§ 7. Mr. Austin Mitchell (Great Grimsby)What assessment he has made of the contribution which (a) drama and (b) television make to the United Kingdom economy. [37411]
§ The Minister for Film and Tourism (Mr. Tom Clarke)No separate estimate is available for drama, although the revenues of the much wider other entertainments category totalled nearly £6 billion in 1997. Television and radio combined had total revenues of almost £10 billion in 1997.
§ Mr. MitchellThe figures that my right hon. Friend has just given go some way to illustrating the importance of these industries. Given their impact on employment and the balance of payments, and given also that they brighten the quality of our lives, is there not a case for adding to the help, support and encouragement that he has already given them, especially in respect of training, which has suffered badly from the fragmentation of the television industry? That would enable us to do better at combating the huge advantage that the Americans gain from their huge domestic market, and the huge advantage that the French have from cultural and linguistic subsidies.
§ Mr. ClarkeMy hon. Friend makes a very interesting point. I welcome, as I am sure he does, the dialogue between film and television, and the interest of both in training. My hon. Friend is right to draw attention to the fact that total revenues of spectrum estimates indicate a turnover from the creative industries as a whole of around 467 £55 billion, £12 billion of which is generated from exports. Creative industries like those to which he referred are of the utmost importance to my Department and to my right hon. Friend the Secretary of State, and my hon. Friend can be sure that we share his values.
§ Mr. Michael Fabricant (Lichfield)Is it not the case that most people who work in the film industry originally trained in television, not only at the BBC but with independent companies? Although I welcome the last Budget, which helped the film industry, will the right hon. Gentleman urge the Chancellor of the Exchequer also to give some thought to withholding tax, which at present is still a disincentive for some American film companies to come to the United Kingdom, even though they invest here in large numbers?
§ Mr. ClarkeIt ought to be said that, with regard to the film industry, the Chancellor of the Exchequer has been the most generous Chancellor in history. In his Budget, within eight weeks of being in government, he gave a three-year, 100 per cent. write-off to film production. On the day that the document that I have in my hand was published, in which the review group—consisting in the main of people from the film industry, from television and from skill set involved in training—recommended an extra year, the Chancellor outdid even that and gave an extra two years, so things are not going too badly.
§ Mr. Peter L. Pike (Burnley)My hon. Friend the Minister will know that the film review recommended that the broadcasting industry—which makes tremendous use of film—should contribute to the all-industry fund. Has he had any response from the television industry to that proposal?
§ Mr. ClarkeMy hon. Friend makes a valid point. BBC, Channel 4, ITV and BSkyB already have a good record of investing in film production. Broadcasters recognise that the voluntary contribution suggested in the review is appropriate for all who now use film, including broadcasters and cinema and video distributors. There has been a very positive response.