Music and the Economy Debate

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Tuesday 22nd November 2011

(13 years, 1 month ago)

Westminster Hall
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Nigel Adams Portrait Nigel Adams (Selby and Ainsty) (Con)
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I thank my hon. Friend the Minister and the many other hon. Members present for attending this very important debate. Unfortunately, we have only half an hour, so I shall have to crack on. I want to talk about the UK music industry and its importance to the British economy. The music industry mainly comprises small and medium-sized enterprises, micro-businesses and creative individuals; 92% of music businesses employ fewer than 10 people. In terms of the economy, it is invaluable. I want to focus on the positives that are coming out of the UK music industry, rather than the headline-grabbing negatives that we regularly hear about.

The UK music industry is a £3.9 billion business, employing more than 130,000 people. Additionally, UK artists are responsible for 12% of global album sales. That is a phenomenal figure. The music industry as a sector continues to outperform the rest of the economy, with the UK continuing to be one of only three countries that export more music than they import. The UK is the largest producer of recorded music in Europe and the second largest in the world. In 2007, 2008 and 2009, the top-selling global artist album was by a British act—Amy Winehouse, Coldplay and Susan Boyle respectively. In March this year, UK artists occupied the top three spots in the US album chart for the first time in 25 years. Again, that is a fantastic achievement for our industry.

As a country, we are also centre stage for live music, playing host to some of the world’s greatest music festivals. Many of us will have been to those festivals, which include Glastonbury, the V festival, Reading and Leeds. Hon. Members will no doubt have heard of the Selby fake festival. That enormous event attracts thousands of people to watch some of the best cover bands. This country is also home to the most successful ticketed venue in the world—the O2 arena in London. It is therefore vital that we make the most of the next big opportunity for music tourism—the 2012 Olympics.

John Robertson Portrait John Robertson (Glasgow North West) (Lab)
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I congratulate the hon. Gentleman on securing this very important debate. One of the most important factors in ensuring that bands progress is live music in pubs and clubs, where they can develop. Does the hon. Gentleman agree that more must be done to ensure that we have more live music, not less?

Nigel Adams Portrait Nigel Adams
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The hon. Gentleman is right. Live music is incredibly important to pubs as venues, not just for the pub’s business, but for the artist. It is incredibly important that young artists—people starting out—get an opportunity to play in pubs as venues. I shall talk about that later.

None Portrait Louise Mensch (Corby) (Con)
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rose—

Nigel Adams Portrait Nigel Adams
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I give way first to my hon. Friend.

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Annette Brooke Portrait Annette Brooke (in the Chair)
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Order. May I point out that interventions should be short and to the point?

Nigel Adams Portrait Nigel Adams
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I agree with my hon. Friend the Member for Corby (Louise Mensch). The Government broadly welcome the Hargreaves report—the Minister will no doubt talk about it—but in relation to cloud services, we must be mindful of anything that has an impact on growth. My hon. Friend is absolutely right about that. She also refers to the contribution that Feargal Sharkey has made, to UK Music in particular and to the industry as a whole. It is rare to switch the telly on and not hear one of his pieces of music being played in an advertisement. I certainly wish him well in whatever he does next as a venture. He has done a sterling job with UK Music in the past three and a half years. However, we can all agree that, with Andy Heath involved, UK Music is in very good hands.

Ben Bradshaw Portrait Mr Ben Bradshaw (Exeter) (Lab)
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Does the hon. Gentleman agree that one of the great achievements of UK Music under Feargal’s stewardship has been bringing diverse voices together in one organisation that has the ear of Government, Opposition parties and the public? That is a model that I suggest the rest of the creative industries could follow, because they have not always spoken with one voice as effectively as, for example, the CBI and other business organisations, although they are just as important.

Nigel Adams Portrait Nigel Adams
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Yes. The right hon. Gentleman is right about having someone such as Feargal Sharkey involved. He is a unique character because he brings experience of having done the job previously and he has enormous respect not only in the industry, but in both Houses and across—

Nigel Adams Portrait Nigel Adams
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I will give way again, but I will have to move on at some stage.

Lord Foster of Bath Portrait Mr Foster
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I apologise; I know that the hon. Gentleman wants to make progress. May I add my own tribute to Feargal Sharkey? He has done an enormous service to music in this country. On the issue of live music, does the hon. Gentleman share my view that when on Friday I seek to steer my noble Friend Lord Clement-Jones’s Live Music Bill through the House of Commons, it would be a disgrace if any member of any party tried to object, preventing the Bill from making progress?

Nigel Adams Portrait Nigel Adams
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I certainly share that view and would support the right hon. Gentleman in that move. It is very important that the Bill is not talked out. The Minister might refer to that as well. I need to move on now, because one or two other hon. Members want to make a contribution.

It is vital that we make the most of the Olympics. Obviously, that is a sporting event, but we need to make the most of the opportunity to ensure that Britain continues to be, in the words of Danny Boyle, the film director, “a beacon of music.” UK Music’s report, “Destination: Music”, highlights the impact that festivals, which I have referred to, and other large-scale music events have on tourism, with such events contributing £864 million of gross value added to the national economy and the equivalent of 19,500 full-time jobs. Although the Olympics are not a music event, the opening ceremony offers us a huge opportunity to showcase our talent across the world.

In this difficult economic climate, it is refreshing to hear that businesses based on manufacturing the intangibles of intellectual property are the cornerstone of economic growth and, as things stand, one of the only parts of our economy that is growing. That is yet more evidence of how this diverse and uplifting industry can help our economy and must be allowed and, indeed, encouraged to do so.

Damian Collins Portrait Damian Collins (Folkestone and Hythe) (Con)
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I congratulate my hon. Friend on securing the debate. Does he agree that protecting intellectual property is very important for young and emerging acts as well? I am thinking particularly of young performers such as Zorzilla, Magnets and Daniel Addison in Folkestone in my constituency. They are writers and performers and need to know that their investment in their future is secure.

Nigel Adams Portrait Nigel Adams
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It is crucial that there is as much support as possible for those people, certainly when they are starting out. My hon. Friend is absolutely right.

I am pleased that the Conservative-led coalition has recognised the importance of the creative industries, specifically highlighting the industry in “The Plan for Growth.” I welcome the plans to remove live music in venues with audiences under 5,000 from the Licensing Act 2003. That policy has been detrimental to the music industry for too long. The change will enable pubs, which we have referred to, to host live music without navigating the red tape and regulation currently in place. The change is supported by the British Beer and Pub Association on behalf of its members. It will encourage musicians to perform in pubs as their venue of choice for small-scale events.

The creation of the Creative Industries Council has been well received by the industry and by UK Music in particular, and plans to reduce digital copyright infringement and further develop the digital market are also steps in the right direction. However, more can and should be done. We need to ensure there is proper access to finance so that more artists can get their careers off the ground. As I mentioned earlier, this is very much an industry of small and medium-sized enterprises, so we need to ensure that musical SMEs can find the finance to invest in artists.

Gloria De Piero Portrait Gloria De Piero (Ashfield) (Lab)
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I, too, pay tribute to Feargal. On finance, has the hon. Gentleman, like me, heard about the problems with the enterprise finance guarantee scheme? Will he press the Government to address those issues?

Nigel Adams Portrait Nigel Adams
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The hon. Lady is absolutely right: the industry seems to be excluded from the enterprise finance guarantee scheme, and I hope the Minister will comment on that. However, I am looking forward to hearing the Chancellor’s autumn statement; I hope there will be something in it for this important industry.

I should say at this stage that it is not all doom and gloom for the music industry. I was just on the phone to my son, who is in a teenage band that has been together for four years. I asked him how the band was going, and he told me it had secured a grant from the Keyfund scheme, which is run by North Yorkshire county council—a fine Conservative council. The band has managed to raise a few hundred pounds for a recording session, and it is about to secure some more money—in the thousands of pounds—to record a video, so there is money out there. However, the hon. Lady makes a good point.

Jonathan Lord Portrait Jonathan Lord (Woking) (Con)
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Will my hon. Friend give us the name of his son’s band? It should be on the record so that we can look out for it in the years ahead.

Nigel Adams Portrait Nigel Adams
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At the risk of my son never speaking to me again because of the embarrassment that I have caused him as a teenage boy, the band is Summer City, and it is rather good. My son is Ben Adams, and there are three Bens in the band. If Andy Heath is listening, it has not yet been signed, but he can check it out. When it has made the recording it just got the money for, I will make sure that Mr Heath and the industry get a copy.

We must ensure that finance is in place and that all possible measures are taken in this climate to help the business. We must also ensure that intellectual property is properly protected; copyright law must be made relevant to the world we live in. By that, I mean it is time we caught up with our European counterparts and recognised that private copying from CD to iPod, for example, should be made lawful. As things stand, there is a grey area between what is allowed under copyright exceptions and the reasonable behaviour and expectations of most people.

On this matter, I urge my ministerial colleague to consider the effects that changes to format shifting may have on a larger scale. It is right that personal format shifting becomes an exception, but if the terms are drafted too widely, we could see an adverse effect on future innovation and potential revenue, which would be very damaging. Cloud services, for example, are an area where, if we get the balance right, music will play an even greater role in the UK’s future economic success. If we get it wrong, however, those who manufacture and create valuable intellectual properly could be undercut, which would be disastrous for the industry and those businesses.

None Portrait Several hon. Members
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rose