Irish Music-The Blueprint

THERE IS absolutely no doubt that additional wealth, and jobs, can be created in the music industry in Ireland. We said as much five years ago, and suggested a range of initiatives which the then government might have put in place to accelerate the process and give it a more permanent footing. Nothing was done but there has been growth anyway - the irritating truth is that it could have been considerably greater.

Some of the ideas we advanced then are equally relevant today, and have been repeated here. We have formulated others, which might also have a profound impact in terms of both generating wealth, and creating employment. None of them, in truth, should be difficult to put into effect.

At the risk of being repetitious, music is one of this country's greatest natural resources. South Africa has its diamonds, the Middle East its oil, France its food - we have our music. It should be seen in that kind of precious light. Irish bands, songwriters and artists have proven that they - that we - are very, very good at this thing. Without any kind of government strategy, an enormous amount has been achieved. Much more can be.

The thinking behind the establishment of the Irish Film Board is encouraging. Precisely the same kind of approach is necessary in music, and the potential returns are arguably even greater. Ireland has the capacity to become a world centre of musical creativity, with dozens of international artists and producers basing themselves here and Irish acts being given every possible incentive and opportunity to flourish and to grow.

But to achieve this we must look at policies and structures, from the bottom up. Nor indeed, is the ball entirely in the government's court, as you will see.

Here, then, is a range of ideas and initiatives. Let's do it!

1. The formation of an Irish Music Board to co-ordinate all the activities in the Irish Music industry.

This would be structured and funded along similar lines to the Irish Film Board, and would have a similar brief - to assist in the development of local songwriting, recording and production projects. It would also assist in the marketing and promotion of these and all other Irish-originated recordings internationally. A target could be set to match government investment with funds from the music industry. There is for example a lump sum, currently about £1 million, held by the PPI in an escrow account. This money was formerly given to the Federation of Musicians out of Photographic Performance royalties generated in Ireland, to assist musicians here at a grass roots level. Some years ago the practice of paying this to the Fed. was stopped, and the money was banked by the PPI, pending a decision on how to distribute it. The Irish Music Board would provide the perfect vehicle. Other sources of revenue are suggested below.

2. Extend Section 2 of the 1969 Finance Act which accords tax-free status to artists to record producers.

Recording is a highly labour intensive activity, involving studio personnel, session musicians, back-up technicians, hire companies, roadies etc. It is also very producer-driven. If even ten major international producers were to base themselves in Ireland and to use Irish studios, the level of activity in this sphere could be more than doubled. There would also be an enormously beneficial knock-on effect for local talent, with producers talent-spotting Irish bands, and becoming far more accessible to Irish songwriters and publishers in search of elusive cover versions. Given that there are very few successful producers based here, the cost to the Exchequer would be minimal.

3. Allow all songwriting and record production activities tax free status under Section 2.

Currently the Revenue Commissioners decide whether a particular songwriter's work is of artistic or cultural merit, and allow it tax free status or not, on that basis. In the context, it could happen that Chris de Burgh might be accorded tax free status on his songwriting and A House denied it. Since 80% of Irish songwriters are known to collect some form of social welfare benefits, and most of the major Irish-based acts are likely to be granted tax free status, again it would cost the Exchequer little or nothing to make this a blanket provision, which would eliminate the potential for anomalies. Tax statements would, of course, still have to be provided and income from performing would be liable to tax at the standard rates but the very absence of bureaucracy, and the clarity which this would entail, would make the concept far easier to market abroad and far more likely to generate wealth and create jobs at very low cost.

4. Create incentives for the recording of film theme music in Ireland and for the use of Irish copyrights in film soundtracks.

The film and music industries should work hand in glove. Already through the efforts of Irish Film Orchestras, a significant number of film soundtracks are recorded here, creating employment among musicians and in studios. However the target, working with the Irish Film Board, should be to have all films produced or shot in Ireland use Irish soundtracks. Incentives already formulated to bring film production here could be customised to include this additional component.

5. The introduction of a Home Recording Levy to cover both sound and video recordings.

The primary purpose of this income is to compensate copyright owners, whose work is exploited or re-used in the context of home taping without remuneration. However, a cultural deduction is accepted as the norm in Europe and we would suggest a figure of 40%. Revenue generated in this way could be used to fund the Irish Music Board. It is imperative, one way or another, that this income should be used to fund musical activities and not be covertly soaked up by the Exchequer.

6. The introduction of an Irish Music Quota on all Irish radio stations.

Whether this is done by legislation or by directive is irrelevant. In their original submissions, in which they were granted licences, all of the independent stations made binding commitments to support Irish music. Stations should therefore be told, unequivocally, that unless they play a minimum of 40% Irish music their licences will not be renewed. RTE stations should be covered by this directive, with Radio 1, 2FM, Radio na Gaeltachta and FM3 each taken on a stand alone basis. Stations should also be instructed to make a complete log of all tracks played, for the entire duration of their broadcasting. Not only would this ensure the equitable distribution of royalties, it would also simplify the process of monitoring output. There is no doubt - as has been proven in Canada and France - that an increase in the sales of Irish material would follow. Not only that but up to £2 million in performance royalties would remain in the Irish economy. The higher levels of local success which would flow to Irish artists would also provide a far better platform for launching bands and artists internationally.

7. Create tax breaks which make it more cost effective for both Irish and international artists to record in Ireland.

Because of the higher level of investment involved in setting up studios here, and as a result of our peripherality, it is currently difficult for Irish recording facilities to compete with UK studios in terms of pure cost. As a result numerous Irish acts record their albums in Britain. In addition to the incentives outlined earlier, a clear and unequivocal agreement on the definition of recording as a manufacturing activity and therefore subject to 10% Corporation Tax would allow Irish studios to market their services much more effectively at home and abroad. Section 35 of the Finance Act 1987 should also be amended to provide for relief for individual investors in film, television, video or music productions up to a maximum of £50,000 in any tax year, and to increase the existing limit for companies up to £250,000.

8. The updating of Irish Copyright Laws to reflect the changes in the technology and transmission of creative works.

For the first time ever, it now seems certain that Ireland will have a wholly Irish-based Irish-run royalty collection agency, with IMRO fully taking over the collection and distribution of performance royalties from the PRS. It is an opportune moment to take a renewed look at the whole area of Copyright Law with a view to establishing Ireland (a) as a prime location for European-wide publishing companies, and royalty collection and distribution agencies, fulfiling the needs of the huge international trade in music services and (b) as a base for the satellite diffusion of music repetoires through 'electronic highways', a new technology which is still in its infancy but which may re-write the script in terms of how music is purchased and 'consumed' globally.

9. The establishment of an Irish short-wave radio station to broadcast Irish music to the world.

Of necessity this would be a low-cost operation with the Irish diaspora as it's primary target. Existing programmes could be purchased from RTE and from independent stations - e.g. the Dave Fanning Show, but the objective would be to tune the world in to Ireland and to Irish music. The station would offer a very appropriate promotional vehicle for Irish products operating in the global market - Jameson, Guinness, Baileys etc. At the other end of the spectrum, a US-style college radio station should be established in Dublin, with a brief to satisfy the 14 to 24 year age group who are currently without any real choice in radio terms, and with a stipulation to exceed a 50% Irish music content if possible.

10. An initiative along the lines of the Job Training Scheme to bring Irish musicians and music business technicians in from the black economy.

This is one of the most complex areas but none the less important for that. A lot of people in the start up stages of the music industry collect the dole. They can then, often, be cut off summarily even when in fact their work is effectively generating no return, with all the income being absorbed by operating expenses. Hot Press previously proposed a Band and Musician Registration Agency - which would allow people to go legit. Instead of collecting dole, they could be paid a Job Training Allowance of, say, £70 per week with any income earned on top of that becoming taxable in the normal way. This would reflect the reality - that musicians, roadies, sound engineers and lighting people are in fact training themselves and investing in creating jobs for themselves in the long run. This facility should be open for a minimum of two years.