§ 7. Sir Michael ShersbyTo ask the Chancellor of the Exchequer what measures have been introduced by Her Majesty's Treasury since May 1979 to assist the British film industry; and if he will make a statement. [24315]
§ The Financial Secretary to the Treasury (Mr. Michael Jack)Before 1979, there were no special tax rules for the film industry. Since then, the Government have provided a number of special tax concessions to help the industry.
§ Sir Michael ShersbyDoes my hon. Friend agree that since 1979 the Conservative party has been the true friend of the British film industry? Will he remind the House of some of those tax policies, such as income matching, and of the economic policies that have helped one of our most successful industries to prosper?
§ Mr. JackMy hon. Friend speaks with considerable knowledge because of his involvement in the film industry. He is right to underscore the fact that, as I said in my answer, before 1979 there was no special tax help for the industry. Now the system of income matching, which we introduced, means that tax relief of up to £80 million a year is given to the industry. My hon. Friend may care to note a point in addition to tax, that Mr. Tony Scott, who recently bought Shepperton studios, told Barry Norman's "Film 96" that one of the reasons he made "Judge Dredd" in this country was that production costs were some 33 per cent. lower than in America. Goodness knows what that would be if Labour implemented the social chapter.