——of the integrated package of policy initiatives which I believe are necessary to place the industry on a sound footing, commercially and artistically. I can, therefore, confidently recommend the Bill to the House and stress the urgent need for its enactment.
It is no exaggeration to say that the Irish film and audio-visual industry has had a chequered history in terms of the policies which successive Governments have pursued to develop it. This history, frankly, has led to many disappointments and even failures, but remarkably, it has also left our country with the basic infrastructure for an industry still intact, in terms of management and financial expertise; experience with the complex regime of co-productions and the requirements of the European market in particular; a continuing wealth of creative and artistic talent in the preproduction, production and post-production processes of individual projects; an important film studio facility which exists at Ardmore, County Wicklow and a strengthening relationship between our national broadcasting organisation, Radio Telefís Éireann, and the independent television production sector.
The history of the creation of an Irish film industry perhaps began with the making of the first indigenous films by Denis Johnston and Tom Cooper in 1935, followed by a series of unco-ordinated developments. These included interventions by American film companies making films on Irish subjects; efforts at home to establish cinema newsreels, support documentaries and Irish language initiatives, most notably by Gael Linn, who deserve our gratitude for their marvellously evocative films such as Mise Éire and Saoirse; several efforts were made to place Ardmore on a sound commercial footing, involving State intervention in some instances; the establishment of Telefís Éireann in 1961; the Huston report on the film industry in 1968; the inclusion of film in the Arts Act of 1972, enabling An Chomhairle Ealaíon to promote low budget films since then; the establishment of Bord Scannán na hÉireann — the Irish Film Board — in 1980; its replacement in 1987 by a tax-based incentive for corporate investment in Irish film projects; leading us to the obstacles to the industry's commercial and artistic development which I, as Minister for Arts, Culture and the Gaeltacht, have identified and the measures which I have promptly put in place to address these obstacles. I intend to continue at the same pace. I will be delighted to tell the House later that a number of further initiatives may be taken in the course of the next couple of years.
The report of the special working group on the film production industry, which was submitted to the Taoiseach last Christmas Eve, played a pivotal role in highlighting the obstacles to the industry's development and, notably, in recommending the establishment of a dedicated film fund which would, in turn, be administered by a dedicated State agency. Since the 1980 legislation dealing with the Irish Film Board was still on the Statute Book, I decided immediately to reactivate the board and, with the broadcasting and tax measures, create a strong momentum which I am confident will serve at last to place this industry on a process of sustained development.
I had no hesitation in taking this course of action, instead of, perhaps, enacting legislation to establish a new dedicated State agency, because I have always felt that the first Irish Film Board was not treated fairly. I had a high regard for its performance and I believe that, in retrospect, the expectations for the first film board were probably unrealistic. It is now demonstrably clear that there was an over emphasis on the direct commercial aspects of the film industry, without having due regard to the significant spin-off advantages which it can bring to our economy in terms of employment creation and value added, not to mention the unquantifiable but equally important contribution which investment in Irish films can make to the flourishing of our culture and the telling of our story to a contemporary audience. Cultural rights have at their root recognition of the right to tell one's own story.
Senators should also be aware that, apart from supporting screen plays and film and television projects, the board also ran notable training courses, especially for producers, many of whom were later to achieve international acclaim. It helped in the establishment of a national film archive; provided a presence for Ireland at markets and festivals abroad; assisted Irish film festivals and events; and formed co-production partnerships and contacts with the international film sector.
In the course of its life, the first board supported over 25 shorts and documentaries and enabled more than 12 feature length films to reach cinema and television screens at home and around the world. It achieved an approximate 10 per cent return on its investment, raised the level of skills and employment, enabled new facility houses to contribute to the economy and gave a start to many careers as well as encouraging talent which is, happily, still with us.
The board was also involved in the early negotiations for Ireland's participation in the very successful MEDIA programme of the European Union. The significance of this was that, in what I might describe as the lean years for the Irish film and audio-visual industry from 1987 onwards, the MEDIA programme was, apart from grants from An Chomhairle Ealaíon and the Arts Council for low budget films over those years, the only source of direct funding to our Irish industry practitioners. Indeed, such was the dearth of funding for our practitioners at that time, they wholeheartedly became involved in the MEDIA programme, As a result, it is estimated that Irish projects and audio-visual professionals in this country received some £1.8 million in the form of loans and repayable grants from the programme in 1991 and 1992. At a time when none of the measures which I promoted was in place, Senators will appreciate this was a significant source of funding for our industry. Moreover, the success of this first major encounter with the European audio-visual industry prompted the Government to join EURIMAGES, the Council of Europe's co-production fund for cinematographic co-productions. EURIMAGES will have a budget of over £15 million next year and I am pleased to inform Senators that, since joining the fund in September 1992, three of the four Irish films which submitted applications for assistance have been successful.
As a follow up to the re-establishment of the Irish Film Board, I have taken steps to ensure that the considerable investment which the State is now putting into the Irish film and audio-visual industry — directly by way of seed funding and indirectly by way of tax concessions and programme commissioning by RTE and the new Teilifís na Gaeilge service — will be complemented by the activities of other relevant agencies in the semi-State sector. It is enormously important that all remaining obstacles to the full development of the industry be tackled over time. Among these remaining obstacles, I cite the absence of a film commission in the semi-State sector which would facilitate offshore and indigenous production companies; the need for new training strategies for the industry; the whole question of distribution of Irish films for Irish audiences, including metropolitan-regional imbalances; the promotion of Irish films abroad; and the question of the Irish language and film.
I am pleased to inform the House that I have secured nominations from the relevant Ministers and senior officials of the semi-State sector who will participate in a new committee established by the Irish Film Board under section 16 of the Irish Film Board Act, 1980. This committee will address the issues I have just listed, as well as other issues, over time. The committee is chaired by the Irish Film Board and comprises senior representatives of Radio Telefís Éireann, Údarás na Gaeltachta, An Chomhairle Ealaíon, the Industrial Development Authority, FÁS, An Bord Tráchtála and Bord Fáilte. My Department is also represented on the committee. It will serve to complement my own policy initiatives by monitoring the industry's progress and responding to its requirements over time. Most importantly, it will send out a strong message that this Government is in earnest about the future development of the film and audio-visual sector and that, for the first time in the history of this State, we are treating the sector for what it is — an industry in its own right which has now attracted an integrated package of incentives to ensure that it makes a significant contribution to the economic and social progress of the State. This committee, therefore, will act as an important proactive mechanism for the industry.
One of the more important subjects I expect this committee to address in the short term is the whole question of the training needs of the industry. I am setting out to achieve the creation of a new generation of Irish film practitioners who will work side by side with established practitioners and, I hope, secure a self-sustaining high level of activity in the industry for the future. It follows that we must now examine whether the existing training components of the industry — which are currently either industry led or involve educational courses in some of our third level colleges, with almost no direct involvement by FÁS — are sufficient to match the expected uptake in demand for skilled practitioners. I expect this new committee, which includes a representative from FÁS, to address this issue as a matter of urgency. Given FÁS's overall remit to assist in meeting the training needs of industry in general, I am hopeful they will be in a position to respond to this crucial aspect of the industry's future development over time.
Another important link in the chain of promoting the industry and monitoring its progress is now being put in place. The Audio-visual Production Federation of IBEC, in full consultation with my Department and the Irish Film Board, has devised an economic database. Information to be supplied by all practitioners in receipt of State support for their projects — whether in the form of direct film board assistance, section 35 finance or programme commissioning from either RTE or Teilifís na Gaeilge — will form part of the database. I warmly welcome this initiative and I believe it will represent an important instrument to illustrate to the taxpayer the return, in terms of employment creation and value added to the economy, which their considerable investment in the industry is making. Indeed, the economic data which this database will provide will be crucial for me in my ongoing discussions with my ministerial colleagues as the direct and indirect needs of the industry from year to year arise. I am preparing submissions.
I have concentrated my remarks so far largely on the recognition which this Government has placed on the potential for growth and employment which the art form of film now holds. However, Senators will be pleased to learn that I am not overlooking the fact that film is an important art form in its own right. Indeed, the centenary of the cinema will be celebrated throughout Europe during 1995 and 1996 in recognition of its past glories and achievements. Ireland will take part in these celebrations. The measure before the House in no way diminishes the responsibility of the Irish Film Board, under section 4(2) of the 1980 Act, to have regard to the need for the expression of national culture through the medium of film making, in so far as it considers it appropriate. In this context, I look to the board in its future activities to strike a balance between cultural and commercial aspects of film making and so create a fresh and vibrant synthesis in this long standing discourse. I should add that the special working group on the film production industry also identified the creation of such a synthesis as a key element of the new funding structures which they recommended in their report.
I believe it is also important to clarify for Senators what role An Chomhairle Ealaíon, the Arts Council, will have now that the Irish Film Board has been reestablished. Since the Arts Act, 1972, film had been included among the arts disciplines which An Chomhairle can address. Since then, An Chomhairle has played an important role in funding film related organisations in an effort to create a coherent infrastructure in the areas of exhibition, preservation, training, education, information and support for film-making of artistic value. This involved some £100,000 per annum to film makers on a non-repayable grant basis and approximately 12 awards were given each year.
I am pleased to inform Senators that I foresee no change whatsoever in the role of A Chomhairle Ealaíon in relation to film and film-making, notwithstanding the re-establishment of the Irish Film Board. An Chomhairle can be proud of the role it has played in such projects as the magnificent Irish Film Centre in Dublin and in providing funding for new Irish film makers for many years. It is crucially important, both from a cultural and an educational and training perspective, that the production of shorts and low budget indigenous films is supported and I foresee An Chomhairle Ealaíon continuing to play an important role in this area. The House can be assured, therefore, that the emphasis on the cultural significance of film making both under the Arts Act, 1972, and the Irish Film Board Act, 1980, will facilitate the achievement of an adequate balance between the cultural as well as the commercial aspects of the film making.
Before concluding I would like to refer to the GATT negotiations which were concluded last night. I have been amused by the fact that it is only in the past week or so that the media here have become aware of the critical issues at stake for the European audio-visual industry in these negotiations. I, on the other hand, have been articulating and developing my views on this matter since I took office both during the Danish Presidency and especially during the Belgian Presidency of the European Union when issues involved began to move to centre stage in the negotiations. That involved a combination of two fundamental issues.
The issue of culture, the right to make images and the right to have a plurality of image making, can be made concrete by the fact that 81.06 per cent of all images seen in Europe are sourced in North America. Some 91 per cent of films seen in Ireland and 93 per cent in Britain are sourced there. There is a domination in relation to the images available. The commercial argument concerns jobs in the audio-visual industry in Europe. Will these jobs be in Europe or in North America? People will know from newspaper reports the size of the balance; £3.66 billion comes from the US to Europe, while £288 million leaves Europe for the US. Senators will be familiar with arguments made in this regard.
I addressed these issues from a cultural and economic perspective during the Danish Presidency. We are indebted to a special seminar held during the Belgian Presidency at Mons. The position was concentrated and various countries took different positions, for example, the French position was strengthened. Ireland had already adopted a position in relation to State aid, plurality, dubbing European films in Europe rather than the US and the purchase of film rights both in terms of its cultural and employment aspects. It is an interesting concentration of European thinking.
Something which concentrated many of minds during the Danish Presidency was the fact that 72 per cent of images seen in Europe were sourced in North America and watched on machines which were 84 per cent sourced in Japan. European cultural space is in between. There is a strong cultural argument and an immense commercial argument because hundreds and thousands of jobs are at stake. This concerns not only cultural rights, but it also has an economic dimension.
Since taking office I advocated and supported in all relevant fora that European producers of audio-visual material should have adequate space for European programming on our television screens. One of the reasons for this was that our position was ahead of and, in some respects, different from the French position. The French position was based on an anxiety to preserve what is one of the surviving pillars of the European film industry.
We must maintain existing programmes, both European and national. We must support and develop the industry and allow flexibility so we can vary and develop these programmes as appropriate in the future. As Senators will know, there were three positions: exclusion, exemption and specificity. While it will be necessary to study the fine print of the agreement just concluded, I am satisfied on the basis of assurances given by the Commission to the Presidency of the European Union yesterday that, in the audio-visual sector, the agreement gives us complete freedom to pursue current and future policies in all areas of relevance to the industry and represents a satisfactory outcome to the negotiations for the industry.
Finally, I would like to inform the House that I have obtained Government approval to prepare and publish a Green Paper on future broadcasting structures and policy. Senators will be aware that. for some time, I have been undertaking a review of this policy. In view of its complex nature and the enormous technological advances which have visited broadcasting in recent years and can be expected in the future, I believe that the consultative process which is implicit in the publication of a Green Paper will enable me to arrive at the best conclusions for the future policy orientations of this important sector. This initiative is yet one more example of my resolve to address the needs of the film and audio-visual industry, as well as broadcasting policy in its own right, in a comprehensive fashion over time. Work on the preparation of a Green Paper will proceed in the months to come.
A Chathaoirligh, tá súil agam go nglacfaidh an Seanad leis an mBhille seo inniú. Tá mé sásta go gcabhróidh sé go mór leis an bhfeachtas atá fé bhun agam faoi láthair chun an tionscal seo a neartú agus gnéithe d'ár gcultúir a shlánú agus a thaispeáint do gach áird den domhain tríd an mheán cumarsáide tábhachtach seo. Dá bhrí sin, molaim an Bille seo go tréan don Seanad.