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Irish Film Board Announces €6.35 Million Fund to Support Irish Film Producers ...

Company Development Initiative

Background
Over the last seven years the Irish film & television industry has developed from a marginal level of activity to an estimated annual turnover of €200m in 2000. The resurgence of this industry in Ireland has seen the emergence of a pool of young writers, directors and producers with the confidence, talent and crucially more recently, the experience to bring their films to the international marketplace.
This resurgence coincides with major developments in that international marketplace; the explosion of demand for product driven initially by the growth of European satellite and cable Pay-TV networks, more recently by the emergence of European multi-national media conglomerates and rights traders funded by buoyant stock market flotations. Underpinning all this activity is the rapid development of digital technology with yet to be defined consequences for all players, but leading to an inevitable growth in demand for content, particularly fiction produced in the English language.
In order to facilitate the continued growth and development of Irish production companies, and to enable production companies with international ambitions to compete at that level to attract talent and finance to their projects, the Irish Film Board has launched a Company Development Initiative.
This initiative is designed to enable a number of Irish production companies take advantage of the market conditions described above and is a direct response to key recommendations of the Kilkenny Report with its emphasis on development.

Objectives
The industry to date has been served by a number of entrepreneurial producers who have typically operated small companies with limited overheads and have been single-project focused. This has meant that few producers have been able to produce more than one feature film every two to three years.
In order to facilitate the emergence of a number of medium sized production companies over the next five years, Bord Scannán na hÉireann/the Irish Film Board has introduced a slate-funding scheme for a period of three years. It is envisaged that the securing of a funding commitment for a three year period will allow a company the continuity and the autonomy to develop long term strategic plans to manage their growth and development, while at the same time leverage that same funding to draw in matching funding from other sources.
We recognise however, that the enhancement of a company's creative development capability, must go in tandem with the development of an appropriate commercial management structure, we therefore aim to encourage the capitalisation of these production companies through the facilitation of matching funding of a private equity/debt finance nature.
We are therefore delighted to announce that Anglo Irish Bank have agreed in principle to participate in this initiative and to provide debt funding of up to €1.9m for the three year period. The Board is confident that the participation of a private sector commercial bank will greatly strengthen the commercial viability of the companies in the initiative.

Slate Funding
Under the CDI, Bord Scannán na hÉireann/the Irish Film Board proposes to select a number of companies, initially up to five, and commit development funding of up to €210,000 pa for three years for a slate of projects proposed by the company. The commitment for funding for the three-year period will be subject to the initiative's conditions being met on an ongoing basis.
Successful applicants will be selected by a panel making assessments based on the following criteria:

1. The development and production track record of the applicants - it will be expected that successful applicants will have a strong track record in developing and producing projects similar to those in their proposed slate.
2. The proposed slate - the editorial strength and commercial potential of the proposed slate will be evaluated.
3. The business plan - the business plan of the successful applicants must be convincing and tailored to develop and manage the growth of the business as envisaged by the applicants. The business plan and supporting documentation must clearly demonstrate the company's current actual need for funding and its ability to generate sufficient turnover in the future to repay the slate funding. In order to facilitate the raising of matching monies by companies Anglo Irish Bank will in principle provide debt funding of up to €380,000 over the three year period for successful applicants.

The bank debt will be limited recourse in respect of all activities of the funded production company.
Application Procedure

1.     Expression of Interest
In May 2001, the Irish Film Board invited Expressions of Interest from production companies who wished to be considered for slate funding. Expressions of Interest gave a comprehensive outline of the proposals, together with a CV for each of the principals and a brief overview of the proposed slate of projects.
The closing deadline for the receipt of Expressions of Interest was Friday 29th June 2001.
2.     Detailed Slate Funding Applications
Following receipt of Expressions of Interest, a number of companies have been invited to submit more detailed and comprehensive applications, to include a business plan and to incorporate the specific requirements of Bord Scánnan na hÉireann and where appropriate the Bank.
Short-listed companies will have until 30th September 2001 to submit final applications.
The Board expects to announce up to five successful applicants by October 2001.

Existing Development activity
Whilst this initiative should enable leading companies to consolidate and expand, the Board will continue to work with newer companies and those who prefer to engage with us a on single project basis. The funding of single project development will continue to be our primary focus both in terms of manpower and financial resources.
Expenditure on development has increased dramatically from €510K in 1998 to €1.65m in 2000. The Film Board has three application deadlines every year for development funding, and decisions are based on independent script assessment, together with the recommendations of the executive.
Given our increased resources we plan to introduce a continuous form of application for single project development funding by the end of 2001 to further facilitate those producers who do not avail of slate funding.

Future Slate Funding
Once a twelve-month period from the selection of up to five successful slate funding applicants has passed, the Board will be open to Expressions of Interest on an ongoing basis from producers who would like to be considered for slate funding. If the Board receives applications that are sufficiently convincing we will select that company for slate funding for three years from that date, on the same basis as the original recipients of slate funding, with the important proviso however that it is not expected that the bank will choose to participate further phases of the initiative. Any future slate funding in addition to the five companies we now propose to fund is subject to the availability of Board funds at that time.

Rod Stoneman, Chief Executive.