Oral Answers to Questions

Lord Swire Excerpts

Wednesday 16th May 2012 Commons Chamber

[Alok Sharma (Reading West) (Con)]

11. What assessment he has made of future opportunities for creative industries in Northern Ireland.

[The Minister of State, Northern Ireland Office (Mr Hugo Swire)]

The creative industries in Northern Ireland are worth £500 million a year and employ more than the agriculture sector. The new relief announced in the Budget will assist the industry directly and help to attract further blockbuster productions such as “Game of Thrones”, which was—indeed, is—filmed in Northern Ireland, creating 800 jobs.

[Dr Coffey]

After the Oscar win for the excellent Northern Irish film “The Shore” and the financial boost given to the film industry by the Chancellor, does my right hon. Friend agree that Northern Ireland has a creative industry to be proud of, bringing in investment in skills and jobs?

[Mr Swire]

I certainly do agree, and we should not forget that for every £1 spent on the arts, the economy benefits to the tune of £3. There is absolutely no reason why the Cathedral quarter in Belfast cannot rival Temple Bar in Dublin or Covent Garden in London in terms of new creative industries and technologies, and we are very excited by that prospect.

[Christopher Pincher]

Following the sell-out success of Belfast fashion week, what support can the Minister give to high-quality local designers and niche manufacturers to ensure that local retailers buy quality local goods and do not buy from abroad?

[Mr Swire]

My hon. Friend is right, and of course it is not just about those designers and textile manufacturers in Northern Ireland; it is about those around the world. I refer him to Patrick Grant, the Savile Row tailor of E. Tautz—judging by the look of my hon. Friend, he has been to visit him on a number of occasions—as well as Jonathan Anderson and others. There are a huge number of people, both in Northern Ireland and outside, in the industry, and we are—to repeat myself—very excited by the prospects for the industry. [Interruption.]

[Mr Speaker]

Order. There are some very noisy private conversations taking place. Let us have a bit of order for Mr Alok Sharma.

[Alok Sharma]

Does the Minister agree that the announcement in this year’s Budget to introduce corporation tax reliefs for film and television production will bring even more value to Northern Ireland’s proposition as a world-class production location?

[Mr Swire]

For my hon. Friend I repeat above the hullabaloo that Northern Ireland is a world-class destination for film and TV production. I welcome the moves taken in the Budget to encourage further investment there. The Paint Hall studio in the Titanic Quarter has recently been used for “City of Ember”, the mediaeval comedy “Your Highness”, and, of course, the first two series of the European “Game of Thrones”, which has so far brought about £43 million to the Northern Ireland economy. Yes, we are open for business, and if anyone out there is watching—I am sure there are many—come to see us in Northern Ireland and we will assure you of an excellent service.

[Mr Jeffrey M. Donaldson (Lagan Valley) (DUP)]

Will the Minister encourage the British film industry to make more use of the facilities available to it in Northern Ireland?

[Mr Swire]

I rather hoped that was what I had just done, but I welcome the right hon. Gentleman’s question so that I can repeat again that Northern Ireland is a great location, providing a great landscape, very willing people, a hard-working work force, financial incentives and great studio production facilities. More than that I cannot say.

[David Simpson (Upper Bann) (DUP)]

Although it is well and good to encourage the creative industries in Northern Ireland to create short-term employment on some occasions, what can the Minister do to encourage the small to medium-sized companies in Northern Ireland that are currently on their knees? [Interruption.]

[Mr Speaker]

Order. The House must calm down. It is difficult even for the Minister to hear the question. Let us hear the reply.

[Mr Swire]

The Budget provided a number of measures and most of them apply, of course, to Northern Ireland as an integral part of the United Kingdom. I am looking forward to visiting a number of these companies with the hon. Gentleman in the forthcoming days or weeks. The Budget was designed for the United Kingdom as a whole to retain the fiscal responsibility that is the signature of this Government. Everyone benefits from low interest rates and from taking lower-paid people out of taxation altogether. This is not just for small companies in Northern Ireland; it is for small companies the length and breadth of the kingdom. It was a good Budget to help this country on the road to economic recovery, which it deserves.

[Jim Shannon (Strangford) (DUP)]

6. If he will take steps to secure a reduction of air passenger duty in Northern Ireland.

[The Minister of State, Northern Ireland Office (Mr Hugo Swire)]

The Government have worked closely with the Northern Ireland Executive on this matter and have reduced air passenger duty on all direct long-haul flights from Northern Ireland from 1 November 2011. Provisions to devolve APD are set out in part 3 of schedule 23 to the Finance Bill, which is awaiting its Committee stage.

[Jim Shannon]

I thank the Minister for his response. The Secretary of State recently had a meeting with Willie Walsh of BAA and was assured that the Belfast city airport flight routes were safe. The staff at bmibaby are on a 90-day protective notice, as flight routes are due to finish. At that meeting, air passenger duty was also discussed. If there is one initiative that can retain flights, it is the reduction of APD for Northern Ireland. What steps is the Minister taking to reduce APD and to secure jobs?

[Mr Swire]

It is very important to make this situation clear. Northern Ireland Ministers asked for APD to be devolved only for bands B, C and D, and we were able to meet that request, thanks to our all-listening Chancellor. We have not been asked to devolve band A flights, which would reduce the block grant by a substantial amount. The hon. Gentleman’s question allows me the opportunity to tell the House that my right hon. Friend the Secretary of State and I have been very proactive on this matter, working with the local Minister of Enterprise, Trade, and Investment, Arlene Foster. As the hon. Gentleman says, my right hon. Friend has spoken to Willie Walsh a number of times. Keeping those routes open from Belfast to Heathrow is very good news.

[Mr Speaker]

Order. I ask the Minister to shorten his answers, as other Members wish to participate in the debate.

[Mr Robert Syms (Poole) (Con)]

13. Further to the question on air passenger duty, should the Government not be doing much more to expand Belfast airport, particularly the air links, especially if we are to promote more public sector jobs in Northern Ireland?

[Mr Swire]

I hope my hon. Friend meant more private sector jobs in Northern Ireland, but more jobs there is great news. The employment figures for Northern Ireland are better today—better than in other parts of the United Kingdom. We are not on the back foot on this one: we want more traffic and more flights to and from Northern Ireland; that is what we are working towards.

[Dr Alasdair McDonnell (Belfast South) (SDLP)]

Does the Secretary of State agree with me, and with many members of the business community in Northern Ireland, that air passenger duty charges are inhibiting business access and activity, and making it even more difficult to achieve growth and business development?

[Mr Swire]

I think that this is an opportunity for the Chancellor to be given some credit for responding to what the Executive wanted and having air passenger duty devolved, which is good news for Northern Ireland. We want more flights into and out of Belfast, and we are on the right road towards achieving that. We have also saved the flights to Heathrow, which is good news for the businesses in the hon. Gentleman’s constituency.

[Philip Davies (Shipley) (Con)]

8. Whether he has made an assessment of the potential effect on the Northern Ireland economy of changing the corporation tax rate in Northern Ireland to that obtaining in the Republic of Ireland.