§ Lord Graham of EdmontonMy Lords, I beg leave to ask the first Question standing in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government whether they are satisfied that recent take-overs within the British film-making industry are in the best interest of preserving Britain's cultural standards, and whether they consider that there is any threat to the retention in Britain of the Thorn-Emi Film Library.
§ Lord Brabazon of TaraMy Lords, the Director General of Fair Trading is currently considering the sale of Screen Entertainments Ltd. to the Cannon Group and will advise my right honourable friend the Secretary of State for Trade and Industry whether that should be referred to the Monopolies and Mergers Commission. All the circumstances relevant to the case, including the future of the film library, will be taken into account.
§ Lord Graham of EdmontonMy Lords, while I acknowledge the constraints under which the Minister must operate in that respect, does he not recognise that the take-over of Screen Entertainments by Cannon presents both a crisis and a challenge? Government action in recent years in abolishing the Eady levy and capital allowances has not helped. On the positive side, with the emergence of Cannon as a major force in the British film industry, may we be assured that Her Majesty's Government will be urging Cannon to help sustain a British film industry by making quality films here in Britain, by keeping cinemas open and not closing them, and, more importantly, by preserving the historical Movietone Film Library?
§ Lord Brabazon of TaraMy Lords, I certainly agree with much of what the noble Lord says. It is a challenge for the British film industry. I shall quote one brief sentence from the chairman of the Cannon Group, who issued a press release earlier this month in which he stated:
Our commitment to the growth of the British film industry in production, distribution and exhibition now becomes the most important challenge in Cannon's future".I hope that the noble Lord will draw encouragement from that remark.As regards the abolition of the Eady levy, I believe that was generally a popular move, because the levy was actually a tax on people going to the cinema. So far as Cannon are concerned, since they have taken over the old Classic and Star group of cinemas they have turned it around from a loss-making situation 1386 into a profitable operation, and admissions at those cinemas increased by 34 per cent, last year, which is surely encouraging.
§ Viscount MerseyMy Lords, does my noble friend not find it encouraging from Cannon's point of view that they have recently produced "Othello" and that they are producing also "The Tales of Hoffman", directed by Jonathan Miller, and "Giselle"? Is my noble friend further aware that even the secretary of our union, represented in this House by the noble Lord, Lord Graham, is cheering about the Cannon take-over?
§ Lord Brabazon of TaraMy Lords, I am encouraged by my noble friend's remarks. Indeed, the Cannon Group have announced that they intend to make a number of important films at Elstree Studies and elsewhere in this country this year.
§ Lord KennetMy Lords, the Question refers to the film-making industry, but since the Cannon Group have been mentioned does the Minister have anything to say about recent take-overs in the cinema-owning industry? If both the manufacturing end and the outlet end of the British film industry are foreign owned, it may be worth a third look.
§ Lord Brabazon of TaraMy Lords, the Question relates to the Cannon Group's acquisition of Screen Entertainment Ltd. which covers both the cinema-owning part of the group and the film production part. As I said in my original Answer, the take-over is currently being examined by the Director General of Fair Trading.
§ Lord Graham of EdmontonMy Lords, the last thing that I would wish to do would be to pour cold water on the prospects of reviving the fortunes of the British film-making industry. I only hope that the Government will not stand idly by and that they will seek positive discussions with the new owners in order that their aspirations may be brought about.
§ Lord Brabazon of TaraMy Lords, I must wait to hear the recommendation of the Director General of Fair Trading regarding the take-over before I can comment.