Friday, December 7, 2012

Film Board capital funding, 2013

In looking for the total allocation for 2013 (capital + current funding) for the IFB I missed the table setting out the Department's capital provision for the year ahead.

The amount estimated for the IFB for next year is €11.898m, down from €13.150m this year. That's a reduction of approximately 10% in funding for development, production, short film schemes and training.

An additional €500,000 in capital is expected to come from recoupment but this is an educated guess rather than definitive. The same amount was expected in 2012 but the amount given as the outturn for the year is actually €370,000. This represents one year's recoupment on some €200m of funding.

The budget allocation for current spending in 2013 may not have been published yet but I believe that the agency's staffing changes and cuts will probably accommodate any reduction on the €2.54m made available in 2012. However, there is a danger that as the capital provision comes down the current budget may begin to appear disproportionate - a widespread issue across the public service as programmes are cut and administration begins to look top heavy.

There has been a 41%  decrease in the IFB's capital funding since 2008:
2013 €11.89million
2012 €13.15million
2011 €16.00million
2010 €16.50million
2009 €18.81million
2008 €20.00million

Note: there may have been additonal supplementary capital made available in 2008 and 2009, possibly allocated under the 'International Production' heading.

Thursday, December 6, 2012

A new dispensation for the industry?

Compulsory reading. On a quick overview it seems as if a lot of the spin around the tax break has been de-bunked, at last.

Economic Impact Assessment of Section 481 Film Relief
December 2012, Dept. of Finance.

"However maintaining Section 481 in its current format does not appear to be sustainable. The scheme as currently operated fails a cost benefit analysis, has a high level of inefficiency in terms of leakage and is inequitable due to its reliance on high income individuals which itself is inconsistent with Government commitments to ‘cap or abolish tax shelters which benefit very high income earners’."

And on the proposed introduction of a tax credit model (with a Revenue-policed early pay-out for producers)...

"If such a model were in place in 2011, it would have resulted in a 32% exchequer saving. Based on the same level of qualifying expenditure this would have reduced the exchequer cost from €46.5m to €32m as the rate of relief would have been at 28% (in line with the producer benefit) rather than 41% (at the investor’s marginal income tax rate). This saving would also have improved the outcome of the cost benefit analysis."

And here's the question floating like a pink elephant in the room - against what taxes will production companies be able to raise levels of funding in 2016 equivalent to those now pouring from the Section 481 tap?


PS - still no official word on the IFB's capital and current budget for 2013, despite press releases from the Minister and IFB Chair welcoming the moves on Section 481. The Department's budget for the total Arts, Culture & Film section is €107.24m (-5% on 2012) of which it has announced that €60.7m (-3% on 2012) is for the Arts Council. "This is the maximum possible funding that I can allocate to the Arts Council for next year, and is below the average reduction that I have had to apply across the board in my Department."

Wednesday, December 5, 2012

Tis the season...

...to be budgeting... and it seems Christmas may have come a little early for the, ahem, hard-pressed film and tv producers who depend 100% on Section 481. (a bit of irony here).
The relief is to be extended. More later on the detail.

From Minister Noonan's speech...
Film Industry
This year, my Department carried out an Economic Impact Assessment of the current Film Tax Relief Scheme widely known as Section 481. In light of the Report’s findings, which I have published today, and after consultation with Minister Deenihan, and the film and TV industry in Ireland, I propose to:
 - extend the Film Tax Relief Scheme to 2020;
 - reform the operation of the scheme, by moving to a tax credit model in 2016, so as to ensure better value for tax payers money and eliminate the need for high income investors to provide the funding for the scheme; and
- enhance the scheme so as to make Ireland even more attractive for foreign film and TV productions.
These changes will rectify the anomaly by which investors received a disproportionate amount of the tax relief as opposed to the funds going to production.
These measures are designed to create additional jobs in the film industry.

This change of direction is not before time. Not one of the responses to the consultation, including that of the IFB, recommended a switch to a tax credit scheme or a better return for the taxpayer or increased funds going on the screen.

No definitive word yet on the IFB's budget for 2013. That detail will be announced by Minister Deenihan whose Arts, Culture and Film budget is down 5%. This may hide a bigger cut in capital (c. 10%) which might impact the IFB's funding. The IFB brought in €370,000 in recouped (external) capital this year and a figure of €500,000 has been estimated for next year.

Wednesday, September 5, 2012

Irish titles at the London Film Festival







The 56th BFI London Film Festival has sent me a release to say that this year’s programme includes 13 films from Ireland, part of a worldwide selection of 225 feature films and 111 shorts from more than 65 countries.


The Irish features being screened are - 
Pilgrim Hill, dir. Gerard Barrett
Silence, dir. Pat Collins
What Richard Did, dir. Lenny Abrahamson
Citadel, dir. Ciarán Foy (Co-production with UK)
Good Vibrations, dir. Lisa Barros D’Sa and Glenn Leyburn (Co-production with UK)
Kelly + Victor, dir. Kieran Evans (Co-production with UK)
Legends of Valahalla - Thor (HETJUR VALHALLAR - ÞÓR), dir. Óskar Jónasson (Co-production with Iceland and Germany)
Mea Maxima Culpa: Silence in the House of God, dir. Alex Gibney (Co-production with USA)
The Perverts Guide to Ideology, dir. Sophie Fiennes (Co-production with UK)
The Road: A Story of Life and Death, dir. Marc Isaacs (Co-production with UK)
The Summit, dir. Nick Ryan (Co-production with Switzerland)

The two Irish shorts being screened are
The Boy in the Bubble, dir. Kealan O'Rourke, and Foxes, dir. Lorcan Finnegan.


Tuesday, August 28, 2012

On film, journalism, and the order of things...

Some essential reading, every bit as true of the 'micro' level of governance as it is of the level of the macro geopolitical order.

http://www.guardian.co.uk/commentisfree/2012/aug/26/compliance-authority-failure

and

http://www.salon.com/2012/04/08/u_s_filmmaker_repeatedly_detained_at_border/

Friday, August 17, 2012

Whos, Whys and Wherefores




Looking at the origin of some recent traffic I discovered that someone nominated Irish Film Portal for the 2012 Blog Awards, in the 'Best Blog of a Journalist' category. When I say 'someone' you may take it from me that I didn't nominate the blog myself, nor do I know who did the nominating.

I have never tried to publicise Irish Film Portal, so whatever following it has generated over the last few years has come about organically, so to speak. I don't 'tag' or 'label' posts and I've not done the whole facebook viral thing, although it has been suggested to me. Nevertheless, the number of page views has passed the 60,000 mark and they're not all Ciarán Hinds or Gabriel Byrne stalkers fans looking for the latest news.

So what is Irish Film Portal about?

It's about the culture of Irish film culture. It asks why we - the Irish people - assign millions of Euros to film and TV drama production each year, what we expect to result from our generosity, and what the actual outcome is.

The only reason I'm doing the asking is because no one else is doing it. Instead there is a wall of PR called 'news' which is circulated and endlessly repeated until it calcifies in the archives. Hardly anyone asks any meaningful questions from an objective position, reflecting on the cultural outcomes of state policy.

Most of what is written about film in Ireland or elsewhere is concerned with profiling and reviewing the tide of films produced and released each year.  There is little space given for one of the most basic questions - why?

Why do we have funding policies for film? Why did those production companies go bankrupt? Why were those directors fired? Why was this project not funded? Why were these other productions funded? Why do we reduce the amount of money for the Film Board while the tax break can cost us any amount over €50 million each year? Why does the total public cost of the tax break not go into the films it funds? Why do Irish audiences not go to Irish films? Why are Irish film and TV production companies so dependent on public subsidy? Why do Irish producers earn very generous fees from production and hardly anything from sales? [Would the 'industry' not be more functional if producers had to earn their money at the 'back end'?] Why are industrial relations so appalling and work practices so outmoded.

Our Section 481 tax break allows high earners to save 41% of their tax liability on €50,000 of their income in any calendar year. So, they get to keep €20,500 that would otherwise have gone into the exchequer to pay for public services. TM Productions/VK Productions series The Vikings, for instance, has raised approximately €22,348,484 in Section 481 funding this year. The quid pro quo for the loss to the exchequer of approximately €9,162,878 in tax revenue is the spin off to the economy, although only €6,257,576 of the tax revenue foregone is likely to actually go into the production.

However, while The Vikings 'Irish' spend may be reckoned at €22,348,484, the official definition of 'Irish' spend includes payments to all EU-based cast and crew as well as spend on Irish employees, goods, and services. That said, there are ways around the required 'Irish' spend on goods and services. Does a service qualify as Irish spend if, for example, an Irish company contracted by the production gets some of the work done in the UK by a sub-contractor?

Here's a current example, from the film processors Deluxe Soho in London (my emphasis in bold) - Deluxe Soho are delighted to announce the launch of our newest film stock and processing package, Film First. Created exclusively for the Republic of Ireland, Film First is a new processed paid film stock delivery service run in conjunction with Fuji Motion Picture. Available as both 16mm and 35mm packages, Film First makes shooting on Film financially and logistically viable for all productions shooting in the Republic of Ireland. The price of the Film First package includes film stock, processing and return delivery with just one invoice, in Euros, issued through Fujifilm Ireland keeping the spend 100% Irish. All film originated projects are eligible for the deal and the turnaround times are swift, with an order of 2,000 feet or more being returned within 24 hours and smaller consignments of less than 2,000 feet taking just 48 hours.The price for 35mm stock is 50 Cents per foot (200 Euros per 400ft roll or 500 Euros per 1000ft roll), with 16mm film costing 40 Cents per foot (160 Euros per 400ft roll). Visit Film First for further information.

I have no doubt that these arrangements conform with the letter of the regulations, and will have been fully checked with the Revenue Commissioners by Screen Scene, Windmill Lane, Fuji and couriers Aerly Bird - the Irish parties to the scheme. And I have little doubt that they conform with moves at a European level to de-territorialise the spending requirements of national funding regimes for film.

But where is the public discussion about this movement of funds from the Irish exchequer to a business outside the jurisdiction. Are the business interests of the participant companies the same as the wider public interest? Why doesn't Deluxe set up a lab in Dublin if it wants our money? (Ok, that's rhetorical, I know film processing is fast becoming archaic). What has changed since the Revenue Commissioners came down hard on sub-contracting arrangements entered into by the Concorde Anois Studio on productions for which Merlin Films had raised millions in Section 481 funding?

Irish Film Portal poses these seemingly quixotic questions.  Occasionally there are also answers.

Wednesday, August 8, 2012

Magma Films - in liquidation

What follows is the three-page "Estimated Statement of Affairs" circulated to creditors at the Magma European Scripting House Ltd (t/a Magma Films) creditors meeting a week ago on July 31st. The accuracy of the unsigned estimated statement of affairs was contested by some creditors at the meeting.  The company has not filed accounts beyond the year ending 31 December 2008.

The listing of secured and unsecured creditors does not include loans totaling €3 million from the Irish Film Board because, I am told, they are 'non-recourse' loans that are only repayable from revenue deriving from IFB-supported production and development assets.  Therefore, any income flowing from those assets is not available in the first instance to the company's liquidator in order to discharge the company's debts to creditors.  My own impression, having attended the meeting, is that this was not made clear to creditors.

To summarise, Magma Films owes €3 million to the IFB which is repayable only from film, TV and certain intellectual property revenues.  Magma Films has a further €5 million in debts made up of preferential creditors, secured creditors, trade and other creditors, and director and shareholder loans.

The company appointed Eugene McMahon of Mazars Tierney, Galway, as liquidator. Mazars are auditors to a related company, Abbeygate Productions Limited, which is the special purpose vehicle company through which Section 481 funding was raised with Anglo Irish Bank in 2007 for an animation series, Simsala Grimm II.  Transactions between MESH Ltd and Abbeygate Productions Ltd continued into 2011.





Monday, July 23, 2012

Magma Creditors to meet in Galway

Magma European Scripting House Ltd (which traded as Magma Films) has called a meeting of creditors for July 31st at 10.30am at the Carlton Hotel, Dublin Road, Galway. The intention of the directors (sic) of the company is to put it into liquidation.

Presumably a comprehensive statement of the company's affairs will be presented, with a detailed account of all amounts owed by the company and a full listing and valuation of all company assets retained or disposed of since the company's last accounts were provided to the year end 31/12/2008.

Creditors will also be paying close attention to transactions between MESH Ltd/Magma Films and related companies in Ireland, the UK and Germany, particularly where those transactions relate to the assignment of rights or shareholdings.

It will be particularly interesting to learn of the status of the multiple charges registered against the company by Anglo Irish Bank/IBRC, Millimages SA, the Irish Film Board, and Northern Ireland Screen.

UPDATE
I'm working on an expanded story about this for this weekend - any and all leads, comment, and factual information much appreciated.

Monday, July 16, 2012

Galway Film Fleadh awards 2012

Interesting to see two 'non-funded' titles doing well - Stalker and Pilgrim Hill.

Best Irish Feature Award:
Good Vibrations
Directors: Glenn Leyburn, Lisa Barros D’Sa
Producers: Chris Martin, Andrew Eaton, David Holmes

Second place: Stalker
Director: Mark O'Connor
Producer: TJ O'Grady Peyton

Best International Feature
The Parade
Director: Srdjan Dragojevic
Producer: Biljana Prvanovic

Second Place: Baikonur
Director: Veit Helmer

Best First Irish Feature
Jointly awarded:
Citadel
Director: Ciaran Foy
Producers: Katie Holly & Brian Coffey

Earthbound
Director : Alan Brennan
Producers: Heidi Karin Madsen, Jacqueline Kerrin, Dominic Wright

Best International First Feature
Perfect Stranger
Director: Toni Bestard

Second Place:
In the Family
Director: Patrick Wang

Best Irish Feature Documentary
Natural Grace
Director: Art Ó Briain
Producers: Art Ó Briain, Aileen McDonagh

Second Place
Lón Sa Spéir
Director: Sean Ó Cualain
Producer: Eamonn Ó Cualain

Best International Feature Documentary
Four Horsemen
Director: Ross Ashcroft
Producer: Megan Ashcroft

Second Place
The Swell Season
Directors: Nick August-Perna, Chris Dapkins, Carlo Mirabella-Davis

The Galway Film Fleadh Pitching Award
Hannah Patterson - Resistance

The Bingham Ray New Talent Award
in association with Magnolia Pictures - presented by Annabelle Ray
Pilgrim Hill
Director: Gerard Barrett
Producer: Gerard Barrett

GALWAY HOOKER AWARDS
Frank Stapleton
Isabelle Huppert

30 Minute Film Festival Judges Award
Stop Motion Biscuit Cake
Director: Alan Travers

Here To Fall
Director: Kris Kelly
Producer: Evelyn McGrath

Special Mention: Learning to Fish
Director: Teemu Auersalo
Producer: Nicky Gogan

Huston School of Film & Digital Media Cinema
Human Rights and Advocacy Award
To the film that shows the importance of cinema as a means of raising awareness about human right issues
Give Up Tomorrow
Director: Michael Collins

The Donal Gilligan Award
Best Cinematography in a short film
James Mather
for The Hatch

James Horgan Award for Best Animation
in association with Telegael
Fear of Flying
Director: Conor Finnegan
Producer: Brunella Cocchigila

Special Mention
Irish Folk Furniture
Director: Tony Donoghue
Producer: Cathal Black

The Tiernan McBride Award - Best Short Drama
in association with Network Ireland Television
The Girl with the Mechanical Maiden
Director: Andrew Legge
Producer: Ciara Whelan

Special Mention: Joy
Director: Colm Quinn
Producers: Neil Wallace, Emmet Fleming

Cartoon Saloon Best First Animation Award
Head Over Heels
Director: Timothy Reckart
Producer: Fodhla Cronin O’Reilly

The Best First Short Drama
in association with Mazars
Toy Soldiers
Director: Mike Hayes
Producer: Ciara Gillan

The Best Short Documentary Award
in association with Teach Solas
The Hood and the Collar
Director: Paddy Hayes
Producer: Ciara Ní Chormaic

Special Mentions:
Off the Board
Director: Siobhan Perry
Producer: Roisin Linnie

Saving Turf
Director: Gearóid Hayes
Producer: Gearóid Hayes

Monday, July 9, 2012

Quarterly Funding Offers

The Film Board has made its second quarterly funding annoucement of the year with offers to a number of interesting projects. John Michael McDonagh's Calvary, his follow up to The Guard, is expected to shoot around Easkey in County Sligo in the coming months. A Month in the Country makes a reappearance. Lance Daly, Kirsten Sheridan and David Gleeson all have new projects in development.

Many people will not realise that the French-based Irish producer/director/writer Mary McGuckian (a production loan offer for The Price of Desire) has made nine feature films since the mid 1990s - more, I suspect, than any of our better known directors in the same period. The project below will be her tenth and yet, I am sure, many people who came into the business here in the last decade may not have heard of her.

I note also that Irish Times reporter Simon Carswell's book about Anglo Irish Bank 'Anglo Republic' is to be adapted for the screen. Little chance I suppose that the bank's heavy involvement in the Irish film business will figure?

The bank was a partner with the IFB in two, three-year long, Company Development Initiative schemes which were supposed to put production companies on a sustainable footing as commercial enterprises. The success of the schemes is questionable. Anglo also got into providing business banking services to a number of campanies in the business and is still owed a substantial amount of money by Irish production companies, some of which have either gone to the wall or are teetering on the brink of insolvency.

I believe nearly every senior executive at Anglo availed of Section 481 tax relief as the bank ran a very busy subsidiary nominee holding company, Filipa Ltd (through MOP Solicitors), to process Section 481 SPV company business for many years during which the now CEO of the Film Board was a Filipa director. In late 2009 or early 2010 Anglo Irish Bank (now IBRC) decided to get out of the Section 481 business, perhaps because it had been taken into public ownership. Filipa Ltd has since been put into voluntary liquidation as a result of that decision.



IFB Qtrly Funding announcement July 03 2012
Project - Director- Writer - Production Company - Funding Award
Development
First Draft Loans
The Internal World David O'Reilly David O'Reilly & Vernon Chatman €16,000
Anglo Republic Eugene O'Brien & Neal Rowland €16,000
Tough Love Matthew Roche €12,000
Vere Goold Rachel Lysaght & Glenn Montgomery €16,000
The Boys Virginia Gilbert €12,000
Bloom Barbara Deignan €12,000

Fiction Development Loans
Traders Peter Murphy & Rachael Moriarty Peter Murphy & Rachael Moriarty Coco Television €13,000
Ten Dates For Mad Mary Darren Thornton Darren Thornton & Colin Thornton Element Pictures €10,000
Blue City Rebecca Daly Rebecca Daly & Glenn Montgomery Fastnet Films €25,000
Nineteen Days And Counting Kirsten Sheridan Anne Marie McCormack Black Sheep Productions 17,500
A Month In The Country Jonathan Kent John Banville Treasure Entertainment €20,000
The Day I Tried To Live Lance Daly Lance Daly Fastnet Films €40,000
The Zone David Gleeson David Gleeson Wide Eye Films €22,500
Honoured Jasmina Kallay Ripple World Pictures €15,000

Production
Fiction Feature Films
Ten Dates With Mad Mary Darren Thornton Darren Thornton & Colin Thornton Element Pictures Provisional Offer of Commitment
Calvary John Michael McDonagh John Michael McDonagh Octagon Films €975,000
Quirke Andrew Davies & Conor McPherson Element Pictures €450,000
The Cherry Tree David Keating Brendan McCarthy Fantastic Films Provisional Offer of Commitment
Creeping Zero Billy O'Brien Jeff Noon Grand Pictures €300,000
The Price of Desire Mary McGuckian Mary McGuckian EG Film Productions €300,000

Fiction Creative Co-Production
Brand New You Simon Pummell Simon Pummell SP Films €150,000
Food Guide to Love Teresa De Pelegri & Dominic Harari Teresa De Pelegri, Dominic Harari & Eugene O'Brien Parallel Film Productions €275,000
A Thousand Times Goodnight Erik Poppe Erik Poppe Newgrange Pictures €300,000

Animation
Wildernuts Andrew Kavanagh Andrew Kavanagh Kavaleer Productions €250,000

Documentary
Three Men Go To War Kim Bartley Crossing The Line Films €85,000
Waking Morag Tinto Soho Moon Pictures €90,000
Sparlo Keith O'Shea Crow Hill Films €25,000
Hill Street JJ Rolffe Warrior Films €15,000
Circus On The Road Dieter Auner Ikandi Productions Provisional Offer of Commitment
Tied Up In Silk Pat Murphy Soho Moon Pictures Provisional Offer of Commitment
Way Out Gerard Mannix Flynn Farcry Productions Provisional Offer of Commitment
Absolute Derby Laura McGann True Films €90,000
In the Name Of Dignity Loic Jourdain South Wind Blows €40,000

Completion Fund
Me & Me Dad Katrine Boorman Merlin Films €25,000
The Good Man Phil Harrison Phil Harrison Treasure Entertainment €26,000
Pilgrim Hill Gerard Barrett Gerard Barrett Nine Entertainment €15,000

First Stage Documentary
Memphis Project Ian Palmer Seafield Productions €10,000
No Limbs, No Limits Steven O'Riordan 2000AD Productions €8,000
Pussycat Wars John Murray Crossing The Line Films €10,000
The Last Taboo Tom Roberts Soho Moon Pictures €10,000
Rex Ingram Andrew Legge Underground Films €15,000

Distribution
Print Provision
Dreaming The Quiet Man Sé Merry Doyle Loopline Films €3,500

Marketing Support
Dreaming The Quiet Man Sé Merry Doyle Element Distribution €17,235
Silence Pat Collins Pat Collins, Sharon Woolley & Eoghan Mac Giolla Bhride Element Distribution €18,225

Direct Distribution
Barbaric Genius Paul Duane Screenworks €7,235
My Brothers Paul Fraser Will Collins Treasure Entertainment €12,500

Saturday, July 7, 2012

Fleadh Time

The wheel of the calendar has taken another turn and the Galway Film Fleadh is upon us once more. The programme for the 24th edition can be found online here.

There is a huge selection of Irish material, including a timely retrospective of the work of Frank Stapleton. I've done an 'X marks the spot' exercise on the day-by-day schedule (below) and the Irish content seems to form a higher than ever proportion of the programme this year. So much so that audiences wanting to see as many Irish films as possible are faced with some hard choices.

As the Fleadh draws closer to its 25th anniversary it's timely to reflect on the journey - best represented perhaps by the growing distance between the Rowing Club and the Radisson Hotel, or the distance between creativity and the claque - and to wonder if it should be applauded for finding its niche or chastised for losing its way?


Wednesday, June 20, 2012

Ardmore gets new MD?

Rumours of the appointment of a new Managing Director at Ardmore Studios reached me 24hrs ago. I have looked for official confirmation that this is the case but have yet to receive it.

When official confirmation is received we might learn whether the appointment affirms a new commitment to the business on the part of the owners or whether it is in effect a pro tem arrangement put in place to achieve an orderly wind-up of operations.

update 1... confirmation so far only of the exact share in the studios owned by the State, from Enterprise Ireland - "The State holds a 31.67% interest in Ardmore Studios Ltd which was previously held by the National Development Corporation and subsequently assigned to Enterprise Ireland."

Tuesday, June 12, 2012

Credits not contractual

In a recent post I wondered whether the Film Board's new Project Managers would be public service employees or whether applicants would in effect be self-employed individuals contracting for the work. The advertisement for the first position appeared on Friday and it seems that the two-year contract is being offered on the basis of €60,000 per year excluding VAT.

Almost inevitably that will mean that a company will be providing the service (through a named individual) to the Irish Film Board. Doubtless there are employer savings and other employment law factors at play here which may also be 'tax beneficial' for the persons thus contracted.

That said, one has to wonder what kind of checks and balances will be maintained in areas such as potential conflicts of interest when so much of the preliminary work of the Project Managers will be conducted verbally before formal applications are sent in to the IFB.

A contact has suggested that the current CEO may be similarly contracted by the IFB through a management consultancy company set up a little more than a year ago. And the latest news that the IFB Head of Legal Affairs is to join Element Films may explain why the IFB sought tenders for the provision of legal services a few months back.

To repeat, this method of hiring expertise may be an astute way of keeping down employer costs and obligations. If it also means, however, that five of the IFB's most senior roles are not occupied by public servants or people with employees' rights and entitlements it may make it easier and more cost-effective to abolish the agency should that argument be made again.

Lastly, the address given for legal services tenders and for the Project Manager role is the IFB's Dublin address rather than the IFB's Galway HQ. Make of that what you will.

Saturday, June 2, 2012

Sunday Times article...

An article I've written will appear in the Sunday Times Irish edition tomorrow. It follows up on this earlier post here. You will have to buy the hard copy edition if you don't have a subscription to get you behind the pay-wall.

There was a lot more detail that space wouldn't allow so I may do a supplementary post here on some of the issues. If you see the article and want to comment on it you can use the 'reactions' button below.

Tuesday, May 29, 2012

Consultation - Section 481

Regular readers will know that I have been harping on about the workings of Section 481 for some time, most recently here.

Yesterday the Department of Finance announced that a consultation on Section 481 will take place between now and July 31st.  A good briefing on the consultation and the workings of Section 481 is available on the Department website here.

The one issue that is not mentioned is that a new European dispensation for the industry is to come into effect before our present Section 481 arrangements come up for renewal in 2015. That said, the Department may be taking the view that any change to the regulatory framework to be introduced at the European, supra-national level may be minimal in its effects.

The consultation questions are summarised as follows:

1. Is the exchequer’s supports to the film and TV sector in Ireland through Section 481 relief an efficient use of scarce resources and if so why?
2. Is the current Scheme maximising the potential economic benefits to Ireland in terms of stimulating activity in the film and TV sector? If not, why not?
3. What are the economic arguments for restricting or terminating the scheme?
4. What possible changes to the existing scheme, if any, should be considered and why?
5. Do interested parties agree that there is merit in extending Section 481 Film Relief Tax incentive scheme beyond 2015? If yes, why? If no, why not?
6. How does the scheme interact with other enterprise tax incentives such as the BES/EII?

Get your spake in, as they used to say before we got posh.


update - James Hickey, IFB CEO, speaking about the consultation on 'Morning Ireland', RTE Radio 1, this morning - at this link.

Friday, May 18, 2012

All the world's a stage...

A correspondent has passed on a link to a news item in 'The Stage' yesterday headlined Actors protest over BBC dramas made in Ireland - BBC Drama has been accused of neglecting the corporation’s target to spend 17% of its network TV budget in the nations, after it emerged that three new shows are being made in the Republic of Ireland.

The first thing to be said is that no actors are quoted in the story. The charge is led by Equity assistant general secretary Stephen Spence who is particularly focused on the fact that none of the productions cited - Loving Miss Hatto, Vexed and Ripper Street - are being filmed in Northern Ireland.

The second thing is that many British actors are employed on these shows.

The third thing is that as they are citizens of a member state of the EU, British personnel, including actors, employed on these shows qualify as 'Irish' spend under the Section 481 regulations. The money to pay them may not be coming from BBC or other British sources. I'm not sure that the same applies to Irish personnel working on film projects in the UK (including Northern Ireland) that utilise British incentives.

We do need more transparency and research data around the employment spend on projects using the tax break and Film Board funding, particularly employment numbers and levels of pay broken down by Irish resident and non-resident personnel.

Wednesday, May 16, 2012

Meanwhile, somewhere in France...

Thus the whole circle of travellers may be reduced to the following Heads. Idle Travellers, Inquisitive Travellers, Lying Travellers, Proud Travellers, Vain Travellers, Splenetic Travellers. Then follow the Travellers of Necessity. The delinquent and felonious Traveller, The unfortunate and innocent Traveller, The simple Traveller, And last of all (if you please) The Sentimental Traveller (meaning thereby myself) who have travell'd, and of which I am now sitting down to give an account—as much out of Necessity, and the besoin de Voyager, as any one in the class. Laurence Sterne, 'A Sentimental Journey Through France & Italy', 1768.

Sterne, born in Clonmel in 1713, was perhaps the first 'modern' writer and said nearly everything that may be said about travel as it is experienced by the traveller, especially on journeys in continental Europe. I imagine the perennially peripatetic folks down in Cannes might agree.

Some 150 Irish delegates are making the trip this year, working for 80+ businesses, agencies, festivals, organisations and representative bodies.

Minister Deenihan will also be putting in an appearance to 'ink' a new co-production agreement with South Africa. [update - rescheduled as follows]



Initial news emerging from the PR mill includes talk that Pierce Brosnan's Irish DreamTime is setting up the first project, November Man, in what is hoped will become a new franchise starring the actor based on a series of spy novels. And apparently Scarlett Johanson is out and Kiera Knightley is in the next John Carney project, Can a Song Save Your Life?

There'll be footage of Byzantium being flogged, along with a non-Irish film starring Ronan Keating, John Michael McDonagh's Calvary project, Terry George's post-Oscar feature Whole Lotta Sole, North-South co-productions developed in Northern Ireland - Jump and Good Vibrations, Katrine Boorman's doc about her father John - Me and Me Dad, Chris O'Dowd's next big outing The Sapphires.

Fionnula Flanagan turns up with a chorus of (mostly) country music stars in a Christmas movie called When Angels Sing. Cillian Murphy turns up in a new British debut feature and I'm sure projects with Gabriel Byrne, Brendan Gleeson, Colin Farrell and Michael Fassbender are all being hawked somewhere along the Croisette.

The Film Board will be formally setting out its stall with the following although I'm sure plenty of other recent titles will turn up in sales agent catalogues. I wonder if there'll be even more pricing than usual denominated in US dollars and Sterling, rather than the Euro?




The people on the bus...

It's a mark, surely, of how small the Irish audiovisual sector is that the two people selected to participate in the 'Inside Pictures' training programme advertised by the Irish Film Board on March 2 are a serving and a former member of staff at the agency.

Both Alan Maher and Rebecca O'Flanagan undoubtedly meet the criteria of being executives and producers who display determination to succeed and.. have at least five years' experience in film or an associated creative industry such as television. Maher is due to leave the Film Board in July while O'Flanagan was Ireland's EFP 'Producer on the Move' in 2011, having developed and produced the feature 'My Brothers'.

While FÁS Screen Training Ireland and the Irish Film Board were collaborating with Inside Pictures to offer support for up to two eligible and experienced Irish applicants the nature of the support was not detailed.

The registration fee for a Full Participant place is €6,000. The fee covers programme participation, documentation, return economy travel  allowance to and accommodation in Los Angeles, certain meals and transport from the module base to and from venues. For non- UK participants it also covers return economy travel allowance to and accommodation allowance in London.

The 'Inside Pictures' programme has been running for nine years and has offered 16 places on the current programme from more than 100 applications which had been selected by a panel. It is not known how many Irish applications were received, or whether the two places to be offered to Irish participants were guaranteed. The programme consists of three full-time, one-week sessions taking place in London and LA over the latter half of the year.

The extensive list of industry practitioner speakers lined up this year include Ed Guiney of Element Films and Teresa McGrane, Deputy CEO of the IFB.

The Programme is funded by the MEDIA Programme of the European Union and by the UK film industry through the Skillset Film Fund which is supported by the UK National Lottery through the UK Film Council (sic) and the film industry through the Skills Investment Fund.

[Irish Participants last year were - John McDonnell, (Fantastic Films)  and Audrey Sheils, (Element Pictures). Irish 'Associated Observers' who attended the 2011 London sessions were Katie Holly (Blinder Films), Stephen McDonogh (BBC Worldwide), and Martha O’Neill (Wildfire Film & Television Productions).]

Monday, May 14, 2012

The wheels on the bus...

The announcement a couple of days ago by the Film Board of the departure in July of Production Executive Alan Maher suggested that there might be other changes on the way. It is not a time in the public service to be losing staff, given the embargo on recruitment, unless their replacement has prior approval, perhaps as part of a 're-structuring' process.

So it was not too surprising to see the following announcement on the IFB website today:
Bord Scannán na hÉireann/the Irish Film Board (BSÉ/IFB) today announced changes to the organisation of the creative decision making structures in the Agency.
The current roles of two Production Executives and a Development Executive are to cease once the current contracts expire on a phased basis from now to the beginning of next year. In their place, three Project Managers will be retained to manage projects across all genres from the initial concept stage right through to the project launch onto the market. The new structure will provide multiple access points for applicants who will have the option to approach any one of the three Project Managers with a development or production application for their project.
One of the Project Managers will be based in Galway and two will be based in Dublin.
The new arrangements will also ensure an enhanced rigour to the development and production of projects supported by BSÉ/IFB and a greater focus from the start on consistent support for the creative talent in each project and a renewed focus on the audience throughout the whole process.
James Hickey, Chief Executive of Bord Scannán na hÉireann/the Irish Film Board said "I believe that the new structure will provide applicants with access to a broadly experienced creative team. A member of the team will assist applicants in taking their project from the first stage of development to full scale production and distribution of the film with a focus on delivering high quality projects with strong Irish creative talent behind them and a focus on audiences both local and international".
The changes will come into effect on a phased basis but will be fully operational by the beginning of 2013.

This means that the positions now occupied by Alan Maher, Emma Scott and Andrew Meehan will cease to exist by the end of this year. It will be interesting to see if the Board will employ people or seek tenders in order to 'retain' the three new Project Managers.

The change mirrors that which took place some years ago when a number of positions were dispensed with and a new, supposedly 'flatter' structure was put in place. One sensed at the time that part of the (unspoken) reasoning was that people in such positions should not hold them sufficiently long, or have their contracts renewed so often, that they could claim permanancy under employment legislation.

Of course there is nothing to stop the Board instituting the process changes mentioned in today's release while using their existing staff in their existing positions.

One also senses, particularly in the area of 'Creative' Co-Production, that these staff may have been under-utilised when the previous CEO was in charge. It is difficult to see how, for instance, the Development Executive's input could have been required on the many productions which were originated in other countries. Perhaps I'm wrong.

Out of the past...

... or plus ca change...

Here's one from the archives... while not the same as some of the ongoing woes of workers in the sector it is an incident that might come to the Tánaiste's mind should he hear about current labour relations issues in the industry ....

Dáil Éireann - Volume 416 - 04 March, 1992 Adjournment Debate. - Closure of Dún Laoghaire Firm.

Mr. Gilmore: I thank you, Sir, for giving me this opportunity of raising this matter on the Adjournment this evening. The matter concerns 31 employees of a film animation studio in Dún Laoghaire who have not been paid wages since 22 October last and whose employment has now ceased.
Originally the film studio was known as Emerald City Animation Studio and closed down in March 1991. It was reopened in August 1991 by a Dorset-based company called Fairford Films, the directors of which are a Mr. Radford and a Mr. Andrew Holford. Thirty-one employees were recruited, most of them former employees of Emerald City Studios. At first the company appeared to be doing well but, towards the end of October last, their employees were informed there would be a delay in the payment of that week's wages, the directors stating they were experiencing difficulty in transferring funds from Switzerland and the United States. The staff expected this to be a short-lived problem. However, it dragged on for another week and yet another. The staff kept inquiring and the directors kept assuring them that the money was on the way. For example on 6 November last Mr. Radford wrote to the staff stating that he expected the problem to be resolved with the minimum delay. It dragged on to Christmas, staff continuing to work on the promise that they would get their wages. The studio did not re-open after Christmas. To date, the 31 employees have not been paid for their work between 22 October and Christmas.
I became aware of the problem in early January when I wrote to the Ministers for Industry and Commerce and Labour. I also wrote to the company. On 21 January last Mr. Holford replied to me that “solicitors acting for our funders confirm money will be available for us to pay staff before the end of this month”.
That was nearly six weeks ago and the staff have still not been paid. A similar promise was given recently to one of the local newspapers. Yet no money has been produced. It appears to me that the employees of this studio have been grossly exploited, the company having ripped off their labour for two months. The company have spun them a fallacious yarn about money being held up in Switzerland, the Isle of Man, Norway and the United States. The company have now disappeared.
I am now requesting the Minister for Industry and Commerce to take action under the Companies Act, to send in an Examiner, because I believe this studio is still a viable business concern. I appeal to him to take whatever action he can to ensure that the employees are paid the wages due to them, for which they worked between October and Christmas. This company, in quite a disgraceful, exploitative manner, have disappeared without paying the staff the wages for which they had worked for two months.

Following an LRC recommendation in the workers' favour (that was not honoured by the company) Mr Gilmore had represented the workers at a Labour Court hearing which confirmed the LRC recommendation (19th February, 1993). Somehow I doubt that the workers ever saw a penny of what they were owed.



Friday, May 11, 2012

Arts Council - catch up

I think the Arts Council's important funding for film organisations and film makers is under-reported. The above is a table I've put together on this year's funding offers to film organisations and a look at how the total funding available has decreased over the last five years. Good to see that a new organisation, Kerry Film Festival, has been funded this year.

Funding for film makers so far this year is as follows:

Bursary Awards:
Donal Foreman,       €4,000
Christina Gangos,    €8,000
Clare Langan,          €7,000
Andrew Legge,       €5,000
Trish McAdam,       €5,000

Project Awards:

Christina Gangos,  €21,000
- To produce a series of intimate filmic documents, portraying people immersed in Limerick’s gang-wars, which will be presented in several different forms including gallery exhibitions and in cinemas.

Orla Mc Hardy,  €42,000
- To explore the possibilities of relationships between different media, techniques and methods of display in order to make and present experimental work in film. To explore ideas of place and spoken language informed by Donegal and its people.

Dara McCluskey,   €5,000
- To make a short film with an approach combining the creative processes of film, dance and visual arts.
 
 
Other awards -
 
Bollywood Ireland Ltd 3rd Indian Film Festival of Ireland €2,500

Dingle Film Festival  €8,500

UCD Imagine Science Film Festival   €6,000

Access Cinema - €8,950
- Films from the Southern Mediterranean: A curated programme of films that will tour to 3 of access CINEMA'S 35mm/digital venues.

Darklight Film Festival  €7,500
- The Darklight Circus Tour: A nationwide tour bringing innovative film and video work to celebrate and promote local grassroots and emerging talent.

Irish Film Institute €10,295
- Mayo Ciné-Concert Tour: Re-animating a series of silent films made in Mayo between 1908 and 1960 which will be restored and presented with a new musical and sound effects score devised by harpist Cormac de Barra and musicians Colm and Rossa Ó Snodaigh from Kíla.

Wednesday, May 9, 2012

The new Cinema Communication (2)

As previously posted here, the European Audiovisual Observatory is focusing its workshop in Cannes this year on the rules for public film funding in Europe. One of the key presentations at this workshop will centre on the Observatory’s latest 'IRIS plus' report, as follows -


The lead article by Observatory Legal Analyst, Francisco Cabrera, looks towards the passing of a new Cinema Communication, the European Commission’s key set of rules for film funding in Europe currently under review and the subject of wide-ranging public consultation. The current Cinema Communication determines the criteria that the Commission uses to assess the compatibility of state aid schemes for film and audiovisual production in Europe with current EU law. Clearly a central document for the attribution of public aid to film products, therefore.


Cabrera opens with a useful overview of EU competence on cultural matters. It is the Treaty of the Functioning of the European Union (TFEU) which stipulates that state aid in general may not distort competition. However, aid to promote culture and heritage conservation may be compatible with the common market where such aid does not affect trading conditions and competition in the Union to an extent that is contrary to the common interest.


The article then looks at the text of the current Cinema Communication dating from 2001. This document and the validity of the rules it contains were extended three times in 2004, 2007and 2009. Globally, it provided to be satisfactory and functional for industry and decision-makers alike. However, certain trends in the audiovisual industries such as “support for aspects other than film and TV production ([…] film distribution and digital projection), more regional film support schemes, as well as competition among some member states to use state aid to attract inward investment from large-scale, mainly US, film production companies” incited the Commission to apply the current criteria until the end of 2012 at the latest and at the same time to launch a public consultation on the revision of the Communication.


This public consultation was based on an Issues Paper which contained what the Commission felt to be the main areas of consultation and served as a basis of all answers to be submitted by 30 September 2011. The issues paper addressed questions such as the “subsidy race” (the attracting of large-scale inward investment in a particular country through funding or indeed tax shelter incentives), aid for activities other than production as well as for the digitisation of cinemas, the scope of works to be supported (opening up the whole ‘cross-media’ debate), territorial conditions for spending aid awarded and of course the consequences for state aid of the digital revolution.


Cabrera then goes on to provide an exclusive overview of some of the responses to the Issues Paper from the representatives of the various branches of the film industry. Not surprisingly, most interested parties agreed that the rules on aid intensity (proportion of aid to the total budget) should not be lowered. Indeed some professional organisations were in favour of increasing the proportion of aid allowed. When questioned on the “subsidy race” issue, most professional organisations adopted a pan-European stance, pointing out the overall benefits for the European industry as a whole of welcoming large productions from outside of Europe. Regarding the Commission’s proposals to reduce territorial spending obligations (the current Communication allows a member state to attribute public support on the requirement that up to 80% of the film production budget be spent in its territory) most professional organisations gave this proposal a lukewarm reception, arguing that, for example, “territorial conditions do indeed ensure the continued presence of human skills and technical expertise required for cultural creation”.


Cabrera concludes his leading article with a round-up of the propositions included in the current draft Communication published in March of this year. We are currently in the heat of the three-month consultation period to end in June 2012. The author concludes that “it is to be expected that the European Commission will meet with resistance from some member states and professional organisations on at least the most controversial issues such as territorialisation and the “subsidy race”.

Wednesday, May 2, 2012

the best of irish... at a shop near you!



Every now and then I do a post about the Irish DVD titles I stumble upon in shops near us here at the Irish Film Portal. You head up towards the windmill and take a turn for the town where, sometimes, you'll happen across a bit of an Irish DVD jumble sale.

I found this set of shelves recently with a scatter of Christmas market left-overs and a few additional titles. Sometimes I do a bit of re-arranging, just so as you can see all the titles that are available, but as I didn't do that this time I only spotted a copy of 32A lurking behind Mrs Brown's Bloomers after I had taken the picture.

These shelves were probably the least auspiciously placed in the section so the merchandisers and distributors (mostly Element and Beaumex) need to shmooze the shopkeepers a little to ensure the product can be seen by passing shoppers and not just by inquisitive Irish film nerds such as myself.

I wonder - as ever - if there's any return to the producers or the Film Board (where it's involved) from sales of these DVDs?

Oldest title - Da? Newest title - Parked?

Monday, April 30, 2012

The...er... 'Republic' of telly?

Back on February 16 I wrote a post in response to press releases from the Dept of Arts, Heritage & the Gaeltacht and the Irish Film Board concerning three UK TV series that were shooting here.

The three projects - Vexed, Ripper Street and Loving Miss Hatto were all reportedly being made "with financing from Bord Scannán na hÉireann/the Irish Film Board" but the amounts of the production loans were not disclosed in the releases. Nor was there any reference to the projects' use of the Section 481 tax break.

The Film Board published in early March that Loving Miss Hatto had been awarded a production loan of €90,000 in a round dated 31 December 2011. There are no funding decisions in the online IFB database for Vexed (series 2) or Ripper Street although I believe the production loans may be €150,000 and €475,000 respectively.

There are reportedly some outstanding issues concerning crew payment on Loving Miss Hatto. It is alleged that a 12.5% pay cut was imposed on crew who are now seeking a Labour Court hearing on the matter.

It's curious that while the arrival of these projects was greeted with such fanfare the greater source of state funding was not mentioned at all.

In the case of Ripper Street the amount raised under Section 481 was €10,704,895 (approximating eligible 'Irish' spend) from a total budget in the region of €13,809,278. The cost to the exchequer in tax foregone will be approximately 41% of €10,704,895. The net benefit to the production will be approximately 28% of €10,704,895.

So, if my maths are correct, the tax break will cost the state almost ten times the IFB investment in Ripper Street... but it's not mentioned in the press releases?

Thursday, April 26, 2012

Audiences - the 'academic' aspect of Irish film?

There is an argument that once an Irish-made film is in the can it's done its job. It doesn't matter what happens afterwards. It has provided employment, given tax write-offs, and utilised agency support. The point being that it has thereby fulfilled the politically accepted purpose for our film policy.

These thoughts are prompted by the release last weekend of Lockout (formerly Section 8), a €20m film co-produced by Luc Besson's Europacorp with Windmill Lane Pictures and directed by James Mather and Stephen St Leger.

Lockout took €52,192 over the weekend from 37 cinemas and placed eighth in the weekend top ten.

€5.8m was raised in Section 481 funding for the project, at a cost (41%) of €2.378m to the Exchequer. The net benefit (28%) to the production would have been about €1,624,000 towards 'Irish' spend which I believe in the case of this project was mostly on VFX at Windmill Lane.

Other releases so far this year include -
This Must Be The Place - €47,000 box office; €500,000 IFB production loan; €35,000 IFB marketing support; €?m Section 481.
Stella Days - €80,000 box office; €720,000 IFB production and regional support; €30,000 marketing support; €?m Section 481.
Other Side of Sleep - €3,200 box office; €600,000 IFB production loan; €15,000 IFB direct distribution support; €? Section 481.
Haywire (formerly Knockout) - €407,000 box office; €600,000 IFB production loan; €20,000 marketing support; €?m Section 481.

Irish releases in the coming weeks include Albert Nobbs and A Kiss for Jed Wood (formerly A Kiss for Justin).

Tuesday, April 24, 2012

A new cinema Communication

There are straws in the wind about possible changes to the framework for cinema support within the European Union. If past experience is anything to go by I imagine that any proposed changes will favour producers, sellers and businesses in the film industry rather than the makers of films and their audiences.

The European Audiovisual Observatory (part of the Council of Europe) is hosting discussion on the proposed changes during the Cannes festival in a few weeks time.

LEVELLING THE PLAYING FIELD?
Towards New European Rules for Film Funding
Saturday 19th May, 11:00 - 13:00,
Salon des Ambassadeurs, Palais des festivals

This year the Observatory is looking at the new rules for film funding in Europe currently under discussion. As Brussels overhauls the current rules, a major public consultation is underway on these changes. We’ve invited the European Commission, film funders and key industry players to ask if these new rules can:
-Reduce the obligations to spend funding in any one country
-Control the subsidy race between countries
-Improve audiences for European films

In addition, the Observatory will be presenting its latest intelligence:
-Key developments on the European film market in 2011
-Latest facts and figures on public funding in Europe
-Introduction to the current debate on the new funding rules: the European Commission’s proposal for a new Cinema Communication



Thursday, April 19, 2012

Partitionism....




Consider the following two 'news' releases -

17th Apr 2012 - Irish Film Industry @ Tribeca 2012
A delegation of Irish producers, directors, acting talent and crew will be in New York City this week to attend Robert De Niro's renowned Tribeca Film Festival.
The festival, which kicks off tomorrow April 18th, features a strong Irish line-up including the world premiere of the new Irish feature BABYGIRL written and directed by Macdara Vallely, the US premiere of Ian Fitzgibbon's DEATH OF A SUPERHERO and the North American premieres of Safinez Bousbia's documentary EL GUSTO and Lorcan Finnegan's short film FOXES.
Other Irish interests in the shorts section include the short film SCREENSHOT written and directed by Cathal Burke and ALL THAT WAY FOR LOVE written by Irish writer Thomas Martin.
Along with the screenings, the Irish delegation which includes directors Matthew Vallely and Ian Fitzgibbon along with producers, cast and crew will be using the opportunity to network and make valuable contacts with the international industry.
Acclaimed Irish director Jim Sheridan (In America, My Left Foot) will attend the festival as a juror and will help judge the festival's World Narrative Competition. He will also take part in the Tribeca Talks Directors Series on April 28th when he will be interviewed by his daughter, the Oscar-nominated Naomi Sheridan.
The Tribeca Film Festival will take place in New York City from April 18th - 29th.


And...

Terry George's WHOLE LOTTA SOLE gets world premiere at Tribeca - Mar 08
Hot off the back of his Oscar® win for The Shore it has been announced that Terry George's Whole Lotta Sole will have its world premiere at Robert De Niro's Tribeca Film Festival in April. Whole Lotta Sole, which filmed on location in Northern Ireland last year, will feature in the Spotlight section of the Festival.
In a rowdy little corner of Belfast, hapless young father Jimbo tries to protect his family from the gangster he’s in debt to by robbing the local fish market… which turns out to be a front for the same gangster! On the run, Jimbo holes up in a local antique shop run by a long-lost man from his past. A colorful cast of character actors and a strong turn from Brendan Fraser light up this madcap Irish crime comedy.
Whole Lotta Sole received funding from the Northern Ireland Screen Fund supported by Invest NI and part funded by the European Regional Development Fund. It was written by Thomas Gallagher and Terry George and directed by Terry George. It also stars local actor Martin McCann (Killing Bono, The Pacific) in the role of Jimbo, he is joined by Colm Meaney (Intermission, Kings), Yaya Dacosta (The Kids are Alright, Ugly Betty) and David O'Hara (Braveheart, The Departed).
Whole Lotta Sole is produced by Belfast-based Generator Entertainment.


Is it just me or does it appear that the first release, from the Irish Film Board, considers that Terry George is not Irish, or that his film was not made in Ireland, or that it was not produced by an Irish company... because it was made in Northern Ireland?

And does this relate in some way to the situation that has evolved in recent years whereby producers north of the border now have to pay a producer in the Republic, handsomely, in order to access IFB production funding?

Wednesday, April 18, 2012

A hypothetical situation...

Just suppose... humour me, please... just suppose that you have a production company that is, shall we say 'downsizing', or in straitened circumstances. And you are about a year behind in your rent to the landlord and owe them say, €60,000, and you have to vacate the premises.

However, one of your other companies has a production gig in hand, the Section 481 funding is lined up, some broadcasters are buying in, and some other funding is in place. So, you need a production office for about ten weeks.

You get on to the landlord who has been sending you solicitor's letters threatening court action and you tell them you can't pay them all you owe them but if they rent you some of the vacated space for this production you'll be able to advance them an 'enhanced' rent from the production funding, up front, in order to purge at least some of the debt you owe them.

It's a sort of something or nothing offer which the landlord accepts. The landlord doesn't care where the money comes from, or that it might cause accounting issues for the production.

And of course it's money that won't be on the screen in the finished production so it will look a bit cheap. And if it seems that the production has paid over the odds for its office space then, well, that'll just look like carelessness, or a lack of thrift. And the Revenue won't have any awkward questions to ask... or will they, and not only because your faltering business is also a bit behind on its tax returns?

It's the 'robbing Peter to pay Paul' syndrome and, I'm told, while the hypothetical situation above is somewhat extreme it's not an altogether unusual way of dealing with overhead in the business - costs to the production that aren't on the screen.

As the man said, Follow the money...

Friday, April 13, 2012

A good cause - spread the word!!

An email from John O'Regan at Gandon Editions in Co. Cork about an important book project... email him at the address below and he will send you a form with payment/donation details.

You recently carried a piece on the untimely death of Patrick Jolley. Perhaps you could spread the word about one of those rarest things - a book on an Irish filmmaker !

As you may know, we were working with Paddy on a major book and dvd of his work - production of which was largely complete before he left for India. The detailed feedback on the book proofs continued from India, and Paddy had virtually signed off on it before his tragic death in mid-January. So this book and dvd are exactly as Paddy envisaged and planned, down to the last detail.

The hardback book by Nicolas de Oliveira and Nicola Oxley covers Paddy's feature films, shorts and photographic series ... and is copiously illustrated with over 300 illustrations, from wonderful full-page stills and photographs, to fascinating arrays of stills from all of the films. The accompanying dvd features all of the films up to and including "The Door Ajar" (2011).

Paddy's partner Lu and his family, together with Gandon Editions and the authors, all fervently want to see this book published as a testament to his unique talent as an artist. We would like to have the book and dvd out in time for the planned memorial service at the Irish Museum of Modern Art in late May.

We are appealing to Paddy's friends and colleagues to support this unique book in his memory. We need to make up a shortfall of €10,000 in funding towards the book. While all contributions are welcome, we would particularly appreciate some larger contributions in order to ensure that we reach our target. Donations can be made by contacting Gandon Editions (see below). All who contribute will be acknowledged in the book, and receive complimentary copies upon publication. Contributions should be made ideally by the 20th April, in order to ensure inclusion in the acknowledgements (although we will endeavour to include all received before the end of April).

Please circulate this letter as soon as possible - as the book will be launched on 25th May - to friends and colleagues of yours and Paddy's who might like to contribute.

Kind Regards


John O'Regan
Editor/Designer, Gandon Editions
Oysterhaven, Kinsale, Co Cork, Ireland
e-mail: gandon@eircom.net / tel: +353 (0)21-4770830

Thursday, April 12, 2012

Catch-up post...

You may have seen mention elsewhere of the new Northern Ireland Screen Board which was appointed some time ago. Following open competition, Michael Catto, Adeline Dinsmore, Jennifer Johnston, Michael Kuhn, Fiona MacMillan, Aódán Mac Póilin, Laurence McKeown and Ian Parsley were appointed.

Backgrounds on each of the appointees can be accessed here. It's interesting that this details any political involvement of each member over the last five-year period. Would that state boards in the Republic were obliged to provide the same information.

By the way, did I read somewhere that Fianna Fáil's policy is to re-name IFB as Screen Ireland, along the following lines? Establish a new development agency for the audiovisual industry, Screen Ireland, amalgamating the functions of the Irish Film Board, the Industrial Development Authority and Enterprise Ireland in relation to film and multiplatform audiovisual content production in Ireland.

---------

While I'm on Northern Ireland Screen it's worth reprinting CEO Richard Williams's statement in response to the proposed extention of the UK tax credit to TV production.
We warmly welcome the announcement from the Chancellor that he intends to introduce tax incentives for high-end television production, animation and video games. This is a bold move that will have a considerable positive impact on the economy when introduced in April 2013. Northern Ireland is extremely well placed to benefit from these new incentives and Northern Ireland Screen will double its efforts in its promotion of the screen industry here.
As part of the TV Coalition, which worked closely with government and representatives from the film and television industry in both the UK and USA, Northern Ireland Screen sees the new incentive as critical for the continuing development of the screen industry in Northern Ireland.
Sitting alongside the existing feature film production tax break, the announcement could help Northern Ireland Screen secure more high-budget television drama, bringing additional economic dividend and job creation.
Despite having had no previous TV tax break, we have managed to secure a pilot and two series of Europe’s largest television drama
– Game of Thrones. This in itself has been no mean feat. But this very welcome news, which is evidence of tremendous support for the creative industries, adds even more value to Northern Ireland’s proposition as a world-class production location.
[The TV Coalition which has been campaigning for a high budget UK TV tax incentive includes production companies Left Bank, Mammoth, Kudos, Carnival, Ecosse, and Red Arrow; trade bodies PACT, UK Screen, The Production Guild and Directors UK; trade union Bectu; inward investors HBO, Starz, Showtime, ABC/Disney, RHI Entertainment; as well as national bodies Creative England, Creative Scotland and Northern Ireland Screen, BBC Worldwide and Andy Weltman from The British Film Commission. The Coalition is advised by RSM Tenon and Wiggin LLP.]

---------

Meanwhile, south of the border, there have been some questions asked of the Government in relation to developments in the UK, Ardmore Studios, and labour relations issues...
Tuesday, 6 March 2012
Deputy Robert Troy asked the Minister for Arts, Heritage and the Gaeltacht his views on the findings of the Creative Capital report on industrial relations in the audiovisual industry here; and if he will make a statement on the matter.

Minister for Arts, Heritage and the Gaeltacht (Deputy Jimmy Deenihan): The Deputy will be aware that the development of the audiovisual industry, including industrial relations issues, was examined during the preparation of the Creative Capital report, Building Ireland’s Audiovisual Creative Economy, which was published in July 2011. An implementation committee is examining the advancement of its recommendations. It is chaired by my Department and includes representatives from the Departments of Finance, Public Expenditure and Reform, Education and Skills, Communications, Energy and Natural Resources, and Jobs, Enterprise and Innovation. The Irish Film Board, Screen Producers Ireland and the Broadcasting Authority of Ireland are also represented on it. I am expecting an internal report from it after Easter.
The Creative Capital report focuses on issues such as talent development, convergence, sectoral growth, education and the digital opportunities for Ireland, as well as reporting on industry leadership, State agency roles and innovation. It will provide a road map for the next few years and assist in enabling the domestic audiovisual content production sector to develop into an internationally traded sector for product and services over the five year period 2011 to 2015.
In the area of industrial relations I understand negotiations are ongoing between the relevant parties under the auspices of the Labour Relations Commission. It would not be appropriate for me to comment further on the matter at this juncture.


Deputy Robert Troy: I thank the Minister for his reply. As he will be aware, I tabled a written parliamentary question on this a number of weeks ago and I was a little disappointed with his reply.
The Creative Capital report from the Department identifies the potential of the Irish film industry to grow at a rate of in excess of 30% in the next five years. It is a very important sector which both of us agree has considerable potential for job creation, but the ongoing limbo the talks between the craft unions and the producers are in is sending out a negative image internationally. Disney has stated publicly it is not prepared to return to Ireland until these practices have been resolved.
The talks between the craft unions and the producers have been ongoing for more than a year, with the unions not making a single concession. The industry is in limbo because there has been an absence of an agreement for five to six years.
One of the most damaging aspects to the Irish film industry abroad is the 50:50 nomination system operated by the craft unions. It gives unions the right to choose 50% of a production crew. To the best of my knowledge, no other industry operates to such criteria.
Will the Minister press Screen Producers Ireland to omit the inclusion of the practice of 50:50 nomination from any new agreement? Given the paralysis in the industry, will he ensure that a new agreement will be finalised by both sides as soon as possible to provide clarity to the international market that Ireland is competitive? In light of the fact that it is ongoing for so long, the Minister might consider intervening personally by seeking to meet the producers and craft unions separately and then trying to mediate between them to bring about a satisfactory conclusion.
It is an important industry where there is potential to grow jobs, but at present there is stalemate which is sending out a negative message to the international community. Disney, a renowned film production company, has vowed not to return to Ireland as long as this practice is in place. The Minister might clarify some of those points for me.


Deputy Jimmy Deenihan: I agree with Deputy Troy that we must be competitive in the film industry to attract film and television drama productions to Ireland. If one compares our costs with those of the UK, for example, we certainly are not competitive. We must look at it from a view of all inputs into the film industry. We must be competitive or else producers will not come to this country. We have had recent experience where, as Deputy Troy stated, they have decided to go elsewhere.
I understand discussions currently are at a sensitive stage with the Labour Relations Commission, the unions representing the various elements of the film industry and the Department of Jobs, Enterprise and Innovation. While I do not want to get into those negotiations or comment on them, I would say that if we are to achieve the target of 10,000 working in the industry following the completion of the Creative Capital report, certainly we must be very competitive. That is why these negotiations are very important and it is very important that they would be concluded as soon as possible.
It would not be appropriate that I or any other Minister would become involved with the Labour Relations Commission. It is not something that would be welcome at this stage. The unions and Screen Producers Ireland are very much involved in talks currently and seem to be making progress.


Deputy Robert Troy: This is about jobs, and jobs are being put at risk. The Minister’s hands-off approach is not appropriate in this instance. I appeal to him to mediate because it is important in that it involves jobs. The Minister’s Creative Capital report has clearly outlined the need for action.

Deputy Jimmy Deenihan: I am sure Deputy Troy understands the principles of negotiation. The Labour Relations Commission will certainly be carrying that out. I am sure it would not respond favourably to interference from the Minister at this stage.

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Tuesday, 27 March 2012
Deputy Simon Harris asked the Minister for Arts, Heritage and the Gaeltacht if his attention has been drawn to the difficulties facing a studio (details supplied) in County Wicklow; if he has had any contact with that studio on the matter to date; and if he will make a statement on the matter.
Minister for Arts, Heritage and the Gaeltacht (Deputy Jimmy Deenihan): I am aware of the difficulties facing the studios referred to in the Deputy’s Question. I understand that the statutory agency with responsibility for the development of the sector in question, and which is funded by my Department, is in ongoing discussions with the owners of the studios. Accordingly, it would not be appropriate for me to comment further at this juncture.
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Deputy Seán Kyne asked the Minister for Arts, Heritage and the Gaeltacht if strong consideration can be given, in view of the recent measures announced in the UK Budget, to the introduction of new measures and the strengthening of existing ones to ensure Ireland maintains its competitive advantage in the film and TV industry over other competitors and in particular in extending tax relief to include not only film and TV production but also animation and gaming; and if he will make a statement on the matter.

Minister for Arts, Heritage and the Gaeltacht (Deputy Jimmy Deenihan): Primary responsibility for the support and promotion of film-making in Ireland, in respect of both the indigenous sector and inward productions, is a matter for the Irish Film Board. This agency is funded through my Department and has been allocated €15.7m in 2012 to carry out its functions. Under section 481 of the Taxes Consolidation Act 1997, tax relief is allowed for investments in certain films. The types of film eligible for certification are feature film, television drama, creative documentary and animation. The scheme is kept under regular review in conjunction with the Irish Film Board and any enhancements considered necessary to retain or regain competitiveness are brought to the attention of the Minister for Finance, as appropriate. The scheme has been extended to the end of 2015. I have asked the Irish Film Board to provide an analysis of the likely impact of the proposed move by the U.K. Treasury.

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Deputy Seán Kyne asked the Minister for Finance if strong consideration can be given, in view of the recent measures announced in the UK Budget, to the introduction of new measures and the strengthening of existing ones to ensure Ireland maintains its competitive advantage in the film and TV industry over other competitors and in particular in extending tax relief to include not only film and TV production but also animation and gaming; and if he will make a statement on the matter.

Minister for Finance (Deputy Michael Noonan): Section 481 film relief is one of the longest running sector specific tax reliefs and was first introduced in the Finance Act of 1987 to support the indigenous film sector. Finance Act 2011 provided for a further extension of the scheme to the end of 2015 to afford a medium term certainty to the industry, which exists in a competitive international environment. The scheme makes a positive contribution to the development and sustainability of the Irish film/screen industry which supports a significant number of jobs in the local economy and contributes to cultural tourism initiatives. In 2011 a total of 58 projects were approved for Section 481 funding with an eligible Irish spend of €114m. These 58 projects supported employment for crew, cast and extras of over 15,000 individuals and had the effect of maintaining and creating jobs in a very difficult climate, while at the same time producing a product that will help to sell Ireland abroad.
I have asked my Department to undertake a review later this year in order to inform future policy making in relation to the scheme. I do not intend to make any major adjustments to the scheme prior to the completion of this review.


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For those politicians looking for a refresher course on Ardmore's chequered history I suggest they might have a look at Roddy Flynn's introduction to the Irish Film Review 2011 segment of the latest issue of Estudios Irlandeses. They will also find a lot more information, discourse and analysis on the Irish film and TV year than they will find in any Irish publication. Go figure.

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Apropos of Ardmore here are just some of the companies (past and present)with registered addresses at the complex...

Ab Productions Ltd., Agsb Film Productions Ltd., Amazing Love Stories Productions Ltd., Ammp Ltd., Angelus Films Ltd., Animal Farm Productions Ltd., April Film Productions Ltd., Ardmore Sound Ltd., Ardmore Television Ltd., Asa Productions Ltd., Baron Film Productions Ltd., Bg Productions Ltd., Bickhem Ltd., Bobby Productions Ltd., Brittas Films Ltd., Carrickmore Film Productions Ltd., Cb Film Productions Ltd., Chateau D'if Productions Ltd., Cofid Film Productions Ltd., Corrieq Ltd., Country Productions Ltd., Cove Productions Ltd., Curiosity Productions Ltd., Cy Film Productions Ltd., Dns Film Productions Ltd., Dns Three Film Productions Ltd., Dns Two Film Productions Ltd., The Electric Light Company Ltd., Enertrol Ltd., E-Street Ltd., Evergreen Productions Ltd., Everlasting Productions Ltd., Fairday Productions Ltd., Fb Productions Ltd., Film Engineering Services Ltd., Fitzwilliam Productions Ltd., Foxgrange Ltd., Georgian Film Productions Ltd., Glenala Ltd., Glencullen Productions Ltd., Gl Film Productions Ltd., Green Baize Productions Ltd., Gr Productions Ltd., Haledrum Ltd., Hawkins Productions Ltd., Herbert Film And Television Productions Ltd., Highland Film Productions Ltd., H.R. Productions Ltd., Ignition Film Productions Ltd., Imagine Ltd., Inside Productions Ltd., Intercast Ltd., Ironing The Land Ltd., Jb Productions Ltd., Jl Film Productions Ltd., Jls Productions Ltd., J Skars Productions Ltd., Kalweni Ltd., Ka Television Productions Ltd., Kidnapped Productions Ltd., Kyriaco Ltd., Lakeshore Film Productions Ltd., Lb Television Productions Ltd., Lef Productions Ltd., Link Directory Ltd., Littlewave Film Productions Ltd., Lmh Film Productions Ltd., Louisiana Film Productions Ltd., Lw Film Productions Ltd., Malahide Productions Ltd., Maple Film Productions Ltd., Melrose Film Productions Ltd., Merrion Film Productions Ltd., Moll Flanders Productions Ltd., Monto Productions Ltd., Mountview Film Productions Ltd., Mountville Film Productions Ltd., M S & D Films Ltd., Na Film Productions Ltd., New Century Filmed Entertainment Ltd., Nurenbury Ltd., Ocean Film Productions Ltd., Octagon Films Ltd., O'sullivan Forde Country Ltd., O'sullivan Forde Flanders Ltd., O'sullivan Palterton Ltd., O'sullivan Productions Ltd., Palterton Ltd., Panavision Europe Ltd., Perrygate Ltd., Poolman Ltd., Q Films Ltd., Rca Film Productions Ltd., Reign Of Fire Productions Reveille Productions Ltd., Rl Film Productions Ltd., Routon Ltd., Rr Film Productions Ltd., Rt Film Productions Ltd., Sagasan Enterprises Ltd., Scarlett Productions Ltd., Setanta Visual Imaging International Ltd., Sharpmist Ltd., Sharpmist Ii Ltd., Sharpmist Iii Ltd., Skygram Ltd., Slimbridge Ltd., Sor Productions Ltd., Stanbury Films Ltd., Sw Productions Ltd., Sycamore Productions Ltd., Tabforth Ltd., Tara Medical Ltd., Tembour Engineering Ltd., Tiber Productions Ltd., Tm Productions Ltd., Tse Productions Ltd., Victorville Ltd., Vk Productions Ltd., Wd Film Productions Ltd., Woodpecker Productions Ltd., World 2000 Entertainment Ltd., World 2000 Entertainment Music Publishing Ltd., World 2000 Media Services Ltd., Yagerhill Ltd.,

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Irish Film Board latest quarterly funding announcement - 5th April 2012
Project Director Writer Production Company Funding Award
Development
First Draft Loans
Luka Pooka Gary O'Neill Richard Hansom €16,000
The Song Of Granite Pat Collins Pat Collins & Sharon Wholley €16,000
The Complication Ian Power Ian Power & Dylan Cotter €16,000
Monto Ciaran Morrison & Mick O'Hara €16,000
Fiction Development Loans
Dubliners multiple multiple Fastnet Films Provisional Offer of Commitment
It's About Girls Gavin Burke Black Sheep Productions €16,000
Procreate, Generate Adam Rynne Blinder Films €23,000
Star Of The Sea John Crowley Mark O'Rowe Parallel Film Productions €5,000
Beach Slap Aisling Bea Grand Pictures €15,000
The Rewrite Peter McDonald Peter McDonald Treasure Entertainment €20,000
Olagón Darach Mac Con Iomaire Darach Mac Con Iomaire Magamedia €19,000
Perfect Weather To Fly Rory Bresnihan Rory Bresnihan Subotica Limited €16,000
Boy Racer Steph Green Ailbhe Keogan Subotica Limited €28,000
Cú Chulainn: The Sacred Island Gary Shore Jonathan Ware & Garan Ware Darini Films €50,000
International Development
Life Of Crime Declan Croughan Octagon Films €23,500
Taboo Tom Farrelly Octagon Films €18,500

Production
Fiction Feature Films
Calvary John Michael McDonagh John Michael McDonagh Octagon Films Provisional Offer of Commitment
Hardy Bucks: The Movie Mike Cockayne Mike Cockayne, Chris Troduff, Martin Maloney & Gerry Greaney Integral Productions €175,000
Moscow Never Sleeps Johnny O'Reilly Johnny O'Reilly Blinder Films €275,000
An Bronntanas/The Gift Tom Collins Tom Collins, Paul Walker & Eoghan McNamee ROSG & DeFacto Films €300,000
Fiction Creative Co-Production
Strangerland Kim Farrant Fiona Seres Fastnet Films €250,000
Stay Wiebke Von Carolsfeld Wiebke Von Carolsfeld Samson Films €300,000
Fiction International Production
Vikings Michael Hirst World 2000 Productions €250,000
Animation
Zig & Zag Joel Simon Ciaran Morrison & Mick O'Hara Double Z Productions €150,000
Documentary
Men In Uniform Ken Wardrop Venom Limited €150,000
Showrunners Des Doyle Black Sheep Productions €55,000
Under The Hood Mark Byrne & Robert Dennis Planet Korda Pictures €50,000
The Land Of The Enlightened Peter Van De Pue Fastnet Films €50,000
Neal MacGregor Neasa Ní Chianáin Soilsiú Films €50,000
Three Men Go To War Kim Bartley Crossing The Line Films €100,000
Silence In The House Of God Alex Gibney Below The Radar Productions €50,000
Completion Fund
Me And Me Dad Katrine Boorman Colourframe Limited €15,000
First Stage Documentary
The Children Of Humla Neasa Ní Chianáin Soilsiú Films €5,000
Sculpting Space Catherine Owens NDN Productions €15,000
Moscow Tabloid Michael Doyle & John Murray Cutstone Productions €10,000
See You At The Pictures Jeremiah Cullinane Planet Korda Pictures €5,000
Blood Sisters 2 Malin Andersson Solas Productions €5,000
Born John Burke, Died Muhammed Omar Ross McDonnell Fastnet Films €10,000

Print Provision
Joy Colm Quinn Com Quinn Venom Limited €2,020
Nouakcott Rocks Moira Tierney Moira Tierney €3,297
Dollhouse Kirsten Sheridan Kirsten Sheridan Warehouse Pictures $5,000
Citadel Ciaran Foy Ciaran Foy Blinder Films $7,000
Babyface Macdara Vallely Macdara Vallely Samson Films $5,000

Marketing Support
Stella Days Thaddeus O'Sullivan Antoine O'Flatharta Eclipse Distribution €30,000
This Must Be The Place Paolo Sorrentino Paolo Sorrentino Element Distribution €35,000

Direct Distribution
The Other Side Of Sleep Rebecca Daly Rebecca Daly & Glenn Montgomery Fastnet Films €15,000
A Kiss For Jed Wood Maurice Linnane Barry Devlin Ignition Film Productions €10,000