HC Deb 14 April 1994 vol 241 cc407-8
6. Mr. Nicholas Winterton

To ask the Chancellor of the Exchequer when he last met representatives of the British film industry to discuss capital allowances and other tax incentives to encourage investment in film production.

Mr. Nelson

My right hon. and learned Friend the Chancellor of the Exchequer has had no recent meetings with representatives of the British film industry.

Mr. Winterton

Does my hon. Friend accept that the British film industry has a proud record of tremendous achievement and the potential to make a major contribution to the British economy? Does he further accept that there must be an appropriate fiscal regime to enable not only the film industry but manufacturing industry to make that contribution to the economy? Does he agree that a review and reform of capital allowances would attract investment not only from this country but from overseas?

Mr. Nelson

I am sure that the whole House will agree with my hon. Friend that the British film industry has a record of excellence, and there is a wealth of talent here which it can employ.

My hon. Friend may be aware that changes introduced in 1992 for qualifying EC films provided for the immediate write-off of pre-production expenditure and one third per annum of production costs, and the reforms were welcomed by the industry. We are of course always prepared to look carefully at further proposals. My hon. Friend will be aware that my right hon. Friend the Secretary of State for National Heritage is conducting a wide-ranging review of the British film industry and we look forward to considering his findings.

Mr. Grocott

Does the Minister agree that one helpful thing that he could do for the film industry would be to scrap the ludicrous Broadcasting Act 1990? Can he confirm that, since the passing of that Act, half the workers at ITV have lost their jobs while a small number of people have made an absolute fortune? Is it too much to hope for that the Government will put the interests of the programme makers and viewers first and make sure that the advertisers and money men take a back seat?

Mr. Nelson

The Government give considerable weight to the issues raised by the hon. Gentleman, and they will be considered by my right hon. Friend the Secretary of State for National Heritage in his review.

The hon. Gentleman will know that there are certain special tax provisions that relate to television companies, as well as reliefs that relate to film companies, in this country. Those provisions were introduced by the Government to attract expertise and stars from abroad to film in this country and to contribute to our economy. There is no reason why that should not be the case in the television industry domestically, as well as in the international film industry. Both will prosper under the Government's measures.