Andrew Doyle (Wicklow, Fine Gael)
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I thank the Ceann Comhairle's office for selecting this issue for debate. Most people will agree with me that County Wicklow is the headquarters of the film industry in Ireland. For more than 40 years, Ardmore Studios in Bray was the Lone Ranger in the provision of studio facilities. In more recent times, larger studios have been opened in Ashford by Ashford Studios, which was set up by the O'Connell family. The film production company headed up by Morgan O'Sullivan has brought many productions to this country. At the moment we have "Penny Dreadful" being filmed in Bray and "Vikings" in Ashford.

The Action Plan for Jobs includes several initiatives to promote the film industry. One of these is the proposal to set up an expert review group to examine what measures are necessary to assist in the provision of additional studio space. A recent report by Grant Thornton highlights the need for funding for such infrastructure. A particular problem for the industry in Ireland is that film studios are classified under class 4, section 2 of the Planning and Development Regulations 2001, as amended, which means a fee of €360 per square metre is payable. This is proving prohibitive to the provision of this vital infrastructure.

In reply to a parliamentary question I tabled recently, I was told there are no plans to amend the planning fees at this time. To clarify, that is not what I asked. My question was whether film studios would be allocated a new class under the regulations. In other words, the specific class under which studios are currently categorised would not need to change, but it should no longer apply to them. As it stands, the applicable fee for large-scale studios has proven to constitute an inordinately high cost.

The second issue I wish to highlight is that when it comes to development contribution schemes, film studios are treated in the same way as other commercial premises on the scale, say, of an Ikea store. However, such a facility is really a totally different ball game, because it has footfall all year around and who knows how many cash registers in operation at all times. A film studio, on the other hand, might only be used for three months of the year at high intensity. It may well be part of an overall package which includes location shoots. One of the reasons Wicklow is so popular as a location for shoots is that it is less than an hour from the airport and has the backdrop of mountain and valley, including Glendalough. The Market Square in Rathdrum has been used in films about Michael Collins and in a number of advertisements because there are four different aspects to it. My in-laws own the post office there and at one stage it was being repainted three times a year for different productions. That gives a flavour of the potential which is there.

Studios are a vital element of our film industry and I am asking that they be recognised as such. I can short-circuit some of the expert review group's findings by predicting that what I am proposing here will be one of its recommendations. It is very pertinent that the Minister of State, Deputy Jimmy Deenihan, is here to respond to this matter. He has visited the studios in Ashford and is well aware of the issues. In his former role as Minister for Arts, Heritage and the Gaeltacht, which included responsibility for the film industry, he acquired a good appreciation of the requirements of the sector. I look forward to his response.

Jimmy Deenihan (Kerry North-West Limerick, Fine Gael)
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I am delighted to be here to respond to this Topical Issue matter on behalf of the Minister for the Environment, Community and Local Government, Deputy Alan Kelly. It gives me an opportunity to acknowledge the initiative shown by Mr. Joseph O'Connell and his family in establishing Ashford Studios, which is currently home to the "Vikings" television show, which is very successful in the United States and around the world. I have been on site there and seen the studio space, which is built to a very high specification. The same applies to Ardmore Studios, whose whole space has been taken over by the "Penny Dreadful" production, which is also very successful.

As Minister for Arts, Heritage and the Gaeltacht, I was delighted to have the opportunity to extend section 481 provisions and increase the benefit to 32%, which is one of the best offerings in the world. I also introduced the so-called Tom Cruise clause whereby the fees paid to major actors from outside the European Union are treated as part of the overall budget. During my time in that Ministry I met with Steven Spielberg during a visit he made to Ireland. Mr. Spielberg told me he would love to work in this country provided he had access to a studio space of 60,000 sq. ft. I understand Mr. O'Connell is prepared to provide that space, with some assistance from Government.

Planning authorities in Ireland have been receiving 20,000 to 30,000 planning applications annually in recent years, down from a peak of more than 90,000 in 2006, which cover everything from house extensions to large developments. The consideration of planning applications by planning authorities is resource-intensive and expensive. A planning application must be extensively checked and validated to verify compliance with the regulations, with a view to ensuring, in particular, the right of the public to participate. Each application also requires thorough assessment, in line with the county development plan, and must comply with our obligations under EU environmental directives.

Planning application fees yielded in the order of €7.7 million of revenue in 2012 to local authorities to run a system which employed 1,343 staff, of whom 227 were professional and technical staff.

The annual financial statement for the local government sector states that in 2012, expenditure by local authorities on forward planning was nearly €37.2 million and on development management was just under €88.5 million, bringing total local authority expenditure on planning to €125.7 million.

It can be seen therefore that the amount of income received in fees is only a fraction of the cost of running the planning service. Section 2 of Schedule 9 of the Planning and Development Regulations 2001, as amended, sets out the scale of fees for all planning applications. These include €65 for the provision of a house, and €34 for maintenance, improvement or other alteration of an existing house, including any works for the provision of an extension. In respect of class 4, to which Deputy Doyle referred and which pertains to the provision of other buildings, the fee is €80 for each building or €3.60 for each square metre of gross floor space to be provided, whichever is greater. This is subject to a maximum of €38,000 for any planning application. Class 4 therefore includes the provision of buildings for commercial, retail, industrial and manufacturing purposes and includes studios. The fees of €3.60 for each square metre of gross floor space in respect of studios therefore are the same as for any other commercial development. It also should be noted that the fee payable for applications for permission for strategic infrastructure development made directly to An Bord Pleanála is the economic cost of dealing with these applications. In other words, the fee involved would be considerably higher than for applications to the planning authority. While the planning regulations generally are kept under review in the Department of the Environment, Community and Local Government, I understand that the Minister, Deputy Kelly, has no plans to reduce the planning fees at this time either generally or in respect of studios.

Andrew Doyle (Wicklow, Fine Gael)
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I thank the Minister of State and appreciate he was reading from a script prepared by the office of the Minister, Deputy Kelly. Unfortunately, its last phrase reads "no plans to reduce the planning fees at this time". What I am asking is that this item of infrastructure be treated in a different way. I do not accept it is as onerous to process an application for a film studio as it is to process one for large commercial buildings. I acknowledge there is a visual impact and noise but there is very little by way of threats to damage the environment from effluent or anything else. The film industry is highly mobile and New Zealand and some parts of Eastern Europe are highly active and will compete. The section 481 provision is helpful and is a major incentive. Moreover, Ireland has the expertise and people who are involved in film production, be they actors or producers, like being around. They like Ireland and Dublin and like being near it. Consequently, it is important to recognise these facts and to talk to the people in the industry because unless this matter is addressed, we unfortunately run the risk of not having enough studio space, which is a limiting factor. Were it possible to provide the industry with the full package, of which this proposal is part, an additional 5,000 jobs and €1 billion annually into this country could be leveraged. I do not accept that the planning fees need to be reduced in toto. Consideration must be given to this item of infrastructure and to the film industry and we must decide whether it is worth pursuing. The State gives all kinds of incentives through the IDA and others to bring in jobs but this measure would benefit indigenous people to enable them to provide the infrastructure for this industry to locate and to pick Ireland. As they wish to do so, we should help them.

Jimmy Deenihan (Kerry North-West Limerick, Fine Gael)
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Again, I can understand from where Deputy Doyle is coming. Members should consider what has been achieved in Belfast, where an old building that had been used by Harland and Wolff has been turned into a studio. For example, they secured the "Dracula Untold" movie because they had the necessary space. In addition, the greater London area currently takes in approximately $1 billion of business from Hollywood in general because it has the requisite studio space. This is a critical issue and I agree with Deputy Doyle that it must be addressed in some way if we seek to continue the progress currently being made by a vibrant and growing film industry in Ireland. I remind Members again that the planning application fee in respect of the studio is €3.60 for each square metre of gross floor space to be provided, subject to a maximum of €38,000. This is the same application fee applicable to all types of building other than individual houses and agricultural buildings, that is, the same as for the provision of buildings for commercial, retail, industrial and manufacturing purposes. It is unclear why a special case should be made - I am reading from a script - for studios as opposed to all these other types of buildings. However, I should state that €38,000 is the maximum. Apart from consideration of planning fees, other incentives also should be given to those who are prepared to develop studios. In this case, I believe these people have invested a huge amount already with no State aid. Hopefully, when a review is carried out of the entire support structure for the film industry, this is a matter that can be considered. I will convey the points made by Deputy Doyle today to the Minister.