Margaret Ferrier
Main Page: Margaret Ferrier (Independent - Rutherglen and Hamilton West)
Nigel Adams (Selby and Ainsty) (Con)
I thank the Backbench Business Committee for the debate and the hon. Member for Sunderland Central (Julie Elliott) for pushing for it. It is crucial to have time in the House to discuss the creative industries and their contribution to the economy. It is a broad topic, and rightly so given the immense variety of roles within the creative industries. As chairman of the all-party parliamentary group on music, I will focus my brief remarks on that sector. I fear I might be spoiling the Minister, who has had to listen to me talk about this subject twice in two days. I am sure he can cope; he has held the brief for a long time.
I should like to highlight statistics from the recently released reports from UK Music, the representative body that does such a great job in supporting parliamentarians and in other work within the industry. The reports demonstrate how vibrant and productive the music scene is in the UK today. The “Measuring Music 2015” report showed that the music industry contributed £4.1 billion to the UK economy in 2014, and that it involves 117,000 full-time jobs. A huge number of those jobs are creative: musicians, composers, songwriters and lyricists alone accounted for £1.9 billion.
Not only is music vital to our economy in the UK; it is also our face to the outside world. The report found that music exports accounted for £2.1 billion in annual revenue, which is more than half the industry’s gross value added, as compared with about 30% in the economy as a whole. One in seven of all global album sales were for British artists, and five of the top 10 selling albums in 2014 were by British artists—that is before artists including Adele delivered another blockbuster year in 2015.
The “Wish You Were Here 2015” report reinforced that message. Direct and indirect spend from music tourism in 2014 was some £3.7 billion. Many right hon. and hon. Members will enjoy festivals around the country this summer—I have already seen the Secretary of State at a festival. I am disappointed he is not here, but he may very well be at a festival somewhere in the UK, and I am sure the Minister will do a fantastic job in replying. That £3.7 billion is a 7% increase on the previous year. Some 38% of our live music audience were music tourists who came here seeking out their favourite British artists. They spend an average of £852 in the UK, all of which sustains more than 39,000 full-time jobs in Britain.
UK Music is undertaking a census of the live music scene in key UK cities, which has never been done before, so that policy makers, planners, local authorities and others for the first time have access to the data they need to assess the impact of decisions on the music industry in their areas. The first report is the Bristol census—I note that the hon. Member for Bristol East (Kerry McCarthy) is in her place—which showed that, in that city alone, live music generated £123 million of revenue in 2014. I look forward to more reporting so that we have the knowledge rather than just the desire to do right by our music scene and those who work in it.
Margaret Ferrier (Rutherglen and Hamilton West) (SNP)
The Scottish Affairs Committee’s report on the creative industries in Scotland, published in February, recommends that the UK Government work with representatives of the creative industries in Scotland to assess how creative tax reliefs could be adapted so as to be of greater benefit to Scotland. That could include variable rates of tax relief for different parts of the UK, creating a tax relief for the music industry and piloting a tax relief for small and medium-sized enterprises working in the creative sector. Will the hon. Gentleman join me in calling on the UK Government to disclose what measures have been taken in this area so far?
Nigel Adams
That is a reasonable thing to ask. Unfortunately, the Minister is not in his place, but I shall remind him. Perhaps the hon. Lady could intervene on him later. It is absolutely right we do whatever we can, right across the UK, to ensure creative industries are given all the tools necessary to continue to grow this part of our economy.
When we speak of the contribution to the economy, we must remember that the economy is not just some vague term. The economy means people’s jobs and their ability to make a living. Yesterday, I held a Westminster Hall debate on the subject of remuneration for artists for online play and streaming. It is important to state that this is not just an issue for the big well-known names. This is an issue for songwriters, producers and others who put work into a song. They rely on the revenue that comes from plays far more than someone who has a profile. I was pleased that colleagues from my own party, the Labour party, the Scottish National party and the Democratic Unionist party all came to take part in a productive discussion about what remains a relatively new policy area, over which we will soon have significantly more power as the UK exits the EU.
Recently, I spoke with one songwriter who had seen the princely sum of less than £6 in revenue from some 3.2 million plays of his song on YouTube. It is therefore not hard to imagine the despair of someone who sees their life’s work available for free on the internet, with little or no prospect of financial reward.
At this point, I want to commend BBC radio, which has done so much not only to give new artists exposure but to ensure they are paid for airplay. The BBC takes risks on new artists, providing exposure for the music of new and emerging artists before release, helping them to drive record sales and build their profile. The BBC also plays a vital role in the development and promotion of UK music both culturally and economically. What it does for unsigned acts, with its “Introducing” initiative, is amazingly successful. It is not just Radio 1; Radio 2 hosts an unrivalled range of specialist programming, helping audiences to discover new music and helping to break new British artists in specialist genres. A bit more of this spirit of nurturing creative talent across the industry as a priority would be welcome.
The British Phonographic Industry reports that in 2015 there was more revenue raised from the 2.1 million vinyl LP sales by British artists than the 27 billion music video streams on YouTube and similar platforms. This discussion is not about shutting down technologies; it is about striking the right balance. To me, it is clear we have not yet done so. As the well-known manager, Brian Message, said:
“The advent of the digital era introduced an opportunity for those involved in the music business to pull together for the economic benefit of all stakeholders. To our collective detriment, this did not come to pass.”
I would welcome all contributions from colleagues to ongoing discussions in the all-party group on where the right balance will lie and to pick up more of the themes we discussed yesterday morning in Westminster Hall. We need additional support, in particular from local authorities, to ensure we have the infrastructure to produce great music here in the UK. There is an issue around business rates being levied on festivals, sometimes retrospectively. That could have a huge detrimental impact on the festival industry right across the country.
The studios that can accommodate the orchestras needed to record film soundtracks are very rare. I believe we have only two here in London. I am sure the Minister will correct me if that is not accurate. That is minimum capacity; such must often be booked on short notice. If we lose that capability, that kind of recording will be taken elsewhere, and the work will not be available for British musicians.
Finally, we must remember that to make successful financially viable careers and to be ambassadors for Britain and bring fans here as our tourists, our artists need the ability to be successful abroad, particularly in the States. To be globally successful, they really need to break the American market, but the current visa system for UK musicians wishing to perform there is complex to the point of being unworkable. It costs hundreds of thousands or thousands of pounds and requires expensive overnight visits for interviews with officials. The equivalent system for foreign musicians to come here and perform in the UK entails only a small fraction of the cost.
I know Ministers have heard from me before on this subject, but I reiterate the point that support does not always mean Government spending. In this area, musicians could really use the support of colleagues right across the House, but particularly of those on the Government Front Bench in the Foreign Office as well as in the Department for Culture, Media and Sport, to try to simplify this process. A small but vitally few helpful steps in the first instance would involve convincing the US immigration service to establish a dedicated liaison team for the music industry which could provide relevant advice and answers for artists, provide timed appointments for visas so that artists could avoid expensive overnight stays in London or Belfast, and clarify the position on ESTA waivers and communicate it clearly to all border forces to avoid inconsistent application.
Our creative industries are making huge contributions. I am pleased with the work our all-party group has done on identifying where support is most needed thus far. I would now warmly welcome the engagement of all colleagues and Ministers to help put that into practice so that our music industry can continue to inspire the creativity of our young people, the interest of our music fans and the imagination of the world.