IBEC Pages 06 (8)

Transcription

IBEC Pages 06 (8)

Film & Television Production
in Ireland
Audiovisual Federation Review 2006
IBEC AUDIOVISUAL FEDERATION
An affiliate association within IBEC | the Irish Business and Employers Confederation
Confederation House, 84/86 Lower Baggot Street, Dublin 2
Tel: + 353 - 1 - 6601528, Fax: + 353 - 1 - 6381528
Email: [email protected]
Website: www.ibec.ie/avf
www.ibec.ie
AUDIO VISUAL FEDERATION REVIEW 2006
in Ireland
IBEC Audiovisual Federation
The Audiovisual Federation consists of IBEC member companies involved in Ireland’s audiovisual industry. These include
broadcasters, producers, animation studios, facilities and other organisations supporting the sector.
The Federation has a number of objectives designed to support Ireland’s audiovisual production and distribution industry.
These include promotion of the sector, representing the views of members to relevant bodies and submitting the industry
view on relevant policy.
The Audiovisual Federation maintains an economic database for the Irish audiovisual production sector and publishes the
results in an annual report with an economic analysis on the benefits of the audiovisual sector to the Irish economy. In
order to sustain the growth and development within the sector during the last number of years the Federation has sought
internationally competitive financial incentives and international co-production treaties. Together with Enterprise Ireland
the Federation organises conferences, seminars, and workshops on relevant audiovisual issues.
The Audiovisual Federation is a member of the Irish Business Employers Confederation (IBEC) and is affiliated to ICT
Ireland - The Voice of Technology within IBEC.
Chair:
Pádhraic Ó Ciardha, TG4
Vice Chair:
Andrew Lowe, Element Films
Secretariat:
Tommy McCabe, Director
Peter Scott, Executive
Fiona Harrison, Executive
Carolyn Doumeni, Personal Assistant
Tel: 01-605 1528 Fax: 01-638 1528
email: [email protected]
Web: www.ibec.ie/avf
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Ireland in their words
“I’ve always enjoyed filming in Ireland mainly because the local crews are so willing and capable,
but also because people welcome you with open arms. Where we filmed the mountain scenes for
‘The Wind that Shakes the Barley’, is stunningly beautiful and very unspoilt. We had terrific
support from all the local people.”
Rebecca O’Brien, Producer - ‘The Wind that Shakes the Barley’
Rebecca O’Brien
“I first came to Ireland on a location scout in 1995 and have never stopped coming back. I had the
opportunity to produce the two hour drama ‘Stardust’ for RTÉ in 2005, and it was one of the best
experiences ever. I have produced in Africa as well as several places in Europe and the US, and
without a doubt the talent base, both in front of and behind the camera is second to none.”
Norman Siderow, Producer - ‘Stardust’
Norman Siderow
“Due to the foresight of the Irish Film Board, a dedicated and resilient crew, incredible Irish acting
talent and an amazing script, success was always on the cards for Martin Mc Donagh’s film debut
SIX SHOOTER.”
John McDonnell, Producer - ‘Six Shooter’
John McDonnell
“If you are shooting a movie about contemporary Ireland, as I was with ‘The Tiger's Tail’, it is
obviously an advantage to shoot it right here! It is also a pleasure to make it with a cast and crew
I have worked with over the years, some going back to ‘Zardoz’ in 1973.”
John Boorman, Producer/Director - ‘The Tigers Tail’
John Boorman
“I’m proud and happy that our animated feature films ‘Ugly Duckling and Me’ and ‘Way to the
Stars’ are sold all over the world and that Magma Films and Ireland is now recognised as a quality
brand and as top players in the European Animation Champions League. The steady support of
the Film Board, Section 481 and the creative environment around the Irish animation industry
helped us greatly to get there.”
Ralph Christians, Executive Producer - ‘Ugly Duckling and Me’
Ralph Christians
“Shooting in Ireland is a real pleasure. On ‘The Front Line’, we had many days of very complicated
and busy set-ups in Dublin city centre. That we walked away from the shoot, not only with
everything we needed in the can but also with a smile on our faces, is testament to the wonderful
spirit we encountered from the Irish crew and the many hundreds who helped us out for a simple
‘thank you’.”
Nathalie Liechtenthaeler, Producer - ‘The Front Line’
Nathalie Liechtenthaeler
“In terms of documentary, we have been lucky enough to work on a broad range of projects
this year with TG4. Their willingness to tackle stories which are unusual, quirky and always
exploring another slant on Irish life, remains unparalleled. With the continued support of our
national broadcasters, Irish documentaries can continue to compete with the best of them on
a world stage.”
Brian Reddin – Producer/Director - Uachtarán
Brian Reddin
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The data in this report relates to feature films, independent TV productions (including major TV dramas) and
animation projects where the majority of the work was carried out in 2005. It also gives an overview of productions to
date in 2006.
This is the twelfth report on the audiovisual sector, which was drawn up under the auspices of the following organisations
– members of the Audiovisual Federation Database Steering Committee:
● Chairman AF Database Steering Committee
Kevin Moriarty, Ardmore Studios
● Bord Scannán na hÉireann/Irish Film Board
Teresa McGrane
Patrick O’Neill
● Radio Telefís Éireann
Michael Hyland
Rose King
● TG4
Pádhraic Ó Ciardha
Máire Ní Chadháin
Sile Bhreathnach
● An Roinn Ealaíon, Spóirt agus Turasóireachta/
The Department of Arts, Sports and Tourism
Sabina O’Donnell
● Screen Producers Ireland
David McLoughlin
Aaron Farrell
● Facilities
Kevin Moriarty, Ardmore Studios
● Animation Sector
Paul Cummins, Telegael
● Audiovisual Federation of IBEC
Tommy McCabe (Director)
Peter Scott
Fiona Harrison
Carolyn Doumeni
Eoin Keogh, (IBEC Research and Information Services)
This data for this report was compiled by the Research and Information Services of IBEC.
Acknowledgements:
The Audiovisual Federation is very much indebted to the members of the Steering Committee for their commitment and
guidance in producing this report.
The Audiovisual Federation Review 2006
© 2006 IBEC
Prepared by the Audiovisual Federation of IBEC
Affiliated to ICT Ireland
IBEC Audiovisual Federation
Confederation House
84/86 Lower Baggot Street
Dublin 2
E-mail: [email protected]
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Contents
Foreword
5
Achoimre Feidhme
6
Executive Summary
7
Chapter 1:
The Irish Audiovisual Sector – 2005/2006 Review
8
Chapter 2:
Economic Analysis 2005
15
Chapter 3:
The Irish Audiovisual Sector – 2005/2006 Review International Context
18
Appendices:
20
Appendix I:
21
Appendix II:
Production Details – Summary 1996 - 2005 Comparison
25
Appendix III:
Production Details – By Type of Production – 2005
26
Appendix IV:
Funding Details – By Type of Production - 2005
27
Appendix V:
Contribution of the Irish Film Sector to the Irish Economy 2005
28
Appendix VI:
Clarification Notes
30
Appendix VII:
Section 481 Investment
31
Appendix VIII:
Agencies Involved with the Film Production Industry in Ireland
32
Appendix IX:
List of Productions included in the Report 2005 and 2006
35
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The annual Audiovisual Federation Review of Film and Television Production in Ireland has been an important resource
for monitoring the growth and trends within the industry over the years.
Independent television production, including major TV drama, continued its healthy growth in 2005 and a significant
increase is projected for 2006. RTÉ, TG4, BCI and the Government’s Section 481 incentives are significant sources of
funding for the independent production sector. RTÉ’s commitment to independent programme production, which spans
the entire range of programme genres, is significantly in excess of its statutory requirement. The dramatic increase
projected for 2006 is influenced by “The Tudors”, a 10 episode series for Showtime in the US. An investment by the Irish
Film Board played a role in attracting this series to Ireland.
There was a significant decrease in feature film production activity in 2005. While there is some improvement projected
for 2006 as a result of measures undertaken by the Government and the Irish Film Board, the ongoing changes,
particularly the incentives in competing jurisdictions, means that Ireland is currently not competitive for international
feature film activity.
The IBEC Audiovisual Federation has analysed the lack of competitiveness of Section 481 as compared to the incentives
in other jurisdictions and has presented a number of possible amendments to Government for consideration to address
this serious situation. These involve increasing the write off available to individual investors from the current level of
80%, amending the definition of eligible spend to include all film making activity in the state and increasing the cap from
the current level of G35m.
The future of the audiovisual industry, be it indigenous development or growth in inward investment, is influenced
significantly by Ireland’s competitiveness in the international marketplace. As Governments compete for this business,
recognising its economic and cultural importance and influence on tourism, the sustained support which the Irish
Government has shown to date must be confirmed for the foreseeable future and improved if the dramatic collapse of
feature activity in 2005 is not to be repeated.
Kevin Moriarty
Chairman
Audiovisual Federation Database Steering Committee
November 2006
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Foreword
Achoimre Feidhme
Ranníocaíocht Fhioscach
Déanann an Tuarascáil seo anailís ar an tionchar
eacnamúil a bhí ag iomlán 207 léiriúchán closamhairc a
críochnaíodh in Éirinn i 2005, lena raibh luach iomlán
léiriúcháin G152.4 milliiún. Is cúis mhór imní an laghdú
suntasach a tharla i 2005 ar léiriú mórscannán, munarb
ionann an earnáil teilifíse, ach is cúis mhisnigh go bhfuil
mórscannáin ar nós Becoming Jane agus The Tiger’s
Tail, ar na bacáin do 2006, tá ábhar dóchais ann freisin.
2005
Aschur Closamhairc
2003
Príomhscannáin
244.3
80.1
33.5
60
Léiriúchán Neamhspleách Teilifíse 47.8
agus mórdhrámaí Teilifíse
67.5
74.1
155
2004
Ar bhonn costais tairbhe, lean an earnáil chlosamharc
lena ranníocaíocht shuntasach d’eacnamíocht na tíre,
leis an G40.5 milliún d’infheistíocht ón iasacht a
rinneadh san earnáil i 2005. Bhí gnóthachan ann don
Stáchiste i 2005 ó ioncaim agus ón gcaiteachas a
gineadh mar go raibh seo níos airde ná an cháin a
cailleadh trí Alt 481. Thuill seo G16.8milliún
gnóthachan glan d’eacnamaíocht na hÉireann i 2005.
*2006
G milliún
Sochar Glan don Eacnamaíocht (G Milliúin)
Beochan
28.1
22.3
44.8
23
Aschur Foriomlán
320.2
169.9
152.4
238.0
35
30
30
25
20
15
10
5
0
*measta
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Caiteachas na hÉireann
Tharla caiteachas iomlán G96.9 milliún i 2005 ar earraí
agus ar sheirbhísí Éireannacha a bhain le léirithe
chlosamharc. Is ionann sin agus laghdú 9% ar an
gcaiteachas G106.7 milliún i 2004 agus laghdú 36% ar
an gcaiteachas G151.4 milliún i 2003. Easpa
mórléiriúchán is cúis leis seo den chuid is mó ach
leanadh leis an ardleibhéal caiteachais san earnáil
neamhspleách teilifíse agus bhí méadú 22% i gceist
anseo (ó G53.7 milliún i 2004 go G66.3 milliún i 2005
(Feic Appendix I).
Caiteachas na hÉireann
2002
2003
2004
Príomhscannáin
100.4
37.9
17.5
36.6
Léiriúchán Neamhspleách Teilifíse 42.8
agus mórdhrámaí Teilifíse
53.7
66.3
130.0
Foinsí Maoinithe
Maoiniú Éireannach ab ea G111.8 milliún den iomlán.
Chuir Alt 481 maoiniú comhlán G38.6 milliún ar fáil.
Ar na mórfhoinsí Éireannacha bhí RTÉ, TG4 agus Bord
Scannán na hÉireann. Ar na foinsí iasachta, tháinig G27
milliiún ón Eoraip, agus G13.7 milliún ó Stáit Aontaithe
Mheiriceá.
*Cúlra na Tuarascála:
Cuireadh an Tuarascáil seo agus tuarascála roimhe
a foilsíodh 1993-2005 le chéile ó staitisticí a
d’aimsigh An Chónaidhm Chlosamhairc IBEC. Agus
an tuarascáil á scríobh, ní raibh figiúirí iniúchta ar
fáil do gach léiriúchán i 2006. Dá thoradh sin,
baineann an anailís eacnamúil den chuid is mó le
2005. Léiríonn figiúirí 2006 tuairisceáin
neamhiniúchta nach raibh sách domhain chun
anailís shonrach a dhéanamh orthu.
*2005
G milliún
Beochan
8.2
15.1
13.1
9.1
Aschur Foriomlán
122.6
151.4
96.9
175.7
*measta
Fostaíocht
Tharla laghdú 30% ar fhostaíocht iomlán Éireann i
dtéarmaí socrúcháin i 2005, anuas ó 13,221 i 2004 go
9,299 i 2005. Ach i dtéarmaí postanna
coibhéiseasacha lánaimseartha, meastar go raibh 1,058
fostaithe go díreach san earnáil i 2005, méadú 94 post
coibhéiseasach lánaimseartha. Tagann seo leis an
gclaonadh atá tugtha faoi deara faoina bhfuil líon
níos lú daoine ag obair ar feadh tréimhsí níos faide
socrúcháin, de réir mar atá ag claonadh ó mhórscannáin
go léiriúchán teilifíse.
-6-
This report analyses the economic impact of a total of
207 audiovisual productions, which were completed in
Ireland in 2005, comprising a total production value of
G152.4 million. The large downturn in 2005 in feature
film as opposed to the TV sector, was of major concern,
but with features like Becoming Jane and The Tiger’s Tail,
2006 is looking somewhat more promising.
2004
Audiovisual Output
2003
2005
Feature film
244.3
80.1
33.5
60
Independent TV
Incl. major TV Drama
47.8
67.5
74.1
155
Animation
28.1
22.3
44.8
23
Total Overall Output
320.2
169.9
152.4
238.0
Net Benefit to Irish Economy (G million)
35
30
30
25
20
15
10
5
0
*2006
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
G million
Sources of Funding
The proportion of funding originating in Ireland was
G111.8 million. Section 481 contributed gross funding of
G38.6 million. Important sources of Irish funds were
RTÉ, TG4 and the Irish Film Board. Amongst non-Irish
sources, European investment totalled G27 million as
opposed to G13.7 million from the US.
*Estimated
Irish Expenditure
There was a total spend of G96.9million in 2005 on Irish
goods and services arising from the audiovisual
productions. This is a drop of 9% over the 2004 spend of
G106.7 million and a drop of 36% on the 2003 spend of
G151.4 million. This was largely due to the lack of major
feature productions, however a high level of spend by
the Independent TV Sector was maintained and rose by
22% from G53.7 million in 2004 to G66.3 million in
2005 (see Appendix I).
2005
Irish Expenditure
2003
Feature film
100.4
37.9
17.5
36.6
Independent TV
42.8
53.7
66.3
130.0
Animation
8.2
15.1
13.1
9.1
151.4
106.7
96.9
175.7
2004
*Background to Report:
This report and previous reports published in 19932005 have been compiled from statistics obtained
by the IBEC Audiovisual Federation. At the time of
writing, audited figures for all 2006 productions
were not available. As a result the main economic
analysis refers to 2005. Figures for 2006 represent
non-audited returns that were not sufficiently
rigorous to allow detailed analysis.
*2006
G million
*Estimated
Employment
Total Irish employment in terms of placement decreased
by 30% from 13,221 in 2004 to 9,299 in 2005. However
in terms of full-time equivalent jobs it is estimated that
1,058 were directly employed in the sector in 2005, an
increase of 94 full-time equivalent jobs. This is indicative
of fewer people working longer placements.
Fiscal Contribution
On a cost benefit basis the Irish Audiovisual sector
continued to make a significant contribution to the Irish
economy, G40.5 million was invested from abroad in the
sector in 2005. The returns to the exchequer in 2005
derived from incomes and expenditure generated again
exceeded tax forgone through Section 481.This yielded a
G16.8million net gain to the Irish Economy in 2005.
-7-
Executive Summary
Chapter one
Audiovisual Production in Ireland
2005-2006
FILM PRODUCTION AND THE IRISH FILM
BOARD
RTÉ
RTÉ continued its very strong investment in the Irish
independent television sector across 2005 and 2006. This
continues the pattern of significant growth in investment
by RTÉ on commissioning activities over the last number of
years and is evidenced by RTÉ expenditure on independent
production (inclusive of RTÉ attributable overhead) of G51
million in 2004, G75 million in 2005 and projected
expenditure of approx. G70 million in 2006. As can be
seen from these figures, RTÉ expenditure in this area is
significantly in excess of RTÉ’s statutory requirements of
G29.372 million in 2005. Alongside RTÉ in-house
programmes, RTÉ’s commitment to independent
programme production spans the entire range of
programme genres, from Sport to Drama, from
Entertainment to Documentaries, from Factual to Young
Peoples, all of which are central to the success of RTÉ’s
television schedules.
Last year, Minister O’Donoghue, in response to the low
production levels being experienced by the film industry in
2005, awarded G1.5 million in supplementary funding to
the Irish Film Board for 2005, increased the 2006 budget by
21%, and introduced significant improvements to the film
tax incentive Section 481, with the direct aim of increasing
production levels in Ireland.
As a result of these initiatives, the value of Irish Film Board
supported film and television production has increased by
approximately 392% in 2006. Therefore the total budget
for Irish Film Board projects produced this year is over
G120 million, which in turn has generated over G80
million in Irish production spend. The impact on the
industry has been an increase in employment levels,
resurgence in production activity and a significant return
on government investment in the sector.
Some of the programme highlights from RTÉ’s 2005
commissions include major dramas such as ‘THE CLINIC 3’,
‘STARDUST’, ‘FALLOUT’, ‘HIDE AND SEEK’ and ‘LEGEND’.
Other series that made a big impact with RTÉ’s audiences
included Eddie Hobb’s ‘RIP-OFF REPUBLIC’, ’MEET THE
FAMILY’, Pat Shortt’s ‘KILLINASKULLY’ and ‘YOU’RE A
STAR 4’ to name but a few.
Indigenous Irish feature films supported by the Irish Film
Board this year include ‘SHROOMS’ directed by Paddy
Breathnach, ‘GARAGE’ directed by Lenny Abrahamson,
‘32A’ directed by Marian Quinn, ‘KINGS’ directed by Tom
Collins, ‘ONCE’ directed by John Carney, ‘THE TIGER’S TAIL’
directed by John Boorman and ‘SMALL ENGINE REPAIR’
directed by Niall Heery.
TG4
International projects shooting in Ireland with Irish talent
attached include ‘THE TUDORS’ with directors Brian Kirk
and Ciaran Donnelly, ‘KITCHEN’ directed by Kieron J. Walsh,
and ‘MURPHYS LAW’ directed by Colum McCarthy.
As TG4 celebrates its 10th anniversary The Minister for
Communications, Marine & Natural Resources, Noel
Dempsey, announced in 2006 that the station will be
transformed into an independent statutory body from the
beginning of April next year. TG4 will continue to receive
grant aid from the exchequer to fund its operations in
2007, along with advertising income and the support from
RTÉ, in the form of an hour a day of programming which is
statutorily based and will continue.
Irish film and television projects also benefited the tourist
industry. Failte Ireland figures indicate that foreign tourists
attracted to Ireland by film and TV spent an estimated
G450 million in 2005.
The Film Board and the industry continue to be strongly
supported by the Government. The UK film tax incentive
currently offers more investment to attract major US
productions than our own Section 481. However the Film
Board will continue to make the case to Government to
ensure our tax incentives remain internationally
competitive and we will continue to concentrate on
increasing and developing talented Irish film makers.
TG4 invests a total of G20 million annually in Irish
language programming of which G16 million is spent on
new, original commissioned content with the balance of
G4 million spent on the acquisition and reversioning into
Irish of pre-produced content.
This investment supports approximately 340 posts in small
companies throughout the island. Supported by the
independent sector TG4 has argued for a substantial
increase in its level of funding, both to improve its Irish
language schedule and to lower programme repeat levels.
The Minister has stated he will be seeking extra funding for
the station through the estimates process for 2007.
OTHER TV DRAMA
There are also a number of substantial TV drama
programmes shooting in Ireland this year without Film
Board funding but utilising the enhanced Section 481
incentive, which became operational in May following
approval under EU state aid rules. Notable among these is
‘ROUGH DIAMOND’, a new primetime series from World
Productions, the makers of ‘BALLYKISSANGEL’. Set in the
Irish horse racing world the project is co-produced by
Element Films for the BBC and RTÉ.
At present TG4 receives G28 million Grant in Aid from the
Exchequer. It also has revenues from the selling
commercial air-time, from programme sponsorship and
from programme sales. The channel was able to
commission about G8.6 million worth of projects utilising
part-funding obtained under the BCI Sound & Vision
scheme (Round 1). These include ‘AIFRIC’, a new 13 part
TG4 drama series for teenagers from Telegael.
Also, an adaptation of Jane Austens’ novel ‘NORTHANGER
ABBEY’ is being produced as a TV film for Granada.
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BCI SOUND & VISION
ANIMATION
The BCI's Sound & Vision broadcasting funding scheme
announced the results of its first two funding rounds in the
period under review. The Scheme offers grants for new
television and radio programmes on themes of Irish
culture, heritage and experience and is funded by 5% of
the television licence fee.
The Irish animation industry has had an excellent year, with
exciting growth both in local output and strong coproduction partnerships with producers in Europe. With
more than an estimated 300 full-time and freelance
animators currently working in the Irish animation sector,
the industry is actually bigger than it was when the
Sullivan Bluth US animation studio was based in Ireland
during the early 1990s. However, now Irish animators are
creating their own indigenous projects and raising their
own finance from national and international broadcasters,
rather than relying on projects created by a US studio.
The first funding round, announced in February 2006,
allocated G10.5 million to thirty-seven television projects.
Approximately G6.5 million or 62% of the total budget
allocation went to programmes in the Irish language.
In July a little over G10 million was awarded in funding for
programming in the second round of Sound & Vision. G9.6
million was allocated to thirty-nine television projects.
G4.9 million was allocated to programmes in the English
language, while Irish language and bi-lingual programmes
will receive G4.7 million.
Magma Films ‘THE UGLY DUCKLING AND ME’ was selected
for the Toronto International Film Festival where it
screened in the Sprockets section, dedicated to featuring
films that represent the best in contemporary international
children’s cinema.
Brown Bag’s animated TV series ‘I’M AN ANIMAL’ has
already sold to fifteen international broadcasters.
Programme genres such as documentary, sports
programmes, entertainment, drama features and series as
well as animation are all represented in the funding
awards. Three feature film projects were backed in the
first round including Newgrange Pictures ‘KINGS’, a bilingual adaptation of the play ‘THE KINGS OF KILBURN
HIGH ROAD’, written and directed by Tom Collins, with
broadcast support from TG4. TG4 also supported the
successful application by ROSG for an adaptation of the
Mairtín Ó Cadhain novel, ‘CRÉ NA CILLE’.
‘FLUFFY GARDENS’ from Monster Animation has already
pre-sold to Australia, the UK and RTÉ.
‘WOBBYLAND’ was developed with funding from the Irish
Film Board by Brown Bag Films.
Cartoon Saloon, the Kilkenny based animation studio are
currently employing 75 freelance animators, working on
various projects including a major animated feature film
‘BRENDAN AND THE SECRET OF KELLS’ and their TV series
‘SKUNK FU’. Other successful Irish animation companies
include Telegael, Jam Media, Barley Films, Caboom, Del 9
and Boulder Media.
RTÉ supported applications for two feature projects.
Marian Quinn's debut feature from Janey Films, ‘32A’, and
Wide Eye Films ‘THE FRONT LINE’, filmed late last year.
Animation company Cartoon Saloon which is in production
on the feature ‘BRENDAN AND THE SECRET OF KELLS’ was
also backed by RTÉ in their successful application for
support for an animation series with the same title.
In the Sound & Vision second round one feature film was
funded. ‘GARAGE’, from Adam & Paul writer Mark
O'Halloran and director Lenny Abramhamson was awarded
G660,000.
The BCI broadcasting fund has also offered financial
support to drama series (‘AIFRIC’, ‘THE RUNNING MATE’,
‘PADDYWHACKERY’), and animation (‘LUKE THE
LIFEBOAT’, ‘FLUFFY GARDENS’), in addition to other genres
of programming.
TV3
In a transaction valuing the station at G265 million,
Doughty Hanson, one of the largest independent private
equity firms in Europe, acquired 100% ownership of TV3
during the year. TV3 is the only privately-owned terrestrial
free-to-air commercial television channel in the Republic.
Its existing shareholders were CanWest, ITV and a
consortium of private investors.
-9-
Audiovisual Production in Ireland 2005-2006
John O'Donoghue T.D., Minister for Arts, Sport and Tourism
Film-making continues to deliver major financial and cultural benefits to the Irish economy.
In adapting and responding to changing international circumstances, Irish producers have met the challenges of this highly
competitive industry. Through their skills and professionalism, they have continued the trend very evident in recent years of
producing a more marketable product, which is now increasingly recognised worldwide as being of very–high quality.
The significant enhancements to the Section 481 scheme agreed in 2006 have been instrumental in again invigorating our film
sector and in allowing it to develop a renewed momentum.
The Irish Film Board, to which the Government has provided greatly increased resources in recent years, continues to provide a
comprehensive range of supports across all segments of the industry.
It is an exciting time to be part of this evolving cultural and creative industry.
Minister Noel Dempsey, Department of Communications, Marine and Natural Resources
Like many other sectors the broadcasting sector is going through a period of rapid changes that is significantly influenced by
opportunities resulting from technological advances. Digital television brings with it new opportunities and challenges for
broadcasters, content providers and audiences. Television audiences can rightfully expect additional and enhanced services in terms
of both quality and quantity. A DTT Pilot Launch in August 2006 is paving the way for the future of digital television in Ireland.
In November 2005 I was delighted to approve and launch the Broadcasting Funding Scheme "Sound and Vision". Under this scheme
independent producers and broadcasters have been able to access substantial public funds to assist with the cost of delivering high
quality programming to Irish radio and television audiences. The first round of funding for “Sound & Vision” saw the allocation of
a total of G11million in funding for programming while a second round, launched in March 2006 has seen the allocation of in excess
of G10million. The BCI propose a third round of funding before the end of 2006.
Bord Scannan na hÉireann/Irish Film Board – Simon Perry, Chief Executive
2005 was a difficult year for film production, creating new challenges for Irish filmmakers. In response to these challenges, Bord
Scannan na hÉireann/the Irish Film Board(IFB) took a proactive approach to increasing production levels. The consequences is that
the economic value of IFB supported projects has increased from G35 million in 2005 to over G120 million in 2006.
The IFB provided G1.5 million in additional funding this year to projects that complied with both cultural and economic criteria. As
a result, ‘THE TUDORS’, ‘BECOMING JANE’ and ‘MURPHY’S LAW’ were produced in Ireland, affording Irish directors, cast and
technicians major opportunities to work on international productions.
The IFB also worked closely with John O’Donoghue, TD, Minister for Arts, Sport and Tourism, to secure significant improvements to
the Section 481 provisions, making Ireland a more competitive location for film and television production.
Meanwhile, Irish films outshone many of their competitors on the international stage during 2006. ‘THE WIND THAT SHAKES THE
BARLEY’ took the most coveted prize in European cinema, the Palme d’Or at the 2006 Canes Film Festival. And Martin McDonagh’s
‘SIX SHOOTER’ scooped the Academy Award (Oscar) for Best Short Film. Neil Jordan’s ‘BREAKFAST ON PLUTO’ had its European
premier at the prestigious Berlin Film Festival; and ‘UGLY DUCKLING AND ME!’ and ‘TRUE NORTH’ were selected for the Toronto
International Film Festival.
Irish films were also well received by Irish audiences. ‘THE WIND THAT SHAKES THE BARLEY’ became the highest grossing
independent Irish film of all time, taking more than G4 million at the Irish box office. ‘BREAKFAST ON PLUTO’ took over G1 million
domestically, and other Irish films released this year included ‘STUDS’, ‘THE FRONT LINE’, ‘THE TIGER’S TAIL’, ISOLATION’ and
‘MIDDLETOWN’.
Bord Scannan na hÉireann/the Irish Film Board (IFB) has been reconstructed to accommodate its increased budget and
responsibilities. New positions include an additional Production Executive, and Business Affairs Co-ordinator as well as a VP, Irish
Film Commission US, who will be based in the Irish Film Board’s newly established US office in Los Angeles.
Looking ahead to 2007, the prospects for Irish feature films and major television drama appear significantly improved, with new
talents regularly emerging both in front of and behind the camera. This, combined with increased IFB funding and a large number
of Irish films currently in production, lead us to take an optimistic view of the future.
- 10 -
Radio Telefís Éireann (RTÉ) Clare Duignan, Director of Programmes, Television
RTÉ continued it’s significant investment in commissioned programme in 2005. As reported last year, RTÉ invested G51million. in
2004 – a sum that was well in excess of RTÉ’s statutory obligations. 2005 saw RTÉ’s investment in the Irish independent sector
continue very much in this vein,reaching G75million, (inclusive of RTÉ attributable overhead.) our highest ever spend in the
independent sector. When this figure is set against RTÉ’s statutory obligation for 2005 of G29.372million, the direct benefits to the
sector of the Licence Fee increase of 2005 and related strengthening of our schedule and commercial income are obvious. As result
of this increased spend, a total of 1,008 hours of programming was approved for commissioning and completion across a wide range
of programme areas.
Commissioned programmes are central to the schedules on both RTÉ channels and, along with RTÉ in-house programmes, helped
RTÉ Television achieve the successes it did in 2005. RTÉ Television’s robust performance in 2005 should be seen against the increased
competition from the growth in migration to digital.
•
RTÉ’s total adult share in peak-time (18.00 to 23.30) increased from 45.0% to 45.5% year on year.
•
In multichannel homes (the most competitive environment) RTÉ’s adult share also increased from 38.6% to 38.8%.
•
97 of the top 100 most watched programmes in 2005 were on RTÉ and 80 of these RTÉ programmes were
indigenous Irish programmes.
•
RTÉ ONE’s peak-time schedule contained almost 62% home production in 2005 (1,338 hours) while RTÉ TWO had 30%
home production (623 hours).
With increases in programming expenditure and a determined focus on ensuring the quality and originality of programmes, there
was much excellent, and some outstanding programming commissioned from independent producers in 2005. Some examples
include the following:.
•
‘THE CLINIC SERIES 3’, ‘STARDUST’, ‘SHOWBANDS SERIES 2’, and ‘HIDE AND SEEK’ were among the Drama highlights of the
year;
•
‘RIP-OFF REPUBLIC’, with Eddie Hobbs, was one of the most talked-about television events of the year, and one of the top
five most watched programmes of 2005
•
Pat Shortt's ‘KILLINASKULLY CHRISTMAS SPECIAL’ was the 6th most watched programme on RTÉ Television in 2005
•
New commissions like ‘FAMILIES IN TROUBLE’ and ‘NO PLACE LIKE HOME’ underpinned RTÉ’s delivery on our public service
commitments, and strengthened home production on RTÉ One.
•
Increased home production for RTÉ TWO saw the commissioning of series such as KARL SPAIN WANT’S A
WOMAN’ and Des Bishop’s ‘JOY IN THE HOOD’, Ardal O’Hanlon’s ‘LEAGUES APART’ and ‘MADE IN THE USA’ a
series profiling some of the young Irish who have scaled the heights of great success in the USA .
•
In a new initiative, lifestyle programmes specially targeting the RTÉ Two audience ’NO EXPERIENCE REQUIRED’, and ‘I’M AN
ADULT, GET ME OUT OF HERE’, were specifically commissioned for the channel.
TG4 - Súil Eile, Pól Ó Gallchóir – Ceannasaí
Tréimhse spreagúil dhúshlánach ab ea an bhliain 2005 don chainéal s’againne agus rinneamar dul chun cinn suntasach chun ár
gcuid spriocanna a bhaint amach sna príomh-réimsí gníomhaíochta ar fad..
2005 was a year of considerable achievement for TG4 across all of its main areas of activity. A large output of high quality and
original Irish language content was commissioned, acquired and broadcast, there was a continuing increase in the channel’s viewing
figures across all audience segments.
Our programme requirement sustains a significant amount of employment in the independent production sector, particularly in the
Gaeltacht and non-metropolitian areas.
In Spring 2005, a pilot scheme was introduced for analogue terrestrial transmission of the TG4 signal to the Belfast area from a local
transmitter on Divis Mountain. In April 2005 TG4 was made available for the first time to Northern Ireland subscribers to the Sky
satellite services. The year also saw the start-up of two key partners in providing additional funding for Irish language television
programmes – the Irish Language Broadcast Fund in Northern Ireland and the Sound and Vision funding scheme operated by the
Broadcasting Commission of Ireland.
Cúis bhróid agus mhisnigh don chainéal líon agus raon na gclár a bhuaigh duaiseanna agus gradaim i rith na blianan. We were
gratified by the number and range of TG4 programmes and presenters that won prestigious awards and prizes at national and
international festivals during the year. One example must suffice here - the acclaim for Cinegael Paradiso, Robert Quinn’s
affectionate documentary on his father’s innovative community-based film and cinema venture in Connemara thirty years ago. It
won the prestigious Spirit of the Festival Award at the Celtic Film and TV Festival 2005 in Cardiff.
- 11 -
In July 2005 TG4, along with other major players in the broadcasting sector, availed of an invitation from the Joint Oireachtas
Committee on Communications, Marine and Natural Resources to make a presentation to the Committee and engage in a dialogue
on the issues that need to be addressed in the forthcoming broadcasting legislation.
Much progress was made by the Government-appointed Project Management Group (PMG) charged with mapping the
establishment of TG4 as an independent entity. In mid-year, the Minister for Communications, Marine and Natural Resources
appointed consultants Deloitte and Touche along with William Fry Solicitors to assist his Department in the preparation of an
Implementation Plan for this purpose and they presented their report in November 2005.
Tá muid buíoch dóibh siúd a thugann tacaíocht dúinn agus atá páirteach linn san obair seo ar fad agus muid ag ullmhú don
chomóradh ar Dheich mBliana TG4.
Media Desk – Eibhlin NiMhunghaile and Siobhan O’Donoghue
Eibhlín Ní Mhunghaile – Co-ordinator, MEDIA Antenna Galway
Siobhan O’Donoghue – CEO, Media Desk Ireland
Cruthaíonn torthaí MEDIA 2005 tábhacht Clár MEDIA na h-Eorpa do chomlachtaí léirúcháin na tíre seo. Bronnadh airgead forbartha
ar naoi gcomhlacht léirúcháin, dhá chomlacht Gaeltachta ina measc i 2005.
The 2005 MEDIA results prove the important role MEDIA plays in the Irish audiovisual sector. Development finance continues to be
an important resource for Irish companies and the maturity of the industry is evident in the awarding of Slate Funding to 7 Irish
companies particularly as 5 of these awards are for 2nd Stage Slates. Development finance was also awarded to 2 Single projects
bringing the total Development award for Ireland in 2005 to G850,000
The TV Distribution scheme has become increasingly difficult to access due to the high numbers of applications for a limited amount
of money. However, we are happy to report that two Irish companies received this support in 2005, the animated TV series Skunk
Fu receiving the maximum award of half a million Euro.
Production companies were not the only beneficiaries, however. Irish cinemas benefited from the Europa Cinemas scheme, Cork
Film Festival and the Galway Film Fair received Promotion support and Eclipse Pictures and Access Cinema received support for the
distribution of 3 non-national European Films.
As we enter the final year of the MEDIA Plus Programme we are confident that the Irish audiovisual sector will continue with this
impressive track record in Europe.
Táimid ag súil go mbainfidh comhlachtaí léiriúcháin agus eagraíochtaí Éireannacha eile tairbhe as bliain deireanach Clár MEDIA
Plus agus amach anseo as an Clár nua MEDIA 2007.
Ardmore Studios – Kevin Moriarty, Managing Director
The infrastructure for film production in Ireland increased significantly with the growth in production from 1993 to 2003. Ardmore
increased stage capacity and virtually doubled square footage devoted to ancillary facilities during that period. Productions hosted
have ranged from big budget Hollywood epics to indigenous features as well as domestic and international television drama and
general entertainment programmes. Maintaining the attractiveness of Ireland as a location for incoming productions, with the
benefit of ensuring a skilled workforce and ongoing infrastructural development, is essential for indigenous growth.
In 2005, given the non competitiveness of the Irish film industry, a combination of the inadequacy of Section 481 and the
unfavourable rate of exchange, there was little production in Ardmore. This has raised questions as to the viability of Ardmore, other
facility companies and the industry itself.
The Government has been very supportive in the past and, through the Irish Film Board and enhancement of Section 481 in the
Finance Act 2006, has ensured a certain level of production in 2006. However, changes in international competition, as Governments
compete on behalf of their respective industries, has made Ireland uncompetitive once again. For the film industry to survive there
needs to be a level playing field and for this to be achieved further Government action is urgently needed.
Paul Cummins – Animation, CEO Telegael
The Irish animation industry has made substantial progress in the last number of years and the sector is now substantially bigger
than it was during the early 1990s when the US animation studio Sullivan Bluth was based here. However, Irish animators are now
creating and developing their own indigenous projects and reaching international audiences by raising their own finance from a
variety of sources including international broadcasters and distributors, S481, BCI, MEDIA and Irish Film Board investment. This
allows Irish animation companies to build up significant intellectual property rights in their projects with a view to generating future
revenue streams.
- 12 -
While the indigenous broadcasters TG4 and RTÉ are generally supportive of the industry, the absence of a large home market base
such as that available to animation producers in the UK, France Germany and the US, makes it all the more crucial for Irish
companies to seek out co-production partners and to draw on multiple sources of funding.
One of the recent successes was the selection of Magma Film's animated feature THE UGLY DUCKLING AND ME, for the Toronto
International Film Festival in September. Other projects which have secured international sales include the series I'M AN ANIMAL
and ‘WOBBLYLAND’ by Brown Bag, ‘FLUFFY GARDENS’ by Monster Animation, ‘PIC-ME’ by Jam Media, ‘ZOMBIE HOTEL’ by
Telegael/Magma and ‘SKUNK FU’ by Cartoon Saloon/Telegael, which was the fifth most viewed series out of 900 presented at the
MIP Junior market in Cannes in October 2006.
Other successful Irish animation companies include Boulder Media, Caboom, Del 9, Kavaleer and Ikandi Productions.
Broadcasting Commission of Ireland – Michael O’Keeffe, CEO
2005-2006 was a pioneering year in terms of BCI and its role in funding film and television production in Ireland. Funding rounds
announced in the past year resulted in a total of just over G20 million allocated to film and television production in Ireland since
February 2006. The demand was high over these first two rounds where a total G64.4 million was requested for TV. 76 television
programmes were supported.
The core objective of the scheme is to increase broadcast audiences’ access to high-quality radio and television programmes in
English and Irish at national, local, and community level. Themes of programmes funded above were Irish culture, heritage and
experience, and the improvement of Irish literacy. It is intended therefore that a direct result after broadcast will be the increased
availability of such programmes to audiences in this state and to have explored the above themes in new and innovative ways.
A wide and vast range of television programme genres were supported which included documentaries, adult literacy, sport,
entertainment, animation, children’s, drama, and feature film. Documentaries received the highest allocation with a strong emphasis
on historical documentaries. In addition a total of five feature films were also successful.
Most of the programmes funded are in production and will be broadcast during 2007 on RTÉ, TG4, TV3, SETANTA, and BBC NI. More
details are available on www.bci.ie. The BCI expects that the third round will open in December 2006 with a further two rounds
during 2007.
Enterprise Ireland – Michael Cantwell, Manager, Digital Media E-Learning and Education Services
Enterprise Ireland continues to support the export growth of the Digital Content Industry. These supports have included
management development programs, in market expert mentoring programs, identification of business opportunities and market
introductions in the European, US and Asian markets, knowledge sharing events at the Digital Hub and direct financial support for
existing and start up clients.
Some of the activities undertaken in 2006 by Enterprise Ireland include
• Inaugural animation sector visit and participation at the Kidscreen Summit, New York
• Film industry networking event at the Oscars Wilde in LA
• Ireland on Screen Stand at MIPTV & MIPCOM in Cannes, France
• Sector workshops with leading UK and US Animation companies
• Participation of Irish companies on the UK Broadcaster Researcher Development Programme
• Meet the Commissioner Events with Key US & UK Broadcasters
• Inward Buyer Missions with Top US & UK Production Studios
• Joint hosting of the Content Forum Series with the IBEC Audiovisual Federation
Overall the market remains highly competitive with continued growth due to the emergence of new commercial opportunities,
derived from the development of a converged marketplace. These international developments are impacting on Irish companies.
There is a heightened interest in seeking niche opportunities created by expanding new markets, such as mobile, internet and
interactive tv. Companies active in these areas report significant optimism for growth in the medium term.
- 13 -
Screen Producers Ireland – Ronan McCabe, Chairman
Following on from a challenging year in 2005, 2006 has been one of growth for the industry. We have witnessed the critical and
commercial success of ‘THE WIND THAT SHAKES THE BARLEY’, RTÉ’s investment in independent production has once again risen, and
the animation sector continues to grow apace.
The Section 481 film investment tax incentive was further enhanced in the 2006 Finance Bill with the previous 66% / 55% limit on a
films eligible spend being revised upwards to 80%, and the cap of G15 million on overall film budget qualifying spend rising to G35
million. The BCI Sound and Vision fund has continued to be an additional and crucial source of funding for documentary, drama,
animation and feature film producers. The Irish Film Board received welcome supplementary funding of G2.3 million from the
Department of Arts, Sports and Tourism to boost production in the final quarter of 2006.
During 2006 SPI continued its negotiations with RTÉ to agree new terms of trade between independent producers and the national
broadcaster which were successfully concluded, with the new terms of trade taking effect until the end of 2008. The issue of content
creators rights remains an important and unresolved issue for SPI, which it will continue to argue for changes on an ongoing basis.
Following intensive lobbying over last year SPI welcomed the draft heads of the Broadcasting Bill published by the Joint Oireachtas
Committee on Communications, Marine & Natural Resources. SPI submitted its views on the draft legislation via the e-consultation
process and looks forward to further ammendments to the bill when it is put before the Oireachtas in early 2007.
Animation production continued to progress, both features and television production. The high quality of Irish animation production
was highlighted by the selection of ‘UGLY DUCKLING AND ME’ in the official selection of the 2006 Toronto International Film Festival.
Negotiations with the Film Group of Unions continues throughout the year with the long running aim of securing a new collective
agreement for the industry which would be modern, transparent, flexible, protecting all and would be in line with international best
practice. With negotiation with the six shooting and non shooting unions now at a critical and final stage it is hoped to finalise talks
and introduce a new agreement to foster the development of the industry by attracting increased inward production investment.
With a favourable climate 2007 can continue the trend of growth in the industry. An agreement with the Film Group of Unions,
alongside an enhanced Section 481 scheme that competes on the international stage could trigger the return of major incoming
feature films into the country. Continued support from the BCI for feature films, an increase in the Irish Film Board’s development and
production funding and investment by the national broadcaster in local film production will all provide a boost for indigenous film
production in Ireland.
SPI welcomes the continued increase in independent production commissions by RTÉ and looks forward to increased levels of
independent commissioning from the national broadcaster and also from the commercial the independent & commercial broadcasters
in 2007.
Irish Film Institute - Mark Mulqueen, Director
2006 began with an unprecedented endorsement from the Arts Council in the work of the Irish Film Institute. This came in the form
of a major annual revenue grant investment. A rise of over 20% brought the annual investment by the Arts Council up from G660k
to G850K and thus provided real resources to allow the IFI roll out its mission to be a truly national cultural organisation. In essence,
the best of what is already delivered through its Temple Bar located Film Centre is increasingly available to audiences around Ireland.
Education and Schools based film events are now evenly delivered between the IFI’s Dublin base and a whole host of regional
partners.
This is also the year the major capital investment plans have been prepared which should bear fruit in 2007.These will take the form
of improvements in the public facilities of the IFI’s base in Temple Bar as well as in the creation of new off-site archive space.
Reel Ireland, the IFI’s International Tour of Irish Film launched in 2005, has gone from strength to strength in its second year. Major
support from the new national agency for the promotion of Irish arts abroad, Culture Ireland, means that Irish Film now has similar
backing to that long enjoyed by other national film programmes.
Reel Ireland’s purpose is to present Irish Film in a cultural context and by doing so convey a more accurate and credible image of Irish
filmmaking. Central to the Tour is the participation of filmmakers and cast members in attending Reel Ireland as it makes its way
around the world. Many have travelled with the 2006 Tour to locations that include Russia, Italy, Latvia, Ukraine, Argentina, Uganda
and China as well as various cities across the USA. The focus for 2007 will be threefold; to develop a retrospective strand to Reel
Ireland, to further enhance the assistance in local marketing of Irish screenings and to invest more in overcoming the barrier that is
translation.
2006 has been a healthy year for IFI arthouse exhibition. Principle factors for this upsurge include the strength of independent
American cinema, well produced and curated specialists film festivals and ongoing advances in the Institute’s approach to marketing.
The net effect being a very noticeable increase in public participation in every strand of IFI audience-related activities.
This is all being achieved whilst the breadth and diversity of the IFI’s cultural programme is actually increasing. Surely, this is the most
valid demonstration of a meaningful return on the investment of public funds in a national cultural body.
- 14 -
Economic Analysis
The following chart compares the outputs for 2005 and
2006. The difference in overall output reflects the lack of
volume in medium sized productions and a major inward
production activity. However, the strong performance of the
independent TV sector continued in 2005 and 2006
Overview of the Sector in 2006
Million
238
60
155
23
Indicative Audiovisual Output 2005
Overall output
Feature film
Independent TV incl Major TV Drama
Animation
(estimated).
Output Comparasion 2006/2005 (G million)
Total Output
Film
250
The indicative figures above for 2006 have a total output
value of G238 million, which is over one and a half times
the output of the previous year. Features in 2006 include
‘BECOMING JANE’, the adaptation of pre-fame Jane
Austens’ romance with an Irishman and ‘P.S I LOVE YOU’,
the filming of Cecelia Aherns’ book, staring Lisa Kudrow
and two times Oscar winner Hilary Swank. The
Independent TV sector has maintained its output and
noted commissions from RTÉ; IPU are ‘CLINIC’ Series 4,
‘WARRIORS’ and ‘SINGLED HANDED’ and TG4’s ‘ROS NA
RUN’ and ‘AIFRIC’. In addition ‘THE TUDORS’ a major
Canadian/Irish co-production TV drama was produced for
Showtime TV.
TV
200
Animation
150
100
50
0
2006 (estimated)
1. The figure
for animation
output includes
a significant
proportion of
co-production
based financing
which will lead
to expenditure
both in Ireland
and overseas
2005
Benefits of Section 481 to the
Exchequer 2005 (see appendix II & V)
The gross gain to the exchequer is estimated to have been
G31.9 million in 2005. This includes direct benefits in
terms of PAYE, PRSI, schedule D and corporation tax, and
indirect benefits in other forms of tax, including VAT and
excises. The indirect benefits are taken into account by the
multiplier effect of investment in audiovisual production.
The cost to the Exchequer of Section 481 is the tax
foregone on the G38.6 million, which was invested under
the scheme and is estimated to have been G15.1 million.
This results in a net benefit to the state of G16.8 million in
2005 a 38% increase on the previous year.
In terms of economic output in 2005 and an estimate for
2006, the chart and table below show a welcome increase
in production and Irish spend within the sector.
Economic Output Level of the Irish Audiovisual Sector (G million)
350
300
250
Calculation of Net Benefit
200
2002 2003 2004 2005
(G million)
150
100
Tax Return to Exchequer
42.8
52.6 34.5 31.9
50
Tax Foregone to the Exchequer
21.6
22.6 22.3 15.1
Net Benefit to the Exchequer
21.2
30.0 12.2 16.8
0
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005 2006*
(*Estimate)
2005
Irish Expenditure
2003
Feature film
100.4
37.9
17.5
36.6
Independent TV
42.8
53.7
66.3
130.0
2004
Funding
*2006
Total funding for the sector in 2005 amounted to G152.4
million (see appendix I for breakdown). Estimates for 2006
indicate an increase of inward investment with the number
of features.
G million
Animation
8.2
15.1
13.1
151.4
106.7
96.9
Funding sources 2005 (152.4 million)
Section 481 26%
9.1
Other Irish Funding 43%
175.7
(*Estimate)
Economic Analysis of Productions in 2005
Irish Film Board 4%
This section summarises economic analysis (appendices I V) covering 207 productions completed in Ireland in 2005.
The projects examined represent a good spread both in
scale and type of production and include a number of film
productions such as ‘THE WIND THAT SHAKES THE BARLEY’,
Indigenous TV production ‘LEGEND’, and the animated
production ‘UGLY DUCKLING AND ME.’ These
productions represented a total production value of
G152.4 million. This output figure represents a slight fall
in output due to the lack of major film production, although
Indigenous TV production has increased by G6.6 million.
Non Irish Funding 27%
The cap on Section 481 limited the availability of funding
from this source for feature film production.
Irish Funding (G millions)
120
118
116
114
112
110
108
106
104
102
2001
- 15 -
2002
2003
2004
2005
Chapter two
Economic Analysis 2004/2005
Expenditure 2005 (see appendix I)
Feature Films
Overall Irish expenditure in the economy, the key driver for
domestic employment and income, amounted to G96.9
million for the 207 productions analysed. As part of this
figure, expenditure from independent TV production
including major TV drama stood at G66.3 million
representing 68% of Irish expenditure. Feature films only
accounted for 18% of the total, while animation
contributed 14% (G13.1 million).
In 2005, the production of feature films dropped
significantly accounting for less than quarter of the total
cost of productions within the State. Of the G33.5 million
spent on productions, a total of G17.5 million was spent on
Irish goods and services. These productions generally draw
on Irish and non-Irish funding. The main sources for Irish
funding were section 481 (G14 million) and the Irish Film
Board (G4 million).
The analysis examines the performance of the three main
areas, Feature Film, Independent TV Productions including
Major TV Drama and Animation, over the last 6 years.
Feature Film (Irish Expenditure G millions)
120
100
80
Irish Expenditure (84.4 million)
60
Feature Films
18%
Animation
14%
40
20
0
2000
Independent TV Productions including Major TV Drama
68%
Irish Expenditure (G millions)
160
140
120
100
80
60
40
20
0
2000
2001
2002
2003
2004
2005
- 16 -
2001
2002
2003
2004
2005
Independent TV Production
(including Major TV Drama) 2005
Animation 2005
The growth in the Irish animation industry continues with the
output in production doubling in 2005. With creations such as Pet
Alien, Zombie Hotel and The Ugly Duckling and Me all featuring in
this year contributed to the total output of G44.8 million,
although the activity increased Irish expenditure was down from
G15.1 million in 2004 to G13.1 million in 2005.
The output for independent TV productions in 2005 was
G74.1 million an increase of 10% on 2004. Of that G66.3
million was spent within the Irish economy, exceeding last
year’s amount by G12.6 million. The main sources of TV
commissions were RTÉ and TG4.
Animation (Irish Expenditure G millions)
Independent TV Productions including Major TV Drama
(Irish Expenditure G millions)
16
14
70
12
60
10
50
8
40
6
30
4
20
2
10
0
2000
2001
2002
2003
2004
2005
0
1999
2000
2001
2002
2003
2004
2005
Employment (see appendix II)
With the total expenditure dropping in 2005, so did the
number of job placements from 13,221 to 9,299.
However the number of full time equivalent jobs
increased from 964 in 2004 to 1,058 in 2005 a 10%
increase. This is indicative of fewer people working
longer placements reflecting the trend from feature film
to TV production.
- 17 -
Chapter three
The Irish Audiovisual Sector – 2005/2006
– Review – International Context
From 1993 to 2003 Ireland enjoyed steady inward
investment with international productions availing of the
Section 35 tax investment scheme (now known as Section
481). This scheme set an international precedent at the
time but since then schemes have been introduced in most
jurisdictions, including many individual US States, as
Governments and States compete to attract this activity
recognising its economic importance.
Against this positive data it must be noted that there is a
constant change and recalibration of tax incentives in coproducing and competing jurisdictions. For example, the
UK, Puerto Rica, Australia, New Zealand, Canada, Mexico
and New York have reworked their incentives to attract
substantial Studio productions. Previously a high volume
of Irish made or located films were structured as
Ireland–UK co-productions which combined both
countries’ incentives. As a consequence of the changes in
the UK tax relief, such a structure is no longer feasible
and Ireland now has to compete on a stand alone basis
with other jurisdictions as they compete for the business.
The location of international productions is primarily
driven by the relative attractiveness of such schemes.
Such activity had dropped significantly in 2004 in Ireland
and as Section 481 had continued to be regarded as
uncompetitive the level of feature film activity in this
country suffered a dramatic collapse in 2005.
If the focus is put on attracting large-scale US films it
might be argued that an additional mechanism be found
to compensate for the extra cost associated with the
weak dollar- strong Euro exchange rate. English speaking
countries with weaker currencies such as Australia,
Canada and New Zealand have a competitive edge when
compared with Ireland. Given that several individual US
States are now offering improved production incentives,
Ireland is unlikely to see any substantial US production
business unless a mechanism is found to compensate for
the currency differential.
The Government and the Irish Film Board took action in
the latter part of 2005 to address this serious situation for
the film industry in Ireland. There was a supplementary
vote of G1.5 million capital to the Film Board in
November 2005 which was invested by the Film Board in
incoming productions that have had a combined Irish
spend of G28 million. Representing a leverage rate of
1:18, this has had a major impact on film and television
drama production for 2006.
While this year’s enhancement of Section 481 has
promoted additional production in Ireland, particularly of
incoming TV drama, our status in the international film
industry is being severely undermined by changes in
competing territories. Notwithstanding the improvements
to date, unfortunately Section 481 is no longer
competitive for feature film production. This needs to be
addressed comprehensively, and in a timely manner, so
that the incentive’s future will be made a matter of
certainty as early as is practicable in 2007.
In March 2006 the British Government confirmed
guidelines for the new tax relief it had proposed in
December 2005. The new tax credit is for films that were
started on or after April 1 2006 and for films that began
before that date but will not be completed by January 1
2007. This timeline was a factor driving film production in
Ireland in the first quarter of 2006. The March 31
termination date for the UK Sale and Leaseback scheme
brought to an end the co-production model which had
evolved since 2000 between Ireland and the UK. The new
Tax Credit Scheme has yet to receive EU approval.
The March deadline, the supplementary capital vote to the
Irish Film Board and the fact that British television
production cannot avail of that country’s tax break each
contributed to an initially busy film and TV drama
production sector in early 2006.
Having reviewed the situation in 2005, the Government
announced two major improvements to the Section 481
incentive in the Finance Act 2006. Following EU approval
the enhancements came into effect after 18th May. The
implications for applications for certification under the
scheme are that the maximum amount that can be raised
per project has increased from G15 million to G35 million
and the maximum percentage of a project’s budget that
can be raised has increased from between 55% and 66%
to 80%.
To the end of July 2006 twenty projects have received
Section 481 certification with budgets totalling G129.8
million and an Irish spend of G82.6 million. Irish spend is
already approximately G20 million ahead of the full year
figure. for 2005.
- 18 -
- 19 -
Appendices
Appendix I:
Appendix II:
Production Details – Summary 1996 - 2005 Comparison
Appendix III:
Production Details – By Type of Production – 2005
Appendix IV:
Funding Details – By Type of Production - 2005
Appendix V:
Appendix VI:
Clarification Notes
Appendix VII:
Appendix VIII:
Appendix IX:
List of Productions included in the Report 2005 and 2006
- 20 -
- 21 -
35.9
80.1
3.4
0.1
-
-
1.5
53.2
191.1
244.3
• Section 481
• Irish Film Board
• RTÉ
• TG4
• TV3
• Other
Total Irish Funding
Non-Irish Funding
TOTAL
* Exclude RTÉ/TG4 spend in respect of projects receiving S481 funding
44.2
3.3
-
-
0.1
5.5
33.5
14.2
19.3
1.4
0.1
-
0.1
3.8
13.9
48.2
Irish Funding of which:
35.1
Feature Films
Gm
2005
2003
2004
Funding by Type of Production
47.8
1.0
46.8
1.2
-
9.4
24.0
1.0
11.2
67.5
8.0
59.5
1.1
-
10.5
29.6
1.7
16.6
74.1
1.4
72.7
1.7
-
11.0
46.7
1.1
12.2
Independent TV Productions
Gm
2005
2003
2004
28.1
19.2
8.9
0.3
-
0.1
-
0.6
7.9
2003
22.3
7.0
15.3
-
-
-
-
0.2
15.1
Animation
Gm
2004
44.8
24.9
19.9
6.3
-
-
0.2
0.8
12.6
2005
320.2
211.4
108.8
3.0
-
9.5
24.1
5.0
67.3
2003
169.9
50.9
119.0
4.4
0.2
10.5
29.7
7.4
66.8
Total
Gm
2004
152.4
40.5
111.9
9.4
0.1
11.0*
47.0*
5.7
38.7
2005
In 2005, the 207 productions had combined budgets totalling G152.4 million. Funding from Irish sources amounted to G111.8 million, 73% of the total funding. The largest single
source of Irish funding was RTÉ which amounted to G47.0 million, 42%of the total Irish funding.
FUNDING
Appendix I: Economic Analysis 2005
Appendix I
- 22 -
67.5
52.3
14.3
0.9
22.3
47.8
33.6
14.1
0.1
28.1
320.2
Independent Television Productions
• RTÉ
• TG4
• Other TV Productions
Animation
TOTAL
152.4
44.8
0.2
16.1
57.8
74.1
33.5
2005
151.4
8.2
0.1
12.0
30.8
106.7
15.1
0.5
12.5
40.7
53.7
37.9
100.4
42.8
2004
2003
Of Which Irish Expenditure Gm
96.9
13.1
0.2
13.2*
52.9*
66.3
17.5
2005
* The figures for RTÉ and TG4 are based on the returned completed project forms. See clarification notes in appendix VI.
1. These Independent TV productions are classified by the organisation which was primarily involved with the various productions. Therefore, although for example TG4 are shown to have a total expenditure of G16.1m,
some of this expenditure arose from other sources of funding for TG4 productions e.g. private finance. Similarly for RTÉ – other sources of funding i.e. other than the G57.8m provided by RTÉ contributed to this expenditure
169.9
80.1
2004
244.3
2003
Total Expenditure Gm (See (1) Below)
Feature Films
Type of Production
Of the G152.4 million combined budget, G96.9 million was spent in the Irish economy.
EXPENDITURE
- 23 9,299
350,199
• TG4
1,863,131
228,052
8,468
1,058
129
4
200
547
751
178
Full Time Equivalent Jobs
831
123
-
-
109
109
599
Non-Irish Employment
2. Based on a 38 hour week and a working year of 232 days. The 38 hour average is taken from a 39 hour week average for manual workers and a 37 hour week for clerical, professional and technical workers. The 232
day working year is derived as follows: 365 minus 104 days weekends minus 9 public holidays minus 20 days average annual leave days = 232.
TOTAL
Animation
6,365
965,246
• RTÉ
313,269
1,321,810
Independent TV Productions
Total Irish Work Hours
Feature Films & Major TV Dramas
Type of Production
Employment by Type of Production - Equivalent Full-time Jobs
TOTAL
204
327
1,514
Animation
1,514
• TG4
5,256
123
5,365
• RTÉ
6,893
1,371
123
7,002
Of which: Irish Employment
1,970
Independent TV Incl. Major TV Drama
Total Employment
Feature Films
Type of Production
Employment by Type of Production - Direct Employment - Irish/Non Irish
A total of 9,299 people were directly employed in relation to these 207 productions, of which 91% were Irish. This figure excludes direct employment generated through the
expenditure of G57.2 million on Irish Goods and Services and indirect employment generated through the multiplier effects of the total Irish expenditure G96.9 million in the
economy. A total of 1,863,131 work hours were generated, which translates to the equivalent of 1,058 full-time jobs (see (2) below).
EMPLOYMENT
1. The effect of ‘Government’ on the multiplier may be added if it is assumed that Government respends fully all income received, with full interaction between Government current outgoings and all economic activities. If
this assumption is invalid and the Government decides its expenditure before its revenue is clearly known, the additional Government effect on the multiplier becomes less certain. As a result, the Government effect on the
multiplier has been omitted with the result that the multiplier effects shown are, if anything, understated.
Thus the net benefit to the Exchequer in 2005 was receipts of G31.9 million less the tax foregone of G15.1 million yielding a net gain of G16.8 million.
As mentioned above, returns to the Exchequer are derived from incomes and expenditure generated directly and indirectly by the audiovisual industry. In 2005 direct tax receipts
were G11.4 million, comprising of G4.7 million from PAYE/PRSI, G5.8 million from schedule D and G0.9million from VAT and Corporation Tax (see Appendix III). Indirect tax receipts
are estimated to have amounted to G20.5 million, giving a total of G31.9 million in receipts.
The cost to the Exchequer of Section 481 is the tax foregone on Section 481 investments. The derivation of tax foregone on Section 481 is discussed in Appendix V. For 2005 Section
481 finance was G38.6 million and the tax foregone on this was G15.1 million.
Exchequer Returns and Receipts from the Audiovisual Sector
- 24 -
- 25 1,690
1,450
1,187
33.78
12.70
21.08
19.17
27.30
8.13
Equivalent Full-time jobs
Total Irish Labour Costs Gm
Irish Labour Costs – Subject to PAYE Gm
Irish Labour Costs – Other (Schedule D) Gm
Tax Foregone to the Exchequer through Section 481 Gm
Gross Return to the Exchequer Gm
Net Gain to the Exchequer Gm
*Specialised requirements of inward productions in 2000 & 2002
1. See appendix V for calculation
13.34
39.62
26.28
37.46
18.67
10.29
38.22
27.93
26.28
23.87
50.15
2,979,178
2,556,708
2,093,522
56.12
959
1,380
Total Non-Irish Employment
687
75.55
21,299
44.31
108.44
17,899
45.08
Non-Irish Expenditure Gm
112.37
183.99
11,251
78.47
Irish Expenditure Gm
156.69
76.82
Total Irish Employment
123.55
Total Expenditure Gm
59.93
107.17
22,258
44.31
Non-Irish Funding Gm
96.75
183.99
19,279
79.23
Irish Funding Gm
156.69
1998
11,938
123.55
Total Funding Gm
1997
Total Numbers Employed
1996
Production Details
12.57
40.89
28.32
35.17
23.36
58.53
1,554
2,739,831
937
16,224
17,161
66.53
117.07
183.6
69.58
114.02
183.60
1999
16.3
45.1
28.8
43.6
23.7
67.3
1,742
3,071,108
2,578*
15,750
18,328
80.2
129.3
209.5
93.1
116.4
209.5
2000
Appendix II: Production Details – Summary 1996 - 2005 Comparison
23.6
47.8
24.2
44.5
23.4
67.9
1,501
2,646,714
356
17,079
17,435
117.4
141.6
259.0
147.6
111.4
259.0
2001
21.2
42.8
21.6
38.4
21.2
59.6
1,198
2,111,560
5,446*
10,978
16,424
68.3
122.6
190.9
81.1
109.8
190.9
2002
30
52.6
22.6
35.0
29.4
64.4
1,492
2,629,824
723
11,515
12,238
168.8
151.4
320.2
211.4
108.8
320.2
2003
12.2
34.5
22.3
23.5
16.8
40.3
963
1,699,872
866
12,355
13,221
63.1
106.7
169.8
50.9
118.9
169.8
2004
16.8
15.1
31.9
26.4
13.4
39.8
1,058
1,863,131
831
8,468
9,299
55.5
96.9
152.4
40.5
111.9
152.4
2005
Production Details
- Summary 1996 - 2005 comparison
Appendix II
72.7
4.6
8.6
21.7
7,002
6,896
1,315,082
751
19.3
14.2
33.5
17.5
16.0
0.1
0.5
0.4
1.1
2.1
6.7
1.7
5.0
1,970
1,371
313,269
178
Irish Funding Gm
Non-Irish Funding Gm
Total Expenditure Gm
Irish Expenditure Gm
Non-Irish Expenditure Gm
Direct Returns to the Exchequer - Net Vat Gm
Direct Returns to the Exchequer – PAYE Gm
Direct Returns to the Exchequer – PRSI Gm
Direct Returns to the Exchequer – Corp Tax Gm
- 26 -
Direct Returns to the Exchequer – Schedule D Gm
Direct Returns to the Exchequer – Total Tax Gm
Total Irish Labour Costs Gm
Irish Labour Costs – Subject to PAYE Gm
Irish Labour Costs – Other (Schedule D) Gm
Total Numbers Employed
Total Irish Employment
Equivalent Full-time jobs
10.2
31.9
0.3
1.6
1.7
0.4
7.8
66.3
74.1
1.4
74.1
33.5
Total Funding Gm
Independent TV Productions Gm
Feature Films Gm
Production Details
Appendix III: Production Details – By Type of Production – 2005
129
228,052
204
327
0.3
1.5
1.8
0.7
0.1
-
0.2
0.3
0.1
31.7
13.1
44.8
24.9
19.9
44.8
Animation Gm
1,058
1,863,131
8,468
9,299
27.0
13.4
40.4
11.4
5.8
0.3
2.2
2.5
0.6
55.5
96.9
152.4
40.5
111.9
152.4
All Productions Gm
Appendix III
Production Details
- By Type of Production – 2005
- 27 -
11.0
12.2
0.1
0.1
1.5
0.1
13.9
0.1
0.4
0.9
19.3
- Telefís na Gaeilge (TG4)*
- TV3
- Section 481 (total amount raised)
- An Chomhairle Ealaíon/The Arts Council
- Deferments
- Other (including Private Equity, Sponsorship etc.)
Sub Total Irish
0.3
5.1
1.4
0.7
6.5
14.2
33.5
- Eurimages
- MEDIA Programme
- Other UK Sources
- Other EU Sources
- US
- Other
Sub Total Non-Irish
Total
** Exclude RTÉs and TG4’s spend in respect of projects receiving S481 funding
* See appendix VI for clarification
0.2
- Broadcasters
NON IRISH
46.7
0.1
- Radio Telefís Éireann*
74.1
1.4
0.4
-
-
-
0.3
-
0.8
72.7
1.1
Independent TV Productions Gm
3.8
Feature Films Gm
- Bord Scannán na hÉireann/Irish Film Board
IRISH
Source of Funding
Appendix IV: Funding Details – By Type of Production - 2005
44.7
24.9
0.6
13.1
6.2
0.5
-
3.4
1.0
19.9
6.3
-
-
12.6
-
-
0.2
0.8
Animation Gm
152.4
40.5
7.5
13.8
7.6
5.6
0.3
3.7
2.0
111.9
8.7
0.5
0.2
38.7
0.1
11.0**
47.0**
5.7
All Productions Gm
Funding Details
– By Type of Production - 2005
Appendix IV
Appendix V
Contribution of the Irish Film and Television
Sector to the Irish Economy 2005
This section of the report sets about measuring the
contribution of the TV and Film production sector to the
economy. This contribution is measured both in terms of
tax revenue generated and the impact on GNP and
employment.
GNP and Employment Multipliers
The data collected is largely based on the production
accounts of a ‘standard’ TV, film or animation production.
This provides information of numbers directly employed
on a production, but not the numbers employed due to
the purchase of goods and services. Thus, for example,
the numbers employed in Catering are known only if
provided internally by a production and not if contracted
out. In order to capture this additional direct
employment, and indeed to capture the wider output and
employment activity generated by film production, the
concept of the multiplier is utilised.
Returns to the Exchequer
As noted in Section 4, the total tax revenue directly
attributable to productions is G11.4 million; the bulk of
this revenue is in the form of payroll taxes. This amount
somewhat understates the tax return from productions,
as it excludes both the tax revenue generated by the
contracting out of goods and services G57.2 million and
the tax revenue generated through the expenditure of the
net income (G39.8m - G10.5m) of Irish employees in the
film industry. Using a tax multiplier of 25% and applying
it to the amount spent on goods and services, IBEC
calculates the direct and indirect tax revenue generated
from this activity to be (0.25* G57.2m) = G14.3 million.
Using a tax multiplier of 25% and allowing for 15% of an
employee’s net income to be saved (a marginal
propensity to consume of 0.85), IBEC calculates the tax
contribution of the spending of Irish employees in the
film industry to be (G39.8m - G10.5m)* 0.85*0.25) =
G6.2 million. Thus the total indirect tax revenue
attributable to productions is G20.5 million, giving a total
tax revenue, direct and indirect, of G31.9 million.
The multiplier captures the overall impact of what might
be termed the ripple effects of an economic activity. For
example, a film distributes its budget amongst various
suppliers of Irish goods, services and labour. Each of
these individuals will, in turn, spend a proportion of this
additional income on suppliers of Irish goods, services
and labour in a ripple effect expanding throughout the
economic system, far beyond that of the film industry. A
GNP and Employment multiplier captures the sum of all
successive ripples, in terms of both output and
employment, respectively. The concept of the multiplier is
used by amongst others, IDA Ireland, Teagasc and Bord
Fáilte.
The multipliers used in the analysis are based on the
work carried out by Professor Eamon Henry at the ESRI,
applying Input-Output analysis to a 41 NACE sector
model of the economy. The multipliers relate specifically
to the Other Market Services sector of the Irish economy
in 1993.
It is important to weigh these Exchequer benefits from
audiovisual production activity against the cost to the
Exchequer, in terms of tax revenue foregone through
Section 481 relief.
Under Section 481, individuals and companies may write
off a portion of their tax liability by investing in a
production up to specified limits. Companies discount
their investment against a 12.5% (in tax year 2005) rate
of corporation tax and individuals against the 42% rate
of income taxation. According to the latest figures from
the Revenue Commissioners, the average tax rate
foregone on investments availing of Section 481 went
from 33.5% in the tax year 2004 to 39.1% in the tax year
2004.
Henry divides the multiplier effect of a given level of
expenditure into a direct, an indirect and an induced
effect - see following table.1 An indirect effect results
from the purchase of ‘upstream’ inputs of goods and
services. These are goods and services that are not
directly purchased by an audiovisual production. The
induced effect arises out of the increase in personal
incomes through an injection from outside the economy
(foreign investment). Expenditure, which is domestically
financed, does not have an induced effect as the money
has already been circulating within the economy. As a
result the multiplier for foreign-funded expenditure in
Ireland is greater than for domestically funded
expenditure. Finally, it is important to note that by
applying the multiplier solely to expenditure on Irish
goods, services and labour, the estimate of the activity
generated by film production in Ireland is understated by
the amount spent by overseas employees whilst in
Ireland.
On balance then, 39.1% of Section 481 funding for
audiovisual production activity is tax foregone by the
state. This amounts to G15.1 million in the period
covered by the report.
- 28 -
In order to allow for the impact of both domestically funded and foreign-funded expenditure, a composite multiplier is
generated comprising the Direct + Indirect multiplier and the Direct + Indirect + Induced multiplier weighted by the
proportion of domestic and foreign-funded expenditures respectively. For example, the GNP multiplier is calculated as
follows:
(0.7354 * 0.73) + (0.9284 * 0.27) = 0.7874
By applying the composite GNP multiplier of 0.7874 to the Irish expenditure of G97 million, we estimate the final
contribution of this expenditure to the Irish economy to be G76.4 million. Similarly, by applying a weighted employment
multiplier of 37.32 to the expenditure of G97 million in Ireland, we estimate the final contribution of this expenditure to
Irish employment to be 3,620 full-time jobs.
Methodology
The multiplier estimates are taken from a report for Bord Fáilte by Professor Eamon Henry “Estimated Irish 1993 GNP and
Employment Multipliers by Input-Output Modelling”, tables 6 and 8. The multiplier impact of audiovisual production
activity on the economy was calculated, using the Henry multiplier for the NACE sector Other Market Services and allowing
for the proportion of domestic and foreign-funded expenditure. The multiplier data for this sector are shown in the table
below.
GNP and Employment Multipliers for the Other Market Services Sector, 1993
Multiplier
Direct
Direct + Indirect
Direct + Indirect
+ Induced
Direct + Indirect
+ Induced +
Government
GNP
0.5064
0.7354
0.9284
1.2558
Employment
24.01
35.60
41.96
56.91
Source ESRI/Bord Fáilte
- 29 -
Appendix VI
Clarification Notes
N1 Certification
A significant number of the feature films and major television dramas in this report were subject to terms of Section
481 (previously Section 35) Certification (introduced under section 20 of the Finance Act, 1994). Certification ensures
that each proposed qualifying film project is analysed by the Department of Arts, Sport and Tourism for specific
contributions in three key areas; creation of employment, return to the Exchequer in terms of value-added and the
enhancement of the national culture through the medium of film and television.
(With effect from 1 January 2005, arising from changes in the Finance Act 2005, Revenue Commissioners now exercise
this function; the Department of Arts, Sport and Tourism retains responsibility for authorising projects for such
certification on the basis of their cultural content.)
N2 Bord Scannán na hÉireann/Irish Film Board
The Board’s budget is voted annually by Dail Éireann and in 2005 the Board received Capital Grant-in-Aid of G12.4
million of which G1.24 million was allocated to FAS/Screen Training Ireland. The Irish Film Board was also allocated
an Administration grant of G2.05 million. The figures in Appendix 1 represent the full amount of the IFB’s commitment
to a project ad does not take into account timing differences and closing balances at the year end on projects. The
figure for TV includes schemes and documentaries.
N3 Radio Telefís Éireann
A total of 128 independent television production are analysed in this report, reflecting an RTÉ investment of G57.8
million in 2005.
N4 TG4
A total G13 million investment spent by TG4 in the sector in 2005 was analysed in this report covering 57 productions.
A further G1.7 million spent by TG4 in 2005 on programmes and sports rights etc, falls outside the criteria of this report
and as such was not included.
N5 Exchequer Costs
It should be noted that in addition to tax foregone, Exchequer support flows to the audiovisual industry through a
number of structures including the Irish Film Board, TG4 and Screen Training Ireland. The irish Film Board and TG4 have
extensive public service as well as commercial objectives. Outlays by Screen Training Ireland, which receives some
Exchequer support, are specifically aimed at the industry, but all other industries also benefit from Exchequer support
for training programmes (e.g. through FAS), so that the audiovisual industry is not uniquely favoured in this respect. In
the light of these considerations, it was decided to continue the practice of confining the comparison to taxes foregone
on Section 481 (previously Section 35) investments and taxes generated by film industry activity.
- 30 -
Introduction
The scheme of tax relief was introduced in 1987 (Section
35), to promote the Irish film industry, by encouraging
investment in Irish made films, which make a significant
contribution to the national economy and Exchequer and
/ or act as an effective stimulus to the creation of an
indigenous film industry in the State. The scheme was
broadened in 1993 to include individual investors. The
details of the scheme are contained in Section 481 of the
Taxes Consolidation Act, 1997(as amended). The scheme
has been extended to 31 December 2008. The Finance Act
2006 increased the limit on investments that can be
raised under the scheme. The maximum proportion of a
film production cost which can be met by tax relieved
investments was increased to 80%, regardless of the size
of the film budget. The overall ceiling on tax relieved
investment in any one film was increased to G35m.
•
Tax relief on 80% of their investments is available
to individual investors and to corporate investors
on amounts invested.
•
Individual investors can invest up to G31,750 under
the scheme in any year of assessment. An investor
who cannot obtain relief on all his / her investment
in a year of assessment, either because his/her
investment exceeds the maximum of G31,750 or
his/her income in that year is insufficient to absorb
all of it, can carry forward the unrelieved amount to
following years up to 31 December 2004, subject to
the normal limit of G31,750 on the amount of
investment that can be relieved in any one year.
•
A corporate investor and any connected companies
can invest up to G10,160,000 in any 12 month
period. The total amount which can be invested in
any one film cannot exceed G3,810,000.
•
Investment may be made by an individual company
or a corporate group. Where the total investment
exceeds G3,810,000, the excess can only be
invested in productions with a budget of
G5,080,000 or less.
•
The investment must be used within two years,
for the purpose of enabling the qualifying
company to produce a qualifying film.
•
The production company must be an Irish
incorporated and resident company, or a
company incorporated or resident outside the
State but which is carrying on a trade in the
State through a branch or agency.
•
The production company must be established
for the production and distribution of only one
qualifying film.
A qualifying film is a film in respect of which The Revenue
Commissioners has given a certificate (from 1st January
2005).
Qualifying Company
A qualifying company for the purposes of the scheme, is
an Irish incorporated and resident company or a
company, which is carrying on a trade in the State
through a branch or agency. The company must exist
solely for the production and distribution of one and only
one qualifying film.
Summary of the Scheme
The scheme provides tax relief towards the cost of
production of certain films. The maximum amount
which can be raised under the scheme is 80% of
the production budget.
Tax relief on amounts invested is not allowed
until principal photography of the film project
has commenced. If an application is made after
principal photography has commenced, then
the application is void
Qualifying Film
Since 1 January 2005, the Revenue Commissioners is
responsible for the certification process of projects,
having obtained an authorisation from the Minister
validating the project of its cultural content.
•
•
Under Revenue Rules, to qualify for the tax relief, a risk
requirement must attach to the investment, i.e. a return
cannot be guaranteed to the investor.
- 31 -
Appendix VII
Appendix VIII
Agencies Involved with the Film Production
Industry in Ireland
(a) Steering Committee Organisations
of Irish films and to promote training and development in
all areas of film-making. Employment of Irish crew and
the use of ancillary Irish services is a vital factor in the
Board’s consideration of applications.
An Roinn Ealaíon, Spóirt agus
Turasóireachta/Department of Arts,
Sport and Tourism
Eurimages
Eurimages, founded by the Council of Europe, provides
production finance for European co-productions. The Irish
Government has participated in the scheme since 1992.
In 2005, Bord Scannan na hÉireann/the Irish Film Board
paid Ireland’s contribution to G242,639. Brendan
McCarthy was the Irish representative, and Ireland
received G800,000 in production funding from the fund
in this year.
The Department of Arts, Sport and Tourism, has, since
June 2002, overall Government policy responsibility for
the future development of both the film and television
production industry in the State( from 1993 with the
former Department of Arts, Culture and the Gaeltacht),.
Since the Finance Act of 1994, the Department has had
an active role in the Section 35 (now S481 of the Taxes
Consolidation Act 1997) investment incentive scheme,
through the certification process. Since 1 January 2005
the Revenue Commissioners is responsible for the
certification process , having obtained an authorisation
from the Minister validating the project in terms of its
cultural content and ensuring that the main aim of the
Section 481 relief remains focused on promoting the
growth of the indigenous film industry.
Radio Telefís Éireann (RTÉ)
The IPU is RTÉ’s interface with the independent sector.
RTÉ’s primary responsibility is to it’s audience, and the
quality and range of commissioned programmes plays a
key role in helping RTÉ to deliver the most successful
schedules in Ireland. RTÉ achieved this with almost 62%
home production on its peak-time schedule on RTÉ One
and 30% on RTÉ Two during 2005. RTÉ Television’s share
continued to grow in 2005, despite intense competition,
reflecting the strength of home production. The key
driver in this success is home production, with Irish news,
stories, entertainment and drama for the Irish audience.
RTÉ’s independent commissions (alongside it’s in-house
production) are what deliver this strong performance.
Commissioned Irish content satisfies viewers, underpins
RTÉ’s Public Service remit, and meets the commercial and
creative aspirations of the Irish independent sector. The
volume of hours and the actual spend on independent
production have increased enormously since the first year
of operation of the IPU in 1993. RTÉ’s increased spend
(G75m. in 2005 in respect of 1,008 hours of
commissioned programming) continues to underpin the
growth of the Irish independent sector, and assisted in
job creation, economic growth and creative expression in
this dynamic sector.
The Department provides Bord Scannán na hÉireann / the
Irish Film Board with grants-in-aid for its current and
capital operations. From 2000, the Board’s capital
operations are being funded by the Exchequer, under the
National Development Plan 2000-2006.
Audiovisual Federation (AF)
The Audiovisual Federation was established in September
1992 to promote the development of Ireland’s
audiovisual production and distribution industry. Its
membership comprises firms ranging from broadcasters
RTÉ, TG4, UTV and independent producers to corporate
video producers, animation studios, facilities, legal and
financial firms involved in the audiovisual sector and
video rental companies. Affiliated member organisations
include Screen Producers Ireland, Bord Scannan na
hÉireann, Film Base, The Film Institute of Ireland,
Enterprise Ireland, Udaras na Gaeltachta, Shannon
Development and BCI.
Bord Scannán na hÉireann/Irish Film
Board
Board Scannan na hÉireann/the Irish Film Board was
reconstituted in April 1993 by the Department of Arts,
Heritage, Gaeltacht and the Island under the Film Board
Act, 1980. The Irish Film Board promotes the creative and
commercial development of Irish filmmaking and
promotes Ireland as a location.
Board Scannan na hÉireann provides loans and equity
investment to independent Irish film-makers to assist in
the development and production of Irish films. The Board
also acts in co-operation with other Irish semi-State
agencies to improve the marketing, sales and distribution
- 32 -
TG4
the dependency on the home market, TG4 in particular,
and Gaeltacht based production companies are cognisant
of the need to explore the possibilities of new and
converging media and realise new markets.
TG4 is Ireland’s Irish language television service and
broadcasts on its own channel, available nationally on
terrestrial analogue, digital cable and subscription
satellite. Its core remit is to broadcast a comprehensive
range of quality, relevant Irish language programming to
the national audience as a Public Service. The Exchequer
funds the channel. During 2005, TG4 received G23.98
million grant-in-aid from the Department of
Communications, Marine and Natural Resources.
The BCI’s Funding Scheme ‘Sound & Vision’ saw increased
activity in the Gaeltacht in the last number of months,
with further projects going into production in the coming
months and this is very much welcomed by Údarás na
Gaeltachta. During summer 2006, well over 150 people
were involved in two major productions for TG4, and
funded by the ‘Sound & Vision’, Round 1, namely ‘AIFRIC’
and ‘CRÉ NA CILLE’.
TG4 functions primarily as a publisher broadcaster and
currently operates under the statutory aegis of the RTÉ
Authority. The Minister for Communications, Marine &
Natural Resources, Noel Dempsey, has recently
announced that the station will be transformed into an
independent statutory body from the beginning of April
next year. TG4 is in receipt of the equivalent of one hour
a day of programming from RTÉ at no cost to TG4. The
channel currently broadcasts for an average of 19 hours
per day, with an average of six hours a day of the Irish
language programming.
BCI
The Broadcasting Commission of Ireland is responsible for
a number of key areas of activity with regard to television
and radio services in Ireland further to the provisions of
the Radio and Television Act, 1988 and the Broadcasting
Act 2001, and the Broadcasting (Funding) Act, 2003. They
include Licensing; Monitoring; Codes and Rules;
Development; Research; Information; and Sound and
Vision – The Broadcasting Funding Scheme.
Screen Producers Ireland (SPI)
Screen Producers Ireland (SPI) is the representative body
for over 225 independent film , television, and animation
production companies in Ireland.
MEDIA Desk Ireland and MEDIA
Antenna Galway
MEDIA Desk Ireland (supported by the European
Commission’s MEDIA Programme, the Film Institute of
Ireland, Film Makers Ireland, Dublin City University, Film
Base, Bord Scannán na hÉireann and RTÉ) and MEDIA
Antenna Galway (supported by the European
Commission’s MEDIA Programme, Údarás na Gaeltachta,
Bord Scannán na hÉireann, TG4 and the Galway Film
Centre) are information offices for the MEDIA Programme
of the European Union. The MEDIA Desk and Antenna
provide advice, technical assistance and consultancy for
audiovisual professionals in international and national
markets and festivals, as well as facilitating the
integration of the Irish audiovisual industry within Europe.
Along with providing information on the MEDIA
Programme, the MEDIA Desk and Antenna also provide
information on Eurimages and on EU Audiovisual Policy in
general.
On behalf of its members the organisation seeks to create
an improved environment for producers, which will assist
growth in the industry. SPI reflects members’ concerns on
a variety of issues affecting the current and future
working environment of the independent film, television
and animation sector. It represents these views to the
appropriate state, semi-state and international bodies.
(b) Other Agencies
Údarás na Gaeltachta
Údarás na Gaeltachta’s remit is to develop the economy
of the Gaeltacht and to encourage the preservation and
the extension of the Irish language as the principal
language of the Gaeltacht community.
The organisation took proactive steps at the beginning of
the 90’s to encourage growth and development of the
audiovisual sector in the Gaeltacht. Údarás na
Gaeltachta’s continuing commitment to this sector is
evident through its support of independent production
companies, production and post production facilities,
training initiatives and a willingness to cooperate/liaise
with organisations that are responsible for the promotion
of the sector both nationally and internationally.
The third edition of the MEDIA Programme – MEDIA Plus
- commenced in January 2001 and will continue until the
end of 2006. The budget for the 6-year programme is
G513 million.
The audiovisual sector within the Gaeltacht has
witnessed some rationalisation down through the years,
but this is typical of any new and emerging sector. There
is recognition within the sector in the Gaeltacht of
This included Slate Funding Development awards to 7
companies, TV Distribution support to the animated series
‘SKUNK FU’ and support for the annual Film market at the
Galway Film Fleadh.
In 2005 it is estimated that the Irish audiovisual industry
received G1.6 million for Development of projects,
Distribution, Exhibition, Festivals and Market access
support.
- 33 -
Appendix VIII:
- 34 -
Appendix IX
2006
2005
Project Type
Project Working Title
Feature Film
Becoming Jane
Puffball
Once
Shrooms
The Tiger’s Tail
13
Dot Com
True North (aka Dragnet)
Garage
Summer of the Flying Saucer
Kings
32A
Strength & Honour
How About You?
The Brave One
P.S. I Love You
Little Foxes
Cré na Cille
48 Angels
Independent
TV including
Major TV
Drama
The Tudors
Murphy’s Law
Kitchen
Northanger Abbey
Afric (TG4)
Rough Diamond (RTÉ)
The Running Mate (TG4)
Return to the Shannon River
Single handed (RTÉ)
Warriors (RTÉ)
Baker Street Irregulars
Gently’s Last Case
An Gaeilgeoir Noche – UAIR (TG4)
TV
RTÉ (not available at time of printing)
TG4 (not available at time of printing)
Animation
Brendan and the Secret of Kells
Slim Pig II
I’m an Animal
Fluffy Gardens
Way to the Stars
Skunk Fu
Project Type
Project Working Title
Feature Film
Dead Long Enough
Small Engine Repair (aka In Like Flynn)
Johnny Was
Lassie
Middletown
Pavee Lackeen
Red Roses and Petrol
Studs
The Front Line
The Wind that Shakes the Barley
RTÉ
'05 How was it for you?
10 Things to do before you're 10
for under a tenner
1980's Theme Night
A Good Innings
A Scare at Bedtime with Podge & Rodge
Series 9
A Womans Hair
After Maeve
Afternoon Cooks
The Afternoon Show Series 2
An Audience with Podge & Rodge
An Evening Prayer
An Oilithreacht
Animal Rescue
Apres Match Xmas Special
Art For Sale
Arts Lives: One Hundred to One
Bad Boys Theme Night
Bean an Ti
Beyond the Dark Mountain
Bia Bothar V
Blast Beat
Building a House (Frameworks)
Carte de Visite (Frameworks)
Charity Queens
Christmas with the King
Coulter & Co III
Cracking Crime - Series 4
Cruinneas Craith 5
Cut & Dry
Daniel's Summers Nights 2
Demon (Frameworks)
Desperate Houses I & II
Des Bishop: Joy in the Hood
DIY Dads
Dreams Come True
Dustins Daily News Inserts
Ear to the Ground
Fairy WIfe: The Burning of Bridget Cleary
Families in Trouble Series 1
Fleadh Cheoil 2005
Gaybo
Gaybos Grumpy Men
Gerry Ryan's Pop Hitlist
Gerry Ryans's 1970's Hitlist
Gerry Ryans Christmas Hitlist
Go For IT
Hanging with Hector Series 2
Health Squad
Health Squad Uncovered
Hide and Seek
How Low Can You Go 2
Home to Stars
Ear to the Ground Horse Tales
House Hunters 5
House Hunters in the Sun 3
House Hunters in the Sun revisited 2
House Hunters Revisited 2
How Long Will You Live, Series 1
Jam
Karl Spain Wants a Woman
Killinasjully - Series 2
Land is Gold - Kenmare and the Lansdown Estate
Last Night (Short Cuts)
Leagues Apart with Ardal O'Hanlon
Legend
Masses/Services
Made in America
Meet the Family series 2
Mighty Talk: A Journey with Druid Synge
Mono Series 4
Mother Knows Best
Naked Camera 2
- 35 -
Design and print: Shay Kennedy - [email protected]
List of Productions included in the Report
2005 and 2006
Appendix IX: List of Productions included in the Report 2005 and 2006
RTÉ
TG 4
No Place Like Home
One Faithful Harp - The Life and Times of Thomas Moore
Other Voices Series 4
Park Live
Patrick Kavanagh "No Man's Fool"
Pope Benedict
Pride and Joy
Quizone
Rebel County
Return to Our Lady's
Rip Off Republic
RTÉ Horse Racing 2005
RTÉ Horse Racing Preview Show
Ryan Confidential - Series 3
Scope Series 3
Scor 2005
Seachtan na Gaeille 2005
Show me the Money III
Show Me The Money Revisted
Showbands 2
Showhouse
Stadbally Hall Days
Stardust
Stew 2
The Big Bite Series 2
The Blizzard of Odd
The Burning of Cork
The Clinic - Series 3
The Craig Doyle Show
The Day of the Conclave
The Festival of World Cultures 2005
The last Furlong
The Liffey Laugh 2
The Man Who Shot Beckett
The Memoriser
The Mentor
The Panel
The Poet, the Shopkeeper and Babu
The Rescuers
MIghty Talk - A Journey with Druid Synge
Tsunami One Year On
An Tua Nua (2005/2006)
Two Sounds Live - Sinead O'Connor
Two Sounds Live - The Thrills
U2 Night Theme Night
Who was Gunner Mason
Why Cork Didn't Rise - Why the guns remained silen
You're a Star 3
You're a Star Charity Special
An Fear an Rinn
An Nollaig Thair
An Saol Beo
Ar Thuir Hy Brazil
Athghuthu
Bibenna
Brian McCaba
Cartoon Dubbing for TG4
Cathair Chorcai
Ceanti Ceol (Fobairt)
Ceart agus Lar
Celtic Monsters
Citi Seain
Clar Beo Oireachtas
Cowboys
Cumann a Ghaire
- 36 -
Danny from Bandon
Deireadh le hAiocht
Dialann Cesca
Dubail
Dubail 2005
Eire Eadrom
Evan Chamberlain
Evan Chamberlain
Fastnet
Fear an Ti
FFC 2
Fo-theidealu (TG4)
Fotheidedu & Teileateacs
Fullerton
Geantrai agus Abair Amhrar
Glor Tire
Gradam Ceoil TG4 2005
Hector san Afraic
It's my Party
John Beag
Meirligh
Mo Leathanta Saoire 3
Na Sean Deithe/ The Lost Cods
Na Staisiuin
Olc an Ghaoth
Ollselathar Sport TG4 03/05
Ollselathar Sport TG4 05/08
Oriel - The Atlantis of Ireland
Paisean Faisean
Paisean Faisean 2
Peacai Neelo (series 2) 2005
Pop 4
Ros na Run - Sraith 10
Saighdiuiri Beaga Gaelacha
Siar san 70's
Soiseal Pharaic
Stiurtheori Speire
Strongbow
Tangage Cics
The Fightinh Caseys
Underdogs 3
Walfrid - An Chead Cheilteach
TV Other
George
Mothers Little Helper
What did you do that for, Helen?
Whatever Love Means
in Ireland
in Ireland
IBEC AUDIOVISUAL FEDERATION
Confederation House, 84/86 Lower Baggot Street, Dublin 2
Tel: + 353 - 1 - 6601528, Fax: + 353 - 1 - 6381528
Email: [email protected]
www.ibec.ie

IBEC Pages 06 (8)

Transcription

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