House of Commons Hansard Debates for 7 Nov 1996 (pt 9)

4.8 pm

Mr. Geoffrey Hoon (Ashfield): I thank the Minister for his brief--I am tempted to say terse--outline of a statutory instrument, which, as I understood it,

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implemented three directives: the rental directive, the cable and satellite directive, and residual parts of the duration directive which were not dealt with when that directive was substantially passed into British law.

I make it clear at the outset that the Opposition do not intend to vote against the regulations. However, it is equally clear that there is profound dissatisfaction with the way in which they have been drafted. That is obvious from the various representations that I have received. It is clear that, in dealing with copyright, the Government have been uniquely successful in once again bringing together different organisations that historically have very different perspectives but are consistently concerned about the way in which the proposals affect both individuals and the industries in which they work.

My first general question to the Minister is whether it is appropriate to deal with three different directives in a single, and inevitably complex, statutory instrument. Why could we not have dealt with the directives separately and had three separate statutory instruments dealing with each aspect at the European level? Alternatively, given the delay that we have faced, why not deal with all outstanding copyright matters in a comprehensive piece of primary legislation?

I am sure that the Minister is aware that the main criticism levelled by the various organisations affected is that they do not have the opportunity to amend the proposals. There are detailed points of criticism that cannot be dealt with in this kind of debate. Given the lack of any substantive legislation from the Department of Trade and Industry, I am sure that the Minister would welcome the opportunity to do something substantial as he whiles away his time before the general election.

My second general concern is with timing. The Minister has already made the point that the legislation is woefully overdue. The statutory instrument was laid on 19 July this year and is therefore more than two years late, as the directives' implementation date was 1 July 1994. What is the reason for the delay? I do not make that point simply to dwell upon the lack of timeliness or competence on the part of the Minister's Department, but it is relevant to the general question of whether the legislation is needed today.

We are debating directives that were agreed in 1992. Therefore, given my understanding of the processes of the European institutions, it seems reasonable to suggest that the directives were drafted in the mid-1980s--probably based on a perceived need in the early 1980s. Given the pace of technological change, the real question for the Minister is whether we should be addressing perceived needs in the early 1990s and those of the next century rather than conducting an historical debate about proposals that were drafted in an earlier age.

As the Minister said, the principal purpose of the rental directive is to provide new rights for creators and performers to earn additional revenue from rentals and lending. My third query is whether the statutory instrument succeeds in translating that aim properly into law. In the explanatory recitals, the directive states:

"Whereas the creative and artistic work of authors and performers necessitates an adequate income as a basis for further creative and artistic work . . . Whereas the equitable remuneration must take account of the importance of the contribution of the authors and performers concerned to the phonogram or film".

The directive's specific purpose is to ensure that the rights of performers are properly recognised in law.

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Performers are clearly concerned that, far from generating new income for them, the statutory instrument is likely to place an inappropriate financial burden on the kinds of small businesses operated by many creative individuals who should benefit from the rental directive. There is concern about the expenditure likely to be incurred by authors and performers having to refer constantly to the Copyright Tribunal and to the courts as a result of this statutory instrument.

There is particular anxiety about the requirement for authors and performers to give notice before 1 January 1997--which is not far away--of any intention to exercise their right to remuneration where rental arises from agreements concluded before July 1994. That places an unnecessary burden upon them in terms of time and cost. The Minister might explain how notification will be given. Will it cover all the agreements before July 1994 or only those made between July 1992, when the rental directive was adopted, and July 1994?

The fairness of such payments from users, and broadcasters especially, to performers is generally speaking adjudged by statutory tribunals or courts, which examine the value of the right to the users, the extent and profitability of the use and the economic circumstances and prospects of the user. The formula in the statutory instrument does allow performers, individually or collectively, to take the user to the Copyright Tribunal on these questions, but only the copyright owner of the record.