§ 3.15 p.m.
§ Lord Graham of EdmontonMy 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 whether they will indicate what steps they have taken to implement their undertaking to monitor the activities of the Cannon Group after it had acquired the Thorn-EMI film empire, in the light of the reported intention of the Cannon Group to sell its film library to a foreign buyer.
§ Lord Lucas of ChilworthMy Lords, the Director General of Fair Trading continues to keep the position under review. The Cannon Group's proposal to sell the film library formerly belonging to Thorn-EMI is also being considered by the director general under the provisions of the Fair Trading Act 1973 relating to mergers. He will advise my right honourable friend on the question of possible reference to the Monopolies and Mergers Commission if it is a qualifying merger.
§ Lord Graham of EdmontonMy Lords, I hope that the Minister will accept my assurance that that is a most heartening reply. Perhaps he can also accept that if the archival records of Britain's film and cultural heritage leave these shores, it will be an appalling and irreplaceable loss. Bearing in mind that the British film industry is fighting for its commercial and artistic life, will the Minister review carefully the powers available to him so that the film industry and those who work in it will take on board the fact that he is as concerned as they are with the cultural aspects as well as the commercial aspects of these undertakings?
§ Lord Lucas of ChilworthMy Lords, I thank the noble Lord, Lord Graham, for his reception of the Answer. I accept what he says with regard to the value of the archives. The Government have and always have had regard for the cultural and artistic aspects of the film industry. I think that the House will recall that my honourable friend the Minister for the Arts makes substantial grants to the National Film and Television School and to the British Film Institute in order to support their activities.
§ Lord Jenkins of PutneyMy Lords, has the Minister been in touch with the British Film Institute to discover whether or not they have expressed an interest in acquiring this addition to their library? Presumably it is the case that they would be the best body to have charge of the library which has now become available for acquisition.
§ Lord Lucas of ChilworthMy Lords, that is a matter for the British Film Institute. Until that proposition is put before my right honourable friend, I do not think that I can make any comment.
The Viscount of FalklandMy Lords, is it not curious and rather sad that, set against the financial embarrassment of Cannon and their selling of cinemas and of 60 per cent. of our feature film heritage in this country, over the past two years we have seen cinema audiences double from February 1985 to February 1987? That shows that what is commonly known as the culture of the moving image is centre stage in our cultural life. May it not be appropriate for the Government to take firm steps to protect our audio-visual heritage in the form of films so that the young, who are a major part of the audiences in our cinemas, can have safe access in the future to films without having to apply to either Mr. Weintraub, who has bought or is going to buy the Cannon films, or anyone else abroad who may buy the rest?
§ Lord Lucas of ChilworthMy Lords, the noble Viscount has raised two issues. I think that I have answered the first question with regard to the archives. The Government, through the Director General of Fair Trading, are keeping the matter under review. So far as the second question is concerned, I am able to agree with the noble Lord that audiences have increased substantially since he and I last discussed the matter in 1985. I have little doubt that that is due to the excellence of film-making talent in Britain and the ability of the industry to export. That in itself provides the industry with more funds to make more and better films which are acceptable to both English and overseas audiences.
§ Lord Williams of ElvelMy Lords, am I right in understanding the noble Lord, when he refers to a qualifying merger under the Fair Trading Act, to be referring to the assets threshold below which mergers cannot be considered for reference by the Secretary of State? If that is the case, is there an assurance that the price that is to be paid—in other words, the assets that have been acquired, including the goodwill—will come above the threshold and that that is why the Office of Fair Trading is considering it?
Secondly, may I ask the noble Lord whether the competition criteria laid down by Mr. Norman Tebbit in 1984 as being the guideline for a Secretary of State for reference to the Monopolies and Mergers Commission are going to be operative in this particular case?
§ Lord Lucas of ChilworthMy Lords, the noble Lord, Lord Williams, is right in his understanding of what I said with regard to mergers. The threshold here for transfer of assets—I speak from memory but I think I am right—is £30 million. The value of the archives is not known at this stage. That will be a point which the director general will of course take very much into account.
In so far as concerns the competition issue, two points arise. First, it is for the Director General of Fair Trading to make an assessment and advise my right honourable friend of his view on that matter. Secondly, the noble Lord, Lord Williams, will recall that the competition issue is currently under review by my department.
§ Baroness PhillipsMy Lords, will the Minister recommend that these films are passed to the BBC, who would use them until they fell apart? We see the same films certainly every Christmas. It seems to me they never waste any films and I think that an archive would be an absolutely invaluable source from which they could steal for their screens.
§ Lord Lucas of ChilworthMy Lords, the noble Baroness's suggestion is an interesting one. It is probably more for the commercial judgment of the BBC than for anybody else.
§ Lord Graham of EdmontonMy Lords, will the Minister accept that when he uses the term "a difficulty in putting a value on the archive film library", many of us would consider that it is priceless? It is a national heritage and it ought not to leave this country in any circumstances.
§ Lord Lucas of ChilworthMy Lords, I am sure that those responsible will take note of the view expressed by the noble Lord, Lord Graham of Edmonton.