Oral Answers to Questions
Damian Collins Excerpts(9 years, 2 months ago)
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Sajid Javid
I join the hon. Gentleman in his suggestion that there should be more investment in grass-roots football, and he will know that the Government allocated more money in the last autumn statement. Together with the Premier League and Football Association money, that is £100 million of new money going into grass-roots football over the next three years. On his point about the Premier League, I should say, first, that the Premier League already does a lot—I welcome that and we should all commend it. However, with the recent increase in its finances, we can all expect it to do more.
Damian Collins (Folkestone and Hythe) (Con)
Moving the FIFA World cup in 2022 to the winter could have significant financial consequences for the Premier League and for all levels of football in England and Europe. Will the Secretary of State be raising this issue with FIFA? Will he be discussing it with other European Sports Ministers?
Sajid Javid
A few years ago when it was first announced that the 2022 World cup would be held in Qatar, my son Suli, who was 10 at the time, said to me, “How are they going to hold this competition in such blazing heat?” If my 10-year-old son knew that, I do not know why Sepp did not. We take a close interest in this, but ultimately the decision has to be made by the relevant football authorities.
Oral Answers to Questions
Damian Collins Excerpts(9 years, 5 months ago)
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Sajid Javid
Yes, I agree fully with my right hon. Friend. He will know that of the £20 million we allocated in that grant, £13 million has been used so there is still about £7 million left to go. I urge other cathedrals to take advantage of that and to work to help their local communities.
Damian Collins (Folkestone and Hythe) (Con)
12. What assistance his Department has provided to sports bodies to encourage world-class sporting events to be held in the UK.
The Parliamentary Under-Secretary of State for Culture, Media and Sport (Mrs Helen Grant)
Through UK Sport, we have invested £27 million to bring more than 70 major sporting events to the UK. The Government also made available an extra £10 million to support last year’s excellent Tour de France Grand Départ.
Damian Collins
Does the Minister agree that the recent chaos at FIFA demonstrates that it is not fit to govern world football? Will she confirm that the Government would not support a future bid from England to host the World cup while the current leadership team at FIFA remains in place?
Small Business, Enterprise and Employment Bill
Damian Collins Excerpts(9 years, 5 months ago)
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Toby Perkins
My hon. Friend is right. The proposals brought forward in Committee were detailed, and new clause 4 is investigating those ideas. Small businesses have the right to expect to be paid on time, and we should be taking serious steps to support that.
Current provisions in the law are not adequate to deal with the extent of the problem, and the Late Payment of Commercial Debts (Interest) Act 1998 was an important step. The EU late payment directive that the Government introduced in 2012 was broadly built on the same principles. They are valuable as far as they go—the prompt payment code is valuable as far as it goes—but they are clearly not adequate. The idea that more transparency, welcome though it may be, will be a silver bullet or even a significant step towards a resolution, is entirely wrong.
The Bill includes some provisions on interest charging. For reasons that other Members have highlighted, many small businesses feel that they are not able to charge interest because of the impact it would have on their relationship. This was a real opportunity for the Government to take hold of the issue and tackle the problem once and for all. Our amendments in Committee should have won the support of the Committee and the Government, because they had potential and I look forward to promoting them as part of a Labour party business manifesto in 2015. Small businesses will recognise that the measures we proposed were a step forward and that the measures in the Bill are a much smaller step.
The Government have dragged their feet on this issue over the past four years: the EU late payment directive was introduced at the last possible moment and the steps proposed at this juncture are small. We were disappointed after the very successful Back-Bench debate on late payments secured by my hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams) and the hon. Member for South Basildon and East Thurrock (Stephen Metcalfe). In the run-up to that debate the previous Minister, the right hon. Member for Sevenoaks (Michael Fallon)—he was great; he used to attend debates and everything—said that he would write to the FTSE 350 and warn businesses that they would be named and shamed if they did not sign up to the prompt payment code. Unfortunately, because that had not happened by May 2014—almost two years on—I tabled a series of written parliamentary questions to find out if companies were due to be named and shamed. We were told that it was no longer Government policy. It ceased to be the policy of the Government before it had ever actually become the policy of the Government. The Government’s record on this is not strong and to describe it in the terms that the Minister did was generous in the extreme.
New clause 3 would take this issue out of any Minister’s hands by ensuring that the very biggest businesses would know that they would all be named and shamed publicly if they did not comply. It would also provide an opportunity for Ministers to name and praise businesses that paid on time and complied. That carrot-and-stick approach is valuable as it would ensure that businesses that played by the rules and ensured that their customers were paid on time would not be tarnished with the same brush as those that gamed the system. It would ensure that the Government had a focus on signing up businesses to the prompt payment code. There was some talk previously about the number of people signed up to the prompt payment code. In the last two years of the Labour Government 978 businesses signed up to the code, whereas in the first two years of this Government just 204 did—a real difference in the number signing up. Our proposed changes will ensure that companies comply with the spirit of prompt payment, not just the letter of the code. I hope Members will give the new clause the support it deserves.
New clause 4 was tabled because the Government’s draft legislation fails to grasp the central problem behind the late payment crisis. Ultimately, despite the extent of the crisis, small businesses are often reluctant to report late payment as they rely on the custom of businesses for their very existence. Just 10% of businesses have considered using late payment legislation, despite 22% of businesses ending a relationship with a customer because they could not be paid on time.
Previous policy initiatives have focused on increasing prompt payment from public sector bodies to contractors. In the March 2010 Budget, the last Government took significant steps to tighten the rules on late payment by the public sector, and this Government are looking to take further steps in that direction, which we welcome. However, the FSB is clear that late payment by private sector businesses is the major problem, and although it is right that government should put their own house in order first, the challenge for policy makers is to shift the burden away from small businesses going out on a limb to ask for interest payments to their being paid as a matter of routine. Ministers are wrong to say that transparency, welcome as it is, will solve the problem. Yes, businesses might know they are dealing with a company that often pays late, but none the less, because of how their businesses are constituted, they might be utterly dependent on that relationship and be unable to do anything about it.
We are clear about the changes we think should be made to alter the balance of power in the late-payment relationship, and our proposed review would be an opportunity to investigate the matter in more detail, away from the cut and thrust of a Committee stage, where Governments, for whatever reason, are often reluctant to take forward ideas simply because they come from the Opposition. Our review would be an opportunity to explore an idea that we think has real merit. Our proposed quarterly statement would list all payments made late to suppliers without a formal query having to be made. It would also confirm whether interest has been paid to compensate the supplier and set out a payment plan to ensure it is paid promptly where it has not. As a package, those measures would be a significant step forward, with greater potential than any other to change the relationship between small businesses and their suppliers in the context of late payments.
My hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams) spoke to her new clause and amendment. Amendment 6 would require companies to include details of the circumstances and process by which payment times can be amended and details of whose permission is required, which would prevent individual directors from making rash, unilateral or ad hoc changes to companies’ payment policies. Her new clause 1 addresses the issue of retention money in the construction industry, where it is common for firms to withhold payments to protect against problems with work and/or materials. We think that these proposals are worthy of consideration, and we look forward to hearing what the Government have to say. Many jurisdictions abroad have legislation in place for protecting retention money. It has worked well elsewhere and certainly deserves significant scrutiny.
The hon. Member for Brighton, Pavilion (Caroline Lucas) proposed a couple of amendments, including one on exports. Like the rest of us, she will know that the Government have failed spectacularly to secure the export-led growth they promised us back in 2010. We have the largest 2014 trade gap of any major industrial country, which is a significant issue, particularly in relation to goods, and we believe that the Government should pull their weight in supporting our exporters and that a case can be made for examining the overall role of UK Export Finance.
Damian Collins (Folkestone and Hythe) (Con)
I have been following the hon. Gentleman’s remarks very carefully. To touch on what my hon. Friend the Member for Ipswich (Ben Gummer) said, the charging of an 8% levy for late payment might not be a catch-all, because there might be people not paying because they have a legitimate complaint about the quality of the work done who might fear being charged the 8% levy for late payment if they raise a legitimate concern but are not successful. That would be unfair and might discourage people from making reasonable complaints.
Toby Perkins
The hon. Gentleman makes a valid point. The Bill, as originally drafted, would have meant that a business that had raised a legitimate concern within 30 days would have been exempt from punishment for late payment. That is a valid concern.
Damian Collins
But that would depend very much on the type of work. If it was a construction contract that was running over a long period of time, and if the 30 days were taken from the moment of the invoice, the actual consideration of the quality of the work might come some time afterwards. Again there would need to be much more flexibility built into the system because different jobs may take different periods of time. Assessing the quality of the work might take longer because of the length of the contract.
Oral Answers to Questions
Damian Collins Excerpts(9 years, 6 months ago)
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Damian Collins (Folkestone and Hythe) (Con)
10. What assessment he has made of the role of the arts and the creative industries in supporting economic regeneration in coastal communities.
The Minister for Culture and the Digital Economy (Mr Edward Vaizey)
I am delighted to move on to talk about the role of the arts and creative industries in supporting economic regeneration, particularly in the Folkestone and Hythe constituency, where a combination of Government support and the extraordinary work of the philanthropist Roger de Haan has seen more than 200 creative businesses flourish in a town that hosts the amazing Folkestone triennial.
Damian Collins
I thank the Minister for his answer. I would like to extend an invitation to both him and the Secretary of State to visit the Folkestone triennial arts festival to see the creative-led regeneration of the old town of Folkestone, which, as he said, is creating hundreds of jobs and leading to hundreds of new businesses every year.
Mr Vaizey
I certainly intend to do that. I was in my hon. Friend’s constituency in August and, as I walked with him down the promenade, literally thousands and thousands of his constituents were lining the streets cheering him. I thought that that was one of the most impressive receptions for an MP that I had ever seen, and Prince Harry, who was standing next to me, felt the same thing.
Oral Answers to Questions
Damian Collins Excerpts(10 years, 2 months ago)
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Damian Collins (Folkestone and Hythe) (Con)
1. What his policy is on the length of the school day; and if he will make a statement.
Mr Dominic Raab (Esher and Walton) (Con)
16. What plans he has to extend the school day.
The Secretary of State for Education (Michael Gove)
I would like to see state schools offer a school day that is nine or even 10 hours long, enabling schools to provide character building, extra-curricular activities and homework sessions. I look forward to working with schools to ensure that they have access to the resources necessary to provide these activities.
Damian Collins
Does the Secretary of State agree that lengthening the school day in this way will give more children the chance to benefit from a greater breadth of studies—an opportunity that too often has fallen only to those who can afford to pay for it?
Michael Gove
My hon. Friend is absolutely right. What we need to do is close the unacceptable gap in attainment between those who are fortunate enough to have parents who can pay for them to be educated privately and those in the state sector. The very best state schools recognise that a longer school day with additional extra-curricular activities is just one way of ensuring that all our children can succeed.
Apprenticeships
Damian Collins Excerpts(12 years, 4 months ago)
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Stephen McPartland
That is an interesting point. As is clear from my accent, I do not have much knowledge of the Clyde, but I believe that more than 1 million manufacturing jobs were lost under the last Government.
The quality of apprenticeships depends on the quality of the colleges that provide the training. North Hertfordshire college has an inspirational leader, Fintan Donohue, who has been working very hard. I am grateful to the Department for Education for providing it with a studio school last week, one of 12 in the United Kingdom, which will focus on science and technology. That brings me back to MBDA and Astrium, whose apprentices specialise in those subjects. The headquarters of the Institution of Engineering Technology are in Stevenage, and it is very involved in the provision of engineering qualifications. We need more young apprentices gaining skills that will make firms want to employ them in real jobs.
Damian Collins (Folkestone and Hythe) (Con)
Does my hon. Friend think that there is a role for local government? Shepway district council in my constituency runs a brokerage service enabling businesses with an interest in apprentices to contact the appropriate training providers.
Stephen McPartland
I think that there is a role for everyone to take on as many apprentices as possible. Some young people are interested in academic careers, while others prefer to pursue a more hands-on route. My view is simple. I believe that all that young people really want is a job. They want a route map: they want to be told “If you take this path, you will find a job at the end of it.” The Minister has done a huge amount of work in that regard, both in opposition and in his present post. He has kindly given me one “yes” already, but I wonder whether he would be consider fully funding, for two years, the cost of apprenticeship training for people between 19 and 24. At present only 50% of the cost is funded, and full funding could greatly help NEETs—people who are not in education, employment or training.
Let me end with a quotation from the deputy principal of North Hertfordshire college, Signe Sutherland.
“The changes to the single adult budget have been excellent and we have managed to grow apprenticeships by 300% I the last 12 months. This equates to… an increase of apprenticeships in numbers 500 to 2,000 so with perseverance there are jobs are there”.
That is important news. The college is based in Stevenage, but it does a huge amount of work throughout Hertfordshire. I think it is integral to the apprenticeship offer that we focus on the simple fact that what is important is giving young people the skills that they need to obtain jobs.
Paul Blomfield
I invite the hon. Gentleman to come to Sheffield to see the real consequences of Mrs Thatcher’s policy on steel and engineering in our city. Some 30 years on, we in Sheffield still live with the legacy of those policies: a lost generation who never made it into regular work and the social consequences of intergenerational unemployment. In the steel and engineering industries, apprenticeships were the route to highly skilled and well-regarded jobs that provided both a learning experience gained from respected role models in the workplace and experience of the discipline of working and of working as part of a team.
To revert to the spirit of bipartisanship, I am pleased that the Minister recognised the role the last Government played in restoring apprenticeships. As my hon. Friend the Member for Liverpool, Walton (Steve Rotheram) pointed out, apprenticeship starts more than quadrupled between 1996-97 and 2009-10. I am deeply worried, however, that with youth unemployment now at more than 1 million, as in the 1980s, we again face the risk of there being a lost generation.
The Minister is an honourable man who is deeply committed to skills and apprenticeships, and he must therefore share our frustration that behind the Government’s rhetoric is a sorry picture in respect of apprenticeships. There is concern about the age profile of apprenticeships nationally, and that is certainly felt in my constituency. In 2010-11, just 150 people under the age of 19 started an apprenticeship, as against 200 people aged between 19 and 24 and 250 people aged 25 and over. Compared with the previous year, there has been a 27% decline in the number of apprenticeship starts for those under 19, as against an increase of 17% for those aged between 19 and 24 and a 313% increase for those over 25. In June, even the head of the Government’s apprenticeship service, Simon Waugh, had to admit that
“there is still a chronic lack of apprenticeship places for interested school and college leavers”.
Many people were shocked to discover that the growth in new apprenticeships under this Government has come in the 25-plus category. Astonishingly, the number of apprenticeships taken up by those aged over 60 increased tenfold between 2009-10 and 2010-11. What is the reason for that trend? There is concern that since the abolition of many of the training courses delivered under Train to Gain, there has been a rebranding of in-house training as apprenticeships. The Minister must address that issue.
I think the Minister will agree with me about the number of apprenticeships in small businesses. Only 8% of small businesses had taken on an apprentice in the past year according to a Federation of Small Businesses skills report in June. In October, the British Chambers of Commerce found that 53.7% of its members who were surveyed thought an apprenticeship was not relevant to their business or sector. The FSB backs that up in its report, saying that 46% of businesses did not think an apprentice was suitable for their business. That proportion increases to 60% for sole proprietors and 47% for micro-businesses. That perception must be challenged, because apprenticeships can play a valuable role in all sectors both in the workplace and in terms of gaining valuable skills.
I have been working on that issue with the British Chambers of Commerce, and that work has been reflected in early-day motion 2469, which has support on both sides of the House. It states that
“greater priority needs to be given to increasing the number of apprentices across the UK to provide essential career opportunities for young people”.
About 20% of small businesses cited each of the following three factors as major reasons for not taking on an apprentice: training time and general time constraints, costs, and the young people involved having no previous experience. The Government must consider how they might give better support to small businesses by disseminating information better to break down these perceptions and by providing the practical assistance that SMEs need.
Damian Collins
I do not wish to plug my district council in Shepway again, but it has developed a service to local businesses who may want to share an apprentice rather than take one on full time, and that service addresses how the council might help with some of the transport costs as well. Good local creative thinking may help to solve some of the problems the hon. Gentleman is setting out.
Paul Blomfield
I welcome such initiatives, while also recognising that many local authorities—such as mine in Sheffield, which is facing a 30% cut in funding over a four-year period—will have difficulty finding the money to launch such new initiatives. Assistance of that sort does need to be provided, however, and the Government might try to identify funds to support local authorities in taking initiatives such as that in Shepway.
We can also do more in our constituencies to work with small businesses, and I applaud the efforts of the hon. Member for Harlow (Robert Halfon) and other Members on both sides of the House in setting up the Parliamentary Academy. As employers, we are not dissimilar to SMEs. Our offices operate as micro-businesses, and we are busy, money is tight and we might never have taken on an apprentice before. I was pleased to take on an apprentice even before the Minister invited us to do so. A young woman called Rebecca is working in my office as an apprentice secretary, in partnership with Sheffield college. At the end of the year she will gain a level 2 BTEC in business and administration, by spending one day a week in the college and four days a week in my office, with regular visits from the work-based learning assessor. She will come out of the scheme with skills and experience enabling her to get a job, and she will have assisted the work of my office over this year. There is a lesson in that for all small businesses. I encourage other MPs to take a lead on this issue by employing apprentices.
I hope the Minister will also recognise that there is much more that we can do collectively and that his Government can do to advance the cause of apprenticeships. I hope he will respond in his closing remarks to the comments of the shadow Minister, my hon. Friend the Member for Blackpool South (Mr Marsden), about the powerful role the Government can play in public procurement. It is unfortunate that this Government have backed away from some of the initiatives Labour took when we were in power, and I hope the Minister will recognise the opportunities that exist to use the role of government locally and nationally as consumer in order to bind companies to take on more apprentices.
Intellectual Property (Hargreaves Report)
Damian Collins Excerpts(12 years, 9 months ago)
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Damian Collins (Folkestone and Hythe) (Con)
It is a pleasure to serve under your chairmanship, Mr Chope, and to have heard the contributions of the previous speakers, who have a great deal of knowledge and expertise in this subject, particularly as a result of the work done in previous Parliaments and in passing the Digital Economy Act 2010.
I come to the debate not only as a member of the Culture, Media and Sport Committee, but as someone whose work and business background was largely in the creative economy, given that I worked in the advertising industry. As I can see from my constituency, the creative economy plays an important role in the regeneration of our economy. I entirely agree with the right hon. Member for Bath (Mr Foster) that it has fantastic scope and potential as one of this country’s great industries. In many sectors, we truly lead the world, and they can be part of the growth of our economy as it recovers.
However, we are talking not just about an economy of large businesses or about multinational companies seeking to purchase, use and benefit from the rights to creative content, but about a complex web of different businesses, large and small, which are interdependent and which rely on one another. In the creative quarter in the old part of Folkestone, which is very much part of the town’s regeneration, 200 to 300 people are employed in the creative economy as artists, web designers, website creators and games makers. Many of their businesses are simple partnerships of two or three people or small stand-alone businesses. Their ability to make things, sell them in a fair and open financial market place and benefit from them is incredibly important to their survival.
It is a particular pleasure that the debate is taking place in the Grand Committee Room. About six months ago, I organised an event for about 70 art students from colleges right across the country, from the south-west to London, Lincolnshire and Leeds. The group was organised by Graham Fink, the creative director of M&C Saatchi, who runs a free service for art students. He brought them into this room to run a creative workshop, hoping that they would be inspired by being in the Palace of Westminster and in this great forum for debate and ideas. It was fantastic to see the work and enthusiasm of those young people seeking to break into the industry, although it would be remiss of me to say whether they generated more original thinking and ideas in an hour than we will manage in the next hour. It was certainly a great pleasure to see their work and their enormous enthusiasm. Everyone with a knowledge of and passion for the creative industries understands its scope as a business and knows that young people want to work in it; they want to bring their ideas and be part of it. They have a right to expect a fair recompense for their ideas and work, and for the effort they put in.
Technology has changed the marketplace dramatically, but it can also be the great hope of the creative industries. I am thinking of the internet’s ability to supply what is referred to as the long-tail supply chain, in which the owners of niche works that would otherwise struggle to get listed can sell them in an open marketplace. The ability to search for and find work through search engines and the internet is a great advantage, but there must be rules of engagement. The direction in the finding of materials should be fair. Websites and search engines should direct people to places where works can be legitimately purchased. Many people have concerns that instead of directing people to legitimate places where they can buy works, predictive search, in particular, directs them to places where they can be obtained by piracy.
Mr Brian Binley (Northampton South) (Con)
My hon. Friend is making an interesting and important speech, but I am concerned about the direction by search engines to sites where the creators of material can be recompensed. Does he agree that search engines should be more able to act in that way? Should the Government think more about a little nudging and forcing in that direction?
Damian Collins
My hon. Friend makes a compelling point, which will have been heard by Ministers and search engine owners. I attended a briefing with the BPI, which represents the music industry, to talk about that very issue and was given a live demonstration, in which typing “download music” into Google meant that the predictive search came up with “download music for free”.
If we believe that technical measures should be used to restrict people from downloading content illegally, we should consult those who run search engines about the priority and ranking that they give to sites that direct people to sources where they can do that. That is a legitimate part of the debate, and search engine representatives should welcome it and be open to consultation with Government about it.
Mike Weatherley (Hove) (Con)
Is my hon. Friend aware of the traffic light proposals by the BPI and others that may go some way towards what he suggests?
Damian Collins
Yes, I am. It sounds like a sensible way forward. Those things are always best achieved in dialogue with the industry, through Ministers. That is often a much better approach than regulation and direct legislation, which, as we know from other remarks that have been made, can often be difficult to accomplish successfully. That dialogue is important. The companies concerned will have heard the remarks of my hon. Friends the Members for Hove (Mike Weatherley) and for Northampton South (Mr Binley).
Going back to my time in the advertising industry and to a case brought to me by a constituent, I can think of issues on both sides. A gentleman who runs a television business in Cheriton, Folkestone thought that a good way to sell the latest high-definition televisions would be to run an old-fashioned television next to a high-definition one, to show how that set revealed the improvement in the quality of the broadcast. Someone told him that he might need an entertainment licence to do that and that, for that simple demonstration in his shop, he would be charged several thousand pounds. He suggested that he would not do that, and a frank exchange of words was had—after which the problem seemed to go away. Nevertheless, he was potentially running foul of copyright laws.
Many people, if not in this room then elsewhere, will have put together a presentation for their work with images found on Google or elsewhere, and they will not have had a copyright licence to use them. I am sure that people of my generation can think of times when a friend lent them a tape-to-tape copy of some new musical work for their enjoyment, and they, too, would have been in breach of copyright regulations. Those issues have always existed. In some ways the digital economy brings them to a head. In the days when people made cassette copies for each other, peer to peer, the quality of reproduction was relatively poor. However, when the reproduction quality is almost perfect and a reproduction can be transmitted at any time at virtually zero—or actually zero—cost to people, with no effort, the market is changed dramatically. The ability of an owner to own, control and sell the perfect rendition of the work is changed. The rules of the game change, and we should consider what that means for the law.
I was interested in the Hargreaves recommendations on private use. I suppose that copyright and licensing have always respected the idea that the value of a work is based not on the time and effort taken to produce it, but in many cases on the value to the user. In the advertising industry, if music or a photograph or other image is used for a campaign that will run around the world, the cost will be much greater than for the insertion of a stand-alone image in one newspaper, or a radio advert on one local station. There is a recognition of the benefit to the user as well. That is important. If some relaxation of the rules on private usage, where there is very limited commercial value, if any, to the creator, would simplify people’s ability to use work for their own entertainment and for their and their family’s pleasure, I think that it would be reasonable and sensible to consider it. As the Secretary of State for Culture, Olympics Media and Sport has said, we do not necessarily want a system in which someone can be sued for using a piece of Beatles music on a video of their cat on YouTube. That does not mean an open licence system without any attempt at regulation and control.
I am sure that many people would hope that a simplified version of rights clearance and the purchase of rights will mean that older materials—old pieces of film and programming—might be more readily available on services such as BBC iPlayer and elsewhere online. That might bring into play the rich archive of material that broadcasters such as the BBC own, which it is currently difficult to licence and use.
I agree almost entirely with the remarks of my right hon. Friend the Member for Bath about the digital exchange. The idea put forward by Hargreaves is interesting and compelling. There are already clearance houses for rights—PPL and PRS for music in particular—so I wonder what that new exchange would mean for them. I support the view that it would be wrong to compel people to register their works at the digital exchange with the back-door threat that otherwise they might not be covered by any of the legal protections in the Digital Economy Act 2010. Such compulsion would be cause for concern.
When I was a candidate for Parliament, like many other candidates at the time, and many hon. Members of the previous Parliament who were part of the debate on the 2010 Act, I met photographers who were concerned about the proposed legislation on orphan works. Not only should a way be found to pay a nominal licensing fee for orphan works such as images that people want to use, but if that use brings substantial financial gain—particularly if a found image is used in an advertising campaign, which brings great commercial benefit to the company using it—there should be a way to assess what the real value would have been if a proper licensing agreement had been in place. Clearer guidance is also needed on the commercial value of orphan works, in cases where the person in question comes forward after the image’s use.
The issues present a great overall challenge. Our responsibility is to protect the industry and the rights of the content creators, so that they know that they are in an industry where their endeavour and work receive a fair price and are fairly used, and they have incentives to carry on producing their work. One of the challenges that we face, in addition to an uncertain regulatory playing field, is the public’s attitude towards the illegal use of content, particularly in the music industry. Research demonstrates that, on the whole, the problem is not that people do not think they will be caught downloading material illegally, but that they do not think that there is anything wrong in it. The problem is that people do not necessarily understand the impact of piracy and the illegal use of works and the knock-on consequences for the creative industries. That is a communications and attitude-change challenge for the industry.
Part of the solution should be effective resolution using ideas in the Hargreaves report, a better framework for licensing works and understanding how those things work; but there is also a challenge for the industry to make the legitimate means of getting access to music and purchasing content so attractive, simple and easy to use that people would on the whole be deterred from using illegal sources, as the quality of the product and the method of delivering it would be so inferior and the potential consequences not worth the risk.
I welcome the report and hope that we shall not be back here in two years discussing yet another Government report on the issue, but that we shall instead be celebrating some progress on the matter.
Damian Collins
One observation from my time in the advertising industry, based on the hon. Gentleman’s remarks, is that that could work against younger creative people. They do not have experience of the industry or the muscle to demand a higher price for their work at the initial point of sale and will therefore lose control of it for the future. Does the hon. Gentleman share that concern?
Eric Joyce
I absolutely agree. Indeed, the advertising industry is one of our more successful creative industries. I know a number of people who work in it or who have done so. The hon. Gentleman said earlier that the advertising industry often takes something that looks like an original idea from elsewhere, uses it imaginatively and creates something new, adding value to it.
The hon. Gentleman said something about orphan works that struck me; I had not reflected on the matter before. I do not have a great problem with orphan works. I was lobbied on the subject by photographers during the passage of the 2010 Act. It could be the case that something has been forgotten by the creator and is long-gone but is used in an advertising campaign, such as that famous kiss picture by Robert Doisneau. Such things could be completely forgotten, but if they are used in advertising campaigns and seen all over the place, the creator will not benefit from it. I see the logic of revisiting that aspect.
Damian Collins
I am grateful to the hon. Gentleman for giving way again. I might be wrong, but I cast my mind back to the 1997 general election campaign and the famous demonised poster of Tony Blair. The original photograph was an orphan work.
Eric Joyce
That is absolutely fascinating. I think Tony Blair might have put the original up in one of his many houses. Perhaps he has put one up in each. I will not continue to wax rhapsodic, as I was late for the start of the debate.
Let me turn briefly to the internet service providers. There are hundreds of thousands of ISPs, many of which are small and fill a niche. In the UK, there are lots of ISPs serving local geographical areas. That may seem counter-intuitive, but that is the way it is. They provide a good service in their niche market. I am not saying, “Yah-boo sucks to all the creators and the ISPs are all fabulous.” However, we tend to forget that ISPs have to invest a great deal of money in infrastructure. We all want superfast broadband, but if we are not careful we could end up loading costs on to ISPs and slow down the superfast future that we all want. It is not the case that Google commands everybody and fair use will be next. As the hon. Member for Hove has said, fair use has essentially been rejected by Hargreaves, but I am sure that that will not happen in the UK. I understand that it was primarily a legal argument that did not fit terribly well into the European legal structure.
Let me just blow the trumpet for ISPs. The sector is not terribly big or sexy, and we understandably tend to speak a lot about our success in the music industry. However, the corporate debate goes much wider than the music industry. For instance, it involves software, as I have mentioned. There are all sorts of creative responses in the movie industry. We can see release dates being brought closer together, so that people are less likely to pirate. Often, if new technological solutions, creative ideas or new ways of selling a product are found, problems can be solved.
In his report, Hargreaves emphasises that enforcement and education have a limited effect. Instead, he says we need to find new ways of facilitating new creative ideas. He recommends the creation of a digital copyright exchange. I am not sure exactly how it will work and do not think that it will necessarily involve compulsion, but there are some interesting debates around it. The report states:
“Government should pursue an integrated approach based upon enforcement, education and, crucially, measures to strengthen and grow legitimate markets in copyright and other IP protected fields.”
That goes to the heart of what Hargreaves has tried to do. It is not perfect, but it recognises that we can make incremental steps at this stage. I hope that the idea does not get knocked off track for some technical reason that we cannot get round.
Hon. Members spoke at length with Professor Hargreaves, who made himself and his team available to them. I deduce that he and his team are a little concerned that the whole thing will be knocked off track by heavy lobbying. The hon. Member for Northampton South perfectly captured the problem. We recognise that we need to change; we accept what Hargreaves recommends as sound common sense; and we can get the copyright laws that we need not only now but for things that might be coming along in the future.
Mr Hayes
That is a point about the Government’s structure, which is a matter well above my pay grade, as the shadow Minister knows. I understand why he has made the point and it is his absolute right to put it on the record.
My hon. Friend the Member for Folkestone and Hythe (Damian Collins) spoke about orphan works in his thoughtful contribution. As he knows, a number of details need to be worked out on that, including the matter of remuneration. If that recommendation were accepted, we would need to work out a protocol and system for dealing with the matter in more detail than Hargreaves understandably gives us. I would be interested to hear my hon. Friend’s further thoughts on that. If he wants to develop his argument following this debate rather than on the hoof, I am sure that the Government would be happy to take into account that further insight.
Damian Collins
In response to the Minister’s invitation and following the comments of the right hon. Member for Bath (Mr Foster), if there were a system for recompense—a protocol, as the Minister suggested—would it include an escalator? Would that just include the lost licence fee not paid, or would it reflect the value of the use of the work to the person who used it?
Mr Hayes
That is exactly what I was alluding to. My hon. Friend implied that in his earlier remarks; but for the reasons he has just given, the matter is complicated. The system would need to be thought through carefully to get the balance right. As I said, if he wants to give that more thought, I would be happy to receive representations on the matter. I will then pass them on to my noble Friend Baroness Wilcox and my hon. Friend the Member for Wantage.
Academies Bill [Lords]
Damian Collins Excerpts(13 years, 9 months ago)
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Pat Glass
No doubt there are variations in the quality of service across the country. However, in my experience, the low incidence, high-need, high-cost services across the country are usually very good and valued by schools. The difficulty is that, at the moment, there is not a market place for it, so if we lose these services and a school finds that it needs them—for instance, if a blind child comes to the school—but has no idea about Brailling, specialist services, disability or any of these things, it will not be able to buy them from a market outside.
Damian Collins (Folkestone and Hythe) (Con)
In incidents such as the one she describes concerning valued services, might not an academy school look to buy those services off the local provider for the benefit of their own pupils?
Pat Glass
Yes, it could, and yes, it should. However, as the hon. Member for Bradford East (Mr Ward) said yesterday, sometimes good people do bad things, and head teachers are not always as forward thinking as we would like them to be. Obviously, the best ones are, but if a school does not have any blind children, why would it buy in to a sensory service? It could also argue that, if a child wishes to attend that school, it cannot meet their needs.
Academies Bill [Lords]
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Vernon Coaker
My hon. Friend makes a very good point. There is a clear tension. We need to ensure that, where appropriate, schools are given the freedom to innovate and to pursue the important objectives they want, but that we do so in a way that does not disadvantage some children.
As I was saying, this goes to heart of the Bill and explains why we tabled amendment 28 to take special schools out of the Bill so that they cannot become academies. If we give those special schools that freedom, there is a potential for it to impact adversely on the entitlements of other children in an area.
Vernon Coaker
Let me finish the point, and then I will, of course. We are in Committee, so things are a bit calmer.
It is no good giving one person or school freedom without considering how it will impact on the freedom of others. I believe that my hon. Friend the Member for North West Durham (Pat Glass) made that same point, particularly with respect to disadvantaged children, children with special needs and so forth. The hon. Member for North Cornwall (Dan Rogerson) tabled amendments with a similar point in mind for the Liberal Democrats, so these concerns are not restricted to Labour Members.
Vernon Coaker
I have seen that briefing. I have explained how we have moved on from that point. We are now debating the particular model that the Government are introducing. The context in which those remarks were made was therefore totally different. We are considering how to move from where we are to where we want to be in giving schools more freedom. Our view is different from the hon. Gentleman’s and that of his Front Benchers. We believe that, if there is a free-for-all and the local authority’s role is taken away, the process is open to danger. That is the point of difference. The hon. Gentleman may think that it is better that whether a school becomes an academy is determined not by the local authority and local people but by the Secretary of State. That is nonsensical. However, he will doubtless defend that position.
Damian Collins (Folkestone and Hythe) (Con)
There has been pressure on special schools in particular. Under the previous Government, 186 special schools closed. Does the hon. Gentleman accept that some special schools may welcome the greater security that a bit more independence would give them if they were allowed to become academies?
Vernon Coaker
One of the points behind the hon. Gentleman’s question is to ensure that as many young people for whom it is appropriate are included in mainstream education. I would have thought that that was a point of agreement between us. Of course special schools need to be retained, and there is clearly a need for them to have high standards and deliver the quality of education that we all want for children with severe learning difficulties. I am not sure that their becoming academies in the way that the Bill envisages would make much difference. I pay tribute to special schools, which do a fantastic job.
Damian Collins
The hon. Gentleman is right to say that, for parents, choice is at the heart of the matter when deciding whether a mainstream or a special school is most appropriate. Does he agree that such choice should be available to schools, so that a head teacher and a board of governors can decide whether academy status is best for them? They may decide one way or the other, but surely they should have the same choices and opportunities as other schools.
Vernon Coaker
Perhaps the hon. Gentleman would like to table an amendment to provide that schools choosing such a route must consult parents and the local community, and that any application for such status should depend on not only the head teacher and the governing body, but the broader community, particularly parents. I take his point that parents are always important in education, but that applies particularly to parents of pupils in special schools. They are especially dependent on not only the support that the schools give the young person, whom they have the responsibility of educating, but the emotional advice and support that they often give parents, sometimes in very difficult circumstances. If the hon. Gentleman thinks that that is important, why does not he amend the Bill to make it a requirement that schools taking the route that he suggests consult parents? It should not be a case of a whimsical, “It’s good practice if you do that, it’ll be in the funding agreement.” Let us have a bit of clarity about what is expected from such a radical reform.
Mr Buckland
That is unfair. I acknowledge and bow to the hon. Gentleman’s experience, but he underestimates where we are with special education. I am sure that he will agree that head teachers and staff in special schools always look at ways of improving their provision, and reinvent and adapt it to the new children who enter their schools year on year. I find special schools in the modern era very receptive to change. They want to understand and learn from their experiences, and they want to learn about new diagnoses, which is an area of constant change. In autism, for example, the huge increase in the number of diagnoses means that there is an increased demand for special education, so I do not share the hon. Gentleman’s pessimism or his vision of special schools wanting to remain in a golden age and refusing to move with the times.
Damian Collins
My hon. Friend makes a very compelling case for maintaining the option of academy status for special schools. Does he agree that one will struggle to find a school that is more engaged with the parents and community that it serves than a special school? Highview special school in my constituency is one such example, but those schools often feel under pressure because of the policies that previous Governments pursued. Such schools have to justify how they offer something that a mainstream school cannot, so they are very engaged with the community that they serve, and they would go down the academy route only if they honestly believed that it was best for their children.
Damian Collins
In Folkestone in my constituency, since the launch of the Folkestone academy, results have improved not only at that school but in all the others at secondary level in the town. The improvement at that school has certainly not been to the detriment of others in the same catchment area.
The Second Deputy Chairman
Order. We are not having a Second Reading or general debate on academies; we are debating amendments on admissions and exclusions, so I would be grateful if Members could stick to those points.
Oral Answers to Questions
Damian Collins Excerpts(13 years, 9 months ago)
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Michael Gove
I am very grateful to the hon. Gentleman, who was a distinguished schools Minister, for that question. I know how hard he works for his constituents and, indeed, for every parent, child and teacher in Liverpool. I am aware that the consequences of the regrettable decision we had to take last week will be felt particularly hard in Liverpool, so either I or a member of my ministerial team will commit to come to Liverpool to talk to him and those affected—by the end of the year, I hope, but certainly as soon as possible.
Damian Collins (Folkestone and Hythe) (Con)
T2. Under the previous Government, 186 special schools closed. On Thursday, I will attend the annual prize-giving at Highview special school in my constituency—one that you, Mr Speaker, have visited. May I take the Secretary of State’s message of support for special education under the new Government as meaning that the school will have a sustainable future and the support it needs?
Michael Gove
I am grateful to my hon. Friend for his question. It is a tragedy that the ideologically driven closure of special schools under the last Government meant that so many children with special educational needs did not receive the education they deserved. That ideologically driven closure will end under this Government, and under the Minister of State, Department for Education, my hon. Friend the Member for Brent Central (Sarah Teather) we will review support for children with special educational needs. Their care should always be our first concern.