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Films (Definition of ““British Film””)Order 2006

My Lords, I am grateful to all noble Lords who have contributed to this short debate and for the support from the Opposition Benches. As my noble friend Lord Puttnam indicated, this is a difficult area. First, there is a need to keep up with technological change and, secondly, any definition of the points count is open to challenge. I note that the noble Baroness, Lady Bonham-Carter, would have preferred the points count to be weighted slightly differently, but we weighted it as we did following great consultation. The test was amended to recognise the role of the producer and the entire cast and crew. I hesitate to suggest at the Dispatch Box that any legislation that we put forward is anything less than perfect, but I recognise that the points count is open to challenge and I am obliged to confirm that my noble friend Lord Puttnam is probably right that we may have to return to this issue in the not-too-distant future. I accept entirely that the impact of the order should be monitored. As my noble friend hinted, and as I know both Opposition Front Benches will recognise, in the past we have had difficulties with the supposed use of British film development for tax structures that have been more concerned with saving money than employing British talent and making excellent films. This proposal is broadly accepted throughout the industry. I do not pretend that it is perfect in every respect, because I am all too well aware that a points count of this kind is open to elements of challenge in discrete areas. However, first, everyone recognises that, whatever emphasis they would make in the round, this formula will work and make progress, and it is superior to anything that we have had before. Secondly, it is widely acknowledged that the taxation arrangements will be a stimulus and of benefit to the industry. They are a considerable improvement over previous concessions and that is of benefit to the industry, which we all hold in high regard. We are mindful that the industry operates in an exceedingly competitive world where it will always be a relatively minor player compared with the vast resources mobilised in the English language by Hollywood. That is a given in this situation so far as concerns film. In Britain we all recognise that continental film producers have the supreme advantage of a different language and of working to a different culture, which means that they are able to protect themselves against the inroads of Hollywood. We benefit from Hollywood’s vast production when it is at its best, but we also suffer when it is at its worst. However, the British film industry faces the problem of real and obvious competition. That is why it is right that the department should have the British film industry’s interests very much at heart. The order illustrates that we seek to make progress in those terms. On Question, Motion agreed to.