4 Financial support for the audiovisual
industry, 2007-13
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11585/04
+ ADD 1
COM(04) 470
| 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 6 November 2005 and 2 May 2006
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| Previous Committee Report | HC 34-vi (2005-06), para 3 (19 October 2005)
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| To be discussed in Council | 18 May 2006
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| Committee's assessment | Politically important
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| Committee's decision | Cleared
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Background
4.1 The audiovisual sector includes films, television, videos,
DVDs and electronic games. The European Community has given the
sector financial support since the early 1990s. 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.
4.2 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 2007-13.[3]
Grants would be mainly for development, distribution and promotion,
with emphasis on help for small and medium-sized enterprises.
The Commission proposed that the budget should be €1,055
million over seven years.
4.3 The Secretary of State for Culture, Media and
Sport (Tessa Jowell) told us that the proposed increase in the
budget from about €500 million for 2000-06 to €1,055
million for 2007-13 was 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.
4.4 In October 2005, the Minister sent us a text
of the draft Decision showing the amendments that had been agreed
so far in the Council negotiations. She told us that the UK Presidency
wished to achieve a "partial political agreement" (PPA)
on the non-budgetary provisions of the draft Decision at the Council
meeting on 14 November. The Council would take no decisions on
the financial provisions until after the settlement of the EU's
overall budget.
4.5 The Minister also told us that the European Parliament's
Culture and Education Committee had proposed some amendments to
the draft Decision. They had been welcomed informally by the Council
and the Commission. The Minister expected the Committee's amendments
to be endorsed at the plenary meeting of the European Parliament
on 24 October.
4.6 When we considered the draft Decision on 19 October
2005, we saw no reason to object to the Government taking part
in a partial political agreement on the non-financial provisions
on the express understanding that consideration of any provision
of the draft Decision could, if necessary, be re-opened in the
light of the settlement of the EU's overall budget for 2007-13;
that the Government would tell us about the European Parliament's
proposed amendments; and that the Minister would provide us with
timely progress reports. We kept the budgetary provisions of the
document under scrutiny.
The Minister's letter of 6 November 2005
4.7 The Minister's letter of 6 November told us about
the amendments proposed by the European Parliament at its plenary
session. She said that the amendments to the non-financial provisions
were minor and acceptable. On 16 November, we sent the Minister
a letter in which we noted that the non-financial amendments differed
little from those proposed by the European Parliament's Culture
and Education Committee. We also said that we saw no reason to
depart from the conclusions we had reached on 19 October about
a partial political agreement on the non-financial provisions
of the draft Decision.
The Minister's letter of 2 May 2006
4.8 The Parliamentary Under-Secretary of State at
the Department of Culture, Media and Sport (James Purnell) tells
us that, in the light of the agreement between the Council and
the European Parliament about the total EU budget for 2007-13,
the Commission proposes that the budget for MEDIA 2007 should
be €671 million at 2004 prices. That figure has already been
provisionally accepted by Member States. The European Parliament
is expected to approve it on 17 May. Member States have also agreed
that there is no need to re-open consideration of the non-financial
provisions of the draft Decision. The proposed guidelines for
the allocation of the MEDIA 2007 budget are as follows:
- distribution at
least 55%
- development at least
20%
- promotion approx. 9%
- acquisition and improvement of skills approx.
7%
- pilot projects approx.
4%
- horizontal costs at least
5%.
4.9 Finally, the Minister tells us that the Government
is content with the latest text of the draft Decision and asks
us to clear the document so that the Government can take part
in a political agreement of the financial provisions of the Decision
at the Culture Committee's meeting on 18 May.
Conclusion
4.10 We note that the budget now proposed for
the MEDIA 2007 programme is €671 million at 2004 prices.
This is substantially less than the €1,055 originally proposed
by the Commission. We recognise that the reduction will be a disappointment
for the audiovisual sector but we accept that it is a necessary
consequence of the settlement of the EU's overall budget for 2007-13
and the views of the Council, European Parliament and Commission
about the relative priorities of the programmes which are in competition
with each other for funds.
4.11 We are grateful for the
way in which the Government has kept us informed during the negotiations
and we are now content to clear the document from scrutiny.
3 See HC 42-xxxiii (2003-04), para 3 (20 October 2004). Back
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