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British Film and Television Industries (Communications Committee Report)

Why not? As many noble Lords already know, the film and television industries make a significant contribution to the British economy. The combined workforce of these industries is more than 110,000 people, including actors, directors, producers, reporters, cameramen, animators and make-up artists, as well as staff in post-production studios and special effects, and those working behind the scenes, ranging from electricians, plasterers, sound technicians and researchers to name but a few. In 2008, British films accounted for around one-third of the British cinema box office and generated overseas earnings of more than £1 billion. In addition, British television companies like the BBC, ITV and Channel 4 also made a significant contribution in 2008. The total revenue from the international sale of UK television programmes and associated activities was almost £980 million, while BBC Worldwide’s overseas revenues amounted to around £430 million and ITV’s overseas revenues to around £150 million. However, the report rightly identified that both industries face very serious challenges to their sustainability in the future, particularly in the context of the current global recession. There has been a steady drop in the level of original content produced in the UK. This is obviously most concerning. What action are Her Majesty’s Government taking to ensure that public service broadcasters and UK-based film-makers maintain investment levels to avoid stifling this sector altogether? The level of children’s programmes produced in the UK in particular has seen the greatest falls in expenditure. Why is this and what steps are being taken to improve this sector? Arguably, one of the other main problems faced by the commercial sector can be traced to the fall in advertising sales and the growth of competition from the internet. This has led to a decline in the amount of money devoted to original British material. What are Her Majesty’s Government doing to address these important issues? Does the Minister agree that our educational system has a vital role to play in the future success of these industries? The UK is and has been for a long time well known for its reputation for producing highly skilled workforces in these sectors. However, representatives from Warner Bros. and Aardman Animations both stated in their evidence to the committee that the education system in the UK is not delivering the graduates they need and they had to recruit from abroad. Is the Minister concerned, as I am, that the overall British workforce in these sectors has declined by 33 per cent since its peak in 2003? What measures are being taken to provide opportunities and greater job security for British workers in this sector? What steps are being taken to close the gap between the industry and the education system to ensure that we produce the skilled graduates we need to maintain the UK’s position as a global leader in these fields? The report states that, in particular, apprenticeships and internships are "under-used and uncoordinated". What is being done to help provide better structured careers for this industry? Linked very closely to this issue, Kate O’Connor from Skillset commented that: ""It does concern us that, overall … we have now 50 per cent of the fund that we had last year, with a growing list of skill requirements and a real need to prepare for the future upturn"." What action are Her Majesty’s Government currently taking to ensure that sufficient funds are available to safeguard the future competitiveness of the UK television and film industries? The report highlighted that another big challenge facing the UK film industry in particular has been that the distribution and financing of movies—dominated, as always, by the big American studios—has led to intense global competition to persuade producers to make their films in particular countries. What measures does the Minister believe are necessary to help the British film industry take a larger slice of the revenue generated from this lucrative field? Also, given that the UK’s three largest film studios are based in the south-east of England, what measures have been taken to encourage the development of other studios across the nation? Two other significant threats to future success and increased revenue for this sector are audio-visual piracy in the form of illegal file-sharing or camcorder crime. The committee believes that the Fraud Act 2006 is unclear, provides an insufficient deterrent to abuse and is inadequate to tackle increasingly sophisticated camcorder crime. Does the Minister have any plans to amend this legislation to provide a clear and sufficient deterrent? It is clear much needs to be done to help these two industries overcome the significant problems they are experiencing and will face in the future. British film and television companies need help to develop and expand so they may be sustainable, and benefit employment and overseas earnings as well as adding to our national reputation for excellent and innovative production. We cannot afford to miss the potential opportunity to grow and prosper off the back of our creative industries. The Minister must seriously consider ways in which to support and encourage these particularly vulnerable UK businesses.