Dáil Éireann Debate, Wednesday - 18 April 2018
25. Deputy Richard Boyd Barrett asked the Minister for Business, Enterprise and Innovation the conditions that surrounded the sale of the State's stake in a studio (details supplied) to secure it as a location for film production into the future; and if she will make a statement on the matter. [16802/18]
Amharc ar fhreagraThe Comptroller and Auditor General should investigate the circumstances of the sale. That is how serious I think this is. This is a piece of real estate that, if it were developed residentially, would probably be worth about €100 million. The Government cannot tell us how much it was sold for or confirm the reports that €7 million of debt was written off. That is not acceptable.
I told the Government a few weeks ago, and it was confirmed last week, that there were major problems in the places where films are actually being made - not in Ardmore Studios where they should be made but in the John Player factory, for example, which is a NAMA building. Four workers were sacked last week because they had protested about health and safety conditions in a derelict factory. That is not surprising, really. What are they doing making films in a derelict factory when there is a purpose-built studio down in Bray where they should be making them? Does the Minister not think it is all a bit strange?
I will answer the question the Deputy raised regarding the conditions that surrounded the sale of the State's stake in the studio. Ardmore Studios has been sold to Olcott Entertainment Limited. The Ardmore site is currently zoned for film industry use only and this protection is due to run for at least five more years under the Bray municipal district local area plan. As the Deputy knows, the site cannot be used for non-film industry development without the agreement of Wicklow County Council to alter the current zoning restriction.
Enterprise Ireland negotiated the sale of its shareholding with the benefit of due diligence undertaken by independent consultants and is satisfied that it realised full market value, and on a par with the other parties. Investment is required in the Ardmore Studios facilities to secure their long-term commercial future and the Olcott Entertainment deal provides the potential to breathe new life into the company at a time when the market for film production in Ireland is again showing huge growth potential. Olcott Entertainment has indicated that it plans to develop and expand the Ardmore Studios offering, and other related entertainment projects, and to retain the current experienced Ardmore management and staff. The promoters of Olcott Entertainment have a strong track record in the film production industry. This acquisition will ensure Ardmore Studios continues to be a world class film studio, can strengthen the potential of Ireland as a location for film production and take advantage of new opportunities in emerging areas including on-demand TV, content and gaming production. Overall, I am confident that the sale will not only continue to ensure high quality production of current projects, but will also provide continued investment in the studio and employment opportunities for the skilled workers in the area.
There are currently three people working full time in Ardmore because it is sitting empty.
That will improve.
Meanwhile, in Dublin, there are three films being made, one in a derelict NAMA factory where, as I said, four workers have just been sacked because they protested about the conditions under which they were working. Another film is being made in an old factory in Tallaght for some bizarre reason, and there is a film being made in the former Dublin Sport Hotel. All of these are getting public money, our money, coming from the State.
That is a matter for the film board.
There is also a reported €7 million gone into Ardmore. Is this not a bit odd? We are pouring all this money into the film industry and into Ardmore and there is nothing happening in Ardmore. It is happening in NAMA factories where workers are out protesting over the conditions they are employed in and then get sacked for doing so and have now been replaced by contractors. Where is the accountability about the expenditure of public money to ensure that our investment actually results in the development of a real industry with proper employment for those who work in it and where we have some idea what the hell is going on? Instead, millions in public money is going into the hands of private interests, whether they be production companies or a studio built by the State which the Government has now handed over to private interests, with what? Just their word that they will make films there when the place is sitting empty.
I reassure the Deputy that the current Ardmore Studios require investment, as he knows.
It has got a lot of investment in the last while.
This company has purchased it and committed to investing in it. There is a great opportunity there. I am sorry I am not familiar with those particular places the Deputy is talking about. I suggest he brings it up with the Irish Film Board, which falls under the remit of the Minister for Culture, Heritage and the Gaeltacht. The Deputy should visit Troy Studios in Limerick. The same people own Troy as have bought Ardmore. The Deputy should go down there and see what is happening. Some 500 jobs have been created down there and there is huge opportunity.
The place is buzzing and it is a good news story. I am confident that the same will happen with Ardmore Studios. It needs investment and there is a shortage of studio space. Ardmore's space is more suited to documentaries while Troy Studios is particularly suited to large films. Currently, they are filming a series there and have constructed a spaceship on the set. Up to 500 people are employed there with a €50 million investment. Film means opportunity. There are significant opportunities with Ardmore and I believe this is the best outcome.
The Government might as well be in a spaceship somewhere off in the stratosphere for all it seems to understand what is going on in the film industry. The Minister said Ardmore needs investment. Maybe it does, maybe it does not. According to the report, it has an investment of €7 million. Does the Minister believe it needs more investment than the John Player factory or a factory in Tallaght or the Dublin Sport Hotel? Why are films being made there?
The same chief executive officer, who has made efforts to rezone Ardmore for residential development but was blocked by Wicklow County Council, is still running the place. I pointed out that I have heard Savills, the property people, are involved in all of this. Unless I am mistaken, Savills is not interested in making films but in making money from real estate. To my mind, this stinks to high heaven. The Minister is not answering the questions. Public moneys are spent on derelict factories, on the John Player factory, the Dublin sport hotel and on Ardmore, which sits empty, yet the Minister cannot tell us anything about what is going on. Instead, she just promises us that it will all be okay from the spaceship in the sky.
I think the Deputy is the one who has gone into outer space at this stage. Enterprise Ireland has a significant investment portfolio. It makes many investments for which it carries out due diligence and the necessary checks. It felt this was the best opportunity for Ardmore Studios. I also believe it is. The business of the company which bought the studios is making films. It wants to make films in Ardmore. I am confident that it will continue to make films there. The Irish Film Board has also welcomed this development. It is good for the industry. I am confident this is the right course for Ardmore Studios. From my past experience in my previous Department, I have seen the benefits of the film industry and what it brings to an area.
We are all for the film industry.
However, I cannot tell people where to make films.
There is public money going into it.
This is an opportunity for Ardmore Studios and for the people of Wicklow to strengthen the offering the studio has. There is a bright future for the studio. The film industry is looking for space. Ardmore Studios has the ideal space and I have no doubt the use of that space will be optimised.
