ANNUAL REPORT Page 2 SCREEN PRODUCERS IRELAND | 2015 ANNUAL REPORT Contents
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ANNUAL REPORT PAGE 2 SCREEN PRODUCERS IRELAND | 2015 ANNUAL REPORT ContentS 1 Report from the Chair & the CEO 2 Industry Funding Overview 3 SPI Progress Report 4 Policy Papers 5 Screen Producers Ireland Overview 6 SPI Board 2015 7 SPI Committees 2015 8 SPI Executive & Corporate Structure 9 SPI Financials SCREEN PRODUCERS IRELAND | 2015 ANNUAL REPORT PAGE 3 PAGE 4 SCREEN PRODUCERS IRELAND | 2015 ANNUAL REPORT Report FroM THE CHAIR & THE CEO THE CHAIR JOHN HenneSSY My focus as Chair in 2015 was to ensure important creative industries. It plays a critical the SPI aims and policies were effectively role in preserving our country’s rich cultural communicated to Government and stakeholders. heritage. In 2015 Independent production companies made a significant cultural In 2015 SPI published six key policy papers contribution to the centenary commemorations outlining the necessary infrastructure of 1916, producing a number of programmes required to promote growth in the audiovisual for all the national broadcasters. Independent sector. (See page 31 for SPI policies). productions commissioned for the centenary include ‘Rebellion’ ‘1916’ ‘Seven Women’ Work to communicate these policies included ‘Trial of the Century’ ‘Wrecking the Rising policy meetings held with Ministers in key ‘A Terrible Beauty’. The quality and breadth Departments, a number of senior Government of these productions serves to underline the officials and with all stakeholders. sector’s importance in a cultural context. The policy work also informed SPI’s submission In 2016 my focus will be strategy and to the 2016 Action Plan for Jobs. We were collaboration. The SPI board will prepare the pleased to welcome the commitment from SPI Strategy 2017 – 2020. Collaboration between Government in the final plan, to commission all stakeholders will be required to build a an economic analysis of the current value of strong industry by setting out an action plan to the Irish audiovisual industry and its potential mobilise our vision for the audiovisual industry. for growth. We are continuing to ensure Government understand the urgent need for I would like to thank the board of SPI and this report to be initiated so that accurate the SPI committees for their commitment sectoral data can be gathered to inform a to the organisation during 2015. sustainable growth strategy for the industry. John Hennessy Government support is a prerequisite to the implementation of policies to support the sector. Chairman In 2016 the effective communication of SPI policies remains a priority as it is the path to growth and securing additional funding for quality content. In line with the new companies act which was enacted in June 2015, we prepared a new SPI constitution. The new constitution was approved by the membership at the SPI EGM in April 2016 and ensures the company’s adherence to highest corporate governance standards. REPThe audiovisual sector is one of Ireland’s most PORTAGE 6 SCREEN PRODUCERS IRELAND | 2015 ANNUAL REPORT ceo BARBara GalaVAN 2015 was a year of steady trading results Through the formulation and communication of for film and television production. the SPI policies in 2015, SPI increased awareness of issues which need to be addressed if the sector is January saw the launch of the amended to grow. Key among these is the urgent need for Section 481 Film Tax Incentive Scheme Licence Fee reform and the need for the Irish Film with an increase in value to 32%. The Board Capital grant to be substantially increased. amendments and the accompanying increase We will continue to communicate our policies in value was welcomed by the sector. to Government and stakeholders during 2016. Analysis of the available statistics indicates We made substantial progress in achieving that Total S481 relief remained steady the first industry agreement with Irish Equity/ when averaged out over 2014 and 2015. SIPTU covering actors employed on indigenous TV drama productions, in 2015. The pragmatic TV Drama remains the outstanding negotiations brought the parties close to contributor to production activity with an concluding the agreement by the yearend. The average S481 Irish Expenditure of €100M final agreement was signed in March 2016. per annum over the last three years. In 2015 the EU published their Digital Single Film has grown in 2014 and 2015 with an average Market Strategy. In this digital age, the aim of the S481 Irish Expenditure of €41M per annum. strategy seeks to break down barriers to online trade between European countries. It presents Animation indicates a decline in activity many challenges to the way audio-visual in the same period with an average S481 content is currently financed. The European Irish Expenditure of €30M per annum. Commission also launched reviews of a number of EU Directives affecting our sector. The Audio In 2015 SPI participated on the Section 481 Visual Media Services Directive (AVMS) and the Policy Discussion Group. The group was formed Satellite and Cable Directive (SatCab) determine to consider and make recommendations to the rules within which the audio visual sector Government on further amendments to Section must operate. The issues to be considered are 481. The Group made its formal recommendations numerous and complex. In November I was to the Department of Finance in July. The key elected Chair of The European Coordination of recommendation to increase the cap from Independent Producers (CEPI). This appointment €50M per project to €70M per project was ensures SPI has a strong voice in Europe at accepted and announced in Budget 2016. a time of great change for the industry. RTÉ spend on independent production during In November SPI made its submission to 2015 remained static at approximately €38M. the Culture 2025 consultation issued by the The number of hours commissioned has been Department of Arts, Heritage & the Gaeltacht. reducing in number since 2012 indicating a A copy can be found on the SPI website. return to more sustainable cost per hour levels. We hosted 10 SPI members’ events in 2015. Our aim TG4 have been increasing their spend in the to bring about greater stakeholder collaboration independent sector since 2012. Indications was achieved at the RTÉ and IFB events which are that this trend continued in 2015 with were attended by all senior commissioning approximately €22M spent in the sector. and project management personnel. REPThe BAI awarded €14M over three I would like to take this opportunity to thank rounds in 2015 and the IFB capital the Board of SPI and the staff for their continued grant remained static at €11.2M. hard work and commitment to the SPI agenda. Of central importance for SPI members is Barbara Galavan the need for local indigenous productions to be supported, alongside the supports CEO for foreign direct investment. ORTSCREEN PRODUCERS IRELAND | 2015 ANNUAL REPORT PAGE 7 PAGE 8 SCREEN PRODUCERS IRELAND | 2015 ANNUAL REPORT INDUStrY FunDING InDUStrY FUNDING S481 Ireland’s film and television tax incentive, Section 481 2014 did not go into production until 2015. This also accounts for is essential to Ireland’s production landscape. the increase in S481 projects certified in 2014 when compared to 2013. Taking 2014 and 2015 values together indicates the industry It is of benefit to indigenous productions, co-productions and is holding steady at an average of €178M certified in each year. gives independent producers leverage to attract incoming productions, thereby creating high value industry jobs in Ireland. We conclude that material changes to Ireland’s film and television tax incentive scheme should not take place without the Productions availing of Section 481 relief in 2015 continued provision of a 12 month lead time. This would allow the industry to be the main contributors to production activity in time to adapt to change and avoid such fluctuations in statistics. the State with a total of €118M certified in the year. In 2015 the project value threshold for eligibility to the S481 Between 2011 and 2014 the value of S481 certified scheme widened the scope for smaller budget productions. projects had increased by approximately 25% year on The 2015 figures indicate an increase in smaller budget year. In 2015 the legislation governing the delivery of projects availing of S481. In the year the average value per the scheme changed from an investor led model to a project decreased from € 3.5M (2014) to € 1.8M (2015). Corporation Tax Credit model. This change appears to have had a significant impact on the total value, of projects TV Drama remains the biggest contributor to production certified in the year, particularly incoming projects. activity in the State with an average of approximately €100M S481 for the last 3 years. This is in line with the In 2015 the value of S481 projects certified decreased from €237M growth in this genre being experienced worldwide. in 2014 to €118M. This represents a 50% decrease. The decrease can be accounted for because some projects which were certified in The year on year increase in S481 projects certified confirms that Ireland’s film and tax incentive scheme works to increase production activity in the State. SPI will continue to ensure S481 is renewed in 2018 to take account of the long lead time required for film and television production. S481 Irish Expenditure Projects Certified by Revenue Commissioners 2011 - 2015 2011 2012 2013 2014 2015 No of S481 projects 57 52 67 67 66 S481 Projects Certied € 118,248,839 € 142,968,378 € 183,142,646 € 237,387,613 €118,618,238 Ani mation Total € 31,982,729 € 32,127,088 € 44,942,020 € 39,104,231 € 20,752,709 Docume ntary Total € 4,853,720 € 3,797,207 € 2,717,403 € 7,108,573 € 8,959,749 Film Total € 33,231,456 € 29,243,763 € 35,856,614 € 49,221,388 € 34,022,510 TV D rama Total € 48,180,934 € 77,800,320 € 99,626,609 € 141,953,421 € 54,883,270 The principal growth in projects availing of S481, particularly the ability of the Independent Production sector to achieve between 2011 and 2014, is in incoming productions.