Adrian McCarthy - Wildfire Films Kealan McGuinness - Loosehorse

Ailish Bracken - Blinder Films Larry Bass - Screentime ShinAwill Ltd.

Aine Moriarty - IFTA Leslie McKimm - Newgrange Pictures

Andrew Kavanagh - Kavaleer Productions Leticia Agudo - Whackala

Andrew Lowe - Element Pictures Liam Lavelle- Agtel / Independent Pictures

Bernadine Carraher - Mind the Gap Liam McGrath- Scratch Films

Billy McGrath – Sideline Productions Macdara Kelleher - Fastnet Films

Brian Gormley - Phiip Lee Solicitors Mark Byrne - Element Pictures

Ciara Nic Chormaic - Magamedia Michael Duke- Michael Duke Productions

Conor Barry - Savage Productions Morgan Bushe- Fastnet Films

Cormac Hargaden - Loosehorse Nicole Kamm- Octagon Films

David Collins - Samson Films Patrica Carroll- Tyrone Productions

David Noble – Sideline Productions Paul McGrath- Whackala

David Ryan - Tile Films Paul Donovan - Grand Pictures

Drew Banerjee - Strike Films Paul Myer- Epos Films

Duncan Stewart - Earth Horizon Productions Peter Carr - Woodend Films

Gerry Greg - Praxis Pictures Peter Kelly- Esras Films Ltd.

Gerry Shirre - Cartoon Saloon Philip Mc Govern- Big Mountain Productions

Gerry Shirren - Kavaleer Productions Ronan Flynn - Octagon Films

Irial MacMurchu -Nemeton Ruth Carter - Parallel Films

James Flynn - Octagon Films Shane Tobin- Square One Productions

James Hickey - Irish Film Board Stephen Rooke - Tile Films

Jane Kelly - Big Mountain Productions Susan Mullen - Parallel Films

Jeremiah Cullinane - Planet Korda Pictures Tina Moran - South Wind Blows

John Kelleher - John Kelleher Media Trisha Canning - Loosehorse

John Rice - Jam Media

Jonathan Kelly - Phiip Lee Solicitors

In attendance:

Barbara Galavan – SPI CEO

Catherine Tiernan – SPI Executive

Caroline Skinnader – SPI Executive

Cristina Barroso – SPI Executive

Sarah Keogh – SPI Executive

James Hickey‐ IFB CEO

Theresa McGrane – IFB Executive

Screen Producers Ireland Minutes of 2014 Annual General Meeting

4.45 p.m, Thursday May 29th 2014at the

Westbury Hotel, Grafton Street, Dublin.

Present:

SPI AGM 2014 Minutes 1

Screen Producers Ireland Minutes of 2014 Annual General Meeting

4.45 p.m, Thursday May 29th 2014at the

Westbury Hotel, Grafton Street, Dublin.

Larry Bass - reminded the Minister that RTÉ do not have a set minimum spend based on a % of the licence fee. He

said the statutory spend is a set figure at present. Larry also referred to the point made by the Chairman regarding

foreign broadcasters. He said that while the government are not able to legislate for foreign broadcasters to fund

local projects they could look to effecting the VAT rates applicable to foreign broadcasters.

A short Question & Answer session following

Questions & Answers

The Minister said he has utilised the services of New Era on numorous occasions and didn't think that a draft going to

RTÉ for fact checking had compromised the report. New Era are a small technically qualified unit. Pat confirmed that

he has now received the report but that he could not comment on it at this time because he had not read the report.

The broad conculsion was that there is no room for significant cost reductions.

Introduction by the Chairman

Bernadine Carraher - Mind the Gap Films asked that if the Draft New Era Report on RTÉ was forwarded to RTÉ before

it was formally submited to the Ministers Department, was this the most appropriate way for an independent report

to be published?

The Chairman, John Hennessy opened the meeting, thanked Minister Pat Rabbitte for attending and outlined for the

Minister the issues of importance for SPI members. see attached

The Chairman invited Minister Pat Rabbitte to address the meeting.

Minister Pat Rabbitte addressed the meeting. Address attached.

AGENDA 1 - Guest speaker address by Pat Rabbitte, Minister of Communications, Energy and Natural Resources.

Larry Bass - Screentime Shinawil Productions said the reduction in spend by RTE in the sector is much higher than the

reduction of in-house RTÉ costs. While RTÉ made 30% cuts to their overhead they reduced the spend in indpendent

production by 50%. In Ireland the gaurenteed spend into indpendent production is a set figure while in Europe the

spend is a % of the licence fee income. He asked the Minister if he would be in favour of moving to a percentage

model.

Pat Rabbitte - Agrees in principle to a spend based on a % of the licence fee. He also believes that a PSB is very

important, and that RTÉ requires a certain income threshold to operate. The challenge is to find the right balance

between the two.

The Minister said he I would be interested to get a submission on how a change to the VAT rate could work, but any

changes to the VAT rate would have an effect on a total sector/industry. He said it would not be possible to have

1one VAT rate for foreign broadcasters and a different one for national broadcasters.

SPI AGM 2014 Minutes 2

AGENDA - Elections to the Board of Directors of SPI

Mark Byrne - Element Pictures made his presentation.

Bernadine Carraher - Mind The Gap Films made her presentation.

Andrew Kavanagh - Kavaleer made his presentation.

The minutes of the 2013 AGM, having been previously circulated were approved by the members by a show of hands.

Liam Lavelle - Independent Pictures asked if RTÉ are likely to move towards a Publisher Boradcaster Model ?

The Minister said he understood that RTÉ was moving more in the direction of a Publisher Broadcaster model.

Duncan Stewart - Earth Horizon Productions said he believed that is should be the responsibilty of the media to

inform the public about Climate Change and other Meteorological conditions issues. Climate change is one of the

most critical issues which involves everyone. The media are mis informing the public and it is not getting enough air

time. I would like to see the government regulate the media to act responsibly.

SPI Chairman John Hennessy addressed the meeting - see attached.

Adrian McCarthy on behlaf of Martha O'Neill of Wildfire Films made his presentation.

The Minister said governement are not able to direct the media.

The Chairman thanked the Minister for attending the SPI AGM and the Minister left the mmeting.

AGENDA 2 - SPI Chairpersons address

AGENDA - Executive Report for the year ended 2013 and perspectives for the year 2014

AGENDA - Elections to the Board of Directors of SPI

The auditors returned the result of the vote

The Chairman announced the newly elected Board members: Mark Byrne, Andrew Kavanagh & Bernadine Carraher.

The Chairman asked if there was any other business. There was none.

AOB

The Chairman asked for authorisation of the Board of Directors to fix the remuneration of the auditors. The

authorisation was approved by a show of hands.

AGENDA - Authorisation of the Board of Directors to fix remuneration of the auditors

The Chairman closed the meeting and thanked everyone for attending.

AGENDA 3 - Minutes of the Last Annual General Meeting, May 31st 2013

The members placed their ballots and the Auditors left the room to conduct the count.

AGENDA - Approval of the Financial Statements for the year ended December 31st, 2013

The Financial Statements for 2013, having been previously circulated were approved by the members by a show of

hands.

The Chairman introduced the five candidates for three vacant board positions. Each candidate made a presentation to

the meeting with the exception of Marth O'Neill who was unable to attend. Adrian McCarthy made the presentation

on her behalf.

Shane Tobin - Square One Productions made his presentation.

The Chief Executive of SPI addressed the meeting - see attached.

SPI AGM 2014 Minutes 3

Screen Producers Ireland

Mr John Hennessy, Chairman of the Board

Opening Address to Minister Pat Rabbitte TD

A.G.M 2014

Minister, ladies and gentlemen, welcome to the 24th AGM of Screen Producers Ireland. I’m particularly pleased to welcome Deputy Pat Rabbitte TD, Minister for Communications, Energy and Natural Resources to our meeting. Being the Minister in charge of broadcasting and digital communications, you play a key role in our sector of business.

Screen Producers Ireland is proud to represent more than 140 professional production companies, producing high quality content for film, television, animation and digital media. These companies develop and produce content for all genres, for the Irish and international market.

Minister, you will be familiar with many of the Irish productions such as Love/Hate, Operation Transformation, and Ear to the Ground, The Voice, Ireland’s Fittest Family, Eco Eye and The Tenements.

In addition, independent production companies make a significant contribution to the economy through their ability to attract foreign direct investment for international productions and in doing so create much employment. Productions such as Ripper Street, Vikings, Tudors, Moone Boy, The Secret of Kells, Frank, Penny Dreadful and Jimmy’s Hall.

We believe passionately in the further development of a national policy framework to sustain and grow the independent production sector in Ireland. We believe it makes sense culturally, creatively and economically.

We believe that you Minister, play a key role in enabling and making this possible.

And so Minister, you invitation to address us this evening.

By way of introduction I want to make a few points by looking back and then forward;

The Revenue Commissioners indicated recently that they intended to change VAT policy governing independent commissions and BAI Sound & Vision Fund grants, which caused grave concern for our members. We estimated the cost of this policy change, to the independent sector, would have been €6.5 million, circa 10% reduction.

We recognise your work on this Minister and that of the officials in your Department, in speedily addressing this issue with the Minister for Finance and the Revenue Commissioners and we are very pleased to confirm that this policy initiative has been reversed.

We also recognise the significant building blocks, aided by your Department that have been put in place to enable the independent sector to grow and prosper. Chief among these, the introduction of the Code of Fair Trading Practice, which will facilitate the copyright in programmes being retained by independent producers. This is a very important development for our sector and we appreciate your support for these measures.

These experiences serve as a good example of an industry sector and government working together to the benefit of business and the State. What SPI represents can add very much to Ireland’s prospects, be it through creating the environment in attracting foreign direct investment, and the employment growth programmes; all very welcome in restoring Irelands fortunes following the economic downturn.

So how Minister, may you help and support us going forward!

Screen Producers Ireland believes in strong public service broadcasting, Irish public service broadcasters that are adequately funded and fit for purpose.

We support your initiative to introduce a universal public service broadcasting charge. We understand this will need legislative change. In the context of this legislative change, we recommend the statutory spend on independent commissions be doubled from the current €40 million to €80 million so as to move towards a publisher broadcaster model.

The ‘publisher-broadcaster’ model operated by the likes of Channel 4 in the UK is recognised as a more cost-effective and innovative way of producing quality content, in addition to giving audiences access to a wider range of programming ideas and creative talent. The BBC is also increasingly in favour of a greater quota of independent commissions.

The publisher broadcaster model is already being successfully used by TG4, which not only serves to promote and develop the Irish language and it’s rich cultural heritage, it also provides diverse quality content which has been rightly praised. So this change in statutory spend on independent commissions would be a welcome change to our sector.

In 1993, your former colleague and now President, Michael D. Higgins helped lay the foundations of a thriving independent production industry by introducing the tax incentive for film and television.

This policy has been the bedrock of successive government strategies over the last 21 years. It is a policy has been one of the main drivers to the expansion of activity levels and generation of significant inward investment for the sector. The knock-on effect has been a ten- fold increase in full-time employment in those 21 years.

Section 481 tax incentives create high-value jobs; contributes to our tourism effort and showcases Ireland as a sophisticated and creative place to do business. While elements of the scheme are expected to change next year, one component of the existing structure is key. The early payment mechanism gives Ireland a competitive advantage over other jurisdictions. We ask you Minister, to support and advocate for this early payment mechanism be retained.

Another important scheme for our members is the BAI Sound & Vision Scheme.

The scheme is funded by 7% of licence fee income. It has contributed 95 million euro in production funding to the sector since inception in 1993.

Producers have leveraged this funding to produce programming to a value of €256 million euro.

In 2011 Colm McCarthy’s Report of the Review Group of State Assets & Liabilities recommended this fund be increased from 7% to 15%, which we would fully support.

On the matter of regulation, unlike Irish broadcasters, foreign broadcasters in Ireland are permitted to generate income from subscription fees and advertising, without any obligation whatsoever to invest in local programming.

SKY Television for example, broadcasts from the UK and is regulated in the UK. SKY earns an estimated €500 million annually in Ireland from TV & Broadband subscription fees. Additionally, their advertising revenue for this territory is estimated at €40 million per year. Sky’s growth plans for Ireland will clearly grow these earnings in the years ahead, most of which goes outside of Ireland.

This situation deprives domestic broadcasters of advertising revenue and places no obligation on foreign broadcasters to contribute to locally produced programming. It is bad for local public service broadcasting in particular, for the taxpayer who may have to stump up more in licensing fees to compensate, and for the independent production companies vying for a slice of shrinking budgets.

While acknowledging European norms, at national level Ireland should be at the forefront of demanding changes to this policy across member states with a view to creating a more equitable and balanced broadcasting environment.

It would certainly not be the first time a policy put forward by a small country found favour in Europe. The broadcasting environment has changed from being local to global and regulation must shift to mirror this. We ask you Minister, to review the lack of such local regulation of international players who are licenced to compete for business with local broadcasters without the obligation to locally produce programmes, as with that pertaining to local broadcasters.

Finally Minister, today in Ireland an opportunity is being lost to Irish film makers because of lack of support by our public service broadcasters. We believe this issue is important as there is no obligation on our public service broadcaster's to invest in indigenous film. Support of the local broadcaster is a key factor in achieving international finance for films. When the local broadcaster is not involved, film financiers are more reticent to invest. RTÉ’s reluctance to invest in film is an inhibiting factor in the development of the Irish film industry.

In other jurisdictions this is legislated for or there exists strong supportive policies by the broadcasters and we believe that legislation is the way to address it in Ireland.

In welcoming you Minister, to our AGM and we thank you for your time and continued commitment to our sector. We trust you will appreciate the growth potential we represent – both in terms of employment and inward investment and the contribution we make to Irish cultural development.

As our guest speaker this evening, we now invite you Minister to address our AGM.

Deputy Pat Rabbitte TD, Minister for Communication, Energy and Natural Resources.

Page 1 of 10

SPEECH BY PAT RABBITTE T.D.

Minister for Communications, Energy and Natural Resources

Screen Producers Ireland AGM, Westbury Hotel,

Thursday 29th May 2014

I am delighted to have been invited to attend the Screen

Producers Ireland AGM today. I want to take this opportunity to

congratulate the sector for its outstanding work and the

achievements of the industry. The audio-visual sector makes a

tremendous contribution to Irish society – to culture, to the

economy and to the lives of people. Indeed, I have heard

comments of late which give me great hope for the future of

independent productions in Ireland, such as that Ireland is the

‘country to watch’ and that ‘Ireland could be the next Israel’ in

terms of new formats.

When the current administration took office back in 2011, we

were faced with a media sector enduring very ‘challenging’

Page 2 of 10

circumstances. For five years, the Irish economy contracted

sharply and in 2012 real GDP was still 5.6% less than in 2008.

According to various industry estimates, overall advertising

spend in Ireland fell by around one third during this period, and

TV advertising fell by 25%.

Therefore at a time when there has been a great demand for

high quality television programming, it has become increasingly

difficult for broadcasters to source the revenue for its

production. I am well aware that the economic climate has had

a huge impact on the funding of broadcasters and on the

independent producers.

Independent commissioning activity is an integral part of RTÉ’s

output and, as you will know the Broadcasting Act 2009

Page 3 of 10

requires RTÉ to make specific amounts available each year for

the commissioning of television and radio programmes from the

independent production sector. It is comforting to me to know

that RTÉ’s investment in commissioned programmes, although

significantly lower than in the ‘boom’ years, continues to be in

excess of the required statutory spend, with expenditure

incurred of €40.8m in 2013.

RTÉ has been forced to cut its cost base dramatically, with a

reduction of approximately 30%. Significantly, the reductions in

commissioned spend represent about a quarter of that fall. I am

aware that SPI’s relationship with RTÉ has been adversarial at

times, no doubt reflecting RTÉ’s position in the Irish

broadcasting sector and the level of market power it was able

to exercise in relation to the fraught issue of ownership of

programme rights.

Page 4 of 10

The agreement between SPI and RTÉ of the ‘Code of Fair

Trading Practice’ in late 2013 was a very important step in

rebalancing this relationship. As part of my approval, I included

a provision that RTÉ should be requested to undertake a

review in consultation with SPI and the BAI of the workings of

the Code within a period of 18-24 months of the coming into

force of that Code. Given the level of change introduced by the

new code, I think it is only prudent that this should be the case

and I look forward to both parties engaging positively in the

exercise.

As you will recall, the BAI concluded its first statutory 5 Year

Review of the Funding of the Public Service Broadcasters in

July 2013. The Recommendations elicited a number of

responses from Government, not least the decision that

NewEra would conduct a detailed assessment of the scope for

further efficiencies to be achieved in RTÉ. This includes an

Page 5 of 10

examination of achievable efficiencies in its performing groups

service model and the manner in which it delivers Irish

language radio services.

As part of this review, NewEra has reviewed the scope for

optimising the use of independent productions in RTÉ’s

programme output. The review analyses the merits of RTÉ’s ‘in

house’ commissioning versus programmes commissioned from

the Independent Production Sector, including a cost benefit

analysis of each approach across a range of different

programme types. The review makes recommendations as to

the approach to be taken in future. My Department has

received the report in the last few days we are currently

examining it.

Simultaneously, and also arising from the BAI

Recommendations, Indecon has been preparing a report on its

Page 6 of 10

analysis of the advertising market. This too is in its final stages

and I hope to bring both reports to Government in the next few

weeks, paving the way for legislative change.

Gone are the days of a broadcasting landscape entirely

dominated by RTÉ. The advent of TG4 and the arrival of TV3

have served to reduce RTÉ’s significance in the market,

although it is still substantial, and there are now, of course,

other national and international commercial opportunities for

SPI members.

In particular, I welcome the new programming schedule from

TV3, with spend on originated programming exceeding 60% of

its content budget for this first time, and the introduction of UTV

Ireland into the market from January 2015.

Page 7 of 10

It is very telling, in my view, that in the face of the difficulties of

the last few years, Ireland has maintained its support for the

sector through the Sound & Vision Scheme. I am currently

examining the new Sound & Vision III scheme, as submitted by

the BAI.

While I cannot go into huge detail, I can say that one of

changes being examined to the current scheme is to allow the

BAI to reserve the right to relax the broadcasting requirement in

relation to certain applications or rounds if it is satisfied that it

will help assist in achieving the Scheme objectives.

The new scheme will hopefully be operational from early 2015.

This will be subject, of course to State Aid approval by the

European Commission.

Page 8 of 10

Since its inception, Sound & Vision has awarded in excess of

€120m to well over 2,000 programmes, including the recent

awards from Round 20, which saw independent producers

receive funding for over 18 projects. I know that you, the

production sector, appreciate the importance of this Fund and I

am confident you will welcome the amendments in the new

scheme.

I understand that negotiations are ongoing between the

Revenue Commissioners, the Department of Arts, Heritage and

the Gaeltacht, the Irish Film Board and industry representatives

to introduce the most appropriate regulations to ensure that the

changes to Section 481, due to commence in January 2015,

meet the requirements of the audio-visual production sector. I

am confident that a mutually advantageous outcome can be

attained.

Page 9 of 10

While it would be unwise to count our chickens before they are

hatched, I also understand that a period of positive

engagement between the Public Service Broadcasters, the BAI

and the Revenue Commissioners on the VAT issue is expected

to conclude shortly and the early indications are that an

equitable solution will be forthcoming on what has been a

difficult issue to resolve.

In many ways, the times we find ourselves living through have

exposed just how invaluable it actually is to have our own

national television broadcasters. They examine, explain and re-

articulate the difficult times we live through, reflecting our lives

back at us as we live them. They have acted as interpreters

and guides, as storytellers and analysts, and as guardians of

our story for future generations. The independent production

sector plays a significant part in this.

Page 10 of 10

As a small country, with our history, we should not take the

ability to tell our own story for granted.

I would like to conclude by complimenting the independent

production sector on its success in creatively and ably meeting

the diverse entertainment, education and informational needs

of the people of Ireland. Challenging times or no, one can but

hope that the Irish audio-visual sector will continue to grow,

evolve and thrive.

Screen Producers Ireland

Mr John Hennessy, Chairman of the Board

Chairman’s Report to A.G.M 2014

We can now proceed with the business of the AGM.

This is my first SPI AGM since joining the board as Chairman at the start of the year. I thank the

board for placing their trust in me as chairman.

As Chairman, I am focused on building on the work that Gaby Smith started, maintaining the

momentum and the progress of SPI in meeting its objectives.

I believe what is required of SPI is an outward facing representative organisation that is ready and

empowered to respond to the variety of challenges that present themselves in promoting and

advancing the development of independent film, television, animation and digital media companies

operating in Ireland.

The first step in achieving this is to provide coherent leadership and understanding the views and

perspectives of our member companies and stakeholders. During the spring we have built on the

work already done by the board last year and completed a strategic direction for SPI.

I am pleased inform you that the board recently approved a renewed SPI strategy statement for the

period 2014 – 2016.

This strategy will support us in our work to achieve better outcomes for our members.

Among the key objectives of our strategy will be to position SPI to be able influence state

organisations charged with developing the industry, to maximise its potential.

Devising robust and well researched policies is crucial.

Clearly communicating those policies to relevant parties is the key to getting SPI policies adopted.

I would like to see us devise a clear policy on broadcasting, a policy that maximise investment by ALL

broadcasters operating in the State, in content produced by independent producers.

We must clearly communicate the cuts to production funding which have been acutely felt by many

of you in the room today.

We must continue to build on our good relationships with stakeholders and extend links to other

appropriate organisations.

In order to achieve all of this we must also integrate the diverse objectives of the members we

represent. This will help us to clearly advise the direction of the organisation.

In the context of recent publicity around Corporate Governance, we must also review our Corporate

Governance procedures to ensure they are fit for purpose.

There are many challenges ahead and having an organisation that is ready and empowered to deal

with them is the corner stone to achieving our goal. As the voice of independent producers in

Ireland, we are uniquely placed to leverage our knowledge of the sector and deliver stronger and

more sustainable positions for our member’s organisations.

My focus will be to ensure the SPI aims and policies are communicated and that we have effective

relationships with all external parties whom we place demands upon. We have a small executive

team at SPI and I hope to ensure that both the board and the executive team stay focused on

delivering on our strategy.

I want to thank the board and executive for their contribution to the success of SPI last year and the

clear leadership provided to the sector. I also want to thank those who have served on the board sub

committees, Film &TV Drama and Animation committee, who have been a great support to the work

of the board in terms of appraising and evaluating the issues of importance and making

recommendations where desirable. These activities have been foremost in ensuring that the

domestic environment is conducive to the growth of screen producers in Ireland.

Screen Producers Ireland

Barbara Galavan, Chief Executive

Report to the A.G.M 2014

Good evening and thank you John.

As we all know, 2013 was another tough year as production funding continued to decline.

The official RTÉ figures for 2013 are not yet available.

However we understand commissioning spend remained at the minimum statutory level of approximately €40 million.

The Sound & Vision Fund was down significantly to €11.5 million from €15.5 million in 2012.

And the Irish Film Board capital budget also declined by a further 10% to €11.9 million in 2013.

These numbers were reflected in a decline in memberships for SPI in 2013 and our own funding from the Film Board was significantly reduced.

For those companies who didn’t renew their SPI membership, we understand it is not because they didn’t want to, it’s simply that the membership fee can be difficult to justify if you are not in production.

During this difficult trading period for the industry, SPI has maintained momentum and actually made some significant progress on a number of important issues.

The first of these is a long standing aim of the organisation.

To deliver on a policy of copyright retention by producers for independent commissions from RTÉ & TG4.

The first break-through in achieving our goal came in 2011.

That year we successfully lobbied the BAI to address the rights issue in their Code of Fair Trading Guidance Note for public service broadcasters.

And I am very pleased to report that in October of last year, after two years of negotiations between SPI & RTÉ, the Minister for Communications approved the new RTÉ Code of Fair Trading Practice.

It now provides for producers to be able to retain rights in their productions.

It is an important development for the sector.

It is something that most European countries aspire to but have not yet achieved.

We do hope it will contribute to building stronger companies in the future.

We will shortly announce a date in June for an information session on the new Code and new RTÉ contracts.

You will have heard an earlier reference to an industry VAT issue which arose during 2013. This was a decision by the Revenue Commissioners to change the VAT treatment of RTÉ & TG4 commissions & Sound & Vision Fund grants.

This issue was first brought to us by one of our members. Their problem arose as a result of their local districts refusal to accept that Sound & Vision Funds grants are outside the scope of VAT.

Ultimately this decision at local level led to the Revenue Commissioners issuing a proposal that seriously threatened to reduce overall commissioning spend in the sector by €6.5 million.

We often find ourselves on the opposite side of the table to the broadcasters and the BAI. On this occasion, all of the stakeholders came together to quickly address the issue with the Minister for Communications, the Minister for Arts and the Revenue Commissioners.

We were very relieved to hear recently that the policy has been reversed.

So VAT rates will not increase and all producer inputs will be recoverable.

Revenue will publish an e-briefing soon which will provide clarity on treatment of VAT across the sector and we will make sure this is circulated to the members.

On the industrial relations agenda, in 2013 we agreed to a referral to the Labour Court.

Since the SIPTU Shooting Crew Agreement was first signed in 2010, the SIPTU interpretation that ALL shooting crew had to be a member of the union had caused disruption on the ground. It also inhibited our ability to develop a functioning relationship with SIPTU.

Going to the Labour Court is not something that SPI Committees agree to easily.

But the Film & TV Drama Committee felt it was the best way to get clarity on an issue that continued to undermine relationships between producers and crew and the relationship between SPI and SIPTU.

The case was heard immediately after Christmas and the outcome was a comprehensive verdict from the Court that SIPTU’s interpretation was not valid.

Membership of any union is a matter of choice for any individual.

This was a very good outcome for us. It was a good outcome for the preservation of the Shooting Crew Agreement itself and the dispute resolutions clauses in that agreement that are now working well.

I know not everyone in this room avails of the film & TV tax incentive, Section 481 but I think we can’t underestimate the importance of it to SPI members.

And the success of the sector.

Many Film and TV drama projects utilise Section 481 but in recent years there has been a significant increase in animation and documentary projects also availing of it.

In 2013, the amount invested in S481 projects was in excess of €178 million.

Ensuring its continuance is an obvious priority for SPI.

In 2012 when Government first opened its public consultation on S481, we established the SPI S481 Working Group comprising SPI members and industry professionals.

Last year the Government announced a number of legislative changes to the scheme which will come into effect during 2015.

Principal amongst these was the change in the structure of the scheme.

From an investor based model offering up to 28% of eligible spend - to a company tax credit model offering up to 32%.

The increase from 28% to 32% was a very positive outcome but the details of how the scheme will work in practice still remain to be finalised.

And the current challenge we face is to find a workable solution to the retention of the early payment mechanism that exists under the current scheme.

An industry Technical Group comprising the Irish Film Board, SPI and a number of industry professionals has been charged with that job and is due to report back to the Revenue Commissioners and the Dept. of Finance in the next few weeks.

Another key item on the SPI agenda in 2013 was TV Formats.

In October we produced and published the SPI report ‘TV Formats Ireland, Exploring the Potential for Export Growth of Original I.P.’.

The report highlighted the opportunities that exist for producers developing original TV Formats and it made a number of recommendations which we continue to pursue.

As part of our ongoing work we participated and made written submissions to 5 industry consultations last year.

I was re-elected as a member of the Board of CEPI earlier this year- the Association of Producer Organisations based in Brussels.

This is an important position for SPI.

It gives us a strong voice at a European level and provides us with useful access to information about what is happening in our sector in other European territories.

Changes to the Broadcasting Act will be required to facilitate the universal broadcasting charge.

While not a particularly palatable thought for the Government to introduce a further household charge, it is in our interest to see the funding of the PSB’s stabilised.

We support the introduction of the charge and we will use the opportunity to lobby for changes to the Act that we believe are important.

We will strongly lobby for a doubling of the statutory spend and the introduction of a film commissioning policy.

Having the Minister attend our AGM today is an important step in communicating our message.

We will be launching a new SPI Website during the summer.

You will see some of our new visuals around you today.

Our aim is that it will be a useful resource for production companies.

We need a strong online presence that will reflect the quality and diversity of the work of our members.

Finally, we are a very small team in SPI with a broad agenda and I would like to take this opportunity to thank the staff of SPI for their hard work and commitment during the past 12 months.

Thank you for coming today.