Creative Industries

Lord Smith of Finsbury Excerpts

Thursday 3rd November 2011 Lords Chamber

[Lord Smith of Finsbury]

My Lords, I warmly congratulate the noble Baroness, Lady Bonham-Carter, on securing this important debate, which has led us into a fascinating and illuminating discussion from all parts of the House. I have a especial word of congratulation for the noble Viscount, Lord Colville, on a very moving and interesting maiden speech. I should, of course, note a number of interests: I am chairman of the advertising standards authority, a non-executive board member of Phonographic Performance Ltd, and the person who has been asked by the Government to lead the review of policy on the film industry that is currently under way.

When I became Secretary of State at DCMS in 1997, and looked at the creative sector of the economy—those activities that depend for their economic value on the product of individual creative skill and talent, ranging from music, film and the high arts at one end through to advertising, architecture, design and many other enterprises at the other—I sensed that this was a body of activity that was not just of great aesthetic importance but of huge economic importance to the country. I discovered, however, that no one knew the exact extent of those industries. No one knew what the trends or challenges were or what was happening to them, and more importantly, the rest of Government did not acknowledge that they were important.

The picture has of course changed since then. A lot of work from a succession of Ministers and departments in both Governments has been put into establishing the importance of the creative industries, but perhaps that importance is still not recognised sharply enough. If the Chancellor of the Exchequer is looking for where the growth in the economy is going to come from in the next few years, this is above all the area that he should be looking at. Over the last 20 years, the creative sector has consistently grown at a faster rate of growth than the economy as a whole, and that is still the case. The first and most important thing that a Government can do is recognise that fact and its importance.

Two other things are also vital and both have been touched on in the course of our discussions. The first is the importance of education for the success of the creative sector. That starts with the nurturing of creative spirit in our schools. That does not just mean the chance to absorb, enjoy and develop a passion about dance, drama, the visual arts and the richness of our museums, film and music; it is also about giving every pupil in our schools the chance to play music, to direct a play, to make a movie, to be part of the creative process and not just the enjoyment of the creative process.

We need to ensure the development of skill and talent is taken forward not just in our schools but post-school at higher education and further education level. If we are not training the new generations to become the directors, the designers, the lighting specialists, the wizards at special effects, we are not going to have these industries to cherish at all in the future. Education also needs to consider how to encourage and assist the people who are developing their creative talents and skills to learn business skills as well, because they have to be able to become entrepreneurs as well as hone their creativity.

The second hugely important area in relation to the creative sector is the protection of intellectual property value. This is, after all, where the economic value, the creation of wealth, in these creative sectors comes from. The creator has to be properly remunerated for their talent and skill. I cannot emphasise too strongly how important this is. It is especially important in the digital world where online communication is simultaneously the creator’s best friend and potential foe. We need to ensure that value can be properly and legitimately realised and returned to the creator. That is why I urge the Government to press ahead urgently with the implementation of the Digital Economy Act. The Hargreaves report was all very well—Hargreaves got some things right and some things wrong—but we must not forget the Digital Economy Act in the process.

The creative industries add enormously to the wealth of the economy and to the richness of our lives. That needs to be recognised not only in the heart and soul of DCMS—and I know the noble Baroness absolutely understands this—but in the heart and soul of the Secretary of State for Business, the Secretary of State for Education, the Chancellor of the Exchequer, and the Prime Minister as well.