Select Committee on Culture, Media and Sport Written Evidence


SUBMISSION 43

Memorandum submitted by British Trade International

SUMMARY

  1.  British Trade International (BTI) actively supports British film exports through a range of schemes. In FY 2003-04 BTI expects to grant over £650,000 to 313 companies attending 10 exhibitions abroad (a significant increase over FYs 2001-02 and 2002-03). In FY 2003-04 BTI expects to grant over £50,000 to 90 companies on six outward missions to film events. The industry gives consistent welcome to this support.

INTRODUCTION

  2.  British Trade International (BTI), established in May 1999, brings together the work of the Department of Trade and Industry (DTI) and the Foreign and Commonwealth Office (FCO) on trade development and promotion of inward investment. BTI has a global team of over 2,500 staff deployed at over 200 posts overseas, in UK Headquarters (in London and Glasgow) and in the English regions. It delivers services through its two operating arms, Trade Partners UK (TPUK) and Invest UK. As part of its inquiry, the Committee has indicated that it wishes to consider the export of British films and the support given to the industry. Trade policy issues relevant to the export of British films are the responsibility of the European and World Trade Policy Directorate at the DTI and are not addressed in this document.

CREATIVE INDUSTRIES—FILM

  3.  The creative industries in the UK generate revenues of around £76.6 billion and employs some 1.9 million people. Exports contribute about £8.7 billion to the balance of trade.

  (DCMS Creative Industries economic estimates July 2002)

  4.  TPUK is committed to supporting the creative industries and recognises the important contribution they make to the UK economy. We have adopted DCMS's definition of creative industries covering 13 separate industries including film, music, publishing, computer games and design etc.

  5.  "Film and (video) products include feature films, adverts as well as training, education, promotion and other videos. The key ways in which these products reach the public are through cinema, video, DVD and television, linking production, exhibition and distribution".

  (DCMS Creative Industries mapping document 2001)

  6.  TPUK is also exploring with the UK Film Council, how best to further the agenda relating to supporting infrastructure. The UK has a wealth of small innovative companies in postproduction activity, eg graphics, sound, digital editing, animation etc.

FILM EXPORTS

  7.  In 2001 film exports were valued at £700 million, of which £468 million came from royalties and £232 million from film production services. Over the period 1995 to 2001, film exports have fluctuated between £650 million and £888 million.

  (Film Council Year book 2002)

CREATIVE AND MEDIA EXPORT UNIT

  8.  In line with British Trade International's Strategy 2006 to target resources better to achieve our PSA targets, TPUK Creative and Media Export Unit was established in April 2003 with a team of 12 (running cost of £390,000), of which the equivalent of nearly two full time staff (cost of £55,000), are dedicated to supporting the film industry.

  9.  The unit is:

    —  Guided by British Trade International's Corporate Plan and its focus on enhancing competitiveness by helping SME's, new exporters and existing exporters to new markets.

    —  Implementing an agreed export strategy with stakeholders. BTI contributed to the paper submitted in March highlighting the work of the Film Export Group—"Is there a British Film Industry?" The Group is currently in the final stages of completing its export strategy. TPUK is a committed member and keen to provide support in line with the strategy.

    —  Working closely with DTI, DCMS, FCO and the British Council to provide a co-coordinated and comprehensive export service to support the creative industries, including the film industries.

  10.  The unit is already making good progress in understanding the needs of the film industry. Two members of the team recently visited the Film Market, which took place alongside the Cannes Film Festival (at the invitation of the key trade associations exhibiting at the fair). This gave them an opportunity to see first-hand the commercial benefits of having a UK presence at this key market. The visit enabled the team to compare the UK Government support at the event to the support given by foreign governments. In addition, the team is setting up briefing visits to the UK Film Council and the DCMS Film Department as well as undertaking visits to companies and other stakeholders such as PACT, BAFTA and regional screen agencies.

  11.  The Unit is also working to ensure that the regional strategies driven by TPUK's International Trade Directors based in the English regions, complement the national export strategy.

SUPPORT OFFERED BY TPUK

  12.  Services offered to UK companies to help them export and become more competitive (industry-wide, not just for film and film products)

    —  tailored market research for a product/service in a particular market;

    —  assistance in locating suitable agents/distributors—(3,085 reports produced last year);

    —  new product from Britain stories—commercial publicity;

    —  travel grant for companies taking part in outward missions;

    —  grant of up to £2,300 for the costs of exhibiting at key trade fairs/exhibitions overseas;

    —  (8,000 exhibitors at 400 trade fairs supported last year); and

    —  staging seminars overseas, highlighting the wealth of what the UK can offer to potential customers overseas.

SUPPORT GIVEN SPECIFICALLY TO THE CREATIVE INDUSTRIES

  13.  TPUK view the creative industries as one of 34 specialist sectors of UK industry. Using the mapping document produced by DCMS in 2001 it looks at the sector strategically, and at its 13 sub-sectors, one of which is film. For 2003-04 TPUK will be supporting a total of 52 events under its Support for Exhibitions and Seminars Programme (SESA). Estimated budget of £2.2 million. TPUK have also allocated £345,000 to support 31 creative industries related outward missions, for the period 2003-04.

  14.  TPUK are already supporting the key events highlighted by the Film Export Group as important to the UK film industry in building its international business.

  15.  Outward missions to be supported during 2003-04

Toronto Film Festival

  FRAMES—Global Convention on the business of Entertainment, held in Mumbai.

  Mumbai Film Festival.

  Malaysia and Singapore (Film and TV focus).

  India (Film, animation and computer games focus).

  Sithengi—(Film and TV) held in South Africa.

SUPPORT PROVIDED SPECIFICALLY TO THE FILM INDUSTRY

Support for Exhibitions and Seminars abroad (SESA)

SESA Supported Film Events
FY 2001-02
FY 2002-03
FY 2003-04
Number of Events
5
7
10
Companies/Speakers supported
167
197
313
Grant Estimated
  
  
£661,540
Grant Awarded
£336,333
£487,678
  
Total for Creative Industries
£1,722,750
£2,800,000
£2,200,000


Outward Mission Scheme (OMS)

OMS Film Events
FY 2001-02
FY 2002-03
FY 2003-04
Number of Events
2
6
6
Companies supported
36
112
90
Grant Estimated
  
  
£52,200
Grant Awarded
£14,000
£62,200
  
Total for Creative Industries
£115,100
£323,000
£345,000



SUPPORT FOR EXHIBITIONS AND SEMINARS ABROAD DURING 2003-04

16.  Exhibitions

  Cannes Film Festival and Market.

  MIPCOM, Cannes.

  FRAMES—Global Convention on the business of Entertainment, held in Mumbai.

  BROADCAST ASIA, Singapore.

  NAB, Las Vegas.

  Showbiz/Cine Gear Expo (Film and TV production & services), Los Angeles.

  National Association of Television Programme Executives (NAPTE), New Orleans.

  American Film Market (AFM), Santa Monica.

17.  Seminars

  Cannes Film Festival and Market.

  FRAMES,—Global Convention on the business of Entertainment, held in Mumbai.

  18.  TPUK work with Accredited Sponsors who are representatives of industries, such as Chambers of Commerce and Trade Associations. Sponsors for the Film Industry include:

    —  UK Film Council/UK Film Council International.

    —  Producers Alliance for Cinema and Television (PACT).

    —  Electronic Exporters Group.

    —  Mid Yorkshire Chamber of Commerce.

    —  Birmingham Chamber of Commerce.

    —  London Chamber of Commerce.

BRITISH FILM OFFICE IN LOS ANGELES

  19.  TPUK was one of a number of original funding partners for the office. Our seed corn funding included:

    —  2000—£20,000

    —  1999—£20,000

    —  1998—£40,000

    —  Total—£80,000

  20.  In 2001, TPUK also contributed £10,000 towards a marketing budget to set up the office and aid with the building of key contacts, bringing our total contribution to £90,000.

  21.  The office is now fully funded by the UK Film Council.

  22.  The main focus of the office has been to encourage US film production companies and studios to shoot on location in the UK and to take advantage of our post- production facilities and talent.

  23.  The office has already had a number of successes in this area and has secured 84 projects for the UK between 2000-2002, including The Hours, I'll Sleep When I'm Dead and Inspector Gadget. Its focus is now also turning to developing resources to assist the distribution of UK films into the US.

SUCCESS STORIES

  24.  BTI considers its work in helping the British film industry to export its product and services has been successful. The Committee may wish to note the following examples of where BTI has added value:

OUTWARD MISSIONS

  25.  Following a visit to India as a member of a TPUK Trade mission, led by the Mid-Yorkshire Chamber of Commerce in November 2002.

  26.  Michael Fox from the Commonwealth Film Festival said:

    "Without the support from TPUK I would not have got off the ground. I met an enormous amount of people—the movers and shakers in the industry thanks to the excellent work of the commercial team at the BHC Mumbai"

  27.  India is currently highlighted as an emerging market for the UK film Industry. Mid-Yorkshire Chamber of Commerce who led a film-focused trade mission to India, are now working closely with the Film Export Group and in particular the UK Film Council. This partnership has been a direct result of TPUK bringing the two organisations together.

EXHIBITIONS

American Film Market (AFM)—25 March-3 March 2003

  28.  Six companies who exhibited with the assistance from TPUK have already indicated that they have secured business worth US$ 11.3 million. Two of the companies were exhibiting at AFM for the first time.

Cannes Film Festival—14-25 May 2003

  29.  Early feedback from companies supported indicates that they regard the market as important selling market, which they might not be able to exhibit without the support available from TPUK. A number of companies supported were exhibiting for the first time. A number of deals were secured, but too early to provide figures.

SEMINARS

  30.  UK Film Industry services seminar, arranged by the British Council, on behalf of TPUK—November 2002. Held in Chenni and Mumbai.

  31.  Four speakers from the UK took part in the seminar:

    —  Leslie Udwin, Producer of East is East and The one and Only.

    —  Asif Kapadia , Director of The Warrior, who recently won two BAFTAS for his debut features.

    —  Ben Hopkins, Director of Simon Magus and Second Generation.

    —  Anita Lewton, Producer of Lemon Crush and Second Generation.

  32.  Anita Lewton commented

    "In developing any film market, it is fundamental that the creative ideas, context and practical difficulties are underpinned by solid creative partnerships. Success never comes with financial gain as a first priority. I would like to take this opportunity to thank the British Council and Trade Partners UK for the fantastic experience afforded to us by the seminar and the whole heartedly support and reiterate what you are doing in this area"

  33.  Ben Hopkins

    "I have an Indian project which I wanted to push forward, and this event provided a great opportunity to make contacts and make myself known in the country. I am a freelance director in the art-side of cinema, I couldn't possibly have afforded the visit without this funding"

  34.  Leslee Udwin

    "I will undoubtedly return to India within three years or so to make a film. The contacts I have made within the industry will no doubt be fruitful in a very concrete sense. I have also had a privileged first-hand insight into the strengths and weaknesses of the industry there and will be prepared to mitigate and maximize these.

5 June 2003



 
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