Leaving the EU: Tourism and the Creative Industries

Chris Evans Excerpts

Tuesday 17th April 2018 Westminster Hall

[Christine Jardine]

While air passenger duty might have an economic impact, it cannot overcome the biggest single problem: it will not allow planes to take off. We need a deal on coming out of the EU that will allow our flights to continue to take off and land in Europe, and travel across Europe with the same ease that they do today.

For the creative industries, the figures are, if anything, even more impressive: these industries are worth an estimated £90 billion to the economy and account for one in every 11 jobs. That is something we often overlook. Those jobs are in fashion design, video games, television, theatre, furniture design, radio and many other sectors. International broadcasters alone invest more than £1 billion a year in Britain. It is our fastest growing sector and the UK is currently a world leader in the field, with creative exports from Stormzy and Shakespeare to “The Great British Bake Off”, which define what the UK is to visitors we want to attract from across the globe.

[Chris Evans (Islwyn) (Lab/Co-op)]

In the light of what the hon. Lady just listed and the importance of the creative industries to our wider economy, does she think it will be pertinent for the Government to appoint officials from the Department for Digital, Culture, Media and Sport to the Department for Exiting the European Union?

[Christine Jardine]

That is not a point that I had previously considered, but I think it is well made. Perhaps that would help to alleviate the problems those industries might face and actually draw attention to some of them.

As I said, international broadcasters contribute about £1 billion to the economy. All of that economic strength—jobs, growth and potential—is undermined by Brexit. If our creative industries are not protected, world-class events such as the Edinburgh festival, Glastonbury and many others, will find that for musicians and artists who used to tour Europe freely, with no issues over EU crew, equipment licences or visas, the whole process will become slower, more expensive and in some cases not possible at all. Fashion, lighting and furniture designers will lose the benefits of cross-EU design rights. The video games, advertising, publishing, television and film sectors will lose access to the talent that is their lifeblood. Funding from Creative Europe is at risk.

If the UK’s creative industries are threatened, there will be an impact on tourism. As I said, the Edinburgh International Festival is the biggest event of its kind in the world. To put it into context, if we imagine the FIFA World cup coming to the UK every summer, we begin to understand the value and impact on the country’s economy that the Edinburgh festival has. In 2016 it was estimated that festival audiences accounting for around 4.5 million ticket sales generated £300 million for the economy, and that is not unusual.

The festival is the biggest, most high profile and most diverse in its scale and scope, with everything from street theatre to major orchestral concerts. Because of that, it offers a unique insight into why organisations representing our musicians, hotels, venues and performers are campaigning hard for protection against the potential damage of Brexit. The festival is regarded as one of the most important cultural events in the world. The Fringe in its own right is the world’s largest arts event, and there are affiliated events in film, art, books, science and television. Together they guarantee that throughout the summer my city is awash with tourists, often visiting the festival as a gateway to the rest of Scotland and the UK. Only the Olympics and the FIFA World cup are bigger attractions.

--- Later in debate ---

[Chris Evans (Islwyn) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Mr Bone. I congratulate the hon. Member for Edinburgh West (Christine Jardine) on securing the debate and on a fantastic opening speech. I also want to express my disappointment that the right hon. Member for Wantage (Mr Vaizey) is not in the Cabinet. He was overlooked on several occasions by Prime Ministers and, as we heard in his speech, he speaks from a position of experience and understanding of the industry. I think I speak for a lot of people who said they felt they had a friend when he was the Minister. I also want to congratulate the hon. Member for Perth and North Perthshire (Pete Wishart), who is one half of the famous parliamentary rock band MP4: a classic line-up for a passionate speech. Once MP4 decide to go on that long-awaited British tour, we look forward to welcoming them to Blackwood Institute and Newbridge Memo and one of the larger venues that we can book.

[Mrs Hodgson]

Tickets cannot be touted.

[Chris Evans]

We have to pay them.

Last month I met Gail Renard, chair of the Writers’ Guild. She was one of several people who came to meet me to talk about concerns about the impact of Brexit on the creative industries. Gail is a very interesting character. She met John and Yoko at one of their famous bed-ins. As I am a big fan of the Beatles, our meeting went on from half an hour to two hours while she told me everything about John and Yoko and their fantastic life together. But the one thing she wanted to get across to me was the real concern about freedom of movement.

The Creative Industries Federation has recommended that the Government implement sufficient structures to replace freedom of movement. The problem for those of us who were remain Members of Parliament in leave constituencies is that when we knocked on doors we were told that the No. 1 issue was freedom of movement—we were going to take back control of our borders. As we have seen, not only in the creative industries but in others, we were told that there were simple solutions to complex problems. Many people did not know about access to the single market or the customs union. The issues were not properly explained, and that was the problem with the Brexit debate.

That is why we are where we are. The problem is that selling freedom of movement to our constituents will be difficult. When they see “freedom of movement,” they think about immigration. They worry about immigration, and that is a problem for a British success story. Let there be no doubt: the creative industry is a growing sector of the economy. It is worth £92 billion—up from £85 billion in 2015. The sector makes more than 5% of the UK’s gross value added product. However, all that would be impossible without European funding. If we are to lose funding from streams such as Creative Europe, as well as part of the workforce, when there is no more freedom of movement, the future of the creative industries looks bleak.

Earlier this year, entertainment industry leaders expressed concerns about freedom of movement and other post-Brexit uncertainties at a House of Lords Committee sitting. It is high time the Government listened to them. The chief executive of One Dance UK has said that freedom of movement is a vital part of its business model. Its members travel to the EU for work eight times a year, on average. A poll conducted by the Musicians Union when it held an event here a year ago with Equity found that only 2% of the music industry believed that Brexit would be good for them. An industry that produced the Rolling Stones, the Beatles and countless other bands that broke America is worried about the future. However, the key issue expressed across the industry is that, because of unique working patterns that involve a lot of travel, freedom of movement is necessary for its continued success.

I agree with the right hon. Member for Wantage that Prime Ministers have not discussed the arts very seriously. The creative industries seem to be a bolt-on. They are not taken as a major contributor to the British economy. The sector provides a wide variety of jobs and career opportunities for people across the UK and Europe. Harry Potter, James Bond and Marvel films have been some of the highest grossing productions of the past decade. Only this week Robert Downey Jr. was welcomed to south Wales for the filming of a new Marvel film. We want to welcome more people like him. Many of those productions have been filmed primarily in the UK and across Europe, with a significant British and European workforce. In 2016 alone there were 131,000 EU nationals working in the British creative industries. Freedom of movement for workers in the creative industries is key to the success of those projects.

If we lose freedom of movement, we run the risk of limiting the production of international projects in the UK. Can you imagine, Mr Bone, if that situation affected the banking, construction or manufacturing industries? I am sure that the debate would be packed with speakers, but the creative industries seem to fall to the back of the queue. It can go on no longer. If international film production companies or musicians using large European workforces believe that it will be too difficult or costly for EU nationals to enter the UK to work, they will simply go elsewhere. I agree with the hon. Member for Perth and North Perthshire that there will be countries in Europe, and around the world, rubbing their hands together waiting for the creative industries to leave here and set up there.

[Kerry McCarthy]

Is my hon. Friend aware of the EU quota rules by which at the moment TV broadcasters are required to invest 20% of their revenues in making or commissioning original content, and to spend at least 50% of their time showing European works? If British works are no longer included in that 50% quota, companies with a choice as to where they make productions will not come to Britain. They will need to make sure they are made in a European country.

[Chris Evans]

That is an extremely important point. What do we want to see on our television screens: low-budget foreign television productions or the high-quality drama and film productions we currently enjoy in this country? My hon. Friend the Member for Cardiff West (Kevin Brennan) will know that Wales has become a hub for BBC drama productions and for film, just as Scotland has—and Northern Ireland, with “Game of Thrones”. There is a real concern that we are almost gutting the industry.

There is also a knock-on effect. Music tours and festivals have a huge impact on larger companies but also on cafés, bars, hotels and other hospitality industries, and they attract huge crowds. We seem to be cutting our legs from under us. If limits are imposed, local enterprises will suffer. The Government need to ensure that there are either exemptions or sufficient structures in place to ensure continued employment and career growth for British and European workers in the entertainment and creative industries. The Government’s recent report on the creative industries gave absolutely no information on their plans for the sector’s future. The sector often has to plan out its projects far in advance, so it needs assurances now that its projects and workforces will not be hindered by our leaving the European Union.

There should be no doubt: there is a lot of money in the creative industries. Netflix and Amazon are competing for the same space; it is a great time for the industry. We must realise how important the creative industries are. Performing and visual arts, and film, TV and video are second and third respectively only to the IT, software and computer services sector. In 2015 those two sectors combined employed 517,000 people—20% of the entire creative industry workforce—and their economic outputs amounted to £24.4 billion, or 28% of the entire output. We cannot pretend that Brexit will not affect that. Many of those projects rely on freedom of movement. The Government should bring clarity to that.

I intervened earlier on the hon. Member for Edinburgh West. The Minister and I will probably bump into each other in the hallway tomorrow, as we are neighbours, and perhaps I can discuss the matter with him then. I would like the Government, if they take the creative industries seriously, to make two announcements. As I explained earlier, I would like officials from the Department for Digital, Culture, Media and Sport to be seconded to the Department for Exiting the European Union. I would also like the Culture Secretary to set up a Cabinet working group on Brexit, given the importance of the creative industries to the economy. Outside Parliament, I would like representatives of the creative workforce to be on the Creative Industries Council, which is currently chaired by John McVay of Pact. No creative trade unions are on it. I would like Equity, the Musicians Union and other creative industries unions to be invited on to it. The issue is too important. We are now perhaps 18 months away from Brexit. As in other areas, there is a need for certainty, and I look to the Minister to provide it.

[Mr Peter Bone (in the Chair)]

I thank hon. Members for keeping to time. The House is expected to divide at 3.54. That may help Front-Bench spokesmen.