I welcome the Minister for Arts, Sport and Tourism, Deputy O'Donoghue, and his officials.
Estimates for Public Services 2005.
Vote 35 — Arts, Sports and Tourism (Supplementary).
I thank the select committee for giving me this opportunity to elaborate on the details of the Supplementary Estimate for my Department's Vote for 2005.
The Supplementary Estimate being sought comprises five main elements that include: an additional allocation of €1.5 million to subhead B.1, which provides funding for Fáilte Ireland; €1.202 million for subhead D.3, which provides State support for the National Concert Hall, the Chester Beatty Library and the Irish Museum of Modern Art; an additional €7.785 million for subhead D.5, which, in the main, provides capital grants for arts and culture facilities throughout the country under the ACCESS programme; €5.233 million for subhead D.9, which provides for Exchequer funding for the Arts Council; and €1.5 million for subhead E.2, through which funding is provided for the Irish Film Board for the provision of development and production loans for the film and television production sector. With the exception of subhead D.5, all of these subheads are grant-in-aid in nature and the additional funding requires the specific approval of the Oireachtas.
Savings, from which the proposals before the committee are to be funded, have arisen on the Department's Vote during the year. Savings arose on a number of capital allocations in the Department's 2005 Estimate. These programmes and projects are demand driven, with funds only being released on foot of matured liabilities being incurred by project promoters. While significant progress is being made in the delivery of sports facilities across the country with financial support from these programmes, nevertheless there is some delay at project level in submitting the relevant documentation to the Department. Therefore, a slowdown in the rate of drawdown on several projects has led to the savings which have now arisen.
The underspend in the capital subheads is approximately €33 million and I will be seeking to carry forward €16.5 million of these capital savings into 2006 in accordance with the conditions of the multi-annual capital investment framework agreed with the Department of Finance. To maintain momentum in other areas of the Department's activities, a significant proportion of these savings, together with additional receipts from the EU that were received by way of appropriations-in-aid, will be utilised in the current financial year.
Under subhead C.2, which makes provision for grants for the provision and renovation of swimming pools, savings of €14.472 million are being reallocated. The original provision was based on projects at contract document and tender stages moving at a reasonable pace to construction. The drawdown of grant aid by local authorities this year has been slower than expected. In addition, a budget allocation of €4 million to St. Michael's House for the development of a swimming pool for people with special needs was provided in the subhead but is not being drawn down this year. While actual drawdown for 2005 has been slower than at first anticipated, there are still a record eight projects under construction, eight at tender stage and 13 at contract document stage. In the final analysis, the pace of drawdown is entirely dependent on the speed at which local authorities proceed with their projects following the approval of the tender. However, I am confident of a significant pick-up in 2006.
Additional appropriations-in-aid of some €2.233 million arise on the Vote this year in respect of refunds from the EU regarding operational programmes managed by the Department under the last Community Support Framework. It can be difficult to predict when EU refunds will be released by Brussels. It was anticipated that only €2.4 million would be received in 2005. In the event, however, some €4.633 million was transferred.
Subhead D.7 provides funding for Culture Ireland, the new non-statutory body charged with supporting Irish arts in an international context. Savings have arisen because Culture Ireland did not hold its first meeting until March 2006 and a number of those granted financial assistance are not in a position to draw down the relevant funds before year's end. Savings of €150,000 arise on the subhead.
I propose an additional allocation of €1.5 million to Fáilte Ireland under subhead B.1. Of this amount, €1 million is for the purposes of further reconfiguring Fáilte Ireland's Amiens Street office as part of a relocation programme aimed at accommodating all Fáilte Ireland staff in a single location. It is a priority in terms of a cohesive corporate strategy that all of Fáilte Ireland staff currently spread over three locations should be accommodated in one premises in the interest of financial and operational efficiency. It is expected that the cost involved will be offset over time by savings resulting from the vacating of the Pembroke Row offices and the eventual disposal of the Baggot Street bridge premises. The balance of €500,000 is intended to facilitate the replacement and upgrading of IT infrastructure, including an ongoing planned PC refreshment, a major software update and the replacement of IT servers.
I propose the allocation of an additional €1.202 million to subhead D.3, through which my Department provides support for the Irish Museum of Modern Art, the Chester Beatty Library and the National Concert Hall. Of this amount, some €462,000 will be current funding with the remaining €740,000 by way of capital funding. Of the €462,000 current expenditure, I propose to provide €275,000 for the Irish Museum of Modern Art, €112,000 for the National Concert Hall and €75,000 for the Chester Beatty Library. The additional funding will recompense the Irish Museum of Modern Art for providing free of charge banqueting facilities to Departments for various functions throughout 2005, facilitate a security upgrade and enable the museum to complete its 2005 marketing programme. The proposed funding for the National Concert Hall will, in the main, enable that institution to carry out a robust December marketing campaign. I also propose to provide funding for the Dürer exhibition currently under way in the Chester Beatty Library.
I propose to provide an additional €255,000 for the Irish Museum of Modern Art, €310,000 for the Chester Beatty Library and €175,000 for the National Concert Hall. The provision of additional capital funding will enable these institutions to update equipment and lighting, refurbish musical instruments and replace furniture and furnishings.
The capital element of Subhead D.5 provides for my Department's capital investment in the arts, primarily through the arts and culture capital enhancement support scheme or ACCESS programme. This scheme has transformed the level of access to arts and cultural activities for a great many people in all parts of the State. The 2001-04 programme provided grants of more than €45 million for the development of 44 arts and cultural facilities around the country.
Since becoming Minister for Arts, Sport and Tourism in 2002, I have repeatedly said the provision of adequate facilities is a key element in making the arts something which everyone throughout the country can enjoy and participate in. The rate of progress on existing ACCESS projects has increased considerably in the past 12 to 18 months, which has led to a demand for funding this year well in excess of expectations. Accordingly, an additional €4.109 million is now required to meet the increased demand in 2005 under the scheme. A number of projects, including the Liberty Corner in Dublin, the Courthouse arts centre in Carrick-on-Shannon, Thurles civic centre, Navan arts centre, Galway Civic Museum, Daghdha in Limerick and the Castleblayney arts centre have either been completed this year or are nearing completion.
In addition to the increased rate of drawdown outlined, I propose to allocate a number of additional grants to boost the development of arts and cultural facilities around the country. These grants, totalling €2.676 million, will make a critical difference to a number of key facilities and to the services they can offer to their patrons and clients. These projects are located in Tipperary, Wexford, Limerick, Kerry, Waterford, Cork, and Dublin.
I am also proposing to provide €500,000 from this subhead to the Abbey Theatre to meet the costs of urgent refurbishment works which will include repairs to the roof and replacement of old and obsolete workshop equipment, lighting equipment and sewerage pump, along with upgrades to sound equipment. In addition to ensuring that the theatre continues to stage high quality performances, these works will also enable improvements in the area of health and safety.
The Foynes flying boat museum is currently undergoing major redevelopment and upgrading for which my Department has provided €1 million in funding. This development will be completed shortly. The programme of work envisaged the inclusion of a model of the cabins used in flying boats. As a result of the redevelopment, an opportunity has arisen for the museum to replace these proposed models with a full scale, walk-through replica of an actual Boeing B314 flying boat in all its glory for which I am proposing the allocation of an additional €500,000 through subhead D.5.
The Foynes museum has received substantial capital aid from the State in recent years and has become a significant cultural facility in the south west with increasing visitor numbers. The increased usage of Shannon Airport by incoming passenger traffic from continental Europe and the renewed usage of Foynes port by the cruise line industry have created the possibility of the full exploitation of the redeveloped Foynes flying boat museum as a tourism venue.
I propose to allocate an extra €5.233 million for the Arts Council this year under subhead D.9, of which €4.233 million will go directly to the Abbey Theatre to clear existing deficits and fund other costs arising from the current change process at the theatre. The Abbey has had to contend with serious challenges in recent times but new structures, new corporate governance and new management have now been put in place which will allow the theatre to move forward. The substantial funding I propose will put the Abbey on a secure financial footing and will allow the incoming board to face the future with confidence. The remaining €1 million will be directed towards the Arts Council's new three-year strategy for the traditional arts as well as allowing the council to provide extra funding for festivals and to begin the implementation of its policy on opera.
Last, but by no means least, I propose the allocation of additional resources to the Irish Film Board. As the committee will be aware, the board is charged with promoting our indigenous film industry and with marketing Ireland as a location for international productions. There has been a serious fall-off in activity in the film industry in Ireland due to a number of factors, including the unfavourable exchange rate with the US, new competition from low-cost locations and changes to incentive schemes elsewhere. More crucially, our section 481 tax incentive scheme, while it has been enhanced and though once regarded as a leader globally, has now been copied and improved upon to a point where its relative attractiveness has been eroded. To address this problem I propose to make an additional €1.5 million available to the Irish Film Board to allow it to support the film sector through this very difficult phase.
I commend the Supplementary Estimate to the committee.
I welcome the fact that there is more money available for a range of cultural and sporting activities and facilities as a result of the Supplementary Estimate. The Minister must feel he is in a very privileged position to be able to come before the committee and allocate more money on the day of the budget, which in one way is unprecedented but shows how awash the country currently is with money. That is clearly welcome from a cultural and artistic point of view.
I welcome the fact that the Minister is allocating extra funding of €175,000 to the National Concert Hall. This might be the opportunity to enlighten the committee on progress being made on the acquisition of the UCD medical and engineering facility on the grounds of the National Concert Hall. The NCH directors came before this committee a few weeks ago with the clear message that this facility was available but might not be available indefinitely, and that it was important that the Government should act as soon as possible, in co-operation with the UCD authorities, to purchase the property for €45 million. The NCH chairperson told of how exciting its proposals could be if they acquired the extra property and space, in terms of building a concert hall which would match those around Europe, which would be of international standard and would be a flagship for Irish culture. The NCH representatives also told of how they could bring the Iveagh Gardens into play, which are currently cut off and are not really part of the city. Those proposals were very exciting and the Minister might refer to them when responding.
As we all know, the present concert hall is turning away some 40% of its business, representing about €4 million annually. Therefore, over a ten year period, even on attendances alone, the money involved in purchasing the grounds would be returned. The National Concert Hall can hold only 1,100 people and is at full capacity most of the time. From my experience at organising some charity events there, I know the backstage changing facilities are very antiquated and one could not imagine any international show coming to the concert hall because its facilities are simply not good enough. The corporate facilities are inadequate. It is almost impossible to do anything in terms of food preparation to entertain corporate people there at fundraising events. It is very important that the concert hall is upgraded at this stage when the money is available. This should be treated as a national priority by the Department.
I welcome the announcement of extra funding for the Abbey Theatre. I realise that the Abbey has been through a very difficult period and I acknowledge the work of Ms Eithne Healy, the former chairwoman. She steered the Abbey through stormy waters. It was a very difficult period for her and for the board at that time.
As we know, the centenary celebrations were totally underfunded. There was an expectation that the private sector would come up with a fair degree of the funding that was required, but that did not happen, although the theatre did quite well. As a result, the Abbey was left with a debt that it could not deal with. I am glad the debt has now been cleared and that the whole issue of governance of the Abbey has been resolved. I compliment the Minister on his action in this regard. The fact that there is a new structure in place means that the Abbey is not as unwieldy as in the past and that the decision-making process will be better. It means that the new chairman and the board will have a clean sheet for the future.
In appointing Judge Bryan McMahon as chairman, the Minister has chosen one of the best people in the country for this post. I know the man well and he is absolutely dependable. His father, Mr. Bryan McMahon, was a great poet, playwright and short story writer. It is recognition too of the contribution that family has made to Irish culture. Judge McMahon is certainly a safe pair of hands.
The issue of touring was discussed with the Abbey people when they appeared before the committee. They argued that they could tour more extensively throughout the country if they had the funding. If the Abbey is a truly national theatre, it must be so in name and action. We have to see it doing outreach programmes throughout the length and breadth of Ireland, as far afield as the Minister's local theatre in Caherciveen, on which I compliment him. It will, no doubt, be a great addition to Caherciveen. An arts centre in any town is a dynamic nerve centre. The more arts centres there are in the country the better, provided they are sustainable.
I am glad progress has been made on the Abbey. Perhaps the Minister will give us an update as regards the new site and how matters are progressing. Will he indicate what stage the current archaeological studies are at and whether anything has been found there of significance? It is not expected that there will be anything. When will the competition be held for the architectural design of the project? It is important the Minister enlightens the committee on that today.
As regards the whole policy on opera, as the Minister knows, Anna Livia was one of the most successful developments in this country. When it was taken out of education and put into the arts, the funding for the Anna Livia Opera Festival was cut totally. I hope extra money for the implementation of policy on opera will facilitate the Anna Livia festival. We all know that MsBernadette Greevy came back from America to set it up. She did this very successfully, it was profit making and she developed young local talent.
When one looks at Wexford, for example, all the performers at the opera festival there this year were international figures. Last year there might have been one Irish performer. MsBernadette Greevy developed young Irish talent, including a young girl who is married to my nephew, if I may declare my interest. She had focused on young Irish talent, but then her funding was stopped. Obviously she is annoyed because she gave up her international career to come back and devote her expertise to this country in the whole area of opera in which we are lacking. Perhaps the Minister will clarify matters in that regard.
As regards section 481 on the film industry, as the Minister is probably aware, there is very little work on the horizon at present for Ardmore Studios. Very little happened this year, for example. I am aware that the Minister was very much involved in bringing "Lassie" to Ireland, but little else happened this year in the film industry. There is a whole range of expertise available and people are looking at their future in the industry.
One of the reasons a number of films were shot in Ireland was that various Departments were strongly supportive. At the time of "Saving Private Ryan", for example, the FCA was very supportive, as was the Army. Local authorities were strongly supportive as regards the various films made here in Dublin, in Wicklow or wherever. That is why we were so successful, but also because we had the expertise here such as technicians, make-up people, engineers, sound engineers, video experts and so on. Approximately 4,000 people were involved overall, including scriptwriters and assistant directors. Some of those people are idle at present and looking for work, while reconsidering their positions in the industry. Unless there is a pick-up, some of these people might drift elsewhere and seek other careers. It is an immediate concern that we could lose the skills base built up over the past ten years, which gave us an edge over other destinations.
A production company could come here and start to film immediately because the expertise is available, but that advantage might not be there in the future. Other countries, such as New Zealand, Hungary, the Czech Republic etc. are developing attractive incentives for the film industry. Even the UK has come up with better incentives, I understand. There is a good deal of competition and because Ireland won"Braveheart" rather than Britain, the British obviously became aware of the incentives that were available here. I recall a visit to the Dáil from a group of Westminster MPs who were interested in Irish incentives for the film industry. They wanted to know why we were getting the major films and apparently the British have now copied and even surpassed us.
Another issue was the uncertainty over section 481. Major films are planned 18 months in advance, generally. When the uncertainly arose over section 481, Ireland lost out because people who were planning to locate their films here decided not to risk it. Certainly the question mark over section 481 at the time was not helpful.
The capping of investments in film is too low. At present most films cost about €60 million to produce. I have not got the figures, but I understand investment in films is currently being capped at around €30 million. The capping limit should be raised substantially. I hope in the budget the Minister for Finance will announce an increase in the capping for investment in the film industry. That is very important. I am sure there will be the opportunity to come back with other questions.
I should not think so because there is only half an hour left.
I thank the Minister personally for his commitment to Siamsa at all times. The fact that he has given €120,000 to Siamsa in Tralee is very welcome and should be acknowledged here.
I welcome the Minister and his officials to the committee. It is good for any Minister to be in a situation where more money will be spent in his Department. Much of the funding is being redirected to health and safety for performing artists and other workers, which is to be welcomed. With regard to the decision to move Fáilte Ireland to No.1 Amiens Street, are the facilities available there for such a move? Given that decentralisation is supposed to occur, how long will this move take?
The funding under subhead D.5 was being redirected due to a lack of drawn down funding for the schools art programme. We spoke about this many times when dealing with the educational aspect of the arts Bill, yet the funding has not been drawn down for this programme, which is a concern. Why was there no funding drawn down for the St. Michael's swimming pool project? I have seen the benefits of such pools for Kildare in Mooreabbey. The facility there is amazing and it has brought great benefits to the community in Mooreabbey and further afield. I am sure the funding for the new pool will be ring-fenced in the budget. The access funding for different areas is being covered for the swimming pool. Can the Minister give a further breakdown on the areas and the projects that will be covered?
Deputy Deenihan spoke about the conference centre and the different aspects of funding for libraries and so on. The poor directions to these libraries make it difficult for tourists to find them. The libraries are not often identified on maps of Dublin as being part of a circuit. When we have such facilities, they should be part of a circuit so that tourists can go from one place to the next. I have not yet seen such a facility on any maps or information leaflets provided to tourists. They should be provided to increase the viability of these attractions. We spoke about grant aid in one the Minister's previous visits to this committee. I know there was a late take up on this aid by the committee put in place to deal with it. Can the Minister outline what projects are being developed using this aid?
It is good to see that the money is not being carried over into the next term. Areas will benefit because of this. There is still a problem with touring companies. We do not seem to have been able to generate a system to ensure that arts centres and theatres in rural Ireland are benefiting. They have wonderful facilities in Newbridge, Portlaoise and in other areas, but we do not seem to be able to maintain a touring system for them. Will any of the money being made available to the Arts Council be directed to these companies? I welcome the proposals made today and I hope they will be of major benefit to the different areas I mentioned.
Coming from an arts background, we are very proud that there is more money to spend on the arts. We congratulate the Minister on winning his battle with the Department of Finance to get that recognition. One of the important things is that the money can now be rolled over, whereas in the past it would have gone back to the Department. For next year, I support the case of the National Concert Hall as it has health and safety needs as well as expansion needs.
Thank you. I appreciate the fact that the members welcome the additional allocations, as they are particularly welcome to the organisations concerned.
The OPW surveys on the Abbey Theatre have revealed no impediment to the redevelopment of the theatre at the George's Dock site. The next step is to look at the most appropriate way of progressing the development. This will occur in the context of my Department's capital envelope for 2006 to 2010. The National Concert Hall representatives have been before the Government, but we must await the publication of the proposals of the Minister for Finance later today. In the meantime, it would not be appropriate for me to anticipate what the Minister for Finance will have to say about the concert hall, or any other project.
Section 481 has undoubtedly seen its attractiveness eroded in recent times. That is due not only to enhanced incentives elsewhere, but to exchange rates, relative labour costs and charges in other countries that prevent them being combined with section 481. That section is secure until the end of 2008 and we have increased the cap from €10.48 million to €15 million. We will provide €1.5 million this year, with the approval of the committee, for the Irish Film Board. This money has helped the board to attract a number of important additional productions, which will generate valuable activity in the film sector. Like other arts organisations, the funding of the Anna Livia Opera Festival is really a matter for the Arts Council. As an exceptional measure, €250,000 is being allocated this year to the festival, but this can only be a once-off. The long term issue remains with the Arts Council.
Deputy Wall asked which projects will be assisted. The Tipperary Excel Heritage Centre is being assisted with a grant of €1,560,000; Dún Mhuire Theatre in Wexford — €375,000; Irish Chamber Orchestra, Limerick — €100,000; Garter Lane Arts Centre, Waterford — €100,000; Siamsa Tíre, Tralee — €120,000; Triskel Arts Centre, Cork — €20,000; Belltable Arts Centre, Limerick — €320,000; Spraoí, Waterford — €40,000; Create, Dublin — €6,000; Graffiti Theatre Company, Cork — €10,000; and the Irish Film Institute, Dublin — €25,000. That gives a total of €2.676 million.
Deputy Wall also asked in regard to the St. Michael's House pool. Provision was made for it in the budget of 2005 and the preliminary report from that worthy project has been submitted to the Department. The planning process is proceeding and planning documents are being prepared. The financial provision of €3.8 million for the project, which assists people with special needs, will be available for drawdown in 2006 and beyond, if required. We have been in contact with the promoters of the project, which we will continue to support.
The substantial increase in Arts Council funding for next year will help the council to support increased artistic activity and an increased number of touring groups, all of which will contribute to the ongoing viability of arts facilities throughout the country. Direct support from the Arts Council to arts centres will also improve as a result. The capital grants provided by the Government will provide better facilities and allow for essential repairs and enhancements, and generally make the centres more attractive to patrons.
I thank the Minister and his team. I particularly thank the members of the committee for their work during a busy and productive year. I remind members that the committee will have a lunch at 1 p.m. on Thursday, 15 December in the Private Members' dining room. I look forward to seeing them there. To those who cannot attend, I wish a happy Christmas.