PAYMENTS BY BRITISH FILM FUND AGENCY TO NATIONAL FILM FINANCE CORPORATION. (Hansard, 23 October 1975)

§ Mr. Michael Shersby (Uxbridge)

During the Second Reading debate the Under-Secretary of State emphasised that the Secretary of State is required to consult the Cinematograph Films Council in every case before approving a payment to the National Film Finance Corporation or, for that matter, the three other bodies concerned, the British Film Institute, the National Film School and the Children's Film Foundation. This we know is an established procedure that has worked well in the past.

But payments by the NFFC to those involved in script writing and other pre-production expenses are to be made on the advice of a new advisory committee to be set up by the Secretary of State. We also know that the advisory committee is not mentioned in Clause 1 because it is advisory to the NFFC, with which the Department of Trade has its relationship. In fact, as I understand it, the advisory committee will not have the power to make a loan itself, only to advise the NFFC to do so. In other words, the NFFC will apparently have the power to veto the advisory committee's recommendations if it wants to.

I am sure that this is normal, but it causes me some concern because, as the 876 Minister said on Second Reading, the NFFC is not experienced in making films, although it has tremendous experience in financing them. Presumably in practice the relationship will be between the advisory committee and the officials of the NFFC, and it will be the officials of the Corporation who will advise the board if ever it is necessary to veto an application which they think is unsound.

That brings me to the constitution of the advisory committee. Clearly, if it is to be a good committee it will need to be comprised of people who are both expert in their knowledge of film production and in tune with the ideas of the younger, less experienced and less-well-known producers who it is intended will be the main beneficiaries of the new fund that is brought into effect by Clause 1.

I hope, therefore, that the Undersecretary of State will have very much in mind the need to appoint some young people to membership of the advisory committee. That will make for a more representative group, and it will mean that the younger and enthusiastic film producers in the British film industry will feel that the advisory committee has a good knowledge of the kind of films that they are trying to make—new and exciting films which we hope will increase our export earnings.

Finally, I should be grateful if the Under-Secretary of State would say whether the payment made out of the £200,000 fund will be reported in due course in the NFFC's annual report.

§ The Under-Secretary of State for Trade (Mr. Eric Deakins)

The hon. Member for Uxbridge (Mr. Shersby) has well outlined the provisions of the clause. He said something about the relationship between the advisory committee and the NFFC, and I endorse his view of that.

The hon. Gentleman also spoke of the composition of the advisory committee, and here I think he has a good point. We have not yet considered the sort of people who should go on the advisory commitee but, as a relatively young person, I assure the hon. Gentleman that this will predominate our thinking. The type of people, as well as the organisations from which they are chosen, will be important for the success of this scheme.

877 If, for example, we were to appoint people of middle age and older and no young people, there might be a prejudice against certain younger writers and producers. I do not think that is likely, but at least it is possible and might be thought likely. I shall do my best when appointments are made by the Secretary of State to ensure that they will include, as far as possible, some young people.

On the hon. Member's third point about the NFFC report, certainly the NFFC will be reporting separately in its annual report on the disbursements from the fund, since mat is a special fund distinguishable in its accounts. It needs to be reported on separately.