The occupancy rate at Troy Studios in Limerick plummeted to a mere 5% when a local enhancement to the Section 481 cinema sector tax relief diminished and eventually ceased, according to information shared at Wednesday’s Oireachtas media panel.
Elaine Geraghty, current director of Ardmore and Troy Studios, spoke of the importance of this supplemental tax break for regional production in the justification of Ardmore’s previous owner’s acquisition of Troy. Following the loss of this tax relief, the studios, situated in Castletroy at the previous site of the Dell factory, immediately felt the adverse effects and missed opportunities as foreign productions opted for different countries.
“In the initial three-year period, we enjoyed near full occupancy – around 95%. But in the recent two years, it’s dropped to just about 5%,” Geraghty shared.
Last year Hackman Capital Partners, a US studio group, bought both Ardmore and Troy Studios. Geraghty assured that the firm has a strong commitment to running Troy, and disclosed that it’s not on the market. Currently, the company is actively seeking a major returning TV production that would utilise the 350,000 square foot facility for a projected period of “two to three years”.
She also discussed a case where a small-scale production based in Troy estimated that the additional expenses incurred by operating outside the primary Dublin-Wicklow production hub were 8%, with increased costs related to crew, transport, and accommodation.
The Oireachtas panel is looking at industry-wide requests for an alternative incentive to the former regional uplift, which, in 2019 and 2020, increased the Section 481 tax relief from 32% to 37% in some areas before eventually decreasing.
Also addressing the panel, Screen Producers Ireland (SPI) proposed a 10-year plan to drive regional production. SPI’s strategic policy director, Anthony Muldoon, stressed the need to tackle and eliminate challenges faced by the industry in outlying regions.
The UK’s recent decision to offer a 40% film tax relief for projects with budgets up to £15 million (€17.6 million) sparked debate amongst the committee, as observed by Ms Geraghty, who fears such a measure could pose a significant risk to the vitality of the Irish film sector. Furthermore, Animation Ireland’s CEO, Ronan McCabe, underlined Ireland’s notable creative impact globally, despite falling significantly behind other nations, including the UK, in terms of providing adequate investment reliefs and production tax benefits. This deficiency, he warned, could result in a reduction in international business interest and may potentially push Irish producers to contemplate moving their productions out of the country.