British Films (Hansard, 28 July 1999)

§ Lord McIntosh of Haringey
My Lords, British films are under-represented in the market-place largely because of the separation of production from the distribution process, which is dominated by large American companies. Following the Film Policy Review, the Government are creating a powerful new film council which will develop a comprehensive strategy to help to address this weakness, including providing direct support for distribution and encouraging industry efforts to improve the development and marketing of British films.

§ Lord Graham of Edmonton
My Lords, I am grateful for the general sense of the Minister's words, and I am sure those outside the House will welcome it. Bearing in mind that the government-sponsored Film Policy Review Group's report, A Bigger Picture, drew attention to the fact that in this country the film industry is production-led and fragmented, whereas in America, with which it competes, the business is distribution-led, is the Minister aware that around 70 per cent of films made in Britain are never distributed here at all? American films have 10 times more chance than those made in this country of going on to the British circuit. In those circumstances, I simply say to the Minister that what he has announced will be welcome, and can we have his assurance that it will be pursued with vigour?

§ Lord McIntosh of Haringey
My Lords, there are two reasons why my noble friend's analysis is correct. First, as he pointed out, in the United States there is vertical integration in production, distribution and indeed in exhibition. That means that it is possible for the largely American producers to exert greater influence on exhibitors than is possible for British producers. Secondly, an enormous amount of money is spent by the American film industry on pre-launch publicity. That gives people the idea that it is desirable to see those films on which a great deal of promotion money has been spent. That is simply not available to many British film producers and distributors.

§ Lord Dormand of Easington
My Lords, is my noble friend aware that the system of distribution of films in this country is little short of a scandal as, indeed, is recognised by the Government's Film Policy Review Group? Why have the Government not implemented their key proposal for an all-industry fund to support British film distribution? If I understood my noble friend correctly, he said that that is included in what might be described as "the package" he has reported today. Can he confirm that only 30 per cent of British films are shown nation-wide? We pride ourselves on making some of the best films in the world and do not give people an opportunity to see them.

§ Lord McIntosh of Haringey
My Lords, as I said in response to my noble friend Lord Graham, his analysis 1523 of the situation is correct. As regards the all-industry fund, that always had to be a voluntary fund. It was based on the idea of a levy of 0.5 per cent of film-related revenues to create a fund of some £20 million to assist in the better development of films and generic marketing. Unfortunately, a cost/benefit analysis was carried out which did not convince those who would have to contribute to the fund that they should do so, and it did not work. However, we shall try again.

§ Viscount Mersey
My Lords, can the Minister tell us exactly what is a "British film"? Is it a film made in Britain, a film financed with British finance, a film made using British crew or actors, or a combination of all of those?

§ Lord McIntosh of Haringey
My Lords, had the noble Viscount been present in the House last Friday, he would have heard a detailed explanation of the definition of "British film" in an order which I moved, which was agreed with unanimous support from all political parties. To simplify greatly, under the new definition a "British film" will be one in which 70 per cent of the production budget has been spent in this country.

§ Baroness Anelay of St. Johns
My Lords, perhaps I may be permitted to pursue the point raised by my noble friend. I believe he asked a proper question with regard to a wide definition of the phrase "British film". Overall, the Minister is correct to say that last Friday the House debated a statutory instrument, to which I gave my support, which defined "British film" for tax relief purposes. Can the Minister answer the wider aspect of my noble friend's question: what is a culturally British film? The noble Lord, Lord Putnam, asked the Government for such a definition and has not yet received one.

§ Lord McIntosh of Haringey
My Lords, the Government are in the business of administration rather than that of imposing cultural standards or criteria. I am tempted to say that if we could get away with it, good films containing any British element should be classed as "British films". However, it is not for the Government to make cultural judgments of that kind.

§ The Earl of Drogheda
My Lords, is there some way in which the Government could do more to encourage independent cinemas, in London, for example? Is the Minister aware that although there are about 200 screens in London, only 40 films are shown on those screens at any one time, of which 90 screens are filled by a mere six films?

§ Lord McIntosh of Haringey
My Lords, as a filmgoer, I share the frustration expressed by the noble Earl. There are some marvellous independent cinemas, especially in London and some of our larger cities. It is true that they have a very hard time. It is difficult to see how we could provide direct subsidy to them. However, 1524 it must be said that the French seem to find a way of subsidising distributions directly, particularly in rural areas. Perhaps we should copy them.

§ Lord Dormand of Easington
My Lords, as my noble friend said, the Films (Modification of the Definition of "British Film") Order 1999 was debated last week. I am a little confused as to whether its provisions will help or hinder distribution. Can my noble friend comment on that?

§ Lord McIntosh of Haringey
My Lords, those most concerned with making British films are convinced that the new order is a significant advance. The previous definition contained a number of anomalies; for example, the film, "Little Voice", which was made. in Scarborough with British actors such as Jane Horrocks and Michael Caine, did not count as a British film under the old definition; it would now.