Public Bodies Bill [HL]

Lord Wills Excerpts

Monday 7th March 2011 Lords Chamber

Given what I have been saying about the schizophrenic nature of our approach to film, it occurs to me that, should the Committee agree with our proposals, we might come back at Report with a suggestion that an annual report on film be presented to Parliament, perhaps at the end of February each year, so that we can have the opportunity, every year, not only of discussing the place of film in the United Kingdom but of celebrating our ongoing successes at the BAFTAs and the Oscars. I beg to move.

[Lord Wills]

My Lords, in rising to support the amendments that my noble friend Lord Stevenson has so eloquently presented and to which I have added my name, I draw the Committee’s attention to my declaration of interests as set out at Second Reading of the Bill on 9 November last year.

The success of “The King’s Speech” at the Oscars, at other awards ceremonies and at the box office this year has been widely celebrated, as indeed has the success of other British films. These are tremendous achievements. “The King’s Speech” was a tremendous achievement for the writer, the director, the actors and everyone involved in its production, and that includes the UK Film Council. As Iain Canning, one of the producers of that film, said, the film,

“wouldn't have been made without the UK Film Council”.

As we have heard and as your Lordships will know, the UK Film Council is now no more. It was abolished last year by the Government by press release. It was hard to understand why the Government took that decision last year, but it is even harder to understand today when we see the tremendous success of these films in which the UK Film Council has played such an important role. The UK Film Council was a flourishing public body competing in a ferociously competitive marketplace. It has helped to treble the turnover of the British film industry in the past 10 years. It supported the development of new filmmakers, funded imaginative and innovative British films, and ensured that British audiences could have access to all the glories of the cinema, with a wider choice of films made available to audiences throughout the country.

So why did the Government do this? In what last year the Observer rather charitably called an,

“impassioned defence of his decision”,

the Secretary of State explained that it was “simply not acceptable” to use taxpayers’ money to fund an organisation that pays its top eight executives more than £100,000 each. That was the justification that he gave. However, the Secretary of State was wrong in saying that. In fact, there were only six such executives, and if that was to be the criterion for scrapping the UK Film Council, why hand its functions over to the British Film Institute, whose latest accounts submitted to the Charity Commission show that seven of its staff received remuneration packages of more than £100,000? That is seven—one more than the number of people in the UK Film Council receiving such packages. It is not clear whether this exercise will save money overall and I would welcome any comment that the Minister may have about whether we will see any savings from bringing those two bodies together.

I entirely accept that no organisation has a right to an eternal existence but, if politicians are going to butcher successful organisations operating in a world of which they seem to have very little knowledge and understanding, they would be well advised to have good reasons for doing so. That is all the more important when the organisation in question depends for its success on a very rare combination of skills: a commercial eye for an audience, an intimacy with the medium, a human empathy with creative artists, the ability to nurture and to develop them, and an inspirational excitement about the cultural and economic benefits which film can offer and which my noble friend Lord Stevenson so eloquently set out. Such organisations are very hard to create and when they work as well as the UK Film Council was working, they should be cherished, not arbitrarily destroyed.

This organisation was scrapped without consultation, just through a press release, and, as far as I am aware, Ministers have not even had the elementary courtesy at any point since then to say anything in praise of the UK Film Council's remarkable achievements, not even about its role in the creation of “The King’s Speech”. I note the contrast with the debate which we had earlier today when the noble Lord, Lord McNally, under assault from all sides of the House, still found it possible to pay tribute to all the good work done by the Youth Justice Board. By contrast, Ministers who take responsibility for this in the other place—I obviously make an exception for the Ministers on the Front Bench in this House who are completely blameless in this respect—have not even had the elementary courtesy to say one word in tribute to the organisation which, apparently, they have so arbitrarily scrapped.

Why should the exceptionally talented people who work for the UK Film Council hang around working for a public body when they all have so many other options—much more lucrative options, in most cases—and when they are treated with such discourtesy by the Secretary of State who will determine the future of film in this country? I understand that the haemorrhaging of talent has already begun. Able and experienced professionals are leaving the public sector for other jobs and no doubt more will follow. Successful organisations such as the UK Film Council exist in a fragile ecology and politicians meddle at their peril.

Of course, there are profound challenges facing film in this country but this casual and ill thought-through decision is not the way to meet them. My noble friend Lord Stevenson has already said that last year the British Film Institute and the UK Film Council discussed a merger and both sides decided, after lengthy discussion and after securing legal advice, that there would be significant problems in making it work. That is not surprising. They are very different organisations. One is essentially a cultural organisation and the other is an industrial organisation. They may sound as though they are all in the same industry and they both have the word “film” in their titles, but culturally, organisationally and in terms of their focus they are very different organisations. It is not surprising that they should have found a merger difficult to work through. That is not difficult to understand at all. It is entirely predictable that much the same sorts of problems are now being encountered in trying to bring these two organisations together. I hope that all responsible Ministers are taking an active interest in the discussions between the BFI and the UK Film Council and can find a way of making this merger work.

Amendment 65A draws attention to some of the unease that has been created by how the functions which have been discharged by the UK Film Council will be discharged in this new era. All mergers, all kinds of takeovers, whatever you want to call this current process, are difficult in every industry and every business. It is notoriously difficult to make them work successfully. I hope that Ministers are not just standing by and relying on all the talented, highly motivated and able people on both sides of this debate to bring this off themselves. Ministers may have to intervene to bring about a successful conclusion and I hope that they will do so.

In responding to the amendment, I ask the Minister to say whether the Government will ensure that the UK Film Council’s research and statistics unit will carry on that essential work long term. I understand that the funding is guaranteed for one year but will they ensure that it is carried on long term? Without a market intelligence function like this, the BFI will be making decisions in the dark. I should be grateful if the Minister could tell the Committee what estimate has been made of the impact of not funding film exports. Film exports under the guidance of the UK Film Council have grown by 92 per cent. As my noble friend Lord Stevenson has already said, in 2008, film exports amounted to more than £1.3 billion. At a time when the Government are placing so much of their hopes for economic recovery on growth in exports, why are they taking away the support function from such a crucial industry? Can the Minister name other crucial industries where support for exports has been similarly scrapped?

Can the Minister also say who will take over the UK Film Council’s role in opening up film to as wide and diverse an audience as possible? How will the BFI demonstrate a strategy which reflects its new responsibility for the entire film sector and not just BFI-related exhibition and distribution? What can the Minister say to assure this House that the BFI will be committed to representing the interests of the film industry as a whole as well as the UK Film Council has done in the past? That is crucial as technology and the economic structure of the industry are changing very fast. What can the Minister say to reassure the film industry and this House that the BFI will address effectively such key issues as film theft, piracy, pay-TV platforms, which are especially important now that Sky has become so market dominant in acquiring film rights for television, and the smooth transition of the film industry to new digital models? As I have already said, the BFI has essentially been a very successful cultural body, so what can the Minister say to reassure everyone that it can successfully take on this complex and demanding new role?

In the coming years, Ministers—I direct my remarks to Ministers in the other place—will be judged by how far the film industry measures up to the benchmark now set by “The King’s Speech”. Ministers may move on to new jobs in Government or to none but the Ministers responsible for this decision now risk being remembered as the politicians who carelessly and needlessly destroyed an important part of the infrastructure of the British film industry. They now have to prove that what they have put in its place will be an improvement. I very much hope that they can do so. These amendments give the Government an opportunity to offer reassurance that they now understand that. I hope that they will take it.

[Lord Triesman]

My Lords, I add my support to the amendment of my noble friend Lord Stevenson and join him in congratulating those who won the Oscars. I perhaps should not forget the BAFTAs, which are more local and also well worth winning, as the same pattern of achievement was there.

I want to address the Committee on this amendment as I had the very good fortune to be the first person designated as the Minister for Intellectual Property, a role which I know that the new Government have also taken on as a ministerial post. The enjoyment from that role came from being involved not only in helping to drive forward businesses but in assisting in the development of cultural industries. I was under no illusion while doing so that Governments do not create business; they simply do their best to set out the conditions in which business might be able to thrive. The advantages of doing that are that, certainly in this country, we are unlikely to make much of our living doing many of the things which we have traditionally done, but we make a very good living from being successful in the creative industries.