The Parliamentary Under-Secretary of State for Culture, Olympics, Media and Sport (Mr Edward Vaizey)
In July the Government announced their decision to abolish the UK Film Council.
Today I am announcing our proposals to support British film going forward.
The British Film Institute will become the flagship body for film policy in the UK. The BFI will be nominated as the distributor of film lottery money via secondary legislation.
The BFI will be entrusted with the remit to support the film industry in the nations and the regions and to lead on audience development and education. Work in support of certification and the media desk will also be transferred to the BFI.
Lottery funding to support film will increase from about £27 million today to more than £40 million by 2014.
Film London will be entrusted with a UK-wide remit to promote the UK as the best place to invest in film, working in partnership with the film industry.
A consultation will be launched next year to consider how to build a more sustainable film industry and how to develop the distribution and exhibition of British films in the UK. This review will be led by the DCMS and the BFI and will include a review of lottery distribution and recoupment policy. Stakeholders will have the opportunity to contribute their views through a formal consultation.
The DCMS and BFI will work with broadcasters and exhibitors on how to incentivise audiences to go and watch British films and increase their exposure, following Odeon’s proposals today which we welcome.
The BFI will work with Film London, BBC Worldwide, and BAFTA on how BAFTA and BBC Worldwide could support the distribution of British films abroad.
The BFI will go through a radical change to take up this challenge and become the flagship body for film policy. The chairman of the BFI will consult his board and detail his views on how this will be taken forward very shortly. We are all clear that these changes will need to be significant and far-reaching and include a review of their management structures to ensure they are properly equipped to take up these functions.
DCMS and the BFI will shortly agree the details of the new direct relationship that will be established, including accountability mechanisms. Our own internal audit will simultaneously audit the BFI’s financial systems and processes to provide assurance that these are appropriate for the significant Exchequer and lottery funding the BFI will be receiving going forward.
Due diligence work will start immediately between UKFC, BFI and Film London in order to produce a detailed transfer plan early next year to provide clarity and certainty to all players, in particular to staff and to lottery applicants. This plan will ensure that there is no gap in lottery distribution as the transfer progresses.
In the meantime the UKFC remains in charge of lottery distribution. All existing commitments will be honoured.
Existing arrangements for lottery distribution will remain in place during 2011-12 to allow time for the review of lottery distribution to take place and provide certainty and stability. The aim is that the conclusions of the review will be implemented in 2012.
The detailed timetable for the formal closure of the UKFC will be published following the due diligence work.