British Film Industry (Hansard, 15 July 1988)

§ Lord Beaverbrook
My Lords, the Government's policy is to encourage all industries to compete in an open and international market and we do not consider that special measures are needed for the film industry over and above the support measures arising from the provisions of the Films Act 1985.

§ Lord Graham of Edmonton
My Lords, I make no apology for taking two bites of' this particular cherry. 1018 Does the noble Lord have in his notes references to speeches and Questions that have been asked in recent years by other noble Lords as well as myself concerning the continuing sale of the assets of the British film industry? Can he improve on the kind of bland statements that he put forward as policy to the House yesterday? Will he bear in mind that the very predatory nature of international capitalism, which is primarily if not wholly concerned with making money, puts at stake jobs and the filmic cultural heritage of our country? Will he consider very carefully the damage to the British film industry that has been done, which may be irreparable?

§ Lord Beaverbrook
My Lords, the noble Lord will know that it is the Government's policy to encourage inward investment into this country. However, there are considerable successes in the British film industry. Only this morning perhaps the noble Lord will have read of the very encouraging export sale of British television productions. There are opportunities arising from the requirement for Channel 4 to move toward 25 per cent. independent productions, and from the satellite broadcasting channels that are planned. Also, BSB plans to offer 25 million dollars to help finance predominantly UK film production. Such expansion in the market obviously represents potential new opportunities for the British film industry if it can produce the right product at the right price. I am sure that it will be successful in doing so.

§ Lord St. John of Fawsley
My Lords, does my noble friend realise that the British film industry is now facing the greatest financial crisis in the whole of its history? Unless something is done we shall soon wake up and find that there is no British film industry at all able to take advantage of the opportunities to which my noble friend referred. Does he understand that the film has now become a major art form, particularly for young people, and that it gains for us prestige throughout the world? Will the Government look again at the most crucial economic matter, which is the provision of initial development grants for the film industry, such as are enjoyed in other European countries, and which the industry must have if it is to survive?

§ Lord Beaverbrook
My Lords, my noble friend will know that the big budget productions are produced on a highly international basis. They are very portable and tend to go where the most favourable conditions exist at any moment in time. I believe that the British film industry is far better at gearing itself up to smaller productions—£2 million or so —and that it can achieve considerable success at that level. The industry's exports remain at a high level, which clearly demonstrates that British films are made with a keen eye to the market. I have every confidence in the ability of the industry to continue to sell its films vigorously both domestically and overseas.

The Viscount of Falkland
My Lords, is the Minister aware that there is enormous disappointment and dismay within the film industry as a result of the sale of Elstree film studios, about which I asked a Question yesterday? Is he further aware that 1019 shortly after Question Time yesterday there was a meeting of members of the film industry under the aegis of the British Film and Television Producers Association at which the future of our international participation was a matter of great concern to all present? Does he agree that now that we are going into Europe, European co-production will become a reality very soon and that, with the European co-production of films, it is more than likely that English will he the language chosen for them? In that case we shall most probably be in the best position to make those films on our own stage space. if indeed any stage space is left after the sale of studios of the importance of Elstree. Is it not time that the Government took more interest in this matter?

§ Lord Beaverbrook
My Lords, I am not absolutely sure that European co-operation will be as easy as the noble Lord makes out. Much of the government subsidy given by other EC states relates to keeping a film industry presence in their own language. I am not sure that English will necessarily be a common language for film production. I am not sure that there will he competition from other EC states to make English language films. That has to be said. However, the facilities on the scale of Elstree may well not be the way forward for the future. Smaller, more compact and more efficient studios may well be the facility on which the British film industry will thrive rather than trying to compete in the big international market for big-budget movies.

§ Lord Peston
My Lords, will the Minister clarify the Government's position on this once and for all? Is he saying what he appeared to he saying yesterday, and to some extent today: that the only criterion the Government thought relevant to this matter was one of commercial profitability and that there was no public interest whatsoever in a continuation of a film production industry in this country?

§ Lord Beaverbrook
My Lords, in my original Answer I said that we wish to encourage all industries. We are not in the business of giving the film industry more advantageous treatment than other sectors. However, there are various support schemes funded by the Government. We have recognised the unusual nature of film investment by the special methods approved by the Inland Revenue under which film companies can write off their investment.

§ Lord Auckland
My Lords, is my noble friend aware that the present Government have done much to encourage the British film industry? Can he give any information as to the future of Pinewood Studios, where some of our finest British actors and directors have worked in the past and where at the moment I understand there is very little United Kingdom production taking place? Has my noble friend any information as to whether anything is being done to counteract this situation?

§ Lord Beaverbrook
My Lords, the future of Pinewood Studios, as with the future of Elstree Studios, is a commercial matter for the owners and not a matter for government.

§ Lord Underhill
My Lords, is the Minister saying that there are no spheres where we should be giving special attention to certain industries or other activities? Does he not realise that the British film industry is an example to the world of British life? That is the aspect that we should be considering.

§ Lord Beaverbrook
My Lords, the best thing for government to do is to create a climate in which all industry can flourish. Tax rates have come down. That must create an incentive for investment in films or in any other industry. Investment is running at a high level in this country at the moment. Inflation is being kept under control. The film industry is important but we believe that the best way to encourage investment in film making is by maintaining a sound and healthy economy with growth that is sustainable and containable.

§ Lord St. John of Fawsley
My Lords, is my noble friend aware that I fully support the government policy of rolling back the frontiers of the state? Unless one is a nineteenth century Liberal there must be areas where the state rightly exercises influence and intervenes. One such area is a crucial industry that is facing this threat and the loss of which would be a major national disaster.

§ Baroness Seear
My Lords, may I intervene—

§ Lord Beaverbrook
My Lords, perhaps I may intervene for one moment. My noble friend is quite right when he stresses the importance of the British film industry. However, I believe that the British film industry has the best possible future in responding to demand. Demand is now coming very often from the requirements for the smaller screen rather than the big screen. There are many new, exciting developments taking place in television and broadcasting generally. I am sure that British producers will participate fully in the requirements that will be there world-wide for such products.

§ Baroness Seear
My Lords, may I intervene to remind the noble Lord, Lord St. John of Fawsley, that nineteenth century Liberals did not always take the view that he expressed?

§ Lord Graham of Edmonton
My Lords, will the Minister accept that his bland and sanguine replies of today and yesterday will do nothing to lift the hearts of those who feel that the British film industry is in crisis and desperate? Although the Minister is advised of successes, which are not denied, there is a very real feeling that the British film industry is slipping away from the British people. In those circumstances, will the Minister accept that this is the right time for the Government to demonstrate their interest and concern for the future of the British film industry by calling a conference or a meeting with the leaders of the industry to make sure that anything more that can be done will he done before it is too late?

§ Lord Beaverbrook
My Lords. I shall of course draw the attention of the Secretary of State to the remarks of the noble Lord. I cannot give him any 1021 comfort today on that subject. I hear what he says. However, the Government support the British film industry in a number of ways and feel that the demand for productions for the smaller screen will be a more than adequate challenge for the industry.

§ Lord Donaldson of Kingsbridge
My Lords, is it reasonable to sum up by saying that the film is an art and that the government attitude to all the arts is purely commercial?

§ Lord Beaverbrook
My Lords, when I see the amount of money that the Government devote to the arts, that is probably a matter with which I could not agree.