Ballyhenry, Ashford, Co. Wicklow
Ph: 00353 (0) 404 78700 Mobile: 00353 (0) 86 1021966
Email: shelley@ashfordstudios.com
22nd April 2015
RE: Ashford Studios Presentation to Committee on Jobs, Enterprise and Innovation
Brief Introduction
Ashford Studios is a new, privately funded, facility that has been in operation since May
2012. Since opening we have had 3 seasons of the very successful Vikings production and
are currently filming the 4th. This year there will be up to 1350 people employed, not
including extras. The series is trying to attract up to 8000 extras to be available during the
period of shooting.
In modern day there is rarely one job for life and it is important that people with skills and
training can transfer from one job to another with the skills they already possess. Large film
productions, like Vikings, employ a wide variety of highly paid and skilled staff and there is a
strong potential for people to work on these productions through the use of transferable
skills used in past employment.
To give some examples of these, productions inevitably need people from the building and
construction industry such as, carpenters and plasterers for set building. Carvers, painters,
buyers, interior designers and drapists can transfer their skills to the Props Department and
Set Decoration. People in the fashion industry can transfer their skills to the costume
department where the clothes worn by the actors are made. If working in the food industry
people can transfer to catering. Architects, model makers, graphic artists and sketch artists
are needed in the Art Department and Visual Effects Departments. There is an endless
requirement for people working in IT from general infrastructure maintenance and repair to
post-production and CGI (Computer Generated Imagery). Hairdressers and make-up artists
are an obvious crossover for the industry and skills can be further enhanced in the
Prosthetics Department. The industry requires continuous supply of drivers for the
Transport Department. Administrators can transfer to an area in the Production
Department. Accountants are needed for the duration of a production. Nurses, Medics and
Health and Safety officers play a key role during production also. Anyone working as a
Publicist, marketing or PR can all transfer their skills to the film industry. Event Managers
would suit the role of a Location Manager. Even if you are a keen sailor or horse rider there
is a place in the Marine Department or the Horse Masters/Wranglers Department.
There are many other departments that create exciting new career choices such as Stunts,
Special Effects, becoming a Writer, Director, Producer, or an Actor. In the likes of a period
show like Vikings there is even an Armoury Department and a Dialogue Coach is often
needed.
Ireland has significant advantages over other jurisdictions and can attract high quality
international productions. We have an attractive and competitive tax incentive for incoming
production companies through Section 481, extremely talented local crews with experience
on this scale of production, great diversity of landscapes and are very accessible. However,
we are lacking a sufficient number of purpose built sound stages, given that we are now
competing for international film and television drama at the highest level with the UK,
Eastern Europe, Australia and New Zealand.
Section 481
Ireland is offering a very attractive film and television drama tax incentive to encourage
international film and television production producers/financiers/distributors to locate here.
In the most recent Budget, Minister Noonan announced this new, more cost-effective
corporation tax incentive, which came into effect in January 2015 and made a crucial
legislative change in order to directly target large-budget feature film franchise projects. –
namely, to extend the definition of eligible individuals to include non-EEA persons.
This amendment has dramatically increased the possibility of large-budget feature films
exploring Ireland as a potential location between 2015 and 2020. As a consequence, we do
not have sufficient studio infrastructure when compared to our competitors with Ashford
one of only two viable options in terms of projects of scale.
Minister Noonan also signaled the possibility of looking at a further review of the new
Section 481 incentive in the forthcoming Budget later this year in terms of potential
refinements to the new legislation.
This included the possibility of exploring increasing the current cap of 50m Euro in terms of
qualifying eligible expenditure. In the UK, there is no such cap. Such a potential amendment
would alert more high profile, international projects about Ireland as a potential location for
high-end, international productions and again underlines the urgent need for additional
studio infrastructure.
Studio infrastructure requires a large capital investment and generates a minimal return
which is evident by the fact the, other than Stage D in Ardmore in the 1980s, nobody has
built studios in 40 years.
Ireland is essentially providing a very effective incentive to encourage international film and
television production to this country but has not incentivized the provision of infrastructure
for them to film in.
Further Information
Based on the current increased demand for studio space and requirements from production
companies wishing to come to Ireland we have designed a master plan for the expansion of
Ashford Studios which would create the potential for 5000 direct jobs and 5000 spin off jobs
servicing the studios.
The recent Nordicity Report (see attached) commissioned by the British Film Institute
underlines the huge potential for large-sale film and television content in terms of jobs,
direct and indirect investment, tourism and the multiplier effect.
The establishment of such an infrastructure can result in substantial third party, capital and
commercial risk expenditure from private sources – an investment that Ashford is prepared
to consider making for a second time having already invested 100% of the cost of three large
State-of-The-Art sound stages, work-shops and accompanying infrastructure between 20072012.
Our core issue is that studios currently lack a dedicated and appropriate classification when
it comes to calculating local council contributions and rates. Studio infrastructural
investment generates viable jobs and is consistent with current Government policy on both
employment and the Irish Film Industry.
However, at this time and in our view, studios are incorrectly classified as commercial
buildings and are therefore significantly overcharged with Revenue projections currently
based on the level of square footage. A legislative amendment is urgently required to ensure
that a second major private capital investment in a new studio can take place during 2015.
In contrast to commercial buildings, film production is cyclical with the building often left
empty for months. In episodic television the studio remains unavailable for other projects all
year round as standing sets remain when filming has ceased and while ratings figures results
are awaited prior to a green lighting of a second or third season of a recurring drama series.
The ratings methodology in operation on broadcast television throughout the world means
that there is no guarantee of occupation or lease from production companies until the cutoff date where Ashford will discover at very short notice whether or not the series is a
returning drama. If there is no series renewal, up to two months may be needed to strike
the sets making competing for new feature film and television projects within the remainder
of the calendar year very difficult
Due to incentives offered in other jurisdictions film production companies have little loyalty
or permanency in one jurisdiction and the nature of film production is very transient and
uncertain.
Despite this difficult and uncertain environment there is one thing we can be certain of and
that is that film and television content is a permanent product that is always needed and
therefore film and television production will remain constant and will always exist.
Studio Infrastructure
This industry requires substantial acreage for filming and a 2 to 1 ratio is needed of office
and workshop spaces to the sound stages. Office and workshop spaces are large areas used
by the production company to hold all the various departments and skillsets previously
mentioned. These departments create everything that is built on the stages and everything
for sets built on location. Therefore, all of these areas and the stages become an all-inclusive
package and generate a nominal return per square foot.
Consequently, the currently rated facility is not making a commercial return and therefore
should not be rated as a commercial property. Any buildings constructed for use by
companies servicing the industry or to facilitate tours have the potential to generate a
commercial return and therefore pay commercial rates in the normal way.
Recommendations
We see the solution as a very simple one. That is, an addition* to be made in legislation to
include a dedicated classification for new, large, purpose-built, studio infrastructure in order
to qualify this type of infrastructure for a more accurate rating and thus allow for investment
to expand the film industry.
Due to the limited studio space that currently exists we have been unable to accommodate
incoming inquiries from large international film companies. Attempts have been made to
facilitate these productions in old or revamped warehouses. However, it has been expressly
stated on numerous occasions by the film production companies that these facilities are not
suitable and new, large, purpose built studio infrastructure is essential.
As this new, large, purpose-built, studio infrastructure requires a large capital investment it
would be reasonable that only this type of infrastructure should qualify for the ‘studio
infrastructure’ classification.
*Suggested addition to the Valuation Act, 2001, to be adjusted appropriately.
PART 1 – Preliminary and General
‘studio infrastructure’ means a) large scale, new, purpose built studio infrastructure consisting of stage and
office/workshop buildings solely used for the purpose of film and television
production, and
b) ‘Office/workshop buildings’ that hold departments needed by the production
company using the stage facilities
other than i.
Buildings previously used for an alternative purpose other then film and television
production
Under the new classification of ‘studio infrastructure’ an exemption or nominal percentage
of commercial rates and local council planning contributions should apply.
Summary
The putting in place of a competitive Section 481 incentive without the availability and
provision of modern infrastructure in which to operate is not sound. There is a requirement
for large studio infrastructure, which could cater for up to 10,000 jobs and significant inward
investment. People using transferable skills in previous employment can fulfill many of these
jobs.
Large-scale, purpose built, studio infrastructure requires a large capital investment to put in
place and does not generate a commercial return and therefore should not incur a
commercial level of rates and local planning contributions. In order to resolve this, we
suggest that a new classification be added to legislation for this specific type of
infrastructure.