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JOINT COMMITTEE ON ARTS, SPORT, TOURISM, COMMUNITY, RURAL AND GAELTACHT AFFAIRS debate -
Wednesday, 19 May 2010

Promoting Investment and Jobs: Discussion with Arts Council, Irish Film Board and Screen Producers Ireland

I welcome the following: Ms Pat Moylan, chairman, Ms Mary Cloake, director and Mr. John McColgan, producer, An Chomhairle Ealaíonor the Arts Council; Mr. James Morris, chairman, and Ms Teresa McGrane, deputy chief executive officer, Bord Scannán na hÉireann, or the Irish Film Board; and Mr. Gaby Smyth, chairperson, and Mr. Seán Stokes, chief executive, Screen Producers Ireland.

I must mention a legal development regarding the Defamation Act. This is the first delegation to receive the following announcement on privilege and I shall go through this procedural matter first.

I must advise that by virtue of section 17(2)(l) of the Defamation Act 2009, witnesses are protected by absolute privilege in respect of the evidence they are to give this committee. I hope that we do not have to use this legislation. If they are directed by the committee to cease giving evidence in relation to a particular matter and they continue to so do, they are entitled thereafter only to a qualified privilege in respect of their evidence. Witnesses are directed that only evidence connected with the subject matter of these proceedings is to be given and they are asked to respect the parliamentary practice to the effect that, where possible, they should not criticise nor make charges against a Member of either House, a person outside of the House, nor an official by name or in such a way as to make him or her identifiable. We are in new territory in this regard and I hope we do not need to employ any of the provisions on this occasion.

Members of the committee have absolute privilege; however, I remind them of the long-standing parliamentary practice to the effect that members should not comment on, criticise or make charges against a person outside the House or an official by name or in such a way as to make him or her identifiable.

I warmly welcome all of the delegates, whom I have come to know over the years. Apologies have been received from Deputies Olivia Mitchell and Mary Upton, the Fine Gael and Labour Party spokespersons. As members can see from their monitors, this meeting unfortunately clashes with questions to the Minister for Tourism, Culture and Sport in the Dáil. We will try to avoid that in the future. We have just been talking about it in private session. These members have specifically asked me to apologise on their behalf.

I am substituting for Deputy Upton.

And a formidable substitute he is.

The delegates may have heard of Deputy Michael D. Higgins, the former Minister for Arts, Culture and the Gaeltacht.

Before we start, I will ask them to be as informal as possible. There will be plenty of exchange with our members. We are all conscious that at the Global Irish Economic Forum the Government highlighted the fact that Irish culture, arts, film and music are central to the image of Ireland abroad and of importance in driving the process of economic renewal. I am pleased about this, as we all feel that culture should be at the core of this process. The delegates are the people who make this happen by driving culture and arts forward and giving artists the opportunity to demonstrate their talents.

From an employment point of view, the audiovisual production sector in Ireland employs more than 6,000 people, and there are around 560 small and medium-sized businesses in the sector. These are some figures from the documentation I have.

We are also conscious of the positive image provided by our film industry and the arts in general, which is a good thing for our tourism sector. I understand from talking to people prior to this meeting that when tourists are asked for survey purposes why they come here, around 18% comment that they were attracted by what they saw on the screen. We can all relate to this when we remember films such as "The Quiet Man", "Ryan's Daughter" and "The Wind that Shakes the Barley". There are many examples of films that present a strong image of Ireland.

This committee is anxious to highlight the good things that are happening out there. I know the delegates will enlighten us about where we are. It is a good period because of the incentives provided in section 481 of the Taxes Consolidation Act 1997 and the improvements that have been made to these in recent years. We would like to hear the delegates speak about this. The Irish film sector has received much international attention in recent times and we have been winning many prestigious international awards.

One of the members of the delegation is Mr. John McColgan, who is involved with the Gateway Ireland project; he might update us on this. Mr. Gabriel Byrne has just been nominated as our cultural ambassador, which is a fantastic development and will give us great opportunities in the months ahead. From talking to Mr. James Morris I am conscious of the work being done by the Irish Film Board in producing a strategy for the audiovisual industry which will allow the domestic sector to expand to an international industry. We will be happy to hear about how we are combining creativity with technology.

We know about the successes. We thank the delegates for being here. As Chairman of this committee I feel there is currently a momentum in the artistic world and we are keen to contribute to this. I will go to New York in early June and I will do my utmost to find out what is happening there and enhance the connections we have with America and with New York in particular. Many of the delegates have helped me set up very good meetings with the people who count in New York. I thank them for their co-operation.

Ms Moylan will be the first to address us, and I ask her to feel free to be as informal as she wishes. There will be questions and comments afterwards.

Ms Pat Moylan

I am grateful for the invitation to appear before the joint committee to address the important issue of the potential for generating employment from arts activities.

I will introduce my colleagues. Mr. John McColgan probably needs little introduction as he is one of Ireland's most successful businessmen and one of our most celebrated producers. He runs Tyrone Productions, the company responsible for many of the home-made television programmes we see every night on our screens. He is the director and a producer of "Riverdance"; he is a producer of international repute and success. He has kindly agreed to share some of his views with the committee this afternoon. Ms Mary Cloake is the director of the Arts Council. She is the person who will answer all the hard questions about facts and figures.

As chairman of the Arts Council, which is the body at the centre of arts activity in Ireland, I can clearly see the opportunities for Ireland. The discussion by the committee is timely and I welcome it on behalf of the Arts Council.

Ireland's international reputation in the arts is founded on, among other things, the success of Irish productions on Broadway. Irish theatre has a great reputation in the USA. With plays such as "Dancing at Lughnasa", "The Beauty Queen of Leenane", "The Weir", "Faith Healer", and those by Beckett, no other country has achieved the profile that Ireland has on Broadway. Over the past 20 years, Irish productions have received more than 20 Tony award nominations, almost half of which resulted in awards. It is not just me saying this. The prestigious newspaper the Wall Street Journal wrote:

Why do the Irish write such good plays? [...] All I know is that Conor McPherson and Martin McDonagh, two of the most gifted playwrights of our time, are currently represented on the stages of Chicago and New York by two of the best plays that I've had the pleasure to review in this space, and that both productions are excellent in every possible way.

Bringing an Irish production to Broadway is a wonderful experience for the actors, the producer, the director and everyone else involved. It becomes a matter of national pride when an Irish production is successful on the world stage, and the country as a whole shares in the achievement. However, bringing a production to the international stage starts many years before the curtain rises on Broadway or the West End. It starts at home with investment by the Arts Council and the Irish taxpayer into theatre. This investment is disbursed by the Arts Council to groups in all parts of Ireland and is vital for the future development, vibrancy and vitality of the artistic life of this country. An international stage success does not just happen; it is made through perseverance, hard work, sweat and support. Some of that support must be financial, and the funding that the Arts Council allocates every year bears fruit that will be reaped in the future.

For a play to go to Broadway, a massive investment must be found. As well as being chairman of the Arts Council, I am also an independent producer and I have brought Irish plays to the international stage in the West End and on Broadway. I will illustrate something to members by telling them about "Stones in His Pockets", which I brought to Broadway in 1991. This was a fully rehearsed play with two actors, a row of shoes and a backdrop by Jack Kirwan; it cost $1 million at the time. One could not produce a play in Broadway at the moment for less than $5 million. I will let Mr. McColgan give the staggering figures with regard to musicals and anything that would involve many more people.

To be able to raise this kind of money, the production must be of the highest quality. That is why building an even stronger base for theatre and stage production in Ireland will benefit all of us. In building it, individuals will benefit from more jobs, which Ireland badly needs, while cultural tourism will be supported. In addition, investing in theatre and stage production will grow Ireland's international reputation for artistic activity, a major draw for visitors to this country.

The employment benefits that would arise from a greater investment in stage productions are many. Actors, writers, producers, directors and everyone involved in productions would benefit from growth in the number and type of productions being staged. Venues would employ more people and touring venues would be developed to meet increasing demand. In addition, a range of ancillary jobs, in hotels, pubs, taxis, shops, and so on would be supported by a more vibrant theatre.

Although very much on a different scale to Ireland, the contribution Broadway makes to the New York City economy is very substantial and that members of the committee should be aware of it. Research conducted by the Broadway League has shown that Broadway supports 44,000 local jobs and contributes $5.1 billion to the economy of New York annually. It goes without saying that this economic contribution is extraordinarily valuable to New York. I do not say that Dublin should seek to recreate Broadway to scale but that we should take what we can from this model and apply it at home to our maximum economic advantage. That means recognising the potential for employment in theatre and stage production and supporting future development.

This support will also meet the objectives we all share for building Ireland's cultural tourism offering. Ireland has a strong international reputation as an artistic and creative nation. Much of the advertising that Tourism Ireland develops for use overseas plays to this strength and we know it is a major attraction for visitors to our island. A stronger theatre offering at home will lead to a greater number of Irish productions taking to the international stage, and every one of these productions can be the equivalent of a specially tailored advertising campaign for Ireland.

The draw of theatre and stage for tourists is very well known. We have only to consider the Broadway experience to see just how strong this draw can be. In the past season, approximately 63% of all Broadway tickets were purchased by tourists. International audiences accounted for 21% of all Broadway admissions and the average age of the Broadway theatre goer is 42 years. This average theatre goer has an above average household income compared with the norm. Large numbers of visitors to New York view a visit to Broadway as an integral part of their visit. Many of them are Irish people who go to a play even though they might not do so at home. This is how some of the marketing and promotion around the cultural offerings is done in New York. I have no doubt but that the findings for London would be broadly similar to this.

Supporting theatre and writers, building a stronger and more diverse stage offering and promoting it correctly, will underpin our share of the international cultural tourism market, a market which is growing and is now a major driver of the global tourism market. The link between the cultural tourism offering and theatre is much more tenuous in Ireland. I would like to see the gradual development of a culture whereby a visit to the theatre was part and parcel of a visit to Dublin, whatever the weather. Challenging, emotive, powerful, exciting and exhilarating stage productions are always in season.

There is an opportunity for Ireland to develop our offering in theatre and stage significantly. We have the talent, the writers, the ambition and the drive. We can see what other major cities are doing, and can learn from their experience. What we need is the will to make this happen. I hope the committee can help us with this goal.

I thank Ms Moylan for her inspiring words. Does Ms Moylan wish Mr. McColgan to speak at this stage?

Ms Pat Moylan

Yes.

Mr. John McColgan

Broadway is a difficult place to stage a production. It is very expensive and a hard place in which to work. A number of major production and musical companies are choosing now not to go to Broadway but to tour outside. What Broadway has is a brand. If one is lucky enough to have a hit there it brings a cachet. In recent years, Irish plays that appeared on Broadway, by the Abbey and Gate Theatres and by Druid, were all productions of the most excellent calibre. In the main, these plays get tremendous reviews and reflect really well on Ireland. We punch above our weight for a small country. Irish productions and theatre companies make more of an impact on Broadway than those from almost any other country, certainly one of our size.

Broadway is an exciting and scary place to be. It is a very unionised and expensive environment in which to put on any project. Ms Moylan referred to a rehearsed play with two actors costing €1 million, a small play $5 million and one would be very lucky to get a musical on for $10 million. The risks are high and the risk of failure is high. Eighty per cent of musicals fail. One needs to be very brave but the rewards, if one is successful, are high.

Wherever the Irish theatre community pitches itself it must be encouraged, with great brand companies such as the Abbey, Gate and Druid, and writers who are recognised as well as young writers. They must be supported at home. It is almost impossible for a production company to go to Broadway and make sense there without having some support funding. In the past we have supported some small theatre companies. The value we get for this support, as a creative nation and for the addition to our reputation, is well worth it. However, without some subsidies and support it is difficult to make sense of taking a company out of Ireland, putting it on Broadway and making a profit. This is not necessarily an Irish thing but applies also in the UK. The impact to our reputation from Irish productions having appeared on Broadway is substantive and valuable.

No doubt we shall return to some of these issues when the members make their contributions.

Mr. James Morris

I thank the Chairman for inviting me and Ms Teresa McGrane, deputy chief executive of the Irish Film Board, to the committee. I thought to do two things: first, to talk about the work of the film board on a day to day basis and then to talk about the main area of planning in which we are engaged for the future.

The Irish Film Board is a statutory board, with a staff of 16. The total funding for this year is approximately €20 million, of which 85% goes directly back into the industry in terms of support of projects, development, training and actual production. All our activities are based around trying to create conditions and develop what we call "talent". Essentially, talent is what drives success in the world of feature film and entertainment generally. For talent to have an opportunity to develop it must have an environment and a context. We engage in a number of activities that we think will help develop strong Irish talent. That has proven to be successful when one considers some of the films being made.

The other thing we focus on very strongly is enterprise because we also need production companies that are capable of working with talent — some would say exploiting talent, but in a good way — to create success for that talent in a commercial environment. In that area, we would organise the day to day activities around the development and production of projects. One of the main features of our work in recent years has been to encourage our producers to co-produce right across Europe, with countries where, four or five years ago, an Irish producer would not have engaged, such as France, Denmark, Germany, Sweden, Norway, Finland, Serbia, Italy and Spain. This is something that has developed the profile of the Irish film sector throughout Europe in a rather new way.

If we look in the other direction, the dominant power is Hollywood. We have a dual remit. The key role is to grow talent and enterprise and to grow a local indigenous industry. Part of this plan is to attract inward production. Part of our organisation is committed to attracting inward production, much of which is funded or comes from the USA. This includes cinema and television production.

I refer to inward production, which is a competitive environment. Every country has specific tax incentives or some direct grant or incentive to attract production. For the reasons we have just heard, everyone values a strong screen industry because of the potential it has to project a national identity and artistic and cultural achievement. It has this impact and considerable reach and, usually, if it is done well, it has a great impact. This is one of the key reasons film is such a high priority for all countries.

I refer to how the sector has developed in recent years. The board commissioned an independent survey, which was an important piece of work. It was carried out by PricewaterhouseCoopers and published in December 2008. We sought an objective and correct description of the size, character and value of the whole audiovisual sector. As result of convergence in the world in which we live, people who work in film do not do so exclusively. They also work in television and on-line. We included people who work in the moving image industry, including animation and people who make commercials. Such people use the same skills as those involved in film making, but under a slightly broader definition. It was mentioned at the beginning that in the domestic area there are approximately 6,000 people working and in excess of €500 million in terms of value.

It has taken several years of sustained policy development since 1992 to grow the sector sixfold to where it is today. However, it is still very much a domestic sector. The purpose of our strategy is to consider what policies we could recommend to enable the sector to develop sustainable and expanding international opportunities in the same film, television and audiovisual sector. We are enabling this because it is an industry-wide initiative. It is something we will complete and present to our Department by the half way point of this year. In addition to our Department, the Department of Communications, Energy and Natural Resources and the Department of Enterprise, Trade and Innovation have representation on the strategy group. The idea is that there would be an integrated approach to executing whatever policy we believe will assist in growing the sector internationally. There is a very good feedback on this. Success abroad is often what generates success at home. Let us consider one of our more recent successes, the film "Once", which had a budget equivalent to one episode of the "The Clinic". It went on to generate more than $10 million in the US market alone. Then, it became very popular at home. Sometimes it takes such interaction to give people opportunities and to help such things to take place.

As part of the strategy we have asked Brendan Tuohy to chair the group. There is interdepartmental representation and we have consulted with the whole audiovisual sector in Ireland and internationally to come up with several proposals that, we believe, could maintain this progress and develop the sector into a sustainable and expanding mode.

There is no doubt "creative content" which is another term for "entertaining and compelling" film and television is at the heart of what people term the "knowledge economy". Let us consider the plumbing, that is, the telecommunications and broadband that everyone is so excited about. It means nothing if we do not have something broadcast that is worth watching. The whole point of our strategy is to bring together the progress we have made and new ideas that can reposition everyone who works in the sector into a broader creative industries context.

Thank you, Mr Morris. We will move on to Mr. Gaby Smyth, chairperson, Screen Producers Ireland, who is here with Seán Stokes.

Mr. Gaby Smyth

I am delighted to have the opportunity to address the committee on this issue. Although internationally the film industry may be perceived as small in absolute terms, as Mr. McColgan stated, in relative terms it is very significant by any measure. The numbers back up this claim. In addition to employing 6,000 people and generating an annual turnover in excess of €500 million, the industry punches well above its weight creatively, culturally and economically. With eight Irish films showing at the prestigious Toronto Film Festival in 2009 and between three and five Oscar nominations at the recent Academy Awards, depending on how one counts people who are Irish, Irish film, television production and animation have shown a signal and consistent capacity to impress at home and internationally.

In the report to which Mr. Morris referred, the PricewaterhouseCoopers report, several positive features of the sector were identified. The report pointed out that the industry has a young, well-educated, talented workforce, a fact routinely commented upon by visiting producers and co-producers. Our geographical position is in the nearest European time zone to the US and since Ireland is English-speaking it is attractive for UK and US producers to consider it as a destination for production, co-production and post-production.

We must bear in mind that as well as being an art form, film is an industry. It has been measurably advanced as a result of two key interventions by the State. The copper-fastening and enhancing of section 481 film relief, which was originally section 35, over the past 20 years has been of immense benefit to the sector. The relief not only applies to indigenous film and feature animation production but can be applied to independent television production as well. It is called film relief but it can be applied to television production as well. Critically, this relief can also be applied to international co-productions, which are not indigenous, to the extent that there is what is termed in law "eligible spend" in Ireland. This incentive has put Ireland on the map as a destination for international film, animation and television co-production, adding a valuable layer to national employment and our international reputation. For example, the recent series "The Tudors" attracted no less than €45 million of eligible expenditure but, in fact, €70 million was spent during the three seasons that television series was made over three summers here.

The second pillar of State incentive is the provision of finance to film and animation production through the auspices of the Irish Film Board. This is a rather valuable second attraction to encourage indigenous production and to locate international production and post-production in Ireland. A film could be made somewhere else but post-produced in Ireland and qualify for incentives here.

These two incentives have been shown to be cost-positive to the Exchequer and in purely financial terms the benefits far outweigh the costs. There are other incremental benefits of supporting Irish productions. As mentioned, between 15% and 18% of international visitors to Ireland cite images from film as the main reason for coming to Ireland. This accounts for up to €735 million in tourism revenue, which cannot be discounted. In an environment in which international resources for film production are scare, international producers and co-producers seek opportunities to co-produce in a competitive environment that fits culturally with the work they make.

Earlier this year, I was delighted to represent Screen Producers Ireland in signing a protocol with the PGA, Producers' Guild of America, the most influential producers' organisation in the industry. The agreement allows Irish producers access to the support and facilities of the guild. These include mentoring programmes with US producers, attendance at industry workshops and conferences in the US, shared databases of US and Irish production teams and the opportunity to develop enhanced relationships with co-producers in the US. Although clearly there was a mismatch in terms of scale, Screen Producers Ireland signed a protocol with the biggest organisation in the world. It was still very keen to co-operate with us and valued very highly its relationship with Ireland and its Irish producers.

In short, it is our belief at Screen Producers Ireland that Irish film, television and animation production has enormous quantitative and qualitative benefits for the Irish economy in terms of employment, tourism, direct inward investment and the mining and exploitation of our cultural capital.

I thank all the delegates for their contributions. We will start proceedings with our colleagues.

I welcome what we have just heard. It is an efficient and impressive presentation. I represent Deputy Upton at this committee and will be very glad to report to her. We have copies of the presentations which are more extensive and for that she will be grateful.

I had responsibility for film, among other matters, between 1992 and 1997. Section 35, which became section 481 later, covered everything including "Braveheart" and "Saving Private Ryan". My first positive wish for this afternoon is that this will be the last time people involved in the creative sector will have to justify their existence to any Government. I am not making a partisan point, but I recall my experience of having to fight every year for section 35. The view in the Department of Finance, which did such a successful job in contributing to the destruction of Ireland's reputation, was that the jobs were not real.

I would like the Arts Council to produce a short statement of all of the accountancy bodies which have studied this area, from Indecon, to PKN Parkins to PWC. The endless justification that the multiplier is better in regard to the spend on film than it is with the IDA goes on and on. It is geographically diverse because one can make a film anywhere. It is culturally important.

There is one small misprint in the documentation, which I have speed read, namely, the number of people who come as tourists to Ireland because they have seen it in a film. The figure given in the Mr. Smyth's presentation is 15% but I understand it is approximately 75% — it is a minor point. I want to make a few positive suggestions. I have problems with phrases like the "smart economy". I do not use it myself; it is a terrible phrase in Irish because "glic" is the Irish for "smart". It would be better to discuss the creative economy, which is full of opportunities.

I am more practical than many people think. It is this sector which has preserved Ireland's reputation. I am also speaking from a basis of practical information. I remember Garry Hynes reading Martin McDonagh's first script. This Friday, Garry Hynes and Druid will celebrate 35 years in Galway. How does that come about? It should be now accepted by all Departments, including the most backward such as the Department of Finance which I mentioned, that this area is for real.

It should also be accepted that this area is one where Ireland's reputation has been enhanced rather than damaged. When I had responsibility for film, the same number of people worked in the creative sector as worked in the banking sector. The figures were roughly equal, except that there were more women in the creative sector than in banking and it was not guaranteed employment. There was no such thing as compensation.

I want to come to some practical things because everything that has been suggested is dependent on a strong home base. I have been in the Oireachtas for nearly 25 years and we are still making the case for proper recognition of the work of the actor regarding social welfare legislation. I have to declare an interest; my wife is a member of Irish Equity but is not working or seeking work at the moment. The fact is that most actors spend most of the time unemployed.

Yesterday the Select Committee on Enterprise, Trade and Employment dealt with the issue of the Competition Authority. I made the case, yet again, that the Competition Authority sought the opinion of the Revenue Commissioners and concluded that because actors were not paying PAYE that they were undertakings and, therefore, could not be represented by their trade union. That was supposed to have been amended by section 4 of the Competition (Amendment) Bill. I am very basic about all of this.

It is good that the economy is now turning to a sector which it did not recognise for its best hopes for the future, but is it important that the truth be said, namely, that there were certain things which were never recognised. On the recognition of the creative sector in the school system and education, some years ago I remember receiving a letter from the then Department of Education to say that dance had nothing to do with physical education and forbidding people from attending a seminar on contemporary dance. There are changes at home.

Next Friday Druid will celebrate 35 years in existence in a lovely part of Galway. It is an area where Taibhearc na Gaillimhe is closed. It needs €300,000 because it had a fire. The suggestion is that it should move in to be a kind of overhead in a one stop shop for the Irish language, a decision which was made by somebody else. It is a beautiful theatre with a curtain designed by Micheál MacLiammóir where people have acted and so forth. It is the main source for the Irish theatre.

I will not waste time. Everything that has been said has a value entirely beyond money which is earned in exports. It is a crucial part of citizenship. I talked to Martin McDonagh about the early plays he wrote, watching television in a bed-sitter in London and so forth, and drawing on his memory of Ireland in the particular way he does. It was good that Garry Hynes was there to read his plays and put them on in a small theatre which had no home in Galway.

If people are going to say this industry is full of opportunities and whatever, one has to get the home base right and recognise that there are citizenship values. In a time of high unemployment people have more time. They are able to go to libraries more often. Being unemployed should not disqualify one from participation. Another important body is Bord Scannán na hÉireann, the Irish Film Board, which is located in Galway.

The presentations refer to New York and what it makes from the cultural sector. I examined the city and county development plans. Is there in those plans any reference to having one person half-time in the local authority in charge of licensing for somebody who wants to make a film? How would one close a road in Ireland to make a film? That is an integrated approach in regard to examining the structure of local authorities.

There was not much reference in what we have heard so far to Europe. I am not as competent now but I know the changes which were taking place in front of my eyes when I was president of the Council of Culture Ministers. American product was being dumped in Europe. Anyone interested in film has to be interested in what has happened regarding Europe. One cannot get an Oscar-winning film circulated on its own in Europe; one has to buy duds to go along with it in a basket of bad product. I am not anti-film, it just so happens that some of the best films of the world are made in the United States and, contrary to the late Jack Valenti, they are not all made on the west coast. Some are made in New York.

The European side of the industry also needs to be examined because it is a place where there are immense opportunities. I have great sympathy for young film-makers. I am sorry if I have gone on, but it is because I like this area.

I introduced the commissioning system for RTE. I am far from happy with the level of openness and transparency and way in which the commissioning system works in the Irish television sector. It must be looked at in regard to the security of young film makers.

When we were doing what I was doing in 1992, with the total support of various Taoisigh, including Mr. Albert Reynolds who had a flair for this, we had four people. The truth is that this is not just a moan on my part. I am delighted the group has made it into the sun, but there are practical things that still need to be done.

People used to say about actors who were working, "look at the cut of him," as if they were strutting with a full belly for the first time. Meanwhile the suits were emerging. As Minister, I remember going after refunds for the Irish Film Board and it was being said we could not let it go down a second time. Every young film maker was willing to prepare a business plan and a budget, but I would regularly receive calls from the investment community to say there were people in the business I should go to see. The suits did not want to know anything about film making, they could have been making galvanised steel buckets. My commitment is to the hugely important art form film making represents for citizens, an art form that is present throughout Europe.

I remember trying to obtain recognition for a course in FÁS that would enable things to happen. We have gaps to be filled such as in screen writing, which there is no doubt that the Government should fund. Instead, it states it has a new gimmick and will try to pull a stroke. The really powerful things I support are practical suggestions that might have come from Farmleigh House.

I am glad Mr. John McColgan and Mr. Gabriel Byrne are doing what they are doing. It is invaluable, if we really want to talk about the Irish Diaspora, to know who is sending what script to whom. It is crucial to see the inner and outer merging, that it is not just being done to replace exports. It is important that there be a sense of pride and imagination. When I stand for election, I say a lot of jobs have been created in film production. "Sure that is only the auld arts," some would say. The point is that while the chancers and the gamblers have brought the country to its knees, is it not wonderful to see those who have this wonderful capacity represent our best future?

I thank the Deputy and concur with him. It has been said the arts thrive in a recession. I am pleased that we are hearing this solid message from Farmleigh House and elsewhere that the arts will be put centre stage in the economic recovery. I also agree that it is not just a question of doing an audit. Those of us who have an interest in the arts say we should do it because it is the right thing to do. This is a great country with a great reputation in the arts; we must unearth the chance to be creative. I also agree that the agencies should focus on artists rather than the suits. I do not have just one creative son who is a singer-songwriter, I have a few of them.

I welcome the delegations and echo the Chairman's remarks. I also declare an interest in that I am a fully paid up member of Irish Actors Equity. There is a story behind it and, if I ever lose my job here, I might be able to go to some of the casting auditions because I have the card. That links me with two, if not more, members of the delegation. Mr. John McColgan gave me my first break in television with a series of Irish country music programmes in the early 1980s, which I appreciate deeply. It is an indication of how good he was at spotting talent, even at that stage.

At the start of Windmill Studios, a group of us who were keen to advance the interests of the Irish music industry used to gather there. I remember those evenings spent in Windmill Studios discussing how we could persuade RTE and other important people to support the industry. The standard of the sandwich was superb; for an impecunious young man at the time, they were much appreciated.

Deputy Michael D. Higgins, for whom I have great respect and admiration, was a leading politician following the formation of the Government in 1992 with Mr. Albert Reynolds. When some heard he was being appointed Minister for Arts, Culture and the Gaeltacht, they said he would go mad. If what he did in his five years as Minister is a definition of going mad, we hope the madness returns.

As someone who comes from rural Ireland, I can state some of the individuals Deputy Higgins met during the years were more cretinous than the people with whom I grew up. I am old enough to remember Anew McMaster touring with Shakespearian plays in local cinemas, particularly him playing the parts of Othello and St. Patrick. The Fit Up theatre group sustained rural Ireland through the hard times in the hungry 1950s. To this day there is a strong theatre tradition in rural areas. In my county, Carrigallen, a small village on the Cavan-Leitrim border, achieved national acclaim when Mr. Séamus O'Rourke was given the prize for best actor at the RTE All Ireland Drama Festival. That is an indication that theatre and the arts, in spite of what Deputy Higgins said and whatever official Ireland and the Department of Finance think, are appreciated and supported in the real Ireland. They are grounded in communities, from which many of the plays referred to such as "The Beauty Queen of Leenane" and "Dancing at Lughnasa" emerged, as did "The Playboy of the Western World". That is why they are so popular; they have an honesty and a soul about them that is absent in other societies.

There has been a sea change in attitudes since the time Deputy Higgins took over as Minister. As a member of County Leitrim Vocational Education Committee, I was one of the many members of VEC committees who in the mid-1990s were invited to the Marino Institute to take part in the deliberations on what later became the FETAC courses. I was involved in the deliberations on dance as an art form, as well as animation, when considering the form of the courses which have led to the wonderful successes we have experienced.

Perhaps I am wrong because everyone referred to the success of section 481 in such glowing terms, but I read recently that we were suffering as a result of competition from Britain owing to the changed tax status there. Is there a need to continue to examine section 481 because of the changing nature of movies internationally? While I am delighted to hear about the core productions, are we successful at these core productions given that it appears that the countries mentioned are in competition with us for film production? I am curious as to whether there is a need to be conscious of the changes that are taking place in other countries on a daily basis. In the case of our corporation tax regime other countries are looking at us enviously and changing their own laws. Perhaps some of the delegates would elaborate on that issue.

Is distribution still a problem? I am a member of the Irish Film Academy and as a result I would have received all the new Irish releases in the last six months, prior to the Irish awards. Some of the films I viewed were superb but I have neither seen nor heard of them since, one of which was "The Race" by Colm Meaney, the other was a co-production between Ireland and Canada filmed in Gortahork on the Inishowen Peninsula, the title of which escapes me, in which Gerard Butler took the lead role. Those are two superb films. Film is subjective, that is why I do not always believe everything the reviewers say. The film about which I heard all the acclaim was “Zonad” which, quite frankly, was silly in comparison with the two I have mentioned which had some heart and soul in them.

Is distribution a problem for the entire delegation? If one looks at the listings in the evening newspapers for all Dublin cinemas, I do not think one will find one Irish produced film. I served on the Council of Europe audio visual committee for a couple of years and I know that is not unique to Ireland. There is a constant competitive edge in that distributors are dominated by American-Hollywood films and as a result one is constantly fighting for space on screen. I appreciate all of that but Mr. Morris might have a view as to how to break the monopolistic cycle. He will have an opportunity to answer questions from all of us later. These movies will either disappear onto DVD and may not appear on television but yet, in my opinion, they are superb examples of Irish film making at its best.

Where are the gaps in terms of supporting the industry? I was amazed to discover there are up to 600 production companies operating in Ireland. That is extraordinary. It reminds me, as Mr. McColgan will be aware, of the old showband days when they used to refer to 700 showbands. We often wondered how they could be sustained in a small country but they were. I presume many of these companies have one, two or three personnel at most. Obviously they are vibrant and need to be supported. As pointed out, there has been a reduction in RTE’s funding for independent productions. In the new economic downturn, given the reduction in funding to the Irish Film Board, the Arts Council and so on, people in that area will find it much more difficult. I presume Mr. McColgan in his own production company is finding it much more difficult to get finance.

What is being done is superb. Perhaps as a small partisan response to Deputy Michael D. Higgins about all the various architecture of government, I think the Government is totally committed to developing and encouraging the arts in all its forms. Although it came in for criticism, the change in title of the Department to include "culture" is an indication of that.

Wearing another hat, as a former chairman of Fáilte Ireland North-West, until I came back in here in January, I fully appreciate the importance of cultural tourism. I have no doubt that the industry will continue to receive support and encouragement from this Government and succeeding Governments. We would all agree with Deputy Higgins when he said the arts are now firmly centre stage in Government thinking. I do not believe that will change. That is a tribute to all the witnesses who have fought hard, including Ms Mary Cloake, before she took on her present position when we used to argue about funding for the traditional Irish arts. At least there is now a recognition that the traditional Irish arts are a mainstream element within the Irish artistic endeavour. I wish all the delegates well and thank them for appearing before the committee.

As Senator Mooney has said this committee is supportive of the arts. That is clear from a very successful meeting prior to the budget when many of the guests were present with Colum McCann, Sebastian Barry and others. I thank the delegates for that presentation. I am convinced that was a very significant meeting in respect of budgetary decisions. As Senator Mooney has said there is a strong focus at every level.

Ar dtús báire, cuirim fáilte roimh gach éinne agus gabhaim comhghairdeas agus buíochas leo. I thank the delegates for appearing before the committee and for their very interesting presentations. I profess I have no involvement with the arts or stage. I was very impressed by remarks made by Ms Pat Moylan that if we are serious about building a stronger and more diverse stage offering, it must be promoted correctly. She referred to Farmleigh. What happened at Farmleigh? How can what happened there and what the delegates speak about here collectively be brought to the wider world? What has been done in regard to the curriculum at primary and post-primary level in terms of recognition of the arts? Have we seen a change where dance, acting and the arts are part of the curriculum? There is a whole furore about "Fame" being on television at present and everyone now aspires to be a performing artist. What has happened at Government level in terms of changing the culture? How does the industry propose to make the arts centre stage? It is grand to say Gabriel Byrne is our cultural ambassador. He is a very fine actor and I have no doubt he is a person of excellent repute. I have never met him but I admire what he does. How is he to be the beacon or the catalyst for attracting people in?

I take the point made by Mr. Morris in regard to section 481 being our corporation tax. That is a strong point and it should not be diluted or underestimated. In his tenure of office, perhaps Deputy Higgins will be remembered as the Minister who brought the arts into modern Ireland and gave it a status. He made some good points about actors. Some people have the perception that acting and being involved in film is not a real job. We have to make it a real job because the employment figures back it up. I do not mean to be cynical. We talk about Ireland's place among the nations of the world, the world being a global village and Ireland's culture being central to our economic recovery, but how is that happening?

Mr. Gaby Smyth made a good point — although Deputy Higgins disagreed — when he said that 50% of our international visitors come because of the images we see from film.

Is there joined-up thinking between the Irish Film Board, Tourism Ireland and Fáilte Ireland? There is no point in us all working individually when collectively we can present a much greater image of Ireland. It is to the credit of Screen Producers Ireland, the Irish Film Board, the Arts Council and people such as Mr. McColgan that Ireland has deservedly got an excellent reputation. Speaking as a lay person, "Riverdance" is 100% A plus and I do not worry about the reputation and ability of Mr. McColgan but I am worried about taking the product he has to the next level and bringing it further.

Clearly the European City of Culture in Cork, in which Ms Moylan was involved, was a missed opportunity at one level for the city of Cork to sell Cork. A couple of weeks ago there was a great programme on RTE about Cha and Miah who were two great characters in Cork. I made the point to this committee previously that in this modern world I have a sense that we are the losing the talents of people such as Niall Tóibín, Cha and Miah and Billa Connell, in the case of Cork. I made the point yesterday in the Seanad regarding the Broadcasting Authority of Ireland that there are no longer any satire programmes on television or radio. “Scrap Saturday” and “Bull Island” are gone.

We have "Killinaskully".

Yes, we have "Nob Nation" but we no longer have programmes featuring Alan Shortt, Packie O'Callaghan, Frank Twomey or the Dermot Morgans of this world, God be good to him. We hear great soundbites from Government on this area but is there joined-up thinking in terms of the way we are selling the arts in Ireland?

Ms Pat Moylan spoke about Broadway. I would love to see full attendances at productions in the Opera House or the Everyman Palace Theatre. I was astounded to hear the cost of putting on a production on Broadway. How does Ms Moylan envisage us having a vibrant arts community using the Opera House and the Everyman Palace Theatre in Cork, the new Grand Canal Theatre and the venue in Carlow we will visit in a few weeks' time? How do we promote a vibrant arts community?

Deputy Higgins spoke about the city and county councils. Arts officers are employed in the majority of local authorities. Liz Meaney does a fine job in Cork City Council and she is an excellent person. What role can arts officers play in creating employment and attracting ordinary people to enjoy the arts, theatre and music?

I applaud the representatives' work. I am envious of them because, unfortunately, I do not have a creative bone in my body but what they do individually and collectively is marvellous. I pass on Deputy Mitchell's apologies as she had to go to the Dáil for Question Time.

I would like the new Minister to come to a meeting of this committee as a follow-on to this discussion to ascertain how we can achieve joined-up thinking in this area.

I am sure that is something with which we can all agree.

Unlike Senator Mooney, I am still waiting for my big break from John McColgan and therefore I am available in terms of Broadway productions.

The Senator is not doing too badly. If I had as many radio and television appearances as Senator Bacik, I would not complain.

I thank the Senator. I declare an interest. As Ms Cloake is aware, I am on the board of a small theatre company in Dublin, Corn Exchange, that has had some success internationally as well as domestically and therefore I know something about that area. While we have gained a great deal of ground in terms of recognition of the arts and of creative sectors, it is galling that we still have to justify work and employment in those areas as real jobs. Deputy Higgins was probably the most successful and innovative arts Minister we ever had in that he did a great deal to bring arts and culture centre stage and ensure security of funding and employment in those areas.

We must remember that there are huge benefits to the economy, if we are speaking in economic terms, although it is not just about pure economics, both direct and indirect. We know that large numbers are employed directly in the arts and creative areas, many of them very highly qualified. Deputy Higgins said that only 2% of those employed in film have no qualifications. We are talking, therefore, about generally highly qualified people on relatively low pay because for many of them it is work about which they are passionate.

The other issue is indirect employment and indirect benefit to the economy through cultural tourism, of which we are all well aware. Before I was appointed to this committee I was aware that this committee generated a great deal of publicity for the economic benefit of the arts through the committee hearing held near budget time last Christmas. The Farmleigh conference and the national campaign for the arts have done very well in terms of putting centre stage the need to ensure ongoing funding for the arts. Many battles have been fought, therefore, and won to some extent, by all the representatives, whom I compliment on the work they have done and their ongoing work.

I am well aware of the difficulties the representatives continue to face in terms of the reduction in funding and lack of certainty about the upcoming budget. Senator Buttimer's idea of calling the Minister before the committee is an excellent one because, as she is relatively new in the post, we need to hear from her whether she can give any guarantees or assurances about the upcoming budget and levels of funding into the future for the Arts Council, the Irish Film Board and screen producers, the levels of funding that may continue for those areas, whether the tax incentives that others have spoken about will be continued, which we hope will be the case, and whether initiatives can be taken that will generate more creativity, talent and enterprise in those areas.

Something Deputy Higgins just mentioned to me is the idea of creative clustering. In Toronto, for example, a proactive attempt was made to ensure groups of people with different expertise were brought together and supported in working together in particular areas——

With long leases on buildings.

——with long leases on buildings and subsidised rent. I spent some time working in Toronto and am aware that the Canadian authorities have done a great deal to support their indigenous music and film industries. There has been a similar idea in France where they support them and positively discriminate in favour of them. It has had a major knock-on benefit for Canada in terms of its economy, tourism industry and so on.

In terms of Ireland, Temple Bar, which was the so-called cultural quarter, has generated somewhat of a bad press for that idea but we should re-examine the idea that we can support artistic communities and, in doing so, support creative endeavour which will have a knock-on effect for the economy, tourism and reputation of Ireland internationally, about which we have all spoken. I would be interested to know if the representatives have any ideas on that. It should not be confined to Dublin. It is something we should see in other towns and cities throughout Ireland.

There has been a good deal of investment in trying to support the arts through the arts officers, the construction of arts centres and so on. The challenge for us is the way we manage to continue generating and supporting creativity and talent in an economic downturn.

Does Senator Ó Murchú wish to make some comments?

I dtosach, cuirim fáilte Uí Cheallaigh roimh na cuairteoirí go léir. Is mór an chabhair í an t-eolas a chuir siad ar fáil dúinn. Tá sé thar a bheith soiléir cé chomh bríomhar agus atá an cultúr agus na healaíona agus ba chóir go gcuirfeadh sin mórtas ar ghach duine sa tír.

I sincerely congratulate the representatives on the work they have done. It might be worthwhile reflecting on the purpose of the exercise. I am particularly anxious that they would not regard it as an empty exercise when they put so much work into preparing their presentations. It is very important that the views expressed find their way back to the decision makers. I am sure that will happen but it would be a wasted exercise if it did not.

I compliment the cathaoirleach of the Arts Council on the presentation she made, which was particularly focused and reasonable. I had questioned the focus, which was fairly narrow, and I mean that in the best sense. Generally, we were examining the relationship between Ireland and Broadway and the advantages for Ireland that came from that. We can call that cultural tourism.

The representatives will not mind me saying there was a time when cultural tourism did not appear on the radar of the Arts Council. In fact, some time ago it was very much infra dig. There was a view at that time that the only role of the Arts Council should be presentations, irrespective of the number of people who sat on seats. I heard that case being made in one of the submissions made here on one occasion by a particular body. There is nothing wrong with it but the focus today is different and I compliment the delegates on that. We all change with time and with circumstances. That is important in the context of ensuring there will be an environment for the arts and resources to sustain the arts. That is where cultural tourism comes in. Those who made the presentations are quite correct that the power of what is achieved by theatre and film in Ireland is considerable. Where this country is concerned, it should not be taken for granted in an economic sense because it was for a long time. We did not stop to think of the advantages and how we benefitted from them. Very often those who put in the work were taken for granted.

I make those points because we are now living in recessionary times. There are indications that the arts and culture might suffer in that context. In a way, that is a legacy we have allowed to be created, that is, by not acknowledging the fact that what was being done was taken for granted. It is part of us but there is more to it than that.

A message must go out that art in itself is not something elitist in the wrong sense; it is elitist in the best sense sometimes. It must be seen as a major contributor to the economy, about which there is no question. If we continue to take it for granted, we will reap the disadvantages of such a policy later. We must look very carefully at that.

In all the major surveys I have read over the past 30 years, I have seen five or six main points being made by people who have come to this country. Invariably, heritage and culture-arts always feature. That means people come here for a different experience from that in another country or in their own country. Most people travelling are discerning tourists and it is no longer a matter of giving them what they can get at home. The surveys have shown this quite clearly. We are particularly lucky we have the opportunities to expose them, not only in the cities but in provincial areas, to a very rich culture well serviced by local communities, by arts bodies, by local authorities and by the Arts Council.

All of that is a huge argument in favour of not cutting finance to the arts and to the Arts Council. Unless this body and other fora like it bring forward that argument on a continuous basis, when the time comes to make decisions in the Estimates, arts and culture could easily slip through the floor boards, based on the requirements created by the recession. The second aspect is sustaining what is already there. We are all well aware that in the good times, reasonably good finance was provided across the board. A very good infrastructure was put in place, which I believe is the envy of many countries. That infrastructure is not only in the cities; it has been put in place throughout the country and very often in rural areas.

I come back to Senator Buttimer's point. We need a partnership which should involve us all working together. The essence of art and the intrinsic nature of art must come first and not the economic aspect or the economic value. That is what makes it commercially attractive in the long run, but we will take that as a given. We all tend to exist in our own little area and we are all so enthusiastic, idealistic and so focused on it that we very often forget there is something to be gained from working together. I refer to cultural tourism in this regard.

I have no doubt Fáilte Ireland and Tourism Ireland use extensively the successes we have had in the world of theatre and film which are acknowledged abroad. However, more than that is needed from all the partners. When I speak about the partners, I mean more than just the tourism industry. There are so many other elements to that which should be looked at very closely. I am not speaking about a large workshop because generally nothing comes out of workshops other than paper. I am speaking about an interaction between us all. All the elements we service and promote will suffer if we do not succeed in getting across the message of the importance of cultural tourism. We know the message is there but we must get it to where the decisions will be made.

I thank the Arts Council, in particular, because it has appeared before this committee on more than one occasion. I have always found it very helpful. Members of this committee have much the same focus, as I am sure do all political parties. I do not believe any of us in political life have a monopoly when it comes to realising the importance of the arts and culture in our lives. However, we have fragmented our potential to some extent. Relationships must be created and built up between us so that ní neart go cur le chéile, there is strength in unity. We must look at that as well.

I echo what Senator Paschal Mooney said. Like him, I remember Anew McMaster who came to the town hall in Cashel. I also remember Micheál MacLiammóir and Jimmy O'Dea. At the time, we took it for granted but in retrospect, I realise how lucky we were that such famous people in the arts world found time to visit. A degree of touring still happens but we need as much of that as possible because it is one thing to see something on television but another to go to a big show. I should congratulate Mr. McColgan on the success of Riverdance. It is one thing to go to a show but there is something energising and electrifying for somebody relatively well known in the arts world to come to one's area. I hope that will continue.

As an extension of that, the Arts Council could perhaps give a little more consideration to amateurs, and I use that word advisedly. On the last occasion when I raised it, Mr. Tóibín came in immediately to support me on the point I made, based on his own experience in Wexford. The Arts Council, in the best sense, should also take ownership of the amateur arts area for a number of reasons. Very often it is from there one will get the professionals, it is a method of education for people in terms of their exposure to the arts and it creates a whole fraternity. Perhaps the Arts Council has given more recognition to that in recent times.

Last year the Tipperary drama festival was held in our centre, the Bru Boru centre at the foot of the Rock of Cashel, because the centre in Holycross was being restored. We had an opportunity to be exposed to 14 plays. The community came to support them and there was a sense of ownership among the community. I felt there should be a greater relationship between amateur drama and amateur arts with the Arts Council. There is probably such a policy but I would like to see that expedited.

My first introduction to film was at the age of 14 when there were newsreels in the cinemas. It was the time of An Tóstal which continued, and maybe still does,——

——through Senator Mooney's father, Mr. Joe Mooney in Drumshambo. An Tóstal continued long after the newsreel. There was a huge pageant in Cashel at that time and I happened to be an acolyte in it. We were told that the film would be shown so many weeks later in the cinema. The cinema was packed to see how many of us could be seen. We probably saw ourselves for a second or two.

I understand a proposal is being floated for a new concept called The Gathering, which will be a home-coming festival. It is a wonderful idea. It echoes An Tóstal of the time to which I referred. I do not know whether next year is the focus or the following year. This offers a great opportunity to develop the partnership I just mentioned. If the focus is there, with Government support and all the tourism agencies behind it, it will also mean that The Gathering will be celebrated in the same way as An Tóstal was in every community in the country. That could be a focus in the future.

I thank both bodies for the presentations they made here today. Having listened to the other contributions as well, no doubt there will be messages going forward from the committee to Government that we fully support them in the work they are doing and that we are particularly anxious that their funding should be kept intact.

I allowed some flexibility because there is a considerable interest in these bodies. They may reply in whichever order they wish. I note they have been taking notes of various questions and comments made. I might just add a few points.

On the issue of education and the arts, Senator Bacik and others referred to Farmleigh. I would like to hear what these bodies have to say about the proposal put forward by Mr. Dermot Desmond on a university for the arts. I think it is a good idea. Because of the significant reputation and strength of the arts here, there is considerable merit in that. I am conscious that Mr. Dermot Desmond is working on this idea and will come forward, I presume, with some practical suggestions in the near future. It is a question I would put to these bodies, whoever wishes to comment.

My second point is directed specifically towards Mr. John McColgan. Many of us will try to remember where we were when the first performance of Riverdance emerged. I was fortunate to be present at the Eurovision Song Contest on that night at the Point Theatre, and certainly it was one of those very special moments. The reason I mention this is it has gone on from strength to strength. Although he may not be able to quantify this exactly, would he have a rough idea of the numbers of jobs, even sector by sector, that are still emerging from that initiative? From Riverdance, Lord of the Dance emerged and, I suppose, one could add that to the mix also. I am very conscious that, apart from the performers, there are so many jobs created. Although it should not be about an accounting exercise, that is a good example of the kind of jobs that are available in the arts. On the other issue to which I referred earlier, perhaps he could tell us about the Gateway Ireland project.

On the question of section 481, Deputy Michael D. Higgins made a good point. In every pre-budget session, we are lobbied hard on the need to preserve the tax incentives. This is one issue we should discuss with the Minister to nail down that we will have no more discussion on this. If anything, we should continue to improve the incentives for film and television production. That would be a wise decision. Returning to Senator Ó Murchú's point that this is a meeting which is on the public record, we see this as an important serious exercise whereby ideas are emerging. We certainly will bring them to the right place, which is the Minister's desk. When the Minister is before the committee, we will consult her on the appropriate time. An important point for us, as a committee, would be that we would nail this down and not interfere with the improvements we have made to this tax incentive for film and television production, and, if anything, ensure we watch our competitors and match, if not, better them. I would agree with that important point.

Senator Bacik referred to Canada in the context of what more can be done, and asked whether these bodies have any ideas on that. I am aware of some of the good incentives they have in the music area and I have raised it previously with RTE and Today FM who were before the committee when we discussed promotion of Irish artists. We would welcome any useful suggestions in that regard.

This is an occasion for us to listen to these bodies. They have heard from all of my colleagues. We are taking this agenda seriously. Genuinely, we feel there is a momentum and we want to add to it.

Mr. John McColgan

I thought the committee might ask about the numbers involved in Riverdance and I made some notes. Over the years we have employed approximately 900 for the cast. There are two shows at present, with 64 cast and crew in each show. We have employed approximately 464 Irish dancers, 122 band members, 112 singers, 69 Russians, 13 flamenco dancers, 41 African-American tappers, 23 drummers and so on. Touring with the show, there are 34 stage managers, 42 sound, 50 lighting, 30 wardrobe, 35 carpentry, 16 riggers, 20 medical, masseuses and physios. That is just Riverdance. There is Lord of the Dance. At one point, I think, there were 15 productions. One could called them "knock offs", admirers or whatever, but they were out there touring and providing employment.

We now have a situation where there is such a thing as a professional Irish dancer. Previously, there was no such thing as a professional Irish dancer. There was Jury's, which did well, and there was some cabaret. However, there was not a professional living to be made and when competition ended at the age of 18, it was the end. Now the dancers train. They are not professionals, they are athletes. Some of them go on to produce their own productions and that has been a game-changer in how we perceive our culture. Irish dance was very much appreciated at home and enjoyed on St. Patrick's Day abroad, but was not considered a real art form. It certainly is now, along with Russian, flamenco and African-American dancing.

We are still touring. We open in Wexford this year. We will go to Castlebar and to Derry, and come back to the Gaiety for our sixth year. In terms of cultural tourism, I would say that more than 50% of the audience who comes to the Gaiety every year are tourists and they like to see the show in its home town.

The Chairman asked me to speak briefly about Gateway Ireland. At the Global Economic Forum in September last, I put forward a proposal that there should be one over-reaching website or portal that would represent everything in Ireland — all of the agencies from culture, tourism, IDA Ireland, Enterprise Ireland, GAA, IRFU, Glanbia, and so on — under the one roof. This suggestion got an enormous amount of support from Government and Mr. Dermot Desmond and Mr. Denis O'Brien.

In any event, to cut a long story short, I said I would go away and do a feasibility study. I and others have been working on it for six months and on Wednesday next we will deliver a half-day seminar in Dublin Castle called "Connecting the Dots". Certainly within Government, the Government agencies and Departments really need to talk to each other. We need to speak with one message. There is a need to connect the dots, internally and externally.

The seminar begins at 8 a.m. and one of the guest speakers will be Mr. Simon Anholt who has written four books on nation branding. He is a consultant for the British Government and a number of other governments on how nations view themselves internally, how they are viewed externally and how they can effect change. It is not possible to effect change by engaging in spin or through pure branding. However, it is possible to effect it by means of policy. In addition, it can also be leveraged by way of the culture of a country. Mr. Anholt has made the point that of all the countries in financial difficulties, Ireland has an advantage because it has a highly appreciated and recognised culture. He suggests we will be able to recover more quickly than other countries by using our culture as a levering tool. He will be a keynote speaker. He is provocative and will not speak exclusively to our agenda. He will, however, talk about Ireland. I have arranged a number of sidebar meetings between him and representatives of several Departments during his visit. He is one of the leading gurus and has won a number of awards in the field of economics.

There will be various panels, on which Mr. Gabriel Byrne, the recently appointed cultural ambassador, will speak about culture. Mr. Barry O'Leary from IDA Ireland, Mr. Dermot Desmond and representatives from Facebook and Google will also take part. There will be 225 people in the room, representing Government agencies, cultural agencies and the Arts Council, who are all stakeholders in Ireland Inc. On the day I will attempt to present our findings in terms of how we might proceed. Many video clips will be presented and we will be calling on people from around the world. Ireland's ambassador to China and the Minister for Foreign Affairs, Deputy Martin, will be contributing via video link from China. In this, we are being mentored and supported by the Department of Foreign Affairs.

I hope that by the end of the day the argument in favour of having an all-Ireland website will be so compulsive and persuasive that the next step, monetisation — identifying who is going to pay for it — will come up for discussion. The Government cannot, will not and should not pay for it. I do not believe it should be run by it. If it were, it would not succeed. That is not because it is not well intentioned. Those who use the Internet tend to react against anything that smacks of formality or being told anything by government. It must be cutting edge, high-tech, humorous and elegant and also leverage our culture.

In the past six months I have had more than 100 meetings involving stakeholders from the Arts Council to IDA Ireland. We met a number of Internet experts in London. Someone from McKinsey & Company in London who has carried out an analysis of the world of the Internet in the context of how it is monetised and who does or does not make money from it and the potential domain into which our website will be placed will be coming over for the seminar.

I could speak about this matter all day because I am so excited about it. I have come up with a concept which involves what I describe as "electronic embassies". One of the obvious difficulties is gaining entry to countries in which one's language is not spoken and website content is not automatically translated. We have a proposal that the information on our website will be translated in various countries. The model we are working on concerns China. I am working with the Irish ambassador to that country to ensure the information on the website will not just be translated into the language of China but that the staff will be Chinese people who understand Ireland and who may have been educated here. They must understand the mission of the website and how the information should be communicated. It is in that context that they will target social networking sites in China. There are 600 million people in China who can be divided into those who are interested in education, tourism, innovation and investment. If the website works at any significant level, the resulting leverage will be extraordinary. If it works in China, it can also work in India, Brazil, Russia and other non-English speaking countries. Not only would we have access through this all-Ireland website to the 70 million notional diaspora in English speaking countries, we would also be able to penetrate non-English speaking countries, particularly those with which Ireland really needs to do business from the point of view of attracting foreign direct investment and tourism.

It is an exciting and substantial proposal. My background is in television and in that context, I intend to launch it on Wednesday next in a type of "Late Late Show" special which will be moderated by Mr. Mark Little. It will be directed by a television director in order that it will adhere to the time limits. We will have video clips of people from around the world who cannot be in Ireland for the launch but are contributing to the project. There will be screens located around the room on which proceedings can be watched. It should be a good and substantive show. I hope an unarguable case will be made for an all-Ireland website that will present Ireland to the world and bring the world to Ireland.

It is a fantastic concept and I wish Mr. McColgan well with it. When I visited Iceland a number of years ago, prior to the advent of the Riverdance phenomenon, an interviewer informed me that Ireland was sometimes confused with Iceland. That is no longer the case, particularly as a result of the appearance of the volcanic ash cloud. Riverdance and other aspects put Ireland on the map. Using the Internet is the right way to go. I wish Mr. McColgan well with this exciting project.

Mr. James Morris

A question was posed as to how we might put what the Irish Film Board was doing centre stage. Despite everything we have said at this meeting, it is clear that what we are doing is a work in progress. If one takes a reasonable view of what happened in the recent past, it is obvious that substantial and real progress has been made since 1992.

In order to move matters forward in respect of film and television — Mr. McColgan's project is a great one — we must realise that we are living in a convergent world in which technology, creativity and telecommunications form the platform on which opportunity sits. However, it still comes down to genuine originality and creativity. Our organisations and policy makers can create an environment that will foster, value and allow these talents to expand and grow.

There are many economic elements involved. I was asked about investment and jobs. The film and television industry is labour-intensive and intelligent people are required to work in it. At a time when jobs are being lost in manufacturing and services, there is massive employment potential in the artistic and creative sectors of the economy.

Distributing the films we make presents a real challenge. This is an issue we are tackling. There are 480 commercial cinema screens in Ireland which are dominated by the major players who have feature films stacking up to grab screen time. A big release of a low budget Irish film would involve 30 or 40 prints. The recent release of "Robin Hood" involved 150. The marketing muscle of the big studios must be taken into account. For our films, we require two things. The first is access which is difficult to obtain. If a film does not do well in its first week on release, it is replaced. The second aspect is that for many of our films, we rely on word of mouth. If people see one of our films and think it is great, they will encourage their friends to go and see it if it is still on release. There is plenty of evidence that word of mouth is a great marketing tool.

There is a need to put structures in place to support our films. We have a number of ideas to address this matter, on which we are working. The Irish Film Board, in partnership with the Arts Council, has put in place an initiative in the area of cultural cinema, in respect of which we have assisted independent cinemas that are committed to showing a broader range of films to offer audiences an alternative. Major commercial films are extremely popular and there is a large cinema audience in this country. There is nothing wrong with what is in place, but we must find a way to ensure our films get screen time in order that people can see them.

There are arts centres and arts officers in many communities. We are seeking to create new linkages throughout the country, whereby we can promote and distribute films on a circuit which is different from that offered by the commercial cinemas. We are also considering the use of digital technology. The business model for film and television production is being transformed. Everyone thinks of television as comprising the ordinary channels. However, it is on the Internet where most people will watch programmes in the future. It all relates, therefore, to how one obtains attention. People from anywhere across the globe can choose the programmes they want to download on demand. We are looking at ways in which the distribution of Irish films can play off video and demand platforms through the cultural cinema circuit. The Picture Palace will open next year in Galway, we have helped to fund the Lighthouse in Dublin, and other initiatives in major centres and will also distribute to arts centres. This is a significant issue because cinema must be supported by access. We have a successful partnership with the Arts Council whose focus is more on access while ours is more on content production. If we make films, we want people to see them and the more people who see them, the more interest there is in film, thereby helping us create a positive, strong home base.

The film festival has a big role to play in promotion.

Mr. James Morris

Absolutely. The Galway Film Fleadh is one of the big events in the industry. It is a great marriage between where the film industry gathers and an audience event. The Dublin Film Festival has grown enormously in recent years and is a sell-out. It runs over ten days and is now one of the biggest international festivals in this part of Europe. Some 60,000 people buy tickets and it is very much driven as an audience festival. Some 60% of the films shown at it have never previously been seen by an Irish audience. This demonstrates we have an audience, but access has not really been developed. We are working on that area.

A question was asked about section 481——

What channels or modalities does the film board use for international exposure of Irish film? Mr. Morris has focused on the domestic area, but I am curious about the role the board plays in getting the films onto screens in the international arena.

Mr. James Morris

Films are distributed internationally through a number of key markets. Ms McGrane has just come back from the Cannes Film Festival where the Irish Film Board has a pavilion. Film makers and producers use the Irish pavilion as a place to make international contacts, finance their films and find distributors for the films they have made. Irish films frequently do better abroad than they do at home. This is good. We also promote Irish film at the Berlin Film Festival, the Toronto Film Festival and the Oscars. The Irish Film Board is represented at all these festivals internationally as a way of supporting Irish producers and film makers to get their films into the marketplace.

I interrupted earlier when Mr. Morris was about to speak on section 481.

Ms Teresa McGrane

Section 481 is one of the major drivers of the industry. When the Minister at the time, Deputy Michael D. Higgins, introduced what was then section 35, Ireland was pretty much the only country with a tax incentive for film and television production, which meant that we captured everything that was available. It is interesting that what happened then was that every country looked at what was happening in Ireland and then replicated in their tax systems an incentive that supports film and television production.

Our approach to section 481 is driven by what the other competitor countries are doing and by our own competitive stance. We are also driven by the costs of production, which are not cheap in Ireland, and by exchange rates between the UK and US markets. Currently, we would be considered quite good against the United States but as soon as we see a shift in that market, we will chase it aggressively. It is always a struggle to keep on top of what everyone else is doing. Since economies generally are in a state of flux, everyone seems to have decided not to change their tax incentives much. Australia changed its incentives but we do not really compete against Australia. Our major competitor is the United Kingdom. We do not compete against Germany and cannot compete against eastern Europe. France tends to be culturally insular and does not compete with us. Therefore, the United Kingdom is our major competitor and we always look to see what it is doing vis-à-vis what we are doing.

We have a competitive advantage against the United Kingdom which we pursue aggressively. This means we see productions such as "The Tudors" and "Camelot" here, which, although they are not culturally Irish, provide foreign direct investment. They provide investment in infrastructure, jobs and upskilling and provide platforms for talent. We struggle with the United Kingdom currently in terms of feature film production.

I would like to make a point about the non-tax competitive advantages. When discussions were taking place on the film the film "Braveheart", 15% of which was made in Scotland, a decisive issue was the borrowed money. Film making is very like shipping in that the turnaround time of the vessel is what is important. Reputation is also important. These are non-tax aspects that can be put into the competitive bid. For example, with "Braveheart" the availability of the soldiers, the availability of castles and the likelihood of completing filming within the timeframe for the borrowed money were important. I recall there were tax incentives available in Greece and the Czech Republic around the time we were pitching for "Braveheart" but it was the guarantee on the non-tax side of being able to come in and get out within the timeframe that won it for us.

One area where I feel we have not taken enough advantage, and I have discussed this with film makers, is the call-back area. We could have got more follow-up business simply by staying in touch with some of the people who came in and had a good experience here, from Mel Gibson down. The British, for example, promote Scottish Screen. I was invited to Scotland to talk to its cultural ministry about the future of creative industry, which I did. I spoke about it in the Scottish Parliament. Scotland has a net disadvantage because its industry is funded from the British Treasury, even if the British Treasury has come on side. In my time, Britain spent most of the time complaining that I was in breach of European Union competition rules and European law. That was why we had to have a press conference which blew the whole thing up. There are non-tax areas through which we could make Ireland more attractive.

To add to that, a strong dollar versus a relatively weak euro would be an incentive for investment. What productions are in the pipeline for the short to medium term?

Ms Teresa McGrane

To come back to the point about following up on projects, we have found it is easy to stay in close contact with people in the United Kingdom because we travel back and forth to London. It is more difficult, however, to stay in contact with Los Angeles because of the time difference. We have set up a permanent office there which is a two-way street. It acts as a point of contact for Irish film makers going to Los Angeles who might be looking for US investment, distribution, talent or access. Our office provides all this support and stays in regular contact with the major studios, the mini-majors and local producers. In two weeks' time we will send 12 Irish producers to Los Angeles to attend the Producers Guild of America conference and attend meetings arranged by themselves. We will organise approximately four key events per annum around the LA office. It is a two-way street. It is about talent going to the US and making contacts there which they can use back in Ireland. It is also about considering projects which can be shot in Ireland.

With regard to the production pipeline, we have approximately €50 million in TV investment and €25 million in other investment. We are at approximately €75 million, but it is still early in the year and it will grow from there.

Ms Pat Moylan

I regret that Senator Buttimer has left because I wanted to refer to what he said, but I am sure Mr. McColgan has covered the issues. The Senator mentioned joining up the dots. That will happen through the Gateway Arts Council. He also asked about employment figures. Mr. McColgan has demonstrated clearly how the arts can support jobs. I cannot agree enough and stress again what Deputy Michael D. Higgins has said about looking after the people locally. When talking about theatre and shows going to Broadway, we will never get them there without investing in what we have here. Investment locally will produce the great shows that will be our advertising campaigns for the future.

The amateur drama movement is obviously close to Senator Ó Murchú's heart and I have heard him discuss it on other occasions. I started in the amateur drama movement. Theatre got into my heart and soul there. That is where Gabriel Byrne, Brendan Gleeson, John McColgan and Moya Doherty started. I understand perfectly the Senator's point of view and I agree with him. We support the amateur drama association, which is the overall body, and also 58 theatres throughout the country in which the amateur drama companies perform. The amateur drama movement is getting support indirectly rather than directly.

Senator Buttimer asked what the Arts Council is doing with regard to education. I will ask Ms Cloake to respond.

Ms Mary Cloake

The Arts Council regards itself as the cradle of the creative content of James Morris spoke with regard to the digital platform and creative activity which is the backbone of cultural tourism. We are at the other end of the factory chain producing the raw materials for all these wonderful industries to be built upon. As a number of speakers have pointed out, education is the core. We have an excellent programme of work, Points of Alignment, which we are waiting to implement.

Two significant initiatives took place in recent years. Music Network was set up with the benefit of a gift of €5 million from U2. It is based on a very detailed piece of work which was carried out with Arts Council support. Three years ago, Music Network launched a major initiative in music education. The idea is that with State partnership, in the long run every single child in Ireland will be able to play an instrument, read music or sing a song. Comhaltas Ceoltóirí Éireann has been doing this work for years in the area of traditional arts. This initiative envisages similar networks in all genres of music available throughout the country. This is a transformative project which deserves acknowledgement. Both Senator Mooney and the former Minister, Deputy Michael D. Higgins, would be aware of the work going on in the background. It is a very important project in the area of music education.

The Points of Alignment initiative with the Department of Education and Skills is about arts education within schools. The Arts Council spends between €3 million and €4 million annually on young people outside of schools. We contend it is in play, peer group activities and areas peripheral to the rather structured school day that people really explore their creativity — in the grassroots network of local youth theatres, local youth music societies and local schools of music or venues. Our chairman spoke of the network of venues which have been built over recent years offering many programmes for young people to supply the next generation of creative people.

The chairman of the film board referred to our joint initiative on digital cinema. We also have very close relations with Fáilte Ireland and the tourism organisations. We are discussing our involvement in the gathering for 2012. A related project about the Olympics is the proposal to have an initiative in Ireland based on the Olympic Games in London. The contemporary arts are very central to this.

On our relationship with local authorities and local tourism interests, last year in the Solstice centre in County Meath we organised a meeting of general cultural and artistic stakeholders across counties Louth and Meath. Out of that meeting has come a major initiative for supporting local arts festivals and making them central to destination marketing in the Boyne Valley area. The fact that the voluntary sector, the local authorities, Fáilte Ireland, the local tourism organisations, the Arts Council and, most important, the artists were all involved will make that Boyne Valley destination marketing a real success in the future. This is one small example of joined-up thinking.

The Arts Council funds 400 major arts organisations and 1,200 small voluntary organisations which employ 3,000 people. Approximately 26,000 people are employed in the arts sector as broadly defined. The artists who live and work in Ireland at grassroots level are the engine of all this creative work. We are working very closely with the Arts Council of Northern Ireland to profile these tens of thousands of mini-SMEs, and this work will be completed by the middle of next year. An early finding is that something like 70% of these artists who work as individuals have PhD qualifications. They are the largest and most neglected resource. We can talk in more detail about these amazing people at a return meeting.

Mr. Gaby Smyth

I have characterised us trying to plan for dealing with section 481 as being like shooting at a moving target. We are also on a moving horse, so to speak. We are trying to match what incentives are available internationally, but there is a degree of uncertainty about our platform and how secure we are about being able to plan forward. Section 481 is worth 28% of one's eligible spend and we need to have some certainty about this. It was encouraging to hear that if we are going to compete, we need to be able to stand on solid ground and have some assurance that we can go with confidence to the market and say that section 481 is a consistent element of our armoury and this has been the case for almost 20 years. It would give us security that we were not on a moving animal, so to speak, while trying to aim at a moving target. It would help us greatly.

My second point is that when we are trying to make our case to stakeholders, we are treated as an art form. I have been at pains to say that while it is an art form, it is also an industry and the numbers support this. Being part of an art form is regarded as being some nebulous, cloudy, self-sustaining bubble that does not need any help. We point out that we are a cost-efficient, cost-positive industry worth more than €500 million euro and employing in excess of 6,000 people, so we need to be regarded slightly differently. We need to include the word "industry" as well as "art form" when we talk about the arts because it is too easy to dismiss it otherwise.

There are three real advantages to bringing production to Ireland. One of them is section 481, the second is that one is likely to have the support of the Irish Film Board and the third is that the people here are very good at their job, from the talent all the way up or all the way down to producers, directors and production teams. We are hard working and we can fill very well any gap that is not filled by the international production team. In addition to the incentives that go with section 481 and with the financing of the film board, we can point to a very well-educated and talented workforce that can fill any gap on any production.

We have had a very worthwhile and productive exchange. I thank the delegates for attending and sharing their assessment of the current situation and, more important, where we are going. I wish them well with each and every one of their exciting ventures. I thank the delegates on behalf of the members. This committee is here to help. We will focus on all the areas mentioned. We will work with the delegates in the months ahead.

The joint committee adjourned at 4.30 p.m. until Wednesday, 2 June 2010.
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