§ 3.35 p.m.
§ THE MINISTER OF STATE, BOARD OF TRADE (LORD DRUMALBYN)My Lords, with your permission, I wish to make a statement about British Lion on similar lines to that made in another place.
At the end of last week the Board of the National Film Finance Corporation unanimously advised the acceptance of the offer from Sir Michael Balcon's Group to purchase British Lion Films Limited. This offer complies fully with the conditions for the sale of the company which were summarised by my right honourable friend, the Secretary of State for Industry, Trade and Regional Development in another place on the 4th February and which have subsequently been formulated in detail by the Corporation. The N.F.F.C. consider it to be more advantageous than the other two firm offers which were received—that from the Freedom Group and that from Mr. Sidney Box's Group, the latter of which did not fully meet the conditions. My right honourable friend has to-day authorised the National Film Finance Corporation to accept the offer of Sir Michael Balcon's Group.
The Group is well qualified to take over the ownership and running of the company. It has the assurance of efficient and proven management and the support of five groups of film makers, two of which consist of Mr. Frank Launder and Mr. Sidney Gilliat, and Mr. John and Mr. Roy Boulting. My right honourable friend has been advised that the financial arrangements proposed by Sir Michael Balcon's Group should provide adequately for the continued efficient running of the company and will not conflict with the stipulated conditions. I believe your Lordships will agree that this is a satisfactory outcome.
§ LORD SHEPHERDMy Lords, I should like to thank the noble Lord for making this important statement. The noble Lord will remember that there was considerable concern among workers in the film industry, and also among independent producers, when the Government announced their intention to sell British Lion, an organisation which had given a great deal of support 734 to the independent film industry. We feel in the circumstances that the arrangements that the Government have now made will be satisfactory. But in order to ensure that this British Lion company will be there to assist the independent producers against the two large film organisations, could the noble Lord say—because, of course, we do not know what policy decisions a board may make from time to time—whether the Government intend to require the new organisation to give an option, at least, to the Government in the event of their deciding to sell to other organisations, so that before that could happen Her Majesty's Government would have the opportunity of taking back British Lion and of ensuring its independence?
§ LORD DRUMALBYNMy Lords, among conditions that were laid down was, first of all, the right of* the Government to nominate a director to the board, a right which of course it will exercise; and, secondly, the N.F.F.C. will retain the right to veto the company's voluntary liquidation and also the right to veto the sale of its undertaking.
LORD REAMy Lords, can the noble Lord possibly tell us whether the Government have in fact nominated people to this board?
§ LORD DRUMALBYNMy Lords, I think it will be of interest to the House to know that Sir Lionel Heald has been nominated and so has the noble Baroness, Lady Wootton of Abinger.