order to ascertain the impact of the shortage of touring etc. and the reduction in their annual grants, including their maintenance grants, which is a major factor? Without a reasonable maintenance grant, some of those centres will need to close even from a health and safety point of view, which would undermine the point of having built them in the first place.

Martin Cullen (Waterford, Fianna Fail)
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The present economic circumstances will impact on some of the points the Deputy is making and it would be foolish to think otherwise. I am conscious of that and I am trying to track through the local authorities, the Arts Council and other bodies what exactly is happening to ascertain the impact. I am also getting the message back that people can be smarter, more efficient and more productive with less — and they are saying that. The scale of the increase in the arts funding in recent years was phenomenal — and rightly so. There has been a 72% increase in arts funding in the past four or five years. The level of funding has hardly gone back in terms of the past year or two. It is a question of trying to get more value, squeeze more out of it with people doing less. There may be some jobs lost here and there. I suppose that is inevitable to some degree. People will also make some career choice moves. At this stage what is recognised is that we are happy that we did not get mauled. We have taken our share. We do not want to take any more pain. We want to get on now with what we are doing and want to plan on that basis. Perhaps when we return for parliamentary questions in the House in couple of months time I may have more information for the Deputies on that specific point.