HC Deb 24 June 2002 vol 387 cc599-601
7. Barbara Follett (Stevenage)

What measures her Department is taking to support the British film industry. [61223]

The Minister for Tourism, Film and Broadcasting (Dr. Kim Howells)

In April 2000. we established the Film Council as the Government's strategic lead body for film which, for the first time, brought together responsibility for the film industry, culture and education.

Barbara Follett

What discussions has my hon. Friend held with the Department for Education and Skills about encouraging young people to acquire the skills that they need in today's high-technology film industry?

Dr. Howells

We regularly discuss creativity in the classroom with the Department for Education and Skills. We fund the national film and television school directly. Skillset, the sector skills council for the audiovisual industries, and the Film Council are undertaking a joint research project to develop a comprehensive skills strategy for the British film industry. The Film Council's innovative £1 million-a-year "first light" scheme already gives many young people from all social backgrounds the opportunity to make short films.

Nick Harvey (North Devon)

What assessment has the Minister made of the likely impact of the changes in this year's Budget on film tax relief? Although I acknowledge that there was abuse by people who were producing for television on tiny budgets but claiming large amounts of relief, does the Minister share my anxiety that the effect may be to drive big projects away to eastern European countries and elsewhere? Does he know that the Film Council believes that approximately £250 million-worth of planned projects will move to other countries because of the changes? Will he discuss with the Treasury some other method of directing relief to big, high-value projects? What will be the position of projects that were already on the stocks of studios if they are not allowed to continue under the tax arrangements that were in place when they were agreed and when the contracts were signed?

Dr. Howells

The decision as to what is eligible for tax relief is, of course, one for the Inland Revenue and the Treasury, and they must also decide on the implementation of the announcements in the Budget. The Department has been very concerned, however, about the likely effect on future investment in the film industry in this country, and particularly on big inward investment from America. The hon. Gentleman is right to point out that there was serious abuse of the existing system. Something has certainly gone wrong when episodes of soap operas and even weather forecasts are put forward for tax relief.

Kali Mountford (Colne Valley)

Does my hon. Friend agree that, although the British Film Commission and local authorities have made great strides towards working together recently, more could be done to show local authorities the benefits of attracting the film industry into local communities? Should not the film and television industries also do more themselves to make clearer the contribution that they can make to local communities?

Dr. Howells

My hon. Friend makes a valid point. It is quite clear from working with the tourist sector, for example, that people want to visit film locations. That has become big business, not only in this country but in America and elsewhere. The importance of film, television and the communications media in general is understood by some but not all local authorities, and it can be a big creator of jobs and revenue. I should be interested to hear any suggestions that my hon. Friend has about how we might take that agenda forward.

Mrs. Louise Ellman (Liverpool, Riverside)

What extra support does the Minister intend to give to film-making in Liverpool? Does he agree that film-making is an important part of economic regeneration, and does he consider that Liverpool's fine track record in filming is a good reason why Liverpool should become the European capital of culture in 2008?

Dr. Howells

I certainly cannot comment on my hon. Friend's last suggestion. Responsibility for deciding what part of the money allocated to the Film Council is to be spent in different parts of the country lies, of course, with the Film Council. God forbid that Ministers should start deciding where film money should to be spent, and on what projects.