SUBMISSION 51
Memorandum submitted by Mr Barnaby Thompson,
Head of Ealing Studios
As you continue your work into the film business,
I would encourage you to focus on the following issues:
TAX BREAKS
Sections 42 and 48 have helped the film industry
enormously and it is crucial we keep them. They have been around
long enough to have eradicated abuses and work effectively and
efficiently.
I would suggest extending these tax breaks to
include the UK marketing costs of UK qualifying films since these
are part of the real cost of a movie. This would also incentivise
distributors in this country to take on and push British films.
TV MONEY
To maintain a healthy, home-grown film industry
it is important to have the support of the TV companies. The BBC,
ITV, Channel 4, Channel 5 and Sky should all be mandated to invest
in UK films on the basis of a licence fee rather than an outright
purchase of UK TV rights. If they only put up as much as they
would for a two-hour drama and had to invest in a film a month,
this would have a dramatic effect on the film business.
EXHIBITOR/DISTRIBUTOR
SPLIT
Dating back to the days of the exhibition duopoly
in the '60s, this country has the worst split between exhibitors
and distributors in the world. It is deeply unfair and has a massive
impact on the revenues of local productions for whom this is the
most important market. If distributors here were to receive the
same as in America or France, it would increase theatrical revenues
by 30%, which would make a huge difference to the bottom line.
15 July 2003
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