Public Bodies Bill [HL]

Lord Stevenson of Balmacara Excerpts

Monday 7th March 2011 Lords Chamber

Moved by

[Lord Stevenson of Balmacara]

65A: After Clause 2, insert the following new Clause—
“Report on the merger of the UK Film Council and the British Film Institute
(1) Before making an order under section 2 in respect of the UK Film Council, the responsible Minister must report to Parliament with details on which body will be responsible for performing the following functions currently discharged by the UK Film Council—
(a) supporting film exports;(b) protecting intellectual property and combating film theft;(c) providing film research, statistics and market intelligence; and(d) providing co-production support and diversity initiatives.(2) One year after an order has been made to merge the British Film Institute and the UK Film Council under this Act, the responsible Minister must report to Parliament on—
(a) the performance of the British Film Institute in discharging its function to promote the UK as an international filming location and to raise the profile of British films abroad;(b) the performance of the British Film Institute in discharging its function to develop new and emerging talent in film production throughout the UK;(c) the performance of the British Film Institute in discharging its function to ensure that a broad range of films are available for the British public; and(d) the criteria used and funds allocated and distributed by the British Film Institute for film production in the UK.”

[Lord Stevenson of Balmacara]

My Lords, the Bill deals with the questions of whether certain functions undertaken by government should be devolved to public bodies and how to ensure that these bodies are accountable. The Government are supposed to check whether a function needs to be carried out at all and then to apply certain tests to determine whether a public body is the “right delivery mechanism”.

Our case is that film policy fits these tests and that government has been right to establish public bodies to deal with the delivery of its objectives. The issue is which bodies and how they are to be brought into a relationship of accountability to Parliament. The purpose of the amendment and those in the group is to review and, if possible, to learn lessons from the situation that has arisen because of the precipitant decision of the Government in July 2010 to abolish the UK Film Council. The purpose of the amendment is also to safeguard the position of its main successor, the British Film Institute, and thereby give an opportunity to your Lordships to celebrate the outstanding achievement of British talent and skills in the recent Oscar and BAFTA ceremonies.

I declare a past interest as former director of the British Film Institute. I thank my noble friends Lord Wills and Lord Judd for putting their names to these amendments. My noble friend Lord Puttnam apologises for not being present. He was here last week when we nearly reached consideration of the amendments; indeed, that would have been well timed, because it was the night after the Oscar ceremonies, for which we were on tenterhooks. Unfortunately, he is now abroad and cannot be with us today.

By all accounts, this was one of the best years for British films in the BAFTAs and one of the best years for British nominations in the Oscars across all the technical specialisms, as well as in acting, producing and directing. I am sure that I speak for all noble Lords in sending our warmest congratulations to all those involved. “The King’s Speech” joins nine other British films that have won an Oscar for best picture. Colin Firth richly deserves his best actor accolade. Tom Hooper is the latest British director to be honoured and joins Danny Boyle, Sam Mendes, Anthony Minghella and Dickie Attenborough—to name but a few of the most recent winners. With the winners for the best original script, David Seidler, and best supporting actor, Christian Bale, Britain kept up its remarkable record of success. We are good at making films.

On another occasion, I should like to draw attention to the excellent work being done, perhaps behind the scenes, at the National Film and Television School in Beaconsfield, which had another good awards season, with 40 graduates involved in the BAFTA nominations and 25 working on films that garnered Oscar nominations. We are good at films and at training people for film.

“The King’s Speech” was supported by the UK Film Council with lottery funding and is already the most successful British independent film of all time. It has taken a staggering £42 million so far in the UK and has grossed $278 million worldwide. It is reaching new audiences. Indeed, one could say that it boldly goes where no British film has gone before. As a result of the modest investment made by the UK Film Council, millions of pounds will be recycled back into supporting the UK film industry. In that sense, the film perfectly makes the case for the UK Film Council’s work.

The last Government were considering a merger between the BFI and the Film Council but wanted the bodies themselves to come up with a workable proposal. In abolishing the UK Film Council by press release, the Government threaten one of the outstanding achievements of the past 10 years, during which time film became one of the UK’s real success stories and a hugely dynamic part of the creative industries and the creative economy. Not all of this can be directly attributable to the UK Film Council, but it is worth noting that the UK box office has grown by 69 per cent over the past 10 years and is now worth £1 billion per annum. The UK film industry now contributes more than £4.5 billion a year to the UK’s GDP and returns more than £1.2 billion to the Exchequer in tax payments. The UK film industry directly employs around 36,000 people and, in total, supports about 100,000 direct and indirect jobs. Over the past 10 years, inward investment—mainly US films made here—has surpassed £5.4 billion and film exports have reached a record £1.3 billion. The Film Council, over its lifetime, has invested over £160,000 of lottery funding into more than 900 films and shorts, which have won more than 300 awards, entertained more than 200 million people and helped to generate over £700 million at box offices worldwide.

I said earlier that the Government had been precipitate in abolishing the UK Film Council. Contrast, if you will, its demise with the careful way in which the previous Government set up the body a decade ago—a process in which I played a small part. Working from an initial proposal from the BFI, a working group co-chaired by the right honourable Tom Clarke MP, the Film Minister, and Stewart Till from the industry consulted widely across industry and abroad before the report, A Bigger Picture, was delivered to the Secretary of State and then implemented. Many of the findings of that report are very relevant today.

Film is both art and business. The British director John Boorman once called it the business of “turning money into light”. It is creative and innovative, it powers growth, it stimulates employment, it drives tourism and, as the Americans have recognised from the earliest days, it can promote both cultural and physical goods. If we are to diversify the British economy, we need to support and nurture our creative industries. Film is a collaborative industry and it ought to be at the heart of our drive to develop the creative industries, drawing as it does on so many other allied industries, increasingly in the new technologies.

However, we in Britain have a schizophrenic attitude to film. Is it a coincidence that the Royal Opera House dominates Covent Garden, that the National Theatre draws eyes across the Thames and that the Royal Festival Hall stands proud beside it, but that the National Film Theatre is hidden under Waterloo Bridge, every screening potentially ruined by the traffic grinding its way across above it and audiences constantly frustrated about how to find their way in, let alone watch a movie?

The machinery of UK film is complex, with many moving parts, and there is a need for a single body to continue the work of turning the UK film sector into a professional, co-ordinated and powerful industry, capable of making and distributing movies that will earn back their investment across the world. Every Government in the world, including that of the USA, support their film industry. We have the talent and the facilities—our records show that. What the industry wants is a long-term, stable partnership with government.

When I first put down this amendment to the Bill last year, I did not know at that time that the majority of the functions of the UK Film Council were to be transferred to the BFI. Although I regret the way in which this was done, I support that decision, which I think was the right one. I am confident that the senior management and the board of the BFI will rise to the “challenge”, as the Minister Ed Vaizey put it, of becoming the,

“new strategic body to oversee the future development of film in this country”.

However, closer inspection of the plans gives me cause for concern. I understand that only 44 of the 76 UK Film Council posts are to be transferred to the BFI, as no funding is earmarked for several of the functions currently undertaken, including support of film exports, protecting intellectual property and combating film theft, and providing co-production support. Can the Minister give us some explanation of what is to happen to these functions and why it was felt that they were not central to the future development of film in this country?

Of the 44 posts that are transferring out of the UK Film Council, I understand that four are to go to Film London, which is to take over the functions of the British Film Commissioner and be responsible for promoting the UK as a base for making films across the world. Film London is a good body with an excellent track record, but separating out the functions of inward investment not only from the BFI but from the eight regional film agencies, which are combining to form Creative England, and the film agencies in the three nations of Scotland, Wales and Northern Ireland seems an odd way of restructuring this vital area. Can the Minister give us an idea of how this will work in practice and what benefits will flow from the new arrangements?

--- Later in debate ---

[Baroness Rawlings]

My Lords, this has been a fascinating debate with, as is so often the case in your Lordships’ House, contributions by dedicated and knowledgeable Peers who are passionate about their subject. I am grateful to those who introduced these amendments but I want to be clear from the outset that the Public Bodies Bill is not the right place to debate the abolition of the UK Film Council or the transfer of functions to the British Film Institute. The UK Film Council is a company limited by guarantee. The British Film Institute is a registered charity established by royal charter. Neither is a statutory body, so neither has a place in the Public Bodies Bill.

However, Amendment 67B, in the names of the noble Lords, Lord Stevenson and Lord Wills, and Amendments 77A and 85B, in the names of the noble Lords, Lord Stevenson, Lord Wills and Lord Judd, would include the UK Film Council and the British Film Institute within Schedules 2, 4 and 5. Amendment 65A, in the names of the noble Lords, Lord Stevenson, Lord Puttnam and Lord Wills, and the noble Baroness, Lady Bakewell, would create a duty for the Government to lay before Parliament a report following a merger under Clause 2.

I will consider these amendments together. In answer to the remark made by the noble Lord, Lord Wills, about recognition from Ministers of the success of “The King’s Speech”, as recently as last week the Minister, Ed Vaizey, praised the UK Film Council in a speech at the UK Screen Association. That is on public record. The Government remain absolutely committed to supporting the British film industry. The decision to abolish the UK Film Council should not be misconstrued as an attempt to undermine the industry. I urge noble Lords to consider the substance of our proposals before coming to conclusions as there is a certain amount of support for this merger even from the noble Lord, Lord Stevenson. While the UK Film Council is being abolished, its most important functions will be retained, many of which will move across to the British Film Institute. These functions include the distribution of lottery money, support for films in the regions, the media programme and the certification unit that is essential to film tax relief.

The noble Lord, Lord Wills, was rightly concerned that the British Film Institute’s research and statistics unit should be retained. I can assure him that we, as well as the industry, believe that that is critical. Discussions are progressing well between the BFI, Film London and the UK Film Council, and we are confident that the transfer in April will leave no gap in the service provided to the UK film industry. The noble Lord, Lord Stevenson, is right that we are looking for the full transfer in April 2011. As referred to by the noble Lord, Lord Stevenson, the DCMS is currently discussing with the industry and the BFI the solution to funding the research and statistics unit. My noble friend Lord Cathcart made a very valid point and he is absolutely right. I am most grateful to him for reminding us yet again that these bodies have no place in the Bill.

British film-making continues to have a bright future under this Government. The film tax credit, which is worth more than £100 million each year to the British film industry, will continue with the certification unit moving across from the UK Film Council to the British film industry. Lottery funding available for the industry will increase from the current £27 million to £43 million by 2014, an increase of more than 50 per cent. The success of films such as “The King’s Speech” shows that we can be proud of the country’s contribution to film-making and I was delighted that this contribution was acknowledged at last week’s Oscar ceremony, as well as at the BAFTAs and the Golden Globe Awards. I should like to add my congratulations to all those involved to those of the noble Lord, Lord Stevenson.

The noble Lord, Lord Wills, asked several questions. He asked whether talented staff will have a fulfilling future. We agree and would hope that they will. Transfer arrangements are currently the subject of due diligence discussions between the British Film Institute and the UK Film Council. He also asked about film exports, as did the noble Baroness, Lady McIntosh. Tough government decisions have had to be taken and priorities established but the UK Film Council continues to work with the industry to promote film exports. The noble Lord and my noble friend Lady Benjamin asked about responsibility for diversity issues. I can assure them that it is part of the fuller policy remit. The noble Lords, Lord Wills and Lord Triesman, asked about piracy and we understand their concern. The BFI does not represent the film industry on IP issues. The responsible agency for public policy is working with the industry.

We have had an interesting debate and I should like to remind your Lordships once again that these are not statutory bodies and should not appear in the Bill. However, I have taken note of the points and some of the constructive ideas. If I have not answered all questions asked by noble Lords I will of course take them back to the department. I should also like to remind your Lordships that the additional statutory reporting requirement is not feasible as it relates to a merger under Clause 2 of bodies which have no place in Schedule 2. I would therefore ask the noble Lord to withdraw his amendment.

[Lord Stevenson of Balmacara]

My Lords, I thank the Minister for her response. In some senses, this debate has proved to be exactly what we had hoped that it would when we put down the amendments. We did so in a spirit of discussion and debate, which I hope has not been misconstrued on the other side. It is clearly a probing amendment. You cannot reinstate that which should not be instated in the first place and you certainly cannot abolish it subsequently since it has already been abolished. So we were in somewhat of an Alice in Wonderland world. We expected to be caught out and indeed we were.

However, in so doing, the debate has been exactly as we had hoped it would be. There have been contributions from all around the House, which have covered all aspects of what we thought was an important issue. We have made the point that this is something that will not wait simply on some arbitrary definition of what is a statutory body and what is not. I said at the very beginning of my remarks—I am sorry that the Minister did not come back to this—that if the general point being made in this Bill is that bodies devolved from government to bodies whether statutory or not is an important feature of our constitutional hardwiring, why is it that we are not able to work into our system a method under which those bodies can be asked to report back to Parliament so that we can have the sort of discussion which we so patently have had today? That is a question which the noble Baroness might like to take back and think about as we move towards the Third Reading of the Bill.

Several extremely valuable points were made during the debate. I particularly enjoyed those made by the noble Baroness, Lady Benjamin, which she has made to me on many occasions when I was in a position to do something about them. I suffered then and I think we have all suffered again today as we realise how bad we are about the diversity issues to which she drew our attention, and how much neglect there is in our overall concern about culture if we do not nurture our children. I wish the noble Baroness all the best in carrying on with putting these points forward. It may not be the case that the Danish model is the right one, but it is certainly something that we should be looking at, and I hope that the BFI will take it forward.

The noble Earl, Lord Clancarty, was too modest when talking about his family’s experiences. I think that there is an Oscar lurking in there somewhere, along with other prizes, and we should celebrate that with him. He made the point exactly as one would expect: when we have something successful in the country—we had the Crown Film Unit that did fantastic work which is now being restored and reissued to audiences—when it is doing particularly well, we tend to chop it down on the grounds of cost.

My noble friend Lady McIntosh said that we always have to think about how to get started in the industry. It is not a traditional industry in the sense that you can join at the bottom and work your way up; rather it is one that is feast or famine. If you have a success you are able to build on that, or you may have a series of failures. What you have to do is create a context within which work can be supported and nurtured and in which new people can always be brought forward. Creativity lies in the innovation of the young, not in the successes of the old, and we have to make sure that we get that right.

My noble friend Lord Judd drew attention to the imaginative drive that permeates throughout many ministerial Statements these days. Why on earth can we not recognise that the creative economy is one of the places that we will get the returns we need? It must be backed with really sensible proposals that will take it forward and thus out of the traditional modes with which we have been trying to support it. My noble friend Lord Triesman made the important point that IP is the key to a lot of future creative activity and that those who try to abuse it are often linked into other criminal behaviour. We are going to be in serious trouble if we cannot think through how the rights to creative activities are being taken away from the creators up to the point where sometimes they will not invest in order to achieve the benefits that we would like from them.

All in all, we have had a particular debate. I felt that the Minister did not really pick up on what the excellent speech of my noble friend Lord Wills was about. My noble friend tried to say that while we are supportive of where we are, because we are going to have a merger between the UK Film Council and the BFI whether we like it or not, there are some good things to say about it. The noble Earl, Lord Clancarty, drew attention to the problems that can arise where a cultural body takes on a commercial wing. But the BFI has done production before and, I think, can rise to the challenge going forward. However, as my noble friend Lord Wills said, we now have a benchmark. We know what success means in this world. I recommend to Ministers that they should think carefully about where the UK Film Council took our film industry so that, when we are able to debate this issue again, we can think again about the benchmark and consider whether the changes that are being brought forward now are sufficient and can succeed in achieving a sustainable British film industry, something that all noble Lords will join me in saying that they want.

As I said, this is a probing amendment and I do not intend in any sense to embarrass either my own or any side by taking it to a vote. I beg leave to withdraw the amendment.

Amendment 65A withdrawn.