Ireland missing out on big-budget productions by streaming giants due to cap on tax relief scheme for TV and movie makers

Ireland was missing out on big-budget productions of movies and TV shows from streaming giants like Netflix and Amazon Prime because a cap on a tax relief scheme was too low.

In a pre-budget plea, tourism and culture minister Catherine Martin said feedback from an official trip she made to L.A. suggested Ireland was simply not being considered because of its €70 million cap on tax relief for productions.

She said recent years had seen streaming companies in particular making ever-larger scale productions with correspondingly larger budgets.

In a letter to then-Finance Minister Paschal Donohoe last August, she wrote: “Feedback from Irish visual effects companies at my recent trip to Los Angeles, is that we are losing out to other countries in attracting major internationally mobile productions costing in the region of €100m. They do not consider Ireland, because of the cap.”

Concerns over “opportunism” and accommodation providers who would look to financially benefit from the crisis in Ukraine

Senior government officials warned of “opportunism” as they struggled to provide accommodation for refugees with suggestions put forward for using disused buses, seminaries, school gyms, an empty ferry terminal, and even the creation of two new fifteen-minute cities.

In internal emails, civil servants said they needed to watch out carefully for people who would look to financially benefit from the crisis, as had happened during the Covid-19 pandemic and other crises.

Brainstorming emails said the focus should be on “speed rather than perfection” including when it came to building standards and planning permission.

It said everything should be on the table including the use of seminaries, boarding schools, the army camps at the Curragh and Gormanstown, major stadiums, army housing, and churches.

One email said: “There is an unused ferry terminal in Dun Laoghaire [in Dublin] – the terminal could be used, and a ferry‐size boat could be used to house people in that dock. Cruise ships also an option. Ask all marinas to house three families – old boats are not expensive.”

It said even disused buses could be converted into accommodation while help could be sought from skilled apprentices in fitting out emergency lodgings.

These records were released following an appeal to the Information Commissioner after extensive delays in dealing with the request by the Department of Children and Equality.

Driver testers raised “serious health and safety concern” over allowing learners take their test in car without a valid NCT

Driver testers raised concerns they were being put at risk after the Road Safety Authority (RSA) changed rules to allow cars without a valid NCT to be used during a driving test.

The RSA temporarily relaxed rules around the obligation to have an up-to-date NCT because of long delays for motorists in getting an appointment to have their cars checked.

However, a union representing driver testers said the proposed changes presented a “serious health and safety concern” for their members.

In one email last October, they said they needed much more detail on what was being planned saying “the priority must be the health and safety of testers”.

A spokesman for the Road Safety Authority said there was a responsibility on motorists to ensure their car was always in roadworthy condition when driving.

He said: “At the start of a driving test, as part of the insurance declaration, all candidates are required to formally to confirm that their vehicle is in a roadworthy condition before the driving test can commence.

“Driver testers also conduct visual inspections before the driving test to check lights, indicators, brake lights etc. The policy only allows for an NCT certificate that has expired within three months of the driving test date and the candidate must show evidence of an imminent NCT test appointment.”

Road Safety Authority research flagged concerns over effectiveness of doubling fines with many Irish drivers feeling they are “unlikely to be apprehended”

Road Safety Authority (RSA) research raised concerns that increased fines for speeding and using mobile phones might not work as many drivers believed they were unlikely to be caught while others were not bothered by a potential doubling of fines.

In research submitted to the Department of Transport, the RSA said there was a perception there were “not enough [gardaí] policing the roads” of Ireland.

This meant many drivers felt they were “unlikely to be apprehended while engaging in traffic offences”, according to the paper.

The research paper was submitted to the department in August, a few months before the department announced fines for 16 road safety offences would be doubled from last October.

The report by the RSA’s research department examined multiple pieces of work from recent years on driver behaviour in Ireland.

They said a major concern was that less than half – or between 35 and 44% – of drivers had said doubling fines would have a positive impact on their driving behaviour.

It said more research was needed on how penalty severity, swiftness of punishment, and likelihood of apprehension would deter offending.

The RSA research also flagged “enforcement perceptions” particularly around the number of gardaí who policed the roads.

It said: “Enforcement is critical to the success of any penalty increases, as deterrence theory posits that people will not change their behaviour unless they believe they are likely to be detected, and then receive a swift and severe punishment.”

Department of Defence claimed it was “grossly inequitable” to take savings they made on military pay away from them

The Department of Defence said it was “grossly inequitable” they were to be penalised for making savings on military pay which they wanted to use to help plug gaps in rest of their budget.

In pre-budget discussions, the department’s secretary general told the Department of Public Expenditure there was a long-standing arrangement they could keep the cash they saved for military equipment, buildings, and other needs.

In a strongly-worded letter, the defence secretary general Jacqui McCrum said: “It has now been proposed that this arrangement should be discontinued with immediate effect.

“It is my very strong view that it is grossly inequitable to seek to change these arrangements midway through the National Development Plan and I would appreciate your assurances that this arrangement can continue.”

Ms McCrum said discussions between her department and officials at the Department of Public Expenditure in the run-up to Budget 2023 had raised a “number of issues of very significant concern”.

Trump Hotels say works to fragile sand dunes in Co Clare were to stop people “trampling and traversing” all over them

A hotel belonging to Donald Trump said they were trying to protect fragile sand dunes from getting trampled in the latest twist in a saga over the erection of fencing near his luxury Irish resort.

In a letter to Clare County Council, Trump International Golf Links and Hotel in Doonbeg denied they had carried out any unauthorised development on a nearby beach and dunes.

They said they had installed fencing to combat what they called “the regular trampling and traversing” of the dunes at Doughmore Strand.

The hotel said it had been causing “significant erosion” and was undermining the “fragile dune system” in the area.

In their letter, they said Clare County Council had themselves erected signage to try and keep people from walking up and down the dunes.

The Trump Hotel added: “However, the issue has persisted and this had led to further undermining of the dunes.

“In order to prevent further activity on and damage to the dunes, fencing was erected along the sea front. The fencing erected is similar to fencing which is already in place along the top of the dunes which is designed to stop people (golfers) from walking down the dune face.”

Trump’s hotel said works to manage coastal erosion had previously been allowed by the council and that “sand trap fencing” had long been part of those efforts.

Their managing director Joe Russell wrote: “We deny the existence of any unauthorised development on [the] lands … however, we are committed to engaging with the planning authority as part of this process and in respect of any future conservation management activities.”

Audit on attendance of prison officers finds glaring issues including one staff member off duty for five years before being dismissed

Concerns were raised over how the Irish Prison Service manages officers who take excessive sick leave with one staff member off duty for five years before they were dismissed from their job.

An internal audit looked at 99 cases where disciplinary action was instituted against staff who were frequently absent, and found issues in how more than 70% of the cases were handled.

It found cases where evidence to support the decision to issue a warning letter was not kept properly and where monitoring of attendance of those already given a formal warning was not done in time.

The report explained: “In one example, a period of four years had passed between the issues of an ‘A’ warning letter and ‘B’ warning letter despite continued poor attendance.”

It also found that in 21 cases – where poor attendance continued even after a first warning – no further warning letter had issued to the prison officer involved.

In one case, a prison officer was issued with a letter in September 2018 but were permitted to take part in an intervention programme.

However, by the time the case was examined in 2020, the staff member’s performance had not improved with the Irish Prison Service proposing another warning.

The audit remarked: “An intervention programme is expected to last three to four months, not two years.”

In another case, a letter was issued to a prison officer in October 2018 who told bosses they instead planned to avail of ill-health retirement.

“It is noted that the officer did not retire until July 2019, some nine months after the letter was issued,” said the report.

A third case found that a disciplinary letter was issued to a prison officer in May 2019; however, dismissal did not take place until June 2020.

The report said: “The officer had been absent from their post since 2015.”

County council ordered to pay back €170,000 in ineligible funding for development of a bog walkway

A county council was forced to pay back almost €170,000 in funding for a bog walkway after an audit found invoices with incorrect VAT charges, substantial errors in records, and work believed to have been double claimed using state grants.

The Department of Rural and Community Development said an application for funding for the project in Co Longford was not the same as what had been “delivered on the ground”.

The audit also said Longford County Council seemed to have been “double funded” for parts of the walkway with invoices transferred over to another grant the local authority received.

It said the council had not had all planning requirements, permissions, or consents in place when they began work on the Knappogue Bog Walk and that its true cost now “cannot be verified”.

The audit also found VAT overcharges with rates of 23% on some invoices submitted for work when a lower 13.5% rate should have applied.

It said there were “substantial errors on the compliance checklist submitted” to the department with auditors saying all €168,039 claimed in funding was ineligible.

The audit said: “The project applied for is not the project delivered on the ground and numerous funding agreement conditions have not been adhered to.”

The audit was just one of dozens carried out by the Department of Rural and Community Development, which were obtained under FOI by Right to Know.

You can have a browse through them below.

If you’re working in local media and find any that are of interest, feel free to use … and maybe give Right to Know a plug!

Rising interest rates were positive for Irish banks and meant time was right for state to sell another part of its stake in AIB

Interest rate hikes by the European Central Bank had been “positive for Irish banks” and meant the timing was right for the state to sell more of its share in AIB, according to Department of Finance documents.

In submissions to Minister Paschal Donohoe, department officials said investor appetite for AIB had increased “notwithstanding lingering concerns” of a recession coming in Europe.

They said feedback from investment banks suggested the state could easily sell a stake of between €300 and €400 million in AIB at a much better price than in the most recent previous share offload in June.

A submission said: “The recent ECB rate increases [are] positive for Irish banks as they are among the most rate sensitive banks in Europe.

“The consolidation of the Irish banking sector is driving growth for the remaining banks while there is continued earnings momentum from improved operating leverage.”

Department said global reform of corporation tax strengthened case for retention of generous tax relief scheme for highly-paid executives

The Department of Enterprise said there was an even stronger case to keep a special tax relief scheme for highly-paid multinational executives because of the international crackdown on tax avoidance.

In a pre-budget submission, the department said global reform of how corporation tax was levied made the case for the controversial Special Assignee Relief Programme (SARP) even more compelling.

It said there was a clear relationship between the location of key senior staff and corporation tax, which had been made “increasingly relevant” by international tax developments.

The submission said: “For intangible assets, the contractual right to an asset is no longer sufficient to establish the location of the asset for tax purposes.

“The decision makers, the people who control the risks relating to those assets in an operational and functional sense, must be located in the jurisdiction.”

It said Ireland needed to ensure its personal tax rates did not act as a deterrent to “key management staff … locating [here]”.