§ 2.38 p.m.
§ Viscount MerseyMy Lords, I beg leave to ask the Question standing in my name on the Order Paper.
The Question was as follows: To ask Her Majesty's Government why they are (a) stopping company tax incentives to invest in British films, and (b) abolishing the Eady levy on cinema seats.
The Minister of State, Privy Council Office, and Minister for the Arts (The Earl of Gowrie)My Lords, the phasing out of first-year capital allowances proposed in the Budget Statement made by my right honourable friend the Chancellor of the Exchequer is part of the overall Budget strategy. It will apply generally and not just to expenditure on British films.
The future of the Eady levy is but one of a number of matters being considered in the review of the commercial film industry being conducted by my right honourable friend the Secretary of State for Trade and Industry.
§ Viscount MerseyMy Lords, I thank my noble friend for that reply, which I do not find altogether reassuring. I should like to ask him two questions. First, is there any chance that the Government might consider extending the Eady levy to cover films shown both on television and on tape? Secondly, can he give any form of guarantee that the National Film Finance Corporation will continue to be funded at the present level?
The Earl of GowrieMy Lords, my difficulty is that both of my noble friend's supplementary questions are somewhat hypothetical, as no decision whatsoever has been taken on the future of the Eady levy. When decisions are taken the interest that he mentions will be borne in mind.
§ Lord Lloyd of HampsteadMy Lords, may I ask the noble Earl the Minister whether the Government recognise that the real threat to the film industry which might result from the abolition of the Eady levy will arise if nothing is put in its place. In particular, does he recognise that the National Film and Television School (in which, as I am aware, he has a close interest) depends for one-third of its income on Eady and that the National Film and Finance Corporation looks to Eady for practically the whole of its resources? Finally, does he recognise that the loss of this revenue would seriously disrupt the entry into the film industry of the young talent which is essential for its future?
The Earl of GowrieMy Lords, I am keenly aware that if the "baby" of the National Film and Television School were to be dropped by Eady, so to say, it would land in my lap. Therefore I have a very keen interest in these negotiations. As I think the noble Lord will have been made aware, the Government value the school very highly. That is why the discussions concerning the future of Eady are so important.