Music: Contribution to the UK Economy

Conor McGinn Excerpts

Friday 3rd November 2017 Commons Chamber

[Conor McGinn (St Helens North) (Lab)]

I tweeted yesterday that I was leading a debate in the House on music, and was asked whether I would be doing so in song. I am afraid my singing abilities are restricted to one genre, the warbling and melancholic kind normally reserved for a certain hour of the night—the sort of songs that give rise to the joke about the Irish boomerang, which never comes back but sings about how much it wants to.

First, I want to thank key figures and organisations in the music industry who are true champions of this vibrant sector, and whose work has, in large part, led to this debate.

I am sure Members across the House will join me in thanking UK Music, which is working at the forefront of the industry to ensure its success now and in the future. I pay tribute in particular to UK Music chair Andy Heath, who has done a magnificent job in bringing all the component parts of the industry together since the foundation of UK Music nearly 10 years ago, and to former UK Music chief executives Feargal Sharkey and Jo Dipple, who have made an immense contribution to the profile of the music sector, and who continue to work in the industry ensuring it can speak with one voice to policymakers. I also could not forget, because he would not allow me to do so, the good work of the current UK Music chief executive, the former Member for Barnsley East, Michael Dugher, who is leading the organisation through a very interesting but unpredictable time for the sector—similar to the situation in his previous role before leaving to take up his post. We wish him well in his work.

I also want to offer thanks to all the individual members—the sum of the parts—of UK Music: the Association of Independent Music, the British Academy of Songwriters Composers and Authors, the BPI, the Featured Artists Coalition, the Music Managers Forum, the Music Publishers Association, the Music Producers Guild, the Musicians’ Union, Phonographic Performance Limited, PRS for Music and the UK Live Music Group. We benefit greatly from their knowledge and expertise when contributing to debates such as this.

UK Music’s “Measuring Music” and “Wish You Were Here” reports make a compelling case for the importance of our music sector. The reports show the UK music industry contributed £4.4 billion to the economy in 2016, up 6% on 2015. There are now more than 140,000 people employed across the industry, with year-on-year growth of 19% since 2015, and more people than ever before are attending festivals and gigs, with an incredible 31 million people attending live music events in 2016. These figures are testament to the remarkable success, and indeed the resilience, of the UK music sector in what are very uncertain economic times.

[Ellie Reeves (Lewisham West and Penge) (Lab)]

Is my hon. Friend aware of form 696? It is a risk assessment form for live events in the capital that unfairly targets grime music and other urban acts. Will he join me in calling on the Met police to use the Mayor of London’s review to scrap form 696 and to support a more proportionate system of ensuring safety and security at live events which are so successful and contribute positively to the UK’s economy?

[Conor McGinn]

I absolutely agree with my hon. Friend’s point. I was going to mention that later, but she gives me the opportunity to say that I know that that matter has been raised with the Mayor of London, and it is certainly being raised across the industry. I had intended to mention it today because it is a hugely important issue, particularly for music in London.

[Mr Jim Cunningham (Coventry South) (Lab)]

Anyone who appreciates music will also appreciate the fact that the Ricoh Arena in Coventry is a wonderful venue and that wonderful musical events are held there. Also, in passing, will my hon. Friend join me in paying tribute to the great Fats Domino, who passed away a few days ago?

[Conor McGinn]

I will indeed. Whatever vintage we are, we can all appreciate the genius of Fats Domino. I also think it is fair to say that the music at the Ricoh in Coventry is definitely better than the football there.

I want to highlight the global success of the industry, and its impressive achievements in driving tourism and generating export revenues. The UK music industry generated export revenues of £2.5 billion in 2016. That is a huge contribution to UK exports, and indeed to Exchequer revenues, and this will be increasingly important as the UK leaves the EU. At home, 823,000 overseas music tourists attended gigs and festivals here in 2016. That is an enormous credit to our myriad festivals and live music events, from the world-famous Glastonbury—where my right hon. Friend the Member for Islington North (Jeremy Corbyn) was the star turn—to the Westfield Street music festival in St Helens, where my hon. Friend the Member for St Helens South and Whiston (Ms Rimmer) and I were definitely not such star turns.

[Alison Thewliss (Glasgow Central) (SNP)]

The hon. Gentleman mentions international music festivals. Would he like to pay tribute to the organisers of the Celtic Connections festival in Glasgow, which brings international acts to the city? Does he share my concern that visa restrictions following Brexit could put at risk such wonderful events?

[Conor McGinn]

I am happy to commend the organisers of that festival. I am hugely fond of Celtic and traditional Irish music and I have been involved in it all my life. I will come on to the hon. Lady’s point about the potential consequences of Brexit a little later, if she will allow me.

There is cause for celebration, but we in this House must remain acutely aware of the many threats to the music industry’s success. The entrepreneurial and creative nature of the music industry means that there are many small businesses, as well as individual freelancers, operating in the sector. That includes independent record companies, studios and music venues. Let us take music venues as an example. Across the UK, an estimated 35% of grassroots music venues have closed down over the past decade, including some in my own constituency. That is hundreds of small businesses that have folded, and thousands of missed opportunities for young artists and performers. Many venues have closed down as a result of developers moving into an area to build flats and houses nearby.

[Jo Stevens (Cardiff Central) (Lab)]

In my constituency, we recently had a successful campaign to save Womanby Street, which is a street of live music venues. As a result of the threat of developers moving in and trying to get the council to issue noise abatement orders, we managed to get the Welsh Government to change national planning policy to allow for the agent of change. Would my hon. Friend like to see that development across the UK?

[Conor McGinn]

Yes, absolutely. My hon. Friend makes a very pertinent point, which leads me on to say that many venues have closed down as a result of developers moving in. When that happens, the venues, many of which have operated successfully and without issue for decades, become vulnerable to complaints from new residents, which can threaten licences or result in new conditions for the venue. The financial burden for venues to install expensive soundproofing, for example, can be prohibitive, especially when they are operating with small margins. The Government must urgently stop the rising tide of venue closures by enshrining such an agent of change principle into law here. I pay tribute to my hon. Friend and other Members from Cardiff, including my hon. Friend the Member for Cardiff West (Kevin Brennan), for their campaigning on the issue pertaining to their city. Enshrining an agent of change principle into the law would mean that developers who brought about a change that had an impact on existing businesses would have to take some responsibility for that. My right hon. Friend the Member for Warley (John Spellar) is driving that important change forward through a ten-minute rule Bill that he will present to the House.

The industry also faces enormous economic uncertainty as the UK leaves the EU; it is not immune to the threats and challenges. In a poll of musicians, composers, songwriters, lyricists, producers and artist managers this year, it was found that more than half feared that leaving the EU would have a negative impact on the music industry, and just 2% thought that Brexit would have a positive impact on their chances of work. The Government need to recognise that their lack of clarity on a transitional deal is affecting the music industry and is delaying investment opportunities and long-term planning. On top of that, an estimated one in 10 workers in the music sector holds a passport from another EU country—a greater proportion than the 7% of the total UK workforce who are from other EU nations. I want to pay tribute to the important work of the Musicians’ Union in championing the rights of professional musicians and performers who tour across the EU, and I hope the Minister pays close attention to what it has to say and will commit to working with it.

[James Frith (Bury North) (Lab)]

I congratulate my hon. Friend on securing this debate. As a former singer in a band, I rise to support his arguments. I am unsure whether the sales of the music that I wrote contributed a huge amount to the economy, but the beer sales certainly did. Some 1.86 million music tourists visited the north-west last year, generating £500 million for the local economy and sustaining 6,000 jobs. A key factor in that is our ability to grow new artists. As my hon. Friend has been saying, Brexit presents possible restrictions on freedom of movement, so would he support the industry calls for an EU-wide touring passport once the UK leaves to ensure that our musicians can continue to perform overseas and not just in the brilliant bars and venues, such as those that he and I frequent in Manchester?

--- Later in debate ---

[Conor McGinn]

Indeed. I pay tribute to my hon. Friend and his commitment to music and the music industry. He makes a relevant and pertinent point, and I hope that the Government look closely at that proposal.

The Government need to respond carefully to the structural and technological changes in the music industry. Music, and how we listen to it, is changing fast. An AudienceNet survey in June found that, on a typical day, radio accounted for just one 10th of 16 to 19-year-old listening time, whereas on-demand streaming made up 62%. That contrasts sharply with the over-65s who, according to the same survey, spend around two thirds of listening time tuning into the radio and just 4% on streaming services. Given the significant growth in online music consumption, the Government must take action to address the transfer of value that has developed in the digital economy in recent years.

Certain online platforms have grown at the expense of the music industry by exploiting safe harbours in the e-commerce directive. Not only does that mean that creators and those who invest in them are not adequately rewarded for the use of their content, it also creates an uneven playing field among digital platforms. To put that into perspective, estimated record company revenue per YouTube user, a service which benefits from safe harbours, is under $1, but the figure is $20 for Spotify. The value gap that has resulted from the legislative framework needs to be closed, so that the industry can fully benefit from the great potential presented by music streaming. As the UK leaves the EU, I urge the Government to pay close attention to the proposed directive on copyright in the digital single market, which contains many measures that would be of benefit to the music industry, such as transparency and addressing the transfer of value. As the changes take place, the Government must ensure that our artists, writers and creators receive due benefits under existing copyright rules, especially as the UK leaves the EU.

As a Member of Parliament representing a constituency in the north-west of England, it is incumbent on me to pay homage to the towering musical heritage of Manchester and Liverpool, whose bands and artists have so often played the soundtrack to our modern history. As an Irish MP, I have to say that, from McCartney and Lennon to the Gallagher brothers, it is also important to recognise the contribution of Ireland’s sons and daughters and their sons and daughters to Britain’s musical heritage.

I particularly highlight the contribution of musicians, artists and venues in my constituency and how they are driving a progressive vision for St Helens and the north-west. St Helens is recognised by the Arts Council as a UK leader in arts and culture. Despite huge cuts to its budget, the local council has committed to providing whole-class first access to instrumental programmes for key stage 2 children.

Across the country, too many children are excluded from music lessons because their families do not have enough money. The Government should consider bursaries, particularly for underfunded areas such as mine, and for music such as brass and silver bands—the excellent Haydock, Valley and Rainford bands are truly the lifeblood of communities in St Helens.

Figures from UK Music show that, in 2016, 25,500 people attended live events across St Helens, generating box office spend of £1.2 million, and many thousands more attend live events, mini-festivals and bands playing in our pubs and clubs and even at our racecourse, Haydock Park, which hosts major concerts in an excellent initiative by the Jockey Club to marry music and racing. We are fortunate to have fantastic venues such as the Citadel and the hugely successful Westfield Street and Reminisce festivals, which are adding to those impressive figures.

I call on the Government to do all they can to support our thriving music industry. I hope the Minister will reassure the sector by committing to the introduction of an agent of change principle in UK law, by taking immediate steps to close the value gap and by addressing disparities in the transfer of value online. In Brexit negotiations, the Government should avoid damaging restrictions on musicians’ and performers’ freedom of movement, and they should consider advocating an EU touring passport to ensure that musicians and crews can continue to tour, a point well made by my hon. Friend the Member for Bury North (James Frith). We have a world-leading music industry in this country, but it is not immune to the economic threats we face. The Government must do all they can to support the sector and to ensure its continued success in the coming years.

Music written and performed in the UK has formed the soundtrack to my life and has enriched the lives of many others, too. I hope the Government will ensure that future generations can enjoy the same world-beating music sector that we have all had the fortune to enjoy.