5 International cooperation in the
audiovisual industry
| (30339)
5237/09
COM(08) 892
+ ADD 1
+ ADDs 2-3
| Draft Decision establishing an audiovisual cooperation programme with professionals from third countries MEDIA MUNDUS
Commission staff working document: objectives, expected results and related indicators
Commission staff working documents: impact assessment and summary of assessment
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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 letter of 24 April 2009
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| Previous Committee Report | HC 19-viii (2008-09), chapter 3 (25 February 2009)
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| To be discussed in Council | 12 May 2009
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| Committee's assessment | Politically important
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| Committee's decision | Cleared; but further information requested
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Previous scrutiny
5.1 When we considered this draft Decision in February,[22]
we noted that, although more films are produced in the EU than
anywhere else except India, the EU's share of the USA's domestic
market (total tickets sales) was only a little over 3% in 2006,
whereas the USA had over 59% of the EU market. Moreover, the EU's
average market share in other third countries is about 4%. The
audiovisual sector in the EU suffers from fragmentation caused
by the diversity of languages and ownership compared with the
USA.
5.2 Since the early 1990s, the EC has had programmes
to give individuals and businesses in the audiovisual sector financial
help for such things as training, distribution and promotion.
The latest programme is MEDIA 2007, which has a budget of €755
million for 2007-13.
5.3 The European Commission believes that there
is scope to increase the competitiveness of the EU audiovisual
sector and boost its market share overseas by encouraging cooperation
between people in the business in the EU and their peers in third
countries. It is currently running a pilot study (MEDIA International)
to try out the idea and learn lessons. Meanwhile, the Commission
proposes this Decision to set up a new programme (MEDIA MUNDUS)
which would come into effect in January 2011.
5.4 The programme would have a budget of €15
million for three years. Projects would receive grants for up
to 50% of their cost (more in exceptional cases). At least two
EU nationals and one national of a third country would have to
participate in the project. The programme would support, for example:
training; the co-production of films by professionals from several
Member States and third countries; and the development of international
networks to finance, distribute and show audiovisual works.
5.5 The Minister for Culture, Creative Industries
and Tourism at the Department for Culture, Media and Sport (Barbara
Follett) told us in January that the Government broadly supports
the objectives of the proposal. But it wondered if €15 million
is enough to achieve the objectives and would prefer the programme
to be managed by the MEDIA 2007 Committee rather than a new Committee.
5.6 In the Conclusion to our report on our previous
scrutiny of the draft Decision, we asked the Minister:
(i) to provide us with hard evidence, if available,
about the likely effectiveness of the MEDIA MUNDUS programme;
(ii) to send us a draft of the Government's Impact
Assessment of the proposal;
(iii) to tell us the Government's views, and
the opinions of other Member States, on whether the new expenditure
the Commission proposes should be channelled through a new programme,
MEDIA MUNDUS, rather than become part of an amended MEDIA 2007
programme; and
(iv) whether, in her view, it would be appropriate
to cite Article 151 EC, as well as Articles 150(4) and 157(3),
as a legal base for the draft Decision because one of the stated
objectives of the proposal is to enable the EU to play its cultural
role in the world more effectively.
We decided to keep the draft Decision under scrutiny
until after we have received the Impact Assessment and the other
information for which we had asked.
The Minister's letter of 24 April 2009
5.7 In reply to our question about evidence of
the likely effectiveness of the proposal, the Minister's letter
of 24 April says that:
"… early results of the precursor programme,
MEDIA International Preparatory Action are hopeful. The first
set [of] results were announced in August 2008 when almost €2
million worth of funding was awarded to 18 projects involving
partners from Third Countries like India, China, Japan, Morocco,
Bosnia and Turkey. This money was used to fund training programmes;
schemes designed to boost co-productions between European states
and Third Countries and to help companies to access financing
and new overseas markets. For example, the United Kingdom based
company, Pygmalion, received €30,000 from this allocation
to run financing, marketing and development workshops with professionals
in India, Lebanon and Indonesia. This will allow substantial networking
to take place and create development opportunities for all involved."
5.8 The Minister's letter also tells us that
creating a new MEDIA MUNDUS programme is to be preferred to amending
the MEDIA 2007 programme because it would be simpler, quicker
and clearer for all concerned to have a separate, dedicated three-year
programme to support projects involving audiovisual professionals
from outside as well as inside the EU. This view is shared by
other Member States.
5.9 As to our question about citing Article 151
EC (Culture) as one of the legal bases for the draft Decision,
the Minister says:
"At the request of the delegates to the Working
Groups and the European Parliament a new Recital in the Preamble
of the proposal has been added. This says that:
'Community support to the audiovisual sector takes
into account Article 151 of the Treaty, which states that the
Community and the Member States shall foster cooperation with
third countries and the competent international organisations
in the sphere of culture, and that the Community shall take cultural
aspects into account in its action, in particular in order to
respect and to promote the diversity of its cultures."
5.10 We are grateful to the Minister for sending
us her Department's Impact Assessment of the proposal. It suggests
that the present value of the total cost of MEDIA MUNDUS over
three years would be £12.2 million and the present value
of the total benefits would be between £13.7 and £21.9
million, producing a net present value of between £1.5 million
and £9.7 million.
Conclusion
5.11 The Minister has provided all the information
for which we asked.
5.12 We note, in particular, her reply to
our question about the citation of Article 151 (EC) as a legal
base for the proposed Decision. We remind her, however, that Recital
7 of the Commission's draft Decision of 9 January contained a
similar, though shorter, reference to the Article. In our view,
a reference to the Article in a Recital is not sufficient and
we suggest that Article 151 needs to expressly cited as a legal
base on page I of the Decision, alongside the citations of Articles
150(4) and 157(3).
5.13 We should be grateful if the Minister
would pursue our suggestion during the further negotiations on
the document and tell us the outcome. But we see no need to keep
the document under scrutiny meanwhile and we are, therefore, now
content to clear it.
22 See headnote. Back
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