The Film Industry: Government Policy (Hansard, 17 May 1989)

§ Lord Strathclyde
My Lords, the Government maintain the view that their film policy offers a sound framework for the industry to operate successfully on a commercial basis. I understand that there will be a strong British presence in Cannes this year, with many British films being screened, though not in competition. I am sure noble Lords will join me in wishing the industry every success in its promotional activities in Cannes.

The Viscount of Falkland
My Lords, I thank the noble Lord for his Answer—a somewhat bleak one from my point of view. Of course we have films at Cannes but they are not in competition. That is the point, as I hope the Minister has grasped from my Question. Is he also aware that in 1987—and there is no reason to believe that the figures have not become worse—more was spent on television commercials, some £250 million, than on feature film producton? The figure for that is just under £200 million.
Does the noble Lord consider that it would be an incentive to new investment in films, bearing in mind that a feature film now costs about £4 million, that the upper limits of the BES scheme should be raised from £500,000 to a somewhat higher figure? That might well be an incentive for new investment.

§ Lord Strathclyde
My Lords, that is a very interesting suggestion which I shall pass on to my noble friend the Secretary of State. The Government always welcome further representations from the industry. Perhaps we may see whether there are specific areas which they could examine further.

§ Lord Harmar-Nicholls
My Lords, is my noble friend aware that the potential, both in terms of money and national prestige, that is available from the film industry and the theatre is very great? Perhaps it deserves a slightly more positive approach from the Government than his Answer seems to indicate.

§ Lord Strathclyde
My Lords, I thought that my Answer was rather encouraging: that the Government are always keen to listen to further representations from the industry. As I said, I shall pass on the comments to my noble friend the Secretary of State.

§ Lord Williams of Elvel
My Lords, is it the case that the Secretary of State was due to visit Cannes in order to encourage the British film industry and that the visit was cancelled? Is it also the case that he has been to China, Japan and other parts of the world? We see him here, we see him there. Would it not be sensible for him to concentrate on encouraging this very important industry by paying a visit to Cannes in order to ensure our export earnings? After all, they are of substantial importance compared with our investment.

§ Lord Strathclyde
My Lords, of course my noble friend was extremely keen to go to Cannes this year. Unfortunately, as Secretary of State he has a busy schedule and at the last moment the visit had to be cancelled. He left for Japan this morning. He much regretted not being able to go to Cannes, and of course I regret that he did not ask me to go in his place!

§ Lord Auckland
My Lords, can my noble friend say how many British studios are at present producing British films? Does he not agree that British films have an important export potential?

§ Lord Strathclyde
My Lords, we have a balance of trade surplus in the sale of films and television programmes. I am not sure of the exact figure for film studios in operation in the country at the moment. However, one of the problems that worried the film industry in the past concerning the Elstree studio is now solved. It has been saved for future film production.

§ Lord Dormand of Easington
My Lords, is the Minister aware that some of us are not unduly concerned about the lack of a British film in competition at Cannes because the films are chosen by one man and we do not think too much of him anyway? However, having said that, surely he agrees that we have some of the best film-makers in the world. One of the factors that inspires some of us who are interested in the film industry is that the best American producers and directors come to British studios and use the facilities. Why are the Government so paranoid about helping the film industry? The Question simply asks for a review. What special circumstances are there in which this Government would help the British film industry?

§ Lord Strathclyde
My Lords, the noble Lord is of course quite correct about the competition at Cannes. The films chosen for competition are chosen by one man, who is French. However, before that is taken the wrong way, I should point out that the French also have no films in the competition. The Government have done a lot in the past to help the British film industry. As I said in reply to an earlier supplementary question, the Government continue to review the policy towards films so that we may have a successful film industry. I should also add that in the recent Oscar awards British people won five Oscars. That is a notable achievement.

§ The Earl of Onslow
Surely it is not right that anyone should subsidise, either through government grant or tax relief, any entertainment industry. If a film is not good enough to attract the market, it should not be subsidised by those who do not wish to see it.

§ Lord Strathclyde
My Lords, my noble friend is of course philosophically quite sound when it comes to this Government's ideas. The Government's main thrust over the past few years has been to ease deregulation in the industry in order to aid its expansion.

§ Lord Graham of Edmonton
My Lords, when the Minister looks at the possibility of a review of the film industry, will he bear in mind that the employees in the industry can make a valuable contribution through their experience and their background? Does he not realise that their livelihood is at stake?

§ Lord Strathclyde
My Lords, I shall certainly pass on that point.

The Viscount of Falkland
My Lords, I shall not follow the noble Lord down his rather xenophobic path. However, I was fairly encouraged by his earlier answer to a supplementary question. If he and his department are prepared to meet members of the film industry, will the department consider possibly changing the procedures whereby the finished negative of a film is viewed as plant and machinery and qualifies for only a 25 per cent. write-off? If that could be changed, it would be an enormous incentive to film-makers in this country. In other countries better terms as regards write-off prevail.

§ Lord Strathclyde
My Lords, that is film tax policy, which is decided by the Treasury and my right honourable friend the Chancellor of the Exchequer. However, that is certainly something that the Government will continue to look at.

§ Viscount Mersey
My Lords, is my noble friend aware that the British film industry viewed as a whole is doing rather well? I have here the British National Film catalogue for the last quarter of 1988, which lists a great many films. Is he further aware that the reality of films is neither Jody Foster nor Cannes, but rather those entitled "Profits From Plywood" "Fast Food Services" and "Studying a System: The Dental Practice"? This is the kind of thing that films are made of. Does my noble friend 1180 wish me to list the titles of the remaining 286 films made in the last quarter of 1988?

§ Lord Strathclyde
My Lords, I thank my noble friend for that list. There are many other titles which I am sure noble Lords will have heard of such as "Scandal" and "A Fish Called Wanda". I am sure that the document can be found in the Library and that any noble Lord can look it up.

§ Lord Marley
My Lords, is my noble friend aware that a most important contribution to the British film industry is the fact that the re-edited version of "Lawrence of Arabia" opened the Cannes festival?

§ Lord Strathclyde
Yes, my Lords. That is also a very notable achievement.