Changes to the planning laws promoted by former minister for the environment Alan Kelly paved the way for plans to build a new international film studio in Poolbeg in Dublin.
According to sources familiar with the project, changes to rules for strategic development zones (SDZ) were crucial to the project, which is expected to be announced in the coming weeks. “It removed the planning risk from the financial projections,” said one informed source. “It gives it certainty.”
While he was minister, Mr Kelly introduced amending legislation last year that gives more flexibility to the SDZ planning process, allowing for changes to be made as the project proceeds without new planning permission being required. Under SDZ rules, planning permission for such projects within the designated zone can be fast-tracked. However, they were viewed as unnecessarily rigid by the industry.
“It was common sense,” Mr Kelly told The Irish Times. “I felt it was necessary to change the way the SDZ works to give it more flexibility.”
The Labour TD also brought forward proposals to designate the Poolbeg area – which includes the old Glass Bottle site, as well as nearby sites – as an SDZ before he left office. It was approved by the Government last week.
An entry on the register of lobbyists indicates Mr Kelly was lobbied in support of the project by U2 frontman Bono.
Work is now beginning on drawing up the SDZ plans. According to the Department of the Environment, the designation clears the way for planning to begin for “major residential development, commercial and employment activities including, office, hotel, leisure and retail facilities, port-related activities and the provision of educational facilities, transport infrastructure, emergency services and the provision of community facilities including health and childcare services, as appropriate”. It is expected that up to 3,000 homes will be built on the site.
“It is anticipated that the planning scheme will be published later this year and, subject to it being confirmed, the first consents and developments thereafter should begin in 2017,” the department says.
There has been a widespread welcome in the film industry for the news of the new studios.
Barbara Galavan, chief executive of Screen Producers Ireland, an industry group, said a shortage of studio space had been hampering the development of the indigenous film industry and also the capacity to attract big budget projects.
Given the shortage of studio space, film-makers say they have been scouring for warehouses and unused buildings to build sets in recent years.
“Producers have been using vacant office space, empty factories – whatever they could find,” says Ms Galavan. “Clancy Barracks was used for a few productions until it was needed for 1916 commemorations. The partly developed Kilternan hotel – that was used.”
But with the economic recovery, many of those spaces are now being used for their original purposes, further restricting space for film production. The construction of large stages – huge soundproof rooms where indoor sets are built and films shot – will attract bigger productions and generate a local ecosystem for film-makers, industry sources say.
Attractiveness
Changes in the tax regime by Minister for Finance Michael Noonan have also transformed the attractiveness of Ireland as a venue for big and medium-sized productions.
The old film tax incentive scheme was directed towards individual investors, who received tax breaks for the funds they injected into qualifying film projects. That has now changed to a corporation tax model. Instead of individual tax breaks, now the companies that make the films can get a corporation tax credit.
Crucially, the credit is refundable – it can be drawn down from the Revenue during the production of the film.
