HC Deb 11 April 1983 vol 40 cc546-7
23. Mr. Michael Marshall

asked the Secretary of State for Education and Science what consideration he is giving to the problems of the theatre; and if he will make a statement.

Mr. Channon

In addition to the help to the theatre made possible by my grant to the Arts Council I am very glad to have been able to give £125,000 to the theatre investment fund to help relaunch the fund as an investor in the commercial theatre.

Mr. Marshall

Will my right hon. Friend confirm that that grant to the theatre investment fund is the first use of public money for the commercial theatre? As that money will be matched—many times over as I understand it—by commercial contributions, should not this principle be strongly applauded? Will he undertake to continue this principle in future years?

Mr. Channon

This is meant to be a one-off grant to help relaunch the fund, which has lasted for many years after an initial modest investment. I am sure that it will attract private investment to complement the public money that has gone in from the Arts Council and from the Government. I agree with my hon. Friend that it will be a valuable assistance to the commercial theatre, and has been widely welcomed by it.

Mr. Ioan Evans

Would not one way to encourage theatregoers be for the Government to reduce VAT on theatre tickets, which has increased from 8 to 15 per cent.? The Minister has spoken of the help given to the arts but have not the Government increased taxation of the arts?

Mr. Channon

The question of VAT has been debated many times. Under Governments of both parties it has been felt to be impossible to have a different VAT rate for the theatre. That, I am afraid, represents the Government's position, is widely understood outside the House and, indeed, was the position of the Labour Government.

Mr. Nicholas Baker

Rather than try to alter value added tax treatment for the theatre, will my right hon. Friend press his right hon. and learned Friend the Chancellor of the Exchequer to alter the discriminatory treatment for tax purposes of those who invest in the theatre, so that they are encouraged so to invest?

Mr. Channon

I take note of what my hon. Friend suggests. He will have seen the parliamentary answer on this issue given by one of my hon. Friends at the Treasury recently, but I will ensure that my right hon. and learned Friend is made aware of my hon. Friend's views.

Mr. Whitehead

We rely on the Minister, as a friend of the arts—as he has shown by this grant, which we welcome—to go back to the Treasury and argue again on the points that have been put from both sides of the House, in particular, the support for the so-called theatre "angels" and the question of zero rating. Is he aware that those are of greater essential value to the support of the theatre than anything that he has been able to do with his grant?

Mr. Channon

Both the matters to which the hon. Gentleman refers are primarily for my right hon. and learned Friend the Chancellor. Naturally, I take a close interest in both matters and I can assure the House that he will be made well aware of the views of hon. Members who have spoken today.

Mr. Jessel

Has it been drawn to the attention of my right hon. Friend that, in London, an increasing proportion of theatres appear to be starting their evening performances at 7.30 pm instead of 8 pm? Has my right hon. Friend any information on how this affects attendances? Does it reflect the views in the report commissioned by the Society of West End Theatre Managers, which showed, two years ago, that the public were put off from going to theatres, not by the price of seats, including VAT, but by the general inconvenience of going to theatres in London? Does my right hon. Friend believe that the earlier start at 7.30 pm will have helped some of the people in the audiences?

Mr. Channon

The time that performances start must be for the commercial judgment of those who are responsible for theatres. My hon. Friend makes a valuable point when he says that the real reason for the difficulties of the theatre is not so much VAT as all the other difficulties in coming to London, such as parking, the cost of tickets and the other matters to which the report he mentioned refers. But the House must not take a gloomy view. The total paid attendances at London theatres rose by 5 per cent., reaching a total of £9 million in 1982. More theatres are open now than in the equivalent periods in 1980 and 1981. Two theatres that are at present dark are shortly to open with new productions.