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11.58 pm
The Minister of State, Scottish Office (Lord James Douglas-Hamilton): I warmly congratulate thehon. Member for Perth and Kinross (Ms Cunningham) on securing this debate on an important and fascinating subject. She has addressed it in her customary forthright manner.
We provide substantial funds to the film industry. The Scottish Office allocated £1.5 million to the support of film in 1995-96. The bulk of funding goes to the Scottish Film Council, which is currently concentrating on Scotland's response to the EC's Media 2 programme and on encouraging each unitary authority and local enterprise company to adopt a development strategy for its moving image industry. We provide £190,000 a year to the Scottish Film Production Fund, and the Scottish Office funding is a catalyst for more funding to a total of almost £750,000.
With regard to a Scottish Studio sound stage, Hydra Associates will consider the case for a new studio, but it is widely acknowledged that a studio suitable for major Hollywood films would probably be unused for most of the year. To justify such an investment, it would be sensible to secure shared usage with television companies or build the studio as part of a larger entertainment complex. We are currently looking at the pros and cons of that.
The hon. Lady mentioned the Irish film industry, which has enjoyed a resurgence in recent years, partly as a result of tax incentives which are especially useful in attracting overseas productions to be filmed in Ireland. But the tax regime is rarely the principal consideration in deciding where to shoot a film. The suitability of the production facilities and the director's personal preference are also influential. The Government will certainly consider any lessons to be drawn from the Irish experience which can be applied to Scotland in the light of the consultants' report.
Before responding in detail to some of the other points that the hon. Lady has raised, I should like to put the Scottish position in the United Kingdom context. The number of films produced in the UK has risen from just 30 in 1989 to 81 last year, the highest figure for 20 years. Between 1990 and 1994, the UK was one of only four countries among the top 20 film-making nations to show an increase in the number of films produced. The number of films produced in the United States fell by 12 per cent. over that period.
Total investment in film production in the UK had increased from £253 million in 1990 to £421 million in 1995. As a result, the UK's share of total European investment in films rose from 18.4 per cent. in 1990 to 28.1 per cent. in 1994. In 1994, UK cinema admissions rose by some 120 million for the first time since 1978, eclipsing even 1993, which had the benefit of "Jurassic Park", the biggest grossing film in cinema history. The latest estimate for 1995 is a healthy 113.5 million.
Mr. Andrew Welsh (Angus, East):
Will the Secretary of State give way?
Lord James Douglas-Hamilton:
No, I should like to develop my reply to the hon. Lady.
The Scottish film industry has shared in those boom years. Having made only five or six films in the early 1990s, the number of Scottish productions soared to 12 in 1994 and reached an impressive nine last year. Films are financed in a variety of ways, but it is interesting to note that "Chasing the Deer", which starred Brian Blessed, was the first Scottish production to raise the bulk of its budget through public subscription. The film has recently gone into profit and investors should now see a return on their investment. "The Bruce", which will be released in March, has been financed in a similar way. The national lottery provides yet another new source of funding to build on the successes of recent years.
It is, therefore, fair to say that the film industry in Britain is in a buoyant state. With the dollar exchange rate in our favour, the UK's film studios are full. The recent purchase of Shepperton and Leavesden studios further demonstrates the confidence that exists in the industry.
Ms Roseanna Cunningham:
Is the Minister seriously suggesting, with his examples of "Chasing the Deer" and "The Bruce", that we can build a sustainable film industry in Scotland on the same do-it-yourself basis with which we might build a garden shed?
Lord James Douglas-Hamilton:
No. A variety of measures are necessary. If the hon. Lady will await my remarks, I shall develop the theme across a range of subjects.
As the hon. Lady said, the main activity continues to be in and around London, where the major television companies and film studios are located. The challenge facing the film industry in Scotland is to produce quality films with a distinctive Scottish feel, which are commercially successful, such as "Local Hero". The responsibility for achieving that rests ultimately with the writers, producers, directors and other skilled staff working in the industry in Scotland.
However, public funding supports some of the infrastructure for the industry. As I said in answer to a question about film production in Scotland from myhon. Friend the Member for Chingford (Mr. Duncan Smith), we are looking at a number of ways to strengthen those arrangements and the current film initiative announced by my right hon. Friend the Secretary of State last September is important so that we can ensure that the industry in Scotland breaks through to a new, more dynamic era.
The film initiative is intended to maintain the momentum of the current success story. After the release last year of "Braveheart" and "Rob Roy", the 1995 Scottish theme at the cinema will be reflected in a gentler and more contemporary vein in 1996 by "Loch Ness", which is to be released next week following its premiere at Inverness this Saturday.
Such films can give a significant impetus to marketing Scotland as a tourist location, and I am very pleased indeed that the Scottish tourist board has been very active building on the high film profile that Scotland now has. The impact is already apparent in tourism receipts.
For example, in 1995 twice as many people visited the Rob Roy and Trossachs visitor centre in Callender as in 1994. That, in turn, prompted several agencies to come
together to fund a £400,000 improvement programme at the centre to double the size of the facility. Admissions to the National Wallace monument at Stirling increased almost threefold in the four months after the release of "Braveheart". Passenger numbers on the SS Walter Scott on Loch Katrine are up 25 per cent. on last year--that had been Rob Roy country. We wish to build on those encouraging benefits to tourism.
To ensure that film-makers continue to come to Scotland, it is vital that all potential locations are marketed as effectively as possible. Accordingly, as a first priority for the film initiative, the Government have commissioned a CD-ROM, which will contain information about all Scotland's main screen locations. That will enable film producers throughout the world to have immediate access to visual and factual data about all the locations at the touch of a keyboard.
Mr. Alex Salmond (Banff and Buchan)
rose--
Lord James Douglas-Hamilton:
I should like to develop my arguments further.
In support of that marketing initiative, we want to remove any unnecessary impediments to overseas films coming to Scotland. That means, if I may paraphrase the usual jargon, securing a one-stop shoot, which thehon. Member for Perth and Kinross mentioned. In practice, that entails applying the "customer first" approach on behalf of the many organisations and agencies with which film makers must co-operate in their production work. Time is of the essence when shooting on location, and effective co-ordination with local authorities and others is essential if that time is to be fully used.
Different considerations apply to Scottish-made films. There also, the picture is a great deal more promising than it has been for many years. "Shallow Grave" was a box office hit on both sides of the Atlantic. "Small Faces", shown to wide acclaim at last year's Edinburgh international film festival, will be released later this year in the United States and Europe. "Trainspotting", which will have its world premiere in Glasgow next month before going on general release, promises to be a third success for Scotland. All three films have relied, at least in part, on public sector support through the Scottish film production fund and the Glasgow film fund. All three are testimony to the fact that the present arrangements can help to bring about Scottish film productions that are both cultural and commercial successes.
Lord James Douglas-Hamilton:
I should like to develop a few more points before I give way.
As more national lottery funds become available--to be dispersed by the Scottish Arts Council--the impact of public sector support for production is likely to be even more influential.
Those recent successes owe much to the judgment and determination of the board and staff of the Scottish film production fund.
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