Select Committee on Culture, Media and Sport Minutes of Evidence


Examination of Witnesses (Questions 80 - 99)

WEDNESDAY 20 MAY 1998

THE RT HON TOM CLARKE, CBE, MS BARBARA PHILLIPS, MS JANET EVANS AND MR CHRISTOPHER DAWES, OBE

Chairman

  80. Minister, I should like to welcome you and your officials here this morning to a climate somewhat more sultry than Cannes I should think. You are very welcome indeed. We are most interested to hear from you. If you have a brief opening statement which you would like to make to the Committee before we start putting questions to you then we should be very happy to hear it.
  (Mr Clarke) I am very grateful. I have just recently returned from Cannes where I saw some very good British films and I hope that is the message we can spread elsewhere. May I respond to your invitation to say a word or two at the beginning, looking forward very much to the questions and points colleagues will make? May I say I am genuinely delighted to be here as the first designated Minister for Film and Tourism, but with responsibility as well for the Royal Parks and Royal Palaces. I believe that my role as Minister, consistent with the work which is going on in my Department, is to communicate the real enthusiasm we feel and indeed the passion we have for film and tourism. I know that this is something which is shared by the Committee. We have gained immensely from previous reports produced by the Committee, particularly in these fields and I hope you will find that these are reflected in some of the work we have been doing, some of our publications and some other things we shall be discussing this morning. I have to say that I am a very fortunate person indeed to be associated with the two big successes of Creative Britain, not just in the last year but in earlier days, because British film has come into its own; people at Cannes knew that. In tourism I am fortunate to have a very big responsibility but one which is capable of delivering still more. I believe that the work of the Department—and therefore that reflects on my activities as the Minister—involves consultation, which is genuine and real, partnership, which does exist and is not simply a slogan and strategic leadership. We have conducted two key reviews: A Bigger Picture dealing with a comprehensive review of the film industry and involving people from every part of that industry; and the ongoing discussions which are very proactive in tourism where a forum and its various groups will be able to report to myself and to the Secretary of State and enable us to do something similar in producing a document which we will publish on tourism some time in the summer. We want to build on the success which we have achieved. We are not living on our laurels and we want to ensure that there is true excellence. We intend to lead and we hope we are doing that, but that is based on genuine listening. My responsibilities, consistent with the role of the Department of Culture, Media and Sport, are based on three objectives: liberating individuals' talents, investing in people, equipping people with skills to realise their talents and nurturing creativity so as to enhance the contribution of cultural entrepreneurs. I believe that these objectives are crucial for the national cultural and economic benefit of us all and it is that which all of us in my Department seek to achieve.

  Chairman: Thank you very much indeed; we are most grateful for that. What I shall do, at the suggestion of Mr Maxton, is divide the questioning into two sections so that the two areas do not get mixed up with each other: that is film and then tourism. I shall take film first.

Mr Maxton

  81. May I ask what seems to be a very basic organisational question within the Department? You are deemed to be the Minister for Film and yet another Minister is in charge of television. That seems to me to be a division which is unwarranted because they are so closely linked in terms of production, in terms of the people who appear in both media, in terms of actors, producers and directors. How does the Department marry those two things? How do you get together? How do you ensure that there is a joint working together?
  (Mr Clarke) That is a very good question and it is one I often ask myself. I can say that I regard film—and Mr Maxton will know that I spent most of my working life before I came to Parliament in film—as being part of the audiovisual agenda which is important to us as the Government, important to the Committee and indeed important to Europe as we demonstrated by our Birmingham conference on audiovisual matters as part of our European Union Presidency. Yes, I do indeed see a connection between broadcasting and film. Fortunately we do work as a team. It is that sort of Department. Just as a matter of interest, during the Birmingham conference, because of the responsibilities on my colleagues, the Secretary of State and Mark Fisher and Tony Banks, I found myself replying to a debate on the Doyle Carte Opera. That really was not a bad thing because there is a coming together of all of these matters. Yes, my main responsibilities are tourism and film and the Royal Palaces and the Royal Parks, broadcasting, as perhaps we will see as the discussion develops, is very, very crucial to the success of our objectives in film. I do see the connection.

Chairman

  82. I have just received, as no doubt you have, you probably more likely since you were a governor of the British Film Institute, a publication of the British Film Institute on the 360 film classics which they are compiling, in which they say that very few of those film classics now, apart from new prints being manufactured for the national film archive, are available on celluloid any more, and they can only be seen on video. They go farther and say that almost all of the films which are shown on television now are not shown from film prints but from videos. Therefore, there is a converging nexus on this which emphasises what Mr Maxton has been saying. Furthermore, when we visited the Sony studios a few weeks ago we were told that in future it is quite likely the technology is about to be available whereby films will be shown in theatres not from celluloid copies distributed but over the Internet from one copy shown on the home base. Is there any discussion within the Department about breaking down what I agree with Mr Maxton does seem to be a very artificial barrier?
  (Mr Clarke) That raises a number of points which I believe are crucially important and which are addressed in our document, A Bigger Picture. This was a very, very comprehensive review, followed by the appointment of an action group, that is the people who were on the review and others who will, I believe, help in dealing with the monitoring of our recommendations. I think you will see that throughout the objectives expressed here we address that very, very important issue. We have to acknowledge that times have changed for film. I love film and have always been involved in it. You will recall that it was Harold Wilson who introduced the Eady levy. That was appropriate to its times because it meant that a percentage of the ticket of those who went to see films, which still in my view remains the main art form of the twentieth century and the main means of communication, would be used straightaway to go into productions so the people producing the film they were about to see did not have to wait for the exhibition process. That was good and it worked. It worked in its time because audiences used to go in much, much larger numbers to see films. When it fell apart, after it has to be said two decades of success, it was when patterns changed. People began to see film in broadcasting, they began to see it in video, they saw it perhaps in theatres and cinema but distribution was very much part of that as well. Taking your point, that is one of the reasons we recommend that if we are to sustain the successes we have achieved in the last year, and we have more than doubled the audience for British films which was one of the objectives set at Cannes which I frankly thought we would achieve in a full parliament and with the help of the British film industry we got it before Christmas with films like Mrs Brown and The Borrowers and The Spice Movie and so on ... Based on all of that the question which you ask leads me to ask again: should not those who benefit by film contribute to the investment of future films? That is one of the reasons why our two major recommendations in this review are firstly that there should be an all-industry fund, voluntary—I do emphasise that it is voluntary—so that those who now use film, not the Eady levy where it was mainly the patrons of the cinemas who did it, but the people you mentioned, the broadcasters, the theatres, the distributors and the video people, should ensure that we have an industry upon which we can build. The same applies to training and to a skills development fund and the recommendation there. That is a fair approach and what is wonderful here is what was recommended to us by the people from the industry who are the overwhelming majority of the people who sat on the review. You have introduced as a second point, and again very relevant, a point about new technology. I want to see us, as we heard at Birmingham—and this is not new to us, it has to be said, but I welcomed the discussion at Birmingham from European countries—make the very best of new technology. That is why I was very pleased, coming to the latter part of your question, to be asked yesterday by Odeon to open the first new Internet in Britain here in London where people can tune in and put questions about their favourite director or about a film they were vaguely aware of or about films in particular categories which they want to hear about, so that people are not only being encouraged by marketing and by marketing strategy to come to see films, but that information is readily available in a world which in terms of new technologies is changing very rapidly.

Mr Maxton

  83. May I return to the position of film and television which you were quite rightly dealing with? Unlike yourself, and I have to say the Chairman, I believe television is a more important medium than film is. With the emphasis which is being put on film by your Department and by the fact that you as Minister of State are senior to the Minister in charge of television—
  (Mr Clarke) I think you mean broadcasting.

  84. Broadcasting; right—then there is a tendency to view your Department as somehow making film a considerably more important medium than television.
  (Mr Clarke) I wish it were so. Our individual perceptions tend to be, like love and beauty, in the eye of the beholder. I just wish that the things we have been doing and indeed in tourism, would get the profile I should like to see. I know Mr Maxton has a very important view on broadcasting. Mr Maxton tends to regard myself from a Scottish constituency background as being something of a peacemaker. I do not see film as being in competition with broadcasting, indeed I want to take this opportunity to thank the broadcasters. Frankly in the 1980s, when things were pretty dull for film, where would we have been without Channel 4? Indeed more recently, without the involvement of BBC Scotland Mrs Brown would never have been seen on the silver screens. That working together is important but I accept that Mr Maxton, looking to the future, looking to changes, constant change is here to stay, as we often hear, is right in drawing your attention to the fact that for example when digital television is introduced and when we do eventually switch off analogue, people in broadcasting will be queuing, absolutely queuing to use films. I want to ensure that those films are of good quality, seen by British people who have the right to have a choice, and people abroad as well, but also that those who use films, including those broadcasters, make some contribution to every aspect of film from development right through to distribution and exhibition.

  85. How do you define a film? If someone comes looking for the incentives, the money which is available, wanting to make a film which essentially is a film for television only, are they entitled to get money?
  (Mr Clarke) I am very happy to deal with public investment, public money in film. If their case is strong enough and it convinces my Secretary of State and he in turn—not an easy task—persuades the Treasury that is the right thing to do, then fine. I am not saying that either in broadcasting or in film we simply throw money at the problem; indeed I very firmly do not believe that. That is the main thrust of A Bigger Picture dealing with film. I see no reason why those same principles should not apply to broadcasting as well.

  86. That is not quite the point I am making. What I am trying to say to you is that films can be made which are essentially for television only. Are people making those films in this country entitled to the same tax and other benefits which might accrue if they were making that same film for showing in cinemas?
  (Mr Clarke) Mr Maxton will understand that I as a Scot do not propose to write a blank cheque either in broadcasting or film. Yes, the general answer to the question is of course. Nevertheless, people in broadcasting should not feel complacent about that. They should know that they are being judged on merit, they are being judged on what the market thinks and on what people think and the consumer in this as in other issues is the most important person.

Mr Fabricant

  87. I am going to resist the temptation to be nasty to you because you are doing the very job that I should most like to do. C'est la vie. For a long time there was an anomaly between the way capital allowances were treated, between film production and television production. I was pleased that was put right, to my intense irritation, since the last general election. It came about because of the compartmentalisation where film was handled by one Minister and television was handled by another Minister. Really just following on from John Maxton's line of questioning, is there any move within the Department to try to embrace broadcasting within the same ministerial line of command? Would you welcome that?
  (Mr Clarke) Briefly, I do and that is what is already happening in my field. May I say to Mr Fabricant's introductory remarks that I cannot imagine him being other than absolutely charming and therefore I would not regard any question from him as being in any sense offensive. We may even share the same views on French films. Yes, of course there is integration there. That is why when we were producing A Bigger Picture the broadcasters were there, were on the various groups, were on the review group itself, and because of the importance of the link between the two, which you and Mr Maxton rightly identify, we have decided that there should be more people from broadcasting in the action group, which is set up for the next 12 months, to make sure that this does not gather dust and that we look to see how things are actually being implemented. Whereas I accept your concern about integration between broadcasting and film—and they do dovetail very often, as do tourism and broadcasting and we may come to that later—that the Department itself is not addressing the issue, certainly I am as Minister and I am sure Mr Fisher does as well. May I say this as the final response to Mr Fabricant, that clearly in some ways we have to reflect what the industry feels about it? I would simply put on record that you may just have noticed that BAFTA this year had two different award ceremonies: one for film and one for television. We all have to think whether there is a message in that.

  88. It was certainly my experience that in the 1970s and 1980s many of the people who moved into film were originally trained in broadcasting. Do you have any view on the changes which have taken place within the BBC, which was the main training ground for people working in the film industries since the second world war? Do you have any view that changes within the BBC, whereby there are fewer training schemes available than there have been in the past, might have a detrimental effect on the film industry?
  (Mr Clarke) A lot of this depends on the quality of the training schemes. When I come to speak about training schemes in film and in tourism, I may have the opportunity to develop that. In identifying training you have done a great service to both industries, broadcasting and to film. You have underscored the clear link there is in audiovisual matters and why it is right we in Britain should see these things as being taken together. It may be that others in Europe—and I do not want to be too critical of our European colleagues because I am working with them and signed a co-production deal the other week with Mr Veltroni from Italy—have a bit of catching up to do. What I can reassure you of—and I do hope you feel reassurance—is that at Birmingham these matters were considered and discussed at very great length and glasnost was there.

  89. When Tony Banks came before the Committee he said that he had very few funds available to him and he said his job—in only the way Tony Banks could say it—was characterised by knocking heads together. Is that how you see your role?
  (Mr Clarke) Tony always speaks for himself and I am sure everything he said was absolutely right. In my Department we have to put successive governments' record on display. This takes us right into what I believe is the core of our approach to how we see the film industry. Here we see the balance between public expenditure and private investment and in my opinion, and in the opinion of the review group, both are absolutely essential. What the Government has done in my field in film in franchises we announced last year at Cannes, £92.5 million, Lottery money awarded to films, £101.7 million, does not take on board the money made available, rightly in my view, to organisations like the British Film Institute, just over £15 million, British Screen Finance, £2 million, European Co-production Fund, £2 million, British Film Commission, £850,000, National Film and Television School, £2.1 million, coming all together to £22.05 million. Then we move to Europe and see the £6 million there as our annual contribution to the EU media programme. Taken together, that is quite a substantial public commitment. Let me say this. I believe that the real test of the success of our film industry—and I regard all of this, the Government's policies, the excellent review to which I have referred as being a kick start to the new film industry we want to create —the more success we have then frankly the more the section of the report dealing with private investment, dealing with links with the City, dealing with people who have the confidence to invest in confidence, the more we will see that public contributions do fade out in time, that market conditions do indeed prevail. That is not describing a new industry. It does take place in other countries, notably in the United States. Lest it be thought I am offering a negative view as between public expenditure and the private involvement, may I say that films like Shooting Fish—and there are three such films—received Lottery money, were able to gather their own capital, returned Lottery money so that could then be used for other films and then went on to promote the film. I see that as a very good example of best practice and government wants to create the environment in which that can continue and that approach can be built upon.

Mr Fearn

  90. I have been concerned for a while about the great many students who are going through university on media studies and drama schools and being turned out at the end thinking they have a qualification which can get some kind of recognition within the film and television industry and finding that most of them cannot find work. The film industry is on a high at the moment and we hope it will continue to be so. We are talking now about the Fair Deal for Work as well. Do you see the industry swallowing up any of those students who are coming out really with nothing to do? We still have the established actors and actresses and we have some young ones coming through very nicely but not very many.
  (Mr Clarke) Like Mr Fearn I want to see success and I want to see talent recognised in front of a camera but also behind the camera. You are bringing up a very, very important point and one which worries me and one which Lord Puttnam has written on and spoken on for some time. I do not often feel slightly depressed or negative in this job because it is a wonderful job, but David Puttnam has identified the simple fact that of all the disciplines people who study media studies in university are the least likely to find jobs. That is a great worry and it is one of the reasons why, among our many recommendations in the report, A Bigger Picture, we have said that there should firstly be this all-industry fund which creates a pattern throughout the industry, beginning with production, scriptwriting, getting that right and then the distribution and exhibition and then re-investing. Because an element of that voluntary funding would involve money for training and then we move on to another recommendation about a voluntary funding for skills and for training, what we want to see there—something I discussed very recently with Stephen Bayly, the Director of the National Film and Television School—is the follow-on. It is right that education, education, education is of supreme importance, but we have to be sure we give an incentive to people to study in the fairly reasonable hope that there is going to be a job and a job which gives fulfilment to follow that. The best way to do it is to carry on with the global policy which we have for producing more quality British films, being seen on screens in Britain but also internationally.

  91. Do you have a hands-on effect on those training schemes at all or is it purely up to the voluntary sector, the film industry itself, without any kind of interaction from you? How much can you do on the training schemes?
  (Mr Clarke) In this Department as in government we set the environment. I think that is the right thing to do. If hands-on means that we can dictate to the National Film and Television School or to the Media Centre in Sheffield or wherever, they would not welcome that. They do welcome partnership, which is a word I keep using and genuinely mean partnership. Even if they get everything right and I think they are doing superbly well frankly, they share your worry. We want to ensure that people are able to move into jobs, jobs which acknowledge their talent and jobs which are able to show to the world, as Richard Attenborough tells us, rightly, the British skill and genius. That remains a worry and I do take it on board. I welcome any views the Committee may have and I do tell you that in acknowledging that as a concern the whole review group agreed with what you are saying.

  92. Are there no Lottery funds which can be directed into that?
  (Mr Clarke) Some aspects of Lottery funds do find their way into job creation. Some people would want to debate whether that is the right thing to do but in that field I have to be very strict with myself in saying that although the Government have made resources available for the franchises and the Lottery, it would of course be very inappropriate for us to interfere with the distributors who are there to decide what the priorities should be.

Ms Ward

  93. What proposals do you have to work with the Department for Education and Employment to promote not just the training and education of graduates or those who are going on to university degrees in the film industry but post-sixteen? It is very important that we get young people who are going to their further education colleges and doing media studies, which as you rightly said are not respected in the industry and in general and are not achieving what we want to see of recruitment and training. How do you think we can work on the post-sixteens to make sure that there is a connection between the industry and education?
  (Mr Clarke) Yes, there is a very specific link, not just in the industries with which I am dealing, important as they are, but also in a more global sense. Throughout our review the various groups and particularly the one dealing with training, kept in very close touch with the Department for Education and Employment. I think that was relevant. I found from them an excitement about our agenda which perhaps has not been obvious for a very long time. We have to build on that and therefore one of the responsibilities of the new action group, and particularly those who were involved in training and education and trying to link that into industry and into jobs, over the next 12 months, is not simply to remind themselves of the discussions which have taken place with the Department for Education and Employment, which have been very positive, but also to ask very practical questions about what progress we are making. That is a very fair question.

  94. Do you accept that we need to concentrate on the post-sixteens, that age group, as well as the graduates with whom really the National Film Schools and most of those are working?
  (Mr Clarke) There are individual priorities which quite correctly exist in the different groups and among the different ages. It may be because I have always had a passion for film, but frankly I want to see film studies, film appreciation, introduced right from primary school all the way to higher education. I saw a letter in The Guardian the other day, a very interesting and I thought positive letter

Chairman

  95. That is rare, is it not?
  (Mr Clarke) I am sorry but the problem of acoustics is one I have now discovered. Would you be kind enough to repeat that?

  96. You said there was a letter in The Guardian which was positive and constructive. I said that was rather rare, was it not?
  (Mr Clarke) As you know, I have what some people regard as a generosity of spirit which at times might be too extravagant.

  97. I wish they accused me of that from time to time.
  (Mr Clarke) If it turns out that you and I are agreed then I am sure the headline in The Guardian tomorrow will be "Tom and Gerry support letter writers to The Guardian".

  98. Toby Jessel would not have known what that meant.
  (Mr Clarke) It is the influence of the film industry and Cannes and audiovisual matters which leads to that. May I return to Claire Ward's question which was a very serious one? I want to see film addressed in every sense all the way through education. This sounds terribly pompous but I used to be Secretary of the Scottish Amateur Cinematographers and that meant Buggin's turn gave me a chance to be president of the British Amateur Cinematographers. Because of that—it worries me now as the Minister but I am delighted to have come full circle—there do not seem to be as many amateur organisations, there do not seem to be as many film production groups. In the international film festival which I used to organise from Scotland, one of the most important groups used to be film productions and then we moved on. We had films submitted from the Massachusetts Institute of Technology, Southern California University and all the rest. There was a very, very clear link there between education and film and film development and audiovisual matters. As you know, David Puttnam wrote a book about it which was a very, very good book. I should love to have time to discuss it this morning but what I would simply say is that I endorse the main principles of his book, The Undeclared War. Claire Ward has given us the opportunity for further discussion.

Ms Ward

  99. Moving on to some of the contents of the review group report, you rightly identified that one of the greatest weaknesses in the industry is that we are production led and fragmented in comparison to the US, which has that coordinated system of production and distribution. Can you explain how you think the establishment of an office in Los Angeles will actually be able to assist in changing that structure when it seems likely that the Americans already know that the best way for them to exploit the industry in the UK is to continue to allow somebody else to produce it and for them to distribute and get the profits?
  (Mr Clarke) I think we were absolutely right to recommend that there should be an office in Los Angeles. Already at the embryonic stage, where work has been done, that judgement has been confirmed. May I just underline the simple fact that that office is going to be financed on the basis of both public and private expenditure? I believe that we have a job to do and I know the Committee considered these matters in earlier days in great detail and I was delighted that they went out there to see things for themselves. There are two main responsibilities on our Los Angeles office. The first is to promote British interest unreservedly. I do not want ever again to see the lessons we learned from The Full Monty, by any standards a brilliant film, which cost US$5 million to produce. If judgements are made by people, then people liked The Full Monty. I have to say that the market seems to me to be the best indication of what the film industry should be doing, which is why I want more market research. What happened? Because they were not able to make a judgement about the success of the film on the basis of clairvoyance the profits went elsewhere, largely to the United States. I am trying very, very hard to ensure that never happens again. To do it, I want our interests to be represented in Los Angeles as they are and increasingly will be but I also want the film industry in Britain and my Department and the Film Minister to have the most up to date intelligence about what is going on in the United States. Claire Ward has raised a pivotal point to everything we are trying to discuss in this industry. The Government has the responsibility for creating the environment in which film and audiovisual matters thrive. That is why Gordon Brown, not just in one budget, delivered what people in Cannes last year were asking me to deliver: in the first budget, a waiver of 100 per cent for three years for films up to £15 million. He did that and that is what people asked for. The review later suggested that he should extend that by one year. On the day we published it, Gordon Brown went one further and extended it by two years. I tell you the industry genuinely welcomes that and I tell you that across the Atlantic people recognise that as well. I do not want to be too much involved in the aggro which probably exists in the presentation and distribution of film. Frankly it makes both commercial and cultural sense to be working with those in Europe, as we are doing, but also those in the United States who have already set something I want to achieve: I want to see the vertical approach, I want to see investment leading to good scriptwriting, development going on to exhibition, which involves marketing and then from that you are able to re-invest in the industry. That is what I want to see. The fact that the Americans have achieved it, does not lead me to criticise the Americans, it leads me to say right, we should be getting off our backsides and doing exactly the same. We have the talent to do it, we have the skills to do it, I believe the capital is there; Orange demonstrated that this week with yet another announcement in which they were encouraging people who were coming into film for the first time. We have done it in the document and in what we have said in the Lottery and the franchises but I want to approach this positively. There has been a very, very good response to our proposals across the Atlantic and that is why I am getting confident. If anything the Americans, it seems to me, are astonished it has taken us so long to get to this point.


 
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