Minister for the Arts John O'Donoghue was in upbeat mood last night as he performed the official opening of the Irish Pavilion at the 58th Cannes film festival.
Asked about the fact that the Irish Pavilion is located between the Iranian and US pavilions, Mr O'Donoghue replied: "It's okay - we're neutral."
The main international spotlight yesterday, however, was on the red carpet where director George Lucas led in the stars for the premier of his latest Star Wars movie.
The Irish contingent was in good spirits after the news Irish screenwriters Brian O'Malley and Terry McMahon received in Cannes at the weekend - that their project, Sisk, which had already won the Irish Film Institute's Tiernan MacBride international screenwriting award, had become the first entry to receive the prestigious Hartley-Merrill Prize for international screenwriting.
The Irish entry, which won out over 2,000 entries from 23 countries, deals with an ailing ex-gangster who returns to Dublin and finds himself caught in a bloody battle between Irish criminals and Chinese Triad gangs.
"We must accentuate the positive. Ireland is in the embryonic stages of attracting inward investment in film and we have a long way to go. It's not just the Government that has to do this. It requires the co-operation of everyone in the Irish film industry," Mr O'Donoghue said yesterday.
He described the retention of the Section 481 incentive scheme for investment in film production, now extended to at least 2008, as "a critical decision for the Irish film industry", which has "already impacted on Irish film activity."
However, noting that the Irish film industry recognises that it is operating in a highly competitive business, he said:
"There can be no such thing as standing still, resting on our laurels, or regarding the job as complete. In this context, I welcome ongoing feedback from the industry about what concerns you, where you feel we are perhaps less strong, where our strengths are most pronounced. I will certainly reflect on how I, as the Minister responsible for film, can best respond to your concerns."
The Minister added that the trade unions must come to an agreement ensuring that the best possible climate for industrial relations is in place to attract inward investment. "That should be possible given that social partnership has played such an important part in the success of the Irish economy."
He also addressed concerns about abuse of the section 481 scheme "by a very small, but very damaging, number of people".
"When the Government extended the scheme, we improved arrangements for scrutinising and verifying applications, and I believe that confidence in the scheme has now been restored."
Acknowledging the problems in attracting inward production to Ireland because of the strength of the euro against the US dollar, Mr O'Donoghue said it was important to stress that Ireland has a lot to offer incoming film producers, apart from tax incentives.
"Our locations are excellent and offer urban, period settings, coastal, mountain, forested and rustic locations, all within short distances of each other. Our country is safe and welcoming to visitors. We speak English. We have quite low levels of bureaucracy, and those making films in Ireland can achieve easy access to very senior people, both in the Irish Film Board and in Government, far more easily than in many other locations.
"We have quite an informal 'can do' attitude, with a flexible approach to overcoming any obstacles that may arise, " he added.
To further encourage inward production, he announced that the film board will appoint a deputy film commissioner, based in Los Angeles, to liaise with the major Hollywood studios.
He paid special tribute to Mark Woods, who is leaving his position as film board chief executive in July after two years in the job. "He has been greatly impressive, imaginative and innovative, and on behalf of the Government, I thank him for that."
After his speech, Mr O'Donoghue told The Irish Times that it is essential for the Department of Arts to address the governance of the Abbey Theatre.
"It's very difficult to take the Arts Council out of the equation completely," he said. "The Arts Council should retain a role, but the Department of Arts needs to take a hands-on role. The present governance system at the Abbey has to be slimmed down. It is more in keeping with 19th century business practices and it needs to be brought into the 21st century."
The Minister will attend the film festival until Wednesday. He plans to see several movies in Cannes, including the award-winning Irish drama, Omagh, and he will take to the red carpet to attend two world premieres - French drama Joyeux Noel, set during the first World War, and the new Jim Jarmusch film, Broken Flowers, which stars Bill Murray, Jessica Lange and Sharon Stone.