§ 23. Mr. Blackburnasked the President of the Board of Trade what is the total amount of the dollar earnings of American films imported into this country in the first 12 months since the introduction of the 45 per cent. film quota; and what information he possesses as to the use to which the balance of such earnings not paid in dollars is being put, or is to be put, in this country.
§ Mr. H. WilsonWith effect from June, 1948, the amounts remittable in dollars to America in respect of the earnings of American films imported into this country have been limited by the Film Agreement of 11th March, 1948, to 17 million dollars 738 a year, plus the return of the dollar revenues accruing to British film producers in respect of the net earnings of their films in America. The total amount which would have been so remittable within the last 12 months in the absence of this limitation must have been of the approximate order of 45 million dollars. The balance of unremittable sterling is being or will be applied to the various purposes specified in the Agreement, which in particular include film production within the sterling area.
§ Mr. BlackburnDoes not the President of the Board of Trade think that there is a very serious difference between the 45 million dollars and the actual 17 million dollars which were paid? In the circumstances, will he not review the whole subject urgently. We cannot afford to go on paying dollars to America for films.
§ Mr. WilsonThe 45 million dollars are those which have been earned by American films in this country and not the amount which has been remitted. It represents a very considerable reduction on figures for previous years.
§ Mr. BlackburnIs it not a fact that the difference between 45 million dollars and 17 million dollars is being invested in this country, and also that there is a net loss of dollars inasmuch as we have to pay interest on them?
§ Mr. WilsonA good deal of this money is being invested in current film production in this country, which I think we should all desire to see.
§ 24. Mr. Gallacherasked the President of the Board of Trade what is the increase in the price to be paid for imported American films as a result of devaluation; and, in view of the likely effect on the British film distribution industry, whether he will immediately review the serious position of the production side of the industry so that an adequate number of good British films may be produced to fill the gap.
§ Mr. H. WilsonThe Anglo-American Film Agreement of 11th March, 1948, provides for monthly payments to America in respect of the earnings of American films at the predetermined rate of 17 million dollars a year. This arrangement is unaffected by 739 the change in the exchange rate. Inasmuch, however, as these dollar payments will in future absorb more sterling than before, the sterling balances accruing to the film companies in respect of their unremittable earnings will be reduced from now onwards by about £1¾ million a year. As regards the latter part of the Question, I have under constant review the difficult position of British film producers and the need for the highest obtainable output of good British films.
§ Mr. GallacherHas the President seen the statement recently made by the National Association of Theatrical and Kine employees, that as a result of devaluation many cinemas in this country may have to close down; and would not he arrange a conference of producers, distributors, exhibitors and trade unionists in order to work out a plan for increasing the quantity, quality and entertainment value of British films to meet this situation?
§ Mr. WilsonI have seen the statement referred to, and I do not agree with it in any particular whatsoever. So far as discussions with the industry are concerned I am in constant touch both with the production side and the exhibition and distribution side.
§ Mr. Harold DaviesIs the President of the Board of Trade aware that while his Department follows the civilised and sane policy of encouraging excellent productions, like "The Third Man," the British film industry ultimately will be able to face any competition in the world?