HL Deb 02 July 1986 vol 477 cc877-9

2.47 p.m.

Baroness Elliot of Harwood

My 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 what effect the Business Sponsorship Incentive Scheme has had on the financing of the arts.

Lord Skelmersdale

My Lords, the Business Sponsorship Incentive Scheme has brought an additional £7.7 million into the arts since it started in October 1984. This is a most encouraging sign of growing business commitment to the arts. Indeed, only last week the Digital Equipment Company announced a major new sponsorship programme, matched under the Government's Business Sponsorship Incentive Scheme, which will inject £500,000 new funding into dance. This is one of the largest ever first-time sponsorships, and I understand that the existence of the Government's Business Sponsorship Incentive Scheme was a major influence in that company's decision.

Baroness Elliot of Harwood

My Lords, I thank the noble Lord for that excellent news. May I ask whether there has been a little agitation among some people that the new Budget financial arrangements in regard to charities might have a rather less favourable effect on donors? I should like to be assured that this will not happen under the new Finance Bill.

Lord Skelmersdale

My Lords, certainly there has been concern expressed among charitable bodies about various proposals in the Finance Bill which my right honourable friend the Chancellor of the Exchequer has responded to by not proposing to proceed, in this year's Finance Bill, with two particular features of the original proposals which caused nearly all of the concern—the distinction between private, indirect and other charities and the possible restriction of tax relief where the charity accumulates income. However, I should point out to my noble friend that the BSIS, to which the Question refers, is not being affected in the slightest way by the Budget.

Baroness Birk

My Lords, I appreciate the Business Sponsorship Incentive Scheme's aid to the arts. But is it not the case that its very success has meant that in spite of the announcement of £1.76 million for 1986–87 Government money to match business contributions is now running out? Will the Minister give assurances that money will not be taken out of the direct public arts budget and that his right honourable friend will ask the Treasury for additional money for this particular scheme?

Lord Skelmersdale

My Lords, in response to that question I can tell the noble Baroness that the Government are committed to matching the money raised by the arts charities themselves from business in one of two ways: either one-to-one for new sponsorship or one-to-three for renewed sponsorship. The Government fully intend to continue this commitment.

Baroness Birk

My Lords, is it not true however that, as I said, the success of the scheme has meant that funds are running out and by October the present amount will probably be exhausted? Therefore, will not his right honourable friend then be in a dilemma? He can either boost this scheme by taking money from directs arts funding, about which we should all be very upset, or he can go to the Treasury to ask for a special addition for this scheme. I should like an answer to that question.

Lord Skelmersdale

My Lords, I do not think the noble Baroness will receive an answer because she is asking me a hypothetical question. What I have said is that up to this moment the Government have fully honoured their commitment and intend so to do.

Viscount Mersey

My Lords, may I put it to my noble friend that business sponsorship of the arts is much greater than £7.7 million? If I may cite our own rather small-scale example of the Petworth Festival, for instance, we get £2,000 from Southern Arts but we manage to raise three times that amount, £6,000, from business. None of that is recorded anywhere or has anything to do with ABSA (the Association for Business Sponsorship of the Arts). If one extrapolates that ratio across the nation, one comes up with the figures of £150 million from the Arts Council and £450 million from business. I should like to ask my noble friend, am I a realist or an optimist?

Lord Skelmersdale

My Lords, I think I should describe my noble friend as both a realist and an optimist. I do not have the statistics worked out in the form that he has just given to the House, but it is perfectly true that much more money is raised straight from business than under the Business Sponsorship Incentive Scheme and of course the changes to charitable giving by business which were announced by my right honourable friend in his Budget Statement will increase this sum even beyond the figure given by my noble friend.

Lord Jenkins of Putney

My Lords, I should like to question the noble Lord a little further on the point that was raised by my noble friend Lady Birk. I think that what she is seeking to establish is that this scheme will not be financed at the cost of the Government's general subsidy towards the arts. Can the Minister give us some assurance on this point? Though this is highly desirable, it would be highly undesirable if the consequences of this scheme were to be such that the Government's general support of the arts had to suffer as a result.

Lord Skelmersdale

My Lords, I really do not think that I can add anything more to the two answers that I have given to the noble Baroness.

Lord Barnett

My Lords, perhaps I may try to persuade the noble Lord to do so. Does his reply mean—and it seems to me very reassuring, which I am sure will delight your Lordships—that the contributions that the Government make under this scheme are not cash limited?

Lord Skelmersdale

My Lords, what it means is that the commitment has been honoured up to now and I have no reason to suppose that it will not be honoured in the future.