Films (Definition of “British Film”) Order 2015
Debate between Baroness Bonham-Carter of Yarnbury and Lord Gardiner of Kimble(9 years, 9 months ago)
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Lord Gardiner of Kimble (Con)
My Lords, as may have been seen from this month’s BAFTA nominations, the British film industry is thriving. Alongside such critical success, the UK film industry has a turnover of £7.3 billion and is worth more than £1.4 billion to the economy, employing more than 66,000 people. Production spend on films made in the UK exceeded £1 billion in 2013.
This is very much as a result of film tax relief. Since its inception in 2007—I know the noble Lord, Lord Stevenson, has a long interest and connection with this concept—film tax relief has supported 1,680 films, with total production expenditure of £7.8 billion, of which 72% was incurred in the United Kingdom. The Government are committed to building on this and safeguarding it for the future.
The order updates the statutory test that is used to assess whether a film is a British production and eligible to apply for film tax relief. Certification as such is a requirement for film production companies to claim tax relief on production costs. The revised test aims to benefit particular areas of film production, such as visual effects and post-production, in which the United Kingdom excels.
In the Budget of 2013, the Chancellor announced that the Government would consult on tax options to support visual effects industries, and that was launched in May 2013. The United Kingdom has historically been a leader in visual effects production and is currently home to a number of world-renowned and award-winning visual effects houses making a significant contribution to British culture and creativity. Recent successes include the Oscar-winning film “Gravity” and “Paddington”, and work is currently under way on the latest “Star Wars” film.
Nevertheless, the sector has been adversely affected by rapid changes in the global industry, and there have been reports that activity may be moving overseas. Evidence suggests that the UK’s visual effects industry saw a 23% decrease in employment during the three years to 2013. There has also been a proliferation of incentives available in non-European jurisdictions. This has been a significant contributing factor in more films undertaking their visual effects outside the UK and Europe. Without further support, British visual effects houses may be forced to reduce headcount and investment in infrastructure, resulting in a decrease in the sector’s economic contribution and ultimately fewer British films being made.
The Government have responded in two interrelated ways. First, the Government have made the UK’s film corporation tax relief regime more attractive. The rate of tax relief for films with a qualifying budget of £20 million or more has been increased from 20% to 25% on the first £20 million of UK expenditure, with any excess UK expenditure still receiving the existing 20% tax credit. The minimum spend threshold in the UK has been reduced from 25% to 10% of a film’s overall budget. It is anticipated that this will encourage more films to carry out their visual effects and post-production work in the UK. These measures are now in force, having been introduced via the Finance Act 2014.
The second action is to modernise the statutory test used to assess whether a film is a British production. This is the purpose of the draft order before the Committee. This points-based test, often referred to by the industry as the cultural test for film, ensures that relief is targeted towards qualifying British productions. These changes are straightforward and mirror elements from the existing cultural tests for high-end television, video games and animation programmes. The amendments increase the points available if certain percentages of a film’s production work, including visual effects, take place in the UK. They also increase the points awarded for the language spoken in the film. For example, if more than 75% of a film is in the English language, it will now score six points rather than four. Finally, points that are awarded for a film’s British setting, subject matter, characters and language will now equally be awarded for other European Economic Area states. These measures are designed to encourage co-operation with European film industries while still ensuring that activity takes place in the United Kingdom. The effect of these changes is that the number of points available increases from 31 to 35. The pass mark is accordingly raised from 16 to 18 points.
These measures have the strong support of the film industry, including the British Film Institute, which is the Government’s lead agency for film, the British Film Commission, which works to attract inward investment to the UK, the major film studios and the leading visual effects houses. The Government believe that this order is essential to encourage further film production work in the UK while ensuring that tax relief benefits only productions that carry out work in the UK and enrich our cultural perspective. In combination with the changes to the corporation tax relief regime, these measures will further growth and ensure that the UK remains at the forefront of a very competitive global film production industry. That will in turn increase the opportunities for British artists and help ensure that the British film industry remains a world leader and continues to provide so much pleasure to us all. I beg to move.
Baroness Bonham-Carter of Yarnbury (LD)
My Lords, I echo what the Minister said in congratulating the previous Government on introducing tax breaks for British films. Of course, since then the coalition Government have extended that to animation, high-end TV, video games and, most recently, regional theatre and live-action children’s TV, all of which have contributed enormously to the creative industries and their success. Tax breaks for the British film industry have paved the way and brought huge inward investment into the industry: millions of pounds of private funds to the independent sector and, from the private sector, millions more pounds spent on infrastructure. I am told that next week’s British film industry figures will be very positive, so the industry is happy.
We obviously support this order, particularly the extra points for production activity undertaken in the UK as that gives even greater incentive to bring work into the country. I have what is not really a question but more an observation. It is something I have picked up from talking to people in the industry: things are working well. The Minister has probably answered this already, but too many tweaks and changes should on the whole be avoided. I think I am right in saying that there is another order in the pipeline. The observation is to leave things that are working so well as they are.
Battle of Waterloo: 200th Anniversary
Debate between Baroness Bonham-Carter of Yarnbury and Lord Gardiner of Kimble
Lord Gardiner of Kimble
My Lords, I spoke to the curator this morning, rightly anticipating this question. This is a very intricate and complex matter and the University of Cologne is considering all the points that come out of its research. After that careful consideration —because obviously we do not want to do anything at all that could further damage the paintings—this will come before the Works of Art Committee. The options before it will then be considered, and then all of us will hear more.
Baroness Bonham-Carter of Yarnbury (LD)
My Lords, picking up on the artistic aspect, does the Minister agree that one of the most effective commemorations of the First World War was “Blood Swept Lands”—the ceramic poppies at the Tower of London? That was a very strong and evocative example of the power of artistic endeavour in bringing people together. I agree with my noble friend Lord Forsyth that Waterloo 200 should similarly emphasise not the triumph but the tragedy of conflict—tragedy that we experienced so starkly last week.
Lord Gardiner of Kimble
My Lords, I think that that is why we have all, rightly, used the word “commemoration” and never “celebration”; it precisely encapsulates what we all feel about the sacrifice of these dreadful battles. However, we are grateful that we prevailed.
Arts: Lottery Funding
Debate between Baroness Bonham-Carter of Yarnbury and Lord Gardiner of Kimble
Lord Gardiner of Kimble
My Lords, we have seen some very exciting refurbishments and restorations of our heritage buildings. It is precisely why the Government and arm’s-length bodies such as the Arts Council, the Heritage Lottery Fund and English Heritage have provided extensive funding towards cultural heritage, including buildings. It is important that Arts Council England provides capital grants which can be spent on purchase, improvement and restoration of capital projects. What the noble Baroness said is absolutely right: the last thing we want to do is to have an investment and let it deteriorate.
Baroness Bonham-Carter of Yarnbury (LD)
My Lords, additionality was one of the founding principles of the National Lottery. Another was that there should be only one National Lottery. That is the not the situation today. We have the Health Lottery, which is a national lottery in all but name, and there is the new problem of gambling operators offering products that masquerade as lotteries but are in fact bets. These damage the ability to raise funds for good causes such as the arts. What do the Government intend to do about this?
Lord Gardiner of Kimble
My noble friend raises issues about other lotteries—she mentioned the Health Lottery. The market is changing. The Gambling Commission is providing us with further advice on how the markets are operating, which we will consider before consulting later in the year. The changes in the lottery and gambling markets have made it clear to us that any consultation on society lotteries needs to be far more wide-ranging than was originally thought.
Film Industry
Debate between Baroness Bonham-Carter of Yarnbury and Lord Gardiner of Kimble
Lord Gardiner of Kimble
My Lords, I think that I would go further and say that the creative industries generally are all part of the scene we have for film and the allied industries: technicians, theatre—I am very pleased with the tax reliefs for regional theatre now, for instance, in the Budget—high-end TV and animation. All of those should be seen as a whole, because the creative industries are an essential part of our national economy.
Baroness Bonham-Carter of Yarnbury (LD)
Following on from the noble Baroness’s question, does my noble friend agree that at the heart of the success of the British film industry are public service broadcasting television channels—from which Tessa Ross comes, of course—and that the continuing existence of Channel 4 and the BBC, funded as they are today and with their respected remits and models, is central to the continuing success of our British film industry?
Lord Gardiner of Kimble
My Lords, the key feature, and why it has been such a successful sector, is the mix of both commercial and public sector broadcasters. I had a meeting last week with Channel 4. I was very impressed with its encouraging of apprenticeships with 4Talent and, indeed, with the BBC and its apprenticeship schemes. All of this is part of a mix in this sector, all of which is vital for our prosperity.
Leveson Inquiry
Debate between Baroness Bonham-Carter of Yarnbury and Lord Gardiner of Kimble
Lord Gardiner of Kimble
My Lords, the first thing I will say is that the noble Lord is indeed a patient Lord. However, our purpose is to seek a voluntary process, and we very much hope that the press will, through its independent, self-regulatory body, apply to the recognition panel so that what has happened before does not happen again and we have the right mechanism in place. I emphasise that it is voluntary for the press to apply to the recognition panel. However, as your Lordships know, Parliament has—following through from the Leveson report—made very clear, through the Crime and Courts Act, what the position would be for those who transgressed.
Baroness Bonham-Carter of Yarnbury (LD)
Did the Minister see the Guardian/ICM poll last week, which demonstrated that the public are solidly behind external regulation of the press, underpinned by an outside body? Does he agree that the newspaper publishers should listen to the public, as well as to the victims and Parliament, and support the cross-party charter?
Lord Gardiner of Kimble
My Lords, I very much agree with my noble friend. In the end, we have a duty to the public and to the victims in particular. We have a responsibility to try to set in place a position where this does not happen again and which gives confidence to the public. I am aware of the polls—polls can do a range of things. I hope the press will see that the cross-party charter is designed because of good will and that we wish to protect the freedom of the press while ensuring that people have proper redress.
Press Regulation
Debate between Baroness Bonham-Carter of Yarnbury and Lord Gardiner of Kimble
Lord Gardiner of Kimble
I thank the noble Baroness for her comments and I understand what she said about an unfortunate delay. However, I hope that I have explained that it will not be put forward tomorrow because there is to be further work, which I think all three parties agree would be sensible to consider and discuss given the committee of the Privy Council’s view that there are areas that should be looked at again.
In terms of the word “concession”, the intention is to see whether there are practical ways to address these issues about the arbitration situation for local and regional newspapers and the standards code, which are intended to make this a workable proposition. I do not see them as concessions. This is not about concessions but about seeking to ensure that we have a workable solution.
Baroness Bonham-Carter of Yarnbury (LD)
My Lords, does the Minister agree that the cross-party charter in no way threatens press freedom? I speak as a journalist. Nothing in it will interfere with or undermine what we all recognise as crucial to our democracy; namely, press freedom. Indeed, Geoffrey Levy will remain free to publish his opinion, as will those who disagree with him. This charter addresses the ability of victims and those who have experienced unacceptable intrusion to achieve redress. Does the Minister agree that we should get on with making sure that this charter comes into being? Will he confirm that that will be on 30 October?
Lord Gardiner of Kimble
I thank my noble friend for re-emphasising that the whole intention of the royal charter is not to undermine press freedom. It is intended to provide a system whereby there is such a culture that the situation previously faced by victims no longer happens but that, if it does—and I very much hope that it does not—there is proper redress for people. So I agree with that. I certainly agree that the proposals are to get on with it this week. The date that has been agreed for the Privy Council to meet to seal the cross-party charter is 30 October.
Press Regulation
Debate between Baroness Bonham-Carter of Yarnbury and Lord Gardiner of Kimble
Baroness Bonham-Carter of Yarnbury
How much support does the Minister think there is for the PressBoF charter other than from a certain powerful interest group? The fact is that its proposal would not create a self-regulator that is genuinely independent or impartial. On Monday, I quoted Sir Tom Stoppard and I want to quote him again.
“The resistance to a statutory monitor suggests that the dream of self-regulation persists in some quarters. Well, they had that, and . . . they blew it”.
Does not my noble friend agree with one of our greatest defenders of the freedom of the press?
Lord Gardiner of Kimble
We are in the position we are because wrongdoing took place, and we have had to decide how best to ensure that this does not happen again. That is why the cross-party royal charter commands the support of all the political parties. Indeed, it is why at PMQs today, my right honourable friend the Prime Minister made very clear his views on the PressBoF proposal and his continuing support for the cross-party royal charter.
Ofcom: Public Service Broadcasting
Debate between Baroness Bonham-Carter of Yarnbury and Lord Gardiner of Kimble
Lord Gardiner of Kimble
I hope the noble Lord knows my own preferences on the matter of the referendum. Of course, impartiality must be absolutely key to anything we do, whether it is a referendum or general elections. It is part of the essence of public service broadcasting.
Baroness Bonham-Carter of Yarnbury
My Lords, as we are talking about Ofcom’s duties, what plans do the Government have to act on the recommendations made by Ofcom about plurality in the media in a report published last year at the request of the Secretary of State?
Leveson Inquiry: Report
Debate between Baroness Bonham-Carter of Yarnbury and Lord Gardiner of Kimble
Lord Gardiner of Kimble
My Lords, of course I understand what the noble Lord has said. We must indeed remember why the Leveson inquiry was held. Innocent people suffered tremendous harm and we owe it to them to ensure that this does not happen again. However, that should not and does not conflict with the important place we have for protecting freedom of the press.
Baroness Bonham-Carter of Yarnbury
My Lords, has the Minister seen the response from the NUJ to the publishers’ and proprietors’ charter? The NUJ represents journalists and utterly condemns the charter as showing contempt for parliamentary democracy. Who does the Minister think supports the publishers’ charter? Does he not agree that the proposal would not create a self-regulator that was genuinely independent or impartial, which is what the people of this country, and in particular the victims, want and deserve?
Lord Gardiner of Kimble
My Lords, I am aware of the representations of the NUJ and, indeed, other interests. I have to repeat that there are due processes for any submission of a royal charter. I checked the website at the Privy Council Office and I can work out how one can put across one’s views during this period of openness. There will be 15 working days for a period of openness, when people can put their views to the Privy Council as to the Pressbof royal charter.
Press Regulation
Debate between Baroness Bonham-Carter of Yarnbury and Lord Gardiner of Kimble(11 years, 9 months ago)
Lords ChamberRead Full debate Read Hansard Text
Lord Gardiner of Kimble
My Lords, I understand particularly the points made by Hacked Off. Clearly, we need to ensure that as many concerns as possible are allayed. As I say, the royal charter document is a draft. I am sure that there will be commentary on it by the political parties and I am sure that the point made by the noble Lord will be part of those discussions. In those cross-party talks it is important to have a formal structure from which we can take forward the very legitimate points that Hacked Off and other organisations have made.
Baroness Bonham-Carter of Yarnbury
My Lords, although welcoming the publication of the Conservative’s proposals for a royal charter, we on these Benches have always been clear that our preferred option is the implementation of Leveson. In view of what my noble friend has said, will he encourage the Secretary of State to work through cross-party talks, which he says are happening tomorrow, to produce a royal charter that achieves Leveson’s recommendations in full, which this, quite frankly, does not? Specifically, will she bring forward provisions that prevent it being amended or abolished by future Governments?
Lord Gardiner of Kimble
My Lords, I very much hope that tomorrow’s discussions—obviously, I will not be party to them—will take forward an understanding of the parties’ positions. The royal charter provides an opportunity to have those discussions. I understand that there is considerable good will on all sides. My noble friend has made a point about the future of a royal charter and the importance of no one tampering with it. The detail of the royal charter includes how the appointments process is constituted; how the recognition body cannot change itself without a triple lock, which includes a unanimous decision by the recognition body; the written agreement of all the leaders of the three main political parties; and a two-thirds vote in both Houses of Parliament. With all those matters drawn into this draft, I believe that this royal charter has a very strong chance of considerable success.
Of course, no Government can bind a successor Government. That is one of the principles of the fine way in which we conduct our business. No Parliament can bind its successors.