Dáil debates

Thursday, 20 October 2016

4:20 pm

Photo of Pat CaseyPat Casey (Wicklow, Fianna Fail)
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I am grateful for the opportunity to raise what is a serious issue for Wicklow. Yesterday, we received by e-mail the announcement that Ardmore Studios were being placed for sale on the open market. This raises serious questions for Enterprise Ireland and the Government about the development of the film industry in Wicklow, given the industry's significant jobs potential for our county.

As most people are aware, Ardmore Studios are the birthplace and foundation of the Irish film industry. Ardmore is an amazing success story that should be built on, not sold. The 18-acre site is crucial to the development of the film industry in Wicklow and, indeed, the nation. Productions at Ardmore have won 14 Oscars and many BAFTA, Golden Globe and Emmy awards, including for such well-known films as "Braveheart", "My Left Foot" and "Excalibur" and, in the modern television era, "Moone Boy", "The Tudors" and "Penny Dreadful".

The film industry is key to the economic development of Ireland, with up to 500 jobs associated with Ardmore when it is at full capacity. It has been at full capacity for the past two years, earning profits of €1.5 million and €1.6 million, respectively. Significant public investment by successive Governments and Wicklow County Council has been made in the site for decades and the industry has grown through section 481 tax measures.

The Government, through Enterprise Ireland, has a 32% shareholding in the site according to yesterday's RTE business news. What is the reason behind the Government's sale of the site? The announcement of the sale as a going concern is worrying because there is a substantial risk that it will be sold to the highest bidder, who could be a developer and have nothing to do with the film industry. Will the Government confirm that the sale is conditional and Ardmore will be retained as a film production centre, with no ifs or buts about it? I just want a simple confirmation that the site will remain for the film industry. Film production is a national strategic industry and the Government, through Enterprise Ireland, should retain a direct shareholding interest in it via Ardmore.

Following the civil war and at the beginning of the determined efforts by Seán Lemass to modernise the Irish economy, Emmet Dalton, friend and comrade of Michael Collins, convinced his old civil war enemy, Seán Lemass, to invest in the film industry and build a studio at Ardmore on a 37-acre site, which opened in 1958. If Seán Lemass could be convinced by Emmet Dalton that the State should be involved in the film industry, it is ironic that a Fine Gael-led Government could be about to see that dramatic partnership end.

As a representative of a key shareholder, will the Minister of State confirm that the sale of the studios will be conditional on its continuance as a centre for film production?

Photo of John HalliganJohn Halligan (Waterford, Independent)
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I thank the Deputy for raising this matter. Clearly, my thoughts are with the workers and families affected by the announcement. I hope that all employment rights will be adhered to if it comes to the closure or sale of the studios.

The sale of Ardmore Studios is a commercial decision by the owners of the studios. In this regard, Enterprise Ireland only has a minority stake in Ardmore Studios, which is a legacy issue as a result of an equity investment and a loan by NADCORP, a predecessor State agency. The balance is owned by a company that is owned by its shareholders. This means that the Government holds only a minority share. It is worth noting that a significant part of the site being sold is zoned for film production purposes only. This is the information that we received recently.

Enterprise Ireland supports certain types of companies in the creative sector in areas such as animation and digital content. It provides these companies with a range of supports appropriate to their stage of business and is committed to supporting them to internationalise.

Today, the Tánaiste and Minister for Justice and Equality, Deputy Fitzgerald, concluded a two-day Enterprise Ireland trade visit to Cannes and the Cote d'Azur region of France. Twenty-three Irish companies were represented and travelled to France to build business relationships with their current and prospective counterparts in four key sectors in the region. Seventeen companies from the Irish film sector were part of this group and included companies such as Soho Moon, Bandit Films, Irish TV and Treehouse Republic. Building on its commitment to this sector, Enterprise Ireland was supportive of the establishment of Animation Ireland, a trade association for the leading Irish animation studios working together to promote Ireland's world class sector internationally.

Wicklow has been home to Ardmore Studios since 1958 and the recent establishment of another state-of-the-art studio, Ashford Studios, demonstrates the region's suitability as hub for the indigenous and international film industry. The regional presence of the Wicklow Film Commission is an additional support for film makers exploring options for filming in the area.

The mid-east regional Action Plan for Jobs has a number of actions to support the film sector. These include a feasibility study and business plan for the development of a film industry cluster in the county; activating a film industry network to contribute towards the development of an audiovisual cluster; piloting a one-day workshop in film industry-related training; building on the success of the film sector by providing supports and incentives and developing ancillary services; and the provision of film industry-related training programmes in partnership with third level institutions in the area. In this regard, Wicklow County Council, education and training providers and the film industry development group are working with the Wicklow local enterprise office to progress these actions.

I must apologise to the Deputy, as I am taking this question and the information has been given to me quickly. According to it, the decision was a commercial one. Enterprise Ireland only has a minority shareholding. I do not know the exact figure and will not pretend to know, but either the Minister, Deputy Mitchell O'Connor, or I will revert to the Deputy on this matter. It is being investigated and we are in contact with whoever needs to be contacted because this has unquestionably been a blow to the area. I am unsure as to the Government's involvement, given that this is a commercial decision and Enterprise Ireland only has a minority stake.

Photo of Pat CaseyPat Casey (Wicklow, Fianna Fail)
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I thank the Minister of State for taking this question.

However, the response I have had is very disappointing on a personal level. I was asked to defer this question from yesterday to today so that the Minister for Arts, Heritage, Regional, Rural and Gaeltacht Affairs, Deputy Heather Humphreys, would be here to answer it. As we all can see, she is not in the Chamber. This raises more suspicion, which is not a word I use lightly, as to what is going on. The State does not have a small shareholding in this industry; it has a 32% stake. I fully agree with the Minister of State in regard to the Action Plan for Jobs. There is reference, on pages 5 and 7 of that document, to the unique opportunity Wicklow offers to develop and build on the film industry, with a specific reference to the two studios involved. The State is selling its shareholding in the largest film studio in the country with absolutely no conditions attached. That is totally unacceptable.

In my capacity as a Member of Dáil Éireann for Wicklow, I contacted IBI Corporate Finance yesterday to request a copy of the prospectus of sale in order to study it. My request was refused point blank and I was told to contact Ardmore Studios directly. I then spoke to the CEO of Ardmore Studios, who likewise denied me a copy of the prospectus. What is going on here? I have serious reservations about the Government's role in this sale. It is disappointing and unacceptable that members of the Government do not know what is happening with the State's stake. As I said, I am annoyed that I was asked yesterday to defer this matter on the basis that the Minister would be here today, only to find her absent. There is no appreciation of how important this industry is to Wicklow. The Ardmore site must be maintained as a film studio into the future.

4:30 pm

Photo of John HalliganJohn Halligan (Waterford, Independent)
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I can only agree with what the Deputy has said. I will not defend the indefensible and I agree that if Ardmore Studios is closing, we need to know why. I was not aware the State has a 32% stake in it. The policy issues concerning the film industry are matters for my colleague, the Minister for Arts, Heritage, Regional, Rural and Gaeltacht Affairs. I assure the Deputy I will contact her as soon as I can and request that she make contact with the Deputy and see where we can go from here. I am informed that planning issues generally are a matter for the Minister for Housing, Planning, Community and Local Government but it is the Minister for Arts, Heritage, Regional, Rural and Gaeltacht Affairs who is dealing with this particular matter. I will do my best in the coming days to ensure any information the Deputy needs regarding what is happening to Ardmore Studios is imparted to him by whichever is the relevant Department. It is not acceptable that the Deputy, who represents the area in question, should not have all the relevant information. If I can gather the information on what is happening with Enterprise Ireland and the Government's role in the sale, I give the Deputy my word I will get it for him. If not, I will contact the relevant Department and request that the Minister contact the Deputy in the coming days.