HC Deb 28 June 1999 vol 334 cc7-9
6. Miss Anne McIntosh (Vale of York)

If he will make a statement on the financing of the British film industry. [87202]

The Minister for Tourism, Film and Broadcasting (Janet Anderson)

The Government's objective is to create the conditions for the growth of a self-sustaining, commercial film industry through the tax incentives introduced in 1997, through collaboration with the industry on the film policy review and the film finance forum, and through targeted support for the development and production of British films. We are also establishing a new body—the Film Council—which will have the specific task of helping the industry to develop sustainable financial structures.

Miss McIntosh

The much trumpeted tax breaks to which the Minister refers have not benefited one film that has been made in this country. Does she agree that the remarks made to The Independent in March by the Secretary of State are quite silly? He described the tax breaks as a really significant step in getting more British films made, and attracting more overseas film-makers here to use our facilities and our craftsmen and actors". Not one film has benefited, and I understand that the tax breaks are threatened by European Union harmonisation proposals. What support can the film industry in this country expect from the Government?

Janet Anderson

I can only say that that is not what the well respected company Ernst and Young has to say. It has said that, because of the tax incentive it has been able to move into film financing, with an initial £30 million slate of British movies. Tax deals on completed films are providing new money for producers to put into their next film. That is a direct result of the action taken by my right hon. Friend the Chancellor of the Exchequer in his first Budget.

Mr. Tom Clarke (Coatbridge and Chryston)

Is my hon. Friend the Minister aware of the huge success of "Notting Hill" in the United States? Does she share with British movie makers their great pleasure at the fact that, in contrast to a survey a couple of years ago, a survey following that film shows an increase in appreciation of and demand for British films in the United States? Given the presence of our Los Angeles film office, does not my hon. Friend believe—in contrast to the doom and gloom that we have just heard—that investors have every reason to feel encouraged about supporting British films, both across the Atlantic and at home?

Janet Anderson

I thank my right hon. Friend for that well-timed question and take this opportunity to pay tribute to him, as many of our achievements are the result of the excellent work that he did as Minister for Film and Tourism. A great deal has been achieved for British films with Government support over the past two years. We intend to build on that progress, and the definition of what constitutes a British film will be amended next month so that more films made in this country can qualify for tax breaks. The Government want to ensure that we give tax breaks only to those films that are really British. There is obviously support for British films around the world.

Mr. Peter Brooke (Cities of London and Westminster)

Given the relative size of the British film industry, the disproportionate number of Oscars that British films and actors win and the fact that the City of London is the world's leading financial centre, what prevents us from marrying together those national talents and assets?

Janet Anderson

The right hon. Gentleman may not be aware that the Government have established the film finance forum—an independent think tank that is working to provide guidance and to encourage and assist with the industry's structural development in order to create the types of commercial undertakings in which the City will feel able to invest. In short, the forum is a bridge between the film industry and the main investment sectors. As a result of its activities, Ernst and Young began to get interested in funding British movies and, as I said earlier, has produced a £30 million slate for them. That is a great tribute to what the Government have done for British films.