HC Deb 18 March 1946 vol 420 cc1536-40
Sir S. Cripps

I would like, with the permission of the House, to make a statement about the action I propose to take on the Report on tendencies to monopoly in the cinematograph film industry. One consideration which I have had to bear prominently in mind has been the fact that the Cinematograph Films Act, 1938,is due to expire in 1948. Comprehensive legislation dealing with film problems will, therefore, need to be introduced before the time when the Act expires. Adequate safeguards on several points which are stressed in the Report are furnished in the meantime by existing undertakings given by Mr. J. Arthur Rank and by the chief shareholders of the Associated British Picture Corporation Limited. These undertakings freeze the status quo as respects the control of the major vertical combines, preclude any unauthorised expansion of any of the three major circuits and prevent Mr. Rank's organisation from acquiring control of additional studios. An opportunity for more formal and more permanent measures to take care of these points, in so far as further measures may be necessary, will be afforded by the new legislation.

In the meantime, however, I am impressed by the fact that, owing to the number of cinemas which the three major circuits control, particularly in the Greater London area, a booking by one of these circuits is now virtually indispensable to the successful exploitation in this country of any major British film. Iconsider that this situation is fraught with hazards to independent film production, and, in order to minimise these hazards without disturbing existing cinema holdings at a time when cinema values reflect the high recent levels of attendances, I have decided to seek undertakings that the three major circuits will allot a portion of their screen time to the films of independent British producers as an addition to the amount of screen time which they must alread allocate to British films under the 1938 Act. The selection of films for this purpose will rest in the hands of an independent Board to be appointed by myself. I have not finally settled the composition of the Board but it seems clear to me that it should include representatives of the circuits and that a proportion of its members should be drawn from outside the industry I am glad to say that both Mr. Rank and the Board of the Associated British Picture Corporation have expressed their willingness to co-operate in the formulation of such a scheme, and precise undertakings are now being worked out.

The Report also expressed concern with respect to a number of trade practices, which are now and have for a long time past been current in the industry, and recommended the establishment of a tribunal with wide powers of compulsory arbitration in cases of dispute between the industry's different sections. All interested sections of the industry have expressed their opposition to this proposal, but at the same time all have expressed their willingness to have recourse to unofficial arbitration on a voluntary basis in connection with disputes over trade practices which cannot be compromised by negotiation. I understand further that a Joint Consultative Committee of renters and exhibitors has already been set up and has made substantial progress on the difficult question of "barring" clauses in exhibition contracts. I believe, therefore, that thetribunal proposal in the form in which it was put forward would impede the ordinary day to day business between producer, renter and exhibitor, and I have accordingly decided not to adopt this particular recommendation at the present time It will, however, be the duty of the new independent Board to ensure a fair deal for the independent producers and to this extent the primary object of the tribunal proposal will be met.

Mr. W. Shepherd

May I ask why it is necessary to set up a Board to select the films? Why cannot they be selected by the exhibitors themselves?

Sir S. Cripps

Because as far as the three circuits axe concerned, they desire, as we do, that there should be an independent body to deal with the matter.

Colonel Ropner

Does the right hon. Gentleman ask us to understand that he is backing free enterprise, and healthy competition in this industry?

Mr. Speaker

That does not arise.

Mr. Godfrey Nicholson

Will the Board have, as it were, terms of reference? Will they select films on their artistic merits, or on what basis?

Sir S. Cripps

Presumably a Board on which the exhibitors are represented will select films from the point of view of returns in the cinemas and the general value and quality of British films

Colonel Ropner

On a point of Order, Mr. Speaker. Could you make clear, with great respect, why my question is ruled out of Order? I understood that the whole point of the statement we have just heard was to assist the industry. I am not clear why my question was ruled out of Order.

Mr. Speaker

Personally Ithought it a little wide and a little irrelevant. I commend to the hon. and gallant Gentleman the evidence given by the acting Leader of the Opposition on supplementary questions, which I have found very helpful. I recommend hon. Members to study this.

Mr. Oliver Stanley

I do not quite understand why the right hon. and learned Gentleman compared this new agreement with regard to the films of independent producers with that of the quota that they have already under the Act Of course, under the existing Act they have to allot a certain amount of their time to British films, but they are entirely free to choose which British films. I cannot see why the same thing was not adopted here

Sir S. Cripps

The reason was that both the representatives of the circuits and we ourselves thought it would be looked upon by the independents as being a fairer deal than if they were left in the hands of the circuits, certain of whom, they might feel, might not like particular independents and would not show their films. In view of this, it was considered desirable that there should be some independent body.

Mr. A. Lewis

May I ask my right hon. and learned Friend whether he would favourably consider having the Workers' Film Association represented? Also, may I ask whether it is his intention that the appropriate film trade unions should be represented on the Board, and that they should be drawn into consultation?

Sir S. Cripps

I do not expect to have any representative people on the Board at all. The Board will be selected of people suitable for its purpose.