3 Financial support for the audiovisual
industry, 2007-13
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11585/04
COM(04) 470
+ ADD 1
| Draft Decision on the implementation of a programme of support for the European audiovisual sector (MEDIA 2007)
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| Legal base | Articles 150(4) and 157(3) EC; co-decision; QMV
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| Department | Culture, Media and Sport
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| Basis of consideration | Minister's letters of 12 July and 12 October 2005
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| Previous Committee Report | HC 42-xxxiii (2003-04), para 3 (20 October 2004) and HC 42-xxxvi (2003-04), para 2 (10 November 2004)
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| To be discussed in Council | 14 November 2005
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| Committee's assessment | Politically important
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| Committee's decision | Financial provisions not cleared; further information requested
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Background
3.1 The audiovisual sector includes films, television, videos,
DVDs and electronic games. The European Community (EC) has long
been concerned about the risks to European culture and jobs from
US competitors. It has, therefore, provided financial support
for the European audiovisual sector since the early 1990s.
3.2 Nearly all the public financial support for the
actual production of films comes from national governments. But
the EC provides grants for the pre-production, development, distribution
and promotion of audiovisual products. The current programmes
of support are MEDIA Plus and MEDIA Training, both of which expire
at the end of 2006. Jointly, they have a budget of €500 million
for six years.
3.3 In October 2004, the previous Committee considered
the Commission's proposal for a draft Decision to concentrate
support for the audiovisual sector in one new programme —
MEDIA 2007 — for the period 2007 and 2013.[6]
Grants would be mainly for pre-production, development, distribution
and promotion, with emphasis on help for small and medium-sized
enterprises. The budget would roughly double to €1,055 million.
3.4 The Government told the previous Committee that
it broadly supported the proposal but wanted to make the objectives
sharper and more concerned with outcomes than activities. It emphasised
that the proposed budget could not be settled until the EU's overall
budget for 2007-13 has been settled.
3.5 The previous Committee noted that the Commission
had provided virtually no quantified evidence about the effectiveness
of the existing MEDIA programmes in increasing the competitiveness
of the European sector. So it was difficult to form a view on
the proposal for increasing the budget to €1,005 million.
Our predecessors asked the Minister to press the Commission to
produce further information to justify the increase. They also
asked for progress reports on the negotiations and for a supplementary
Memorandum on the outcome of the Government's consultations on
the proposal.
3.6 In November 2004, the Minister provided a summary
of the responses to the consultation paper. All the respondents
supported the continuation of the MEDIA programme, and most of
them supported the proposal to increase the budget.[7]
3.7 The previous Committee decided to retain the
document under scrutiny pending further progress reports and information
about the Commission's justification for the proposal to double
the budget for the support of the audiovisual sector.
The Minister's letters
3.8 In her letter of 12 July 2005, the Secretary
of State for Culture, Media and Sport (Tessa Jowell) tells us
that the proposed increase in the budget for support of the audiovisual
sector is largely because of the enlargement of the EU to include
the ten "new" Member States and because the new programme
would cover seven years whereas the existing programmes cover
six.
3.9 The Minster encloses with her letter of 12 October
a text of the draft Decision showing the amendments that have
been agreed so far in the Council negotiations.
3.10 She tells us that the UK Presidency wishes to
achieve a "partial political agreement" (PPA) on the
non-budgetary provisions of the draft Decision at the Council
meeting on 14 November, while leaving open the opportunity to
re-open consideration of the provisions on the programme's objectives
and actions if the settlement of the EU's overall budget for 2007-13
results in a budget for MEDIA 2007 much less than that proposed
by the Commission. The Council will take no decisions on the financial
provisions of the draft Decision until after agreement has been
reached on the EU's overall budget. Accordingly, she asks us to
give partial clearance to the document.
3.11 The Minister also tells us that the European
Parliament's Culture and Education Committee has proposed some
amendments to the draft Decision. They have been welcomed informally
by the Council and the Commission. The Minister expects the Committee's
amendments to be endorsed at the plenary meeting of the European
Parliament on 24 October. She says that she will write to us again
immediately after that plenary meeting.
Conclusion
3.12 The Council's amendments to the text of the
draft Decision do not appear to change the substance of the draft
Decision and there are no questions we need put to the Minister
about them. We shall await her letter about the outcome of the
European Parliament's consideration of the document on 24 October.
3.13 We can understand why the Government wishes
the Council to reach a partial political agreement on the non-financial
provisions at its meeting on 14 November. We see no reason to
object to this on the express understanding that consideration
of any provision of the draft Decision can, if necessary, be re-opened
in the light of the settlement of the EU's overall budget for
2007-13; that the Government will tell us about the European Parliament's
proposed amendments and will provide us with timely progress reports;
and that we shall retain the budgetary provisions of the document
under scrutiny.
6 See HC 42-xxxiii (2003-04), para 3 (20 October 2004). Back
7
See HC 42-xxxvi (2003-04), para 2 (10 November 2004). Back
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