Pat Casey (Wicklow, Fianna Fail)
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On 18 October 2016, a press release announced the sale of Ardmore Studios, which included the 32% State shareholding. Alarm bells immediately sounded when I and other public representatives were denied access to the prospectus of sale in order to clarify whether the studio was being sold as prime development land. Why was the State selling its large holding of shares in Ardmore Studios with no guarantees that it would remain at the heart of the film industry? Our concerns were proven right when RTÉ received access to the prospectus of which two pages were devoted to the potential development of the Ardmore site for residential housing. In December 2016, we met the then Minister for Jobs, Enterprise and Innovation, Deputy Mary Mitchell O'Connor, and officials from the Department and Enterprise Ireland. The outcome of the meeting was an assurance from the then the Minister that there would be a further meeting should any decision to sell the State's shareholding be reached. At that meeting, we would all be given the reasons why the 32% was being sold on a triple-lock condition that Ardmore's future as a film studio was secure, that the Government's regional jobs strategy supported the growth of the film industry in Wicklow and that the zoning was secured by Wicklow County Council in the Bray area plan to prevent any speculation.

On Friday, another corporate press release confirmed the sale of Ardmore Studios, including the State shareholding for an undisclosed price, to Olcott Entertainment, a holding company established only one month ago and directly connected to Troy Studios in Limerick. The taxpayers of Ireland deserve to know why commitments given by the Department to consult with public representatives and the local authority were broken. They also deserve to know if the lead Department for the film industry, namely, the Department of Culture, Heritage and the Gaeltacht was consulted as promised. It is the Minister's former Department. Taxpayers also need to know the amount for which their shareholding of 32% was sold.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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It is an absolute disgrace that we discover on RTÉ and in newspapers over the weekend that a key part of Ireland's cultural and cinematic heritage has been sold.

We hear that the State has sold its share in a deal in which none of the details have been scrutinised and we have no idea about guarantees to protect the future of Ardmore as a film studio.

Incredibly, €7 million has been written off in debts. The company has been sold, according to reports at the weekend, in debt. It has been sold to Olcott Entertainment, a company that was only set up 29 days ago. That company is headed up by Mr. Joe Devine, who is also involved in Troy Studios. The current chief executive officer, CEO, is also linked to Troy Studios and will continue as CEO. I understand Mr. Ossie Kilkenny, who is also involved in Troy Studios, is also involved in all this.

We get the producers and the film board telling us that we have a booming film industry and there is not enough studio space and yet film workers tell me that for the past three years, Ardmore has been completely under-utilised and as we speak, only one stage is being used out of five.

Where is all the money - the €60 million or €70 million - that is given in section 481 funding to production companies going? It is not going into making films at Ardmore. It is going into places such as the asbestos-riddled John Player factory on the South Circular Road, where a film is being made and as we speak, film workers are being forced into a sit-in protest because of the conditions they are being forced to work in. Moreover, "Into the Badlands", which is supposed to be produced in Ardmore, is being produced in the Dublin Sports Hotel, which is a NAMA-owned building and where there are also protests going on as we speak. Why is that filming not being done in Ardmore? The same people who have run down Ardmore will now remain in control of it, and incredibly, the State has sold its stake. It is a disgraceful ready-up.

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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I thank the Deputies for the opportunity to outline the position regarding the recent agreement to sell Ardmore Studios.

Ardmore Studios Limited is being sold to Olcott Entertainment. The sale was announced to staff on Friday morning last, 23 March and later that day to the public.

Over the past 60 years, Ardmore Studios has produced hundreds of international and national films and television productions and the studios continue to represent a vitally important part of the Irish film industry. Ardmore is the only studio in Ireland to offer seven international standard sound stages with full support facilities on site.

As the Deputies will be aware, Ardmore studios was approximately two-thirds owned by Ardmore Studios International Limited, ASIL, whose shareholders were seeking to exit, having been running the company for over 30 years. The other one third shareholding was held by Enterprise Ireland and resulted from an investment in 1986 by a predecessor agency called the National Development Corporation.

Over the past 30 years or so Enterprise Ireland's investment has been a passive one. Enterprise Ireland has no role in the international promotion of Ireland as a location for film production.

In 2016, Ardmore Studios International Limited engaged IBI Corporate Finance to investigate selling the company as a going concern. An extensive process was undertaken by IBI Corporate Finance to find a buyer, with over 100 potential parties contacted. Olcott Entertainment emerged as the only second round bidder.

Olcott Entertainment Limited is a new holding company set up by Mr. Joe Devine and Mr. Daniel O’Donoghue to acquire Ardmore. The lead investor, Mr. Devine, is currently chairman and a major shareholder in the Troy film studios in Limerick.

Troy has successfully set up and developed the studio from a standing start to the point where it currently hosts a production company with approximately 500 people working on a major production. Indeed, I myself have visited Troy Studios. They are currently filming a major new series there, namely, "Nightflyers". It is an adaption of a book by George R.R. Martin who, I am sure Deputies will be aware, was the author of A Game of Thrones.

It has huge potential. That is the sort of thing that the Minister, Deputy Madigan, and I, as well as all public representatives, would like to see replicated in other parts of the country. Enterprise Ireland negotiated the sale of its shareholding with the benefit of due diligence undertaken by independent consultants and is satisfied that it realised full market value on a par with the other parties. In examining the proposition, Enterprise Ireland took the view that continued investment is required in the studio facility to secure its long-term commercial future and the Olcott Entertainment deal provides the potential to breathe new life into the company at a time when the market for film production in Ireland is again showing strong growth potential.

I visited Ardmore in my previous capacity as Minister for Culture, Heritage and the Gaeltacht. I want to see those facilities used to their full potential. In that regard, Olcott plans to develop and expand the Ardmore studio offering and other related entertainment projects. Olcott also plans to retain the current experienced Ardmore management and staff. It is also important to note that the site cannot be used for non-film industry development without the agreement of Wicklow County Council to alter the current zoning restriction. It is up to the elected members of Wicklow County Council if they wish to change that zoning.

The Ardmore site is currently zoned for film use only and this protection is due to run for a further five years at least under the Bray municipal district local area plan. I think the elected members in Wicklow will see the benefits of having this zoned for film production. Taking all these factors into account, the Government therefore believes the sale to Olcott provides the best prospects for the commercial development of Ardmore, for the employment of the many skilled workers who have been employed in Ardmore productions over the years and for the attractiveness of Ireland as a location for international film production.

Pat Casey (Wicklow, Fianna Fail)
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I thank the Minister for answering but there were several questions I asked that she did not answer directly. The only direct answer she gave relates to the zoning and thanks are due to the public representatives in Wicklow who have maintained the zoning there. Will the Minister give full disclosure as to how the process was carried out? Will we get full information on the round 1 bidding process and will we get full information on how Olcott managed to swing across the deal at the end of the day? The Minister mentioned that the staff and management will be maintained at Ardmore. The CEO of Ardmore is the manager. She is a director of Troy Studios and the chairman of Troy Studios is the individual who put forward this bid. We need clarity on what the State received for its money. We need full disclosure on the bidding process, we are talking about State shareholding and it should be made available to us as we are entitled to it. Furthermore, several enterprises are located on that site on leased premises that are responsible for 500 jobs. What guarantees were given to them?

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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It is absolutely disgraceful that we have sold off the State's holding in Ardmore. We have fully privatised it to the benefit of a company which appeared like a mushroom. That is a feature of the film industry where the companies that receive all the State money appear like mushrooms and then disappear just as quickly. The culture committee has heard testimony from representatives of the workers in the film industry that they have no proper training or accreditation structure for trainees, no pensions and no continuity of employment, yet millions of euro are going into the film industry. Incredibly, in Ardmore itself - which will be run by the same CEO who is linked to Troy Studios to run it down - there are four stages sitting empty while public money is being used to finance the production of films in NAMA buildings that are completely unsuitable. In the case of the John Player building, it is riddled with asbestos, the toilets are absolutely revolting and the place is freezing. Why is there not more public oversight of that, rather than the Minister relinquishing the little bit of influence the State had over the industry in terms of Ardmore?

There should be more oversight, but instead the Minister has sold it without questions being asked about what is going on and whether Ardmore was being run down to the benefit of Troy in a situation which involved some of the land being put up for possible residential development. It is really not acceptable.

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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I want to reiterate that the Government believes that the sale of Ardmore to Olcott represents the best prospect for the development of Ardmore and quality employment in film production in the area, and will add to the attractiveness of facilities for film production in Ireland. There is a cluster in Wicklow and further investment in Ardmore Studios will attract many more films into the film production area. I genuinely believe this will be in the best interests of the film industry in County Wicklow.

I have been to Troy and Ardmore. There is no doubt that the facility needed investment. The people involved are specialised in the area of film production. This is their business. The Deputy should see what they have done in Troy. I expect and know they will invest in the facility in Wicklow and I can assure him that he will be pleased with the results. Troy is a wonderful facility. It was an old factory which was turned into a wonderful production centre for film. It has also created 500 jobs. I visited the facility. It is working with the local institute and ETB to train and upskill people in order to meet increased demand, something which has happened within the last short number of years. I have no doubt that what will happen in Ardmore will be very beneficial to the area.

The Government is fully committed to the development of the Irish film industry. My colleague, the Minister for Culture, Heritage and the Gaeltacht, Deputy Josepha Madigan, and I welcome the proposed investment in Ardmore Studios. It is important to note that the move has also been welcomed by the Irish Film Board. The State will continue to support the film sector through the Irish Film Board tax credits such as section 481 and other measures.

Enterprise Ireland negotiated the sale of its shareholding with the benefit of due diligence, undertaken by independent consultants, and is satisfied that it realised full market value on a par with other parties. As the sale is a commercial transaction relating to a private company, the terms cannot be revealed for reasons of business confidentiality. Enterprise Ireland does not involve itself in the day-to-day running of the business affairs of the companies in which it invests. This is a positive move for Ardmore and I would like to reassure the Deputies of that.