asked the Minister for Industry, Commerce and Energy if he is aware that a firm (details supplied) who recently completed a film in Ireland, have failed to pay a number of Irish creditors; and, since the National Film Studios of Ireland Limited now have the copyright of the film concerned, if he will ensure that all moneys legally due to residents of this country will be paid before any of the money is paid out of the country from the proceeds of the film.
Ceisteanna—Questions. Oral Answers. - Film Proceeds.
19.
The National Film Studios of Ireland Limited do not own any part of the copyright of the film in question. They own the distribution rights of the film in Ireland and most other English-speaking territories ex-cluding the US and Canada and are entitled to a share in the profits from distribution in certain other countries.
I am aware that certain moneys are due by the production company to Irish creditors. The NFSI, a large creditor, have instituted legal action to enforce payment of sums due to them. No money is payable out of this country from the proceeds of the film. I should perhaps add that there is no legal obligation on the NFSI in regard to payment of debts incurred by the production company.
Is the Minister aware that a French company came into Ireland and used the goods and services available to them here and promised to pay substantial sums of money but, when they had the film completed, they moved out without paying anything? They said the copyright for the film is owned by the National Film Studios of Ireland Limited. Would the Minister make further inquiries about this matter because it appears lines have been crossed?
There is no question of the National Film Studios of Ireland ever being responsible for the debts of this company. In fact, the NFSI are themselves the principal creditors of the production company in Ireland. They are owned over 80 per cent of what this company owe in Ireland. Fortunately most of the other debts are very small. They have taken legal proceedings. They have some rights under the financing arrangements for the film in question to a share in the profits in the English-speaking world. Let us hope the film does well in the English-speaking world.
Has the Minister seen the film?
No. Has the Deputy?
If they do well, is there a possibility that the relatively small amounts to which the Minister referred which are owed to other people—several thousand pounds are owed to individuals, so it is a substantial amount—will be recovered or will the NFSI want to retain any money they can get and so deprive the other people of getting any refund of the cost of the making of the film?
It is a matter for each individual creditor to take proceedings or not to take them as he sees fit. I would hope all the creditors might be paid pro rata.
What is the total amount of money outstanding?
It is £85,000.
Is the Minister aware that land owners and business people in Ardmore have built up a great deal of goodwill with the various people using the studio? The action of this film company has left a very bad taste in the mouths of people who normally operate in conjunction with the film companies there. Will the Minister ensure that action is taken to see that this goodwill is built up once again and that the people who are owed money in that area are paid in full? This is a very serious matter in north Wicklow.
So far as I am aware this is the only production company who defaulted on their obligations in this country to any serious extent. Hopefully it will not happen again, but one has no guarantee in commercial life that there will not be defaulters. The position in this case is somewhat better than it might otherwise be because of the fact that the NFSI are entitled to some share of the profits. Hopefully the bulk, if not all, of the debts might be recovered through that channel.
Are they prepared to pay a proportion to the people who are owed money?
The NFSI do not owe them any money. They themselves are owed the bulk of this money.
The NFSI are the only people who have a share in the profits from a film made here and people were not paid for their services. Surely the Minister is not suggesting that a semi-State body can get possession of something like this, get their own money out of it, and ignore others who are owed money.
I have not made any such suggestion. I said I hoped the creditors would be paid pro rata.