Cinema Industry

Oral Answers to Questions — Trade and Industry – in the House of Commons at 11:30 am on 27 January 2005.

Alert me about debates like this

Photo of Mr David Rendel Mr David Rendel Shadow Minister (Higher Education), Education & Skills 11:30, 27 January 2005

What plans she has to review fair trading regulations with respect to the cinema industry.

Photo of Gerry Sutcliffe Gerry Sutcliffe Parliamentary Under-Secretary (Trade and Industry) (Employment Relations and Consumer Affairs)

My Department has consulted publicly on recommendations from the chairman of the Office of Fair Trading that the Films (Exclusivity Agreements) Order 1989 made under the Fair Trading Act 1973 be revoked and the Secretary of State will take a decision on this order in the light of the chairman's advice due to be received shortly.

Photo of Mr David Rendel Mr David Rendel Shadow Minister (Higher Education), Education & Skills

I am delighted to hear that, but I will press the Minister further. He will know that, by 2003, 71 per cent. of all cinemas were in multiplexes and that 75 per cent. of those were owned by just five companies, so choice has been dramatically restricted. Will he consider negotiating with his colleagues in other Departments on two measures that I suggested in my ten-minute Bill last year and that have now been supported by Time Out? The first is to change planning laws so that there will be a separate use class for cinemas and the second is to introduce the possibility of rate relief for small rural cinemas.

Photo of Gerry Sutcliffe Gerry Sutcliffe Parliamentary Under-Secretary (Trade and Industry) (Employment Relations and Consumer Affairs)

In a sense, as with my earlier answer, we have to wait for decisions to be taken before we move on to what recommendations to make in the light of those decisions. That is under the 1973 Act. The hon. Gentleman will know that the Enterprise Act 2002 took away powers from the Secretary of State and will give them to the Competition Commission. This is being looked at under the 1973 Act and the Secretary of State has to consult and consider the chairman's recommendations. When that has taken place, issues such as the changing nature of the industry will be considered. I am sure that decisions such as the one that the hon. Gentleman raised can be taken then, or certainly there can be consultation and discussion on those issues.

Photo of Chris Bryant Chris Bryant Labour, Rhondda

With the degree of vertical integration in the industry and with so many of the distributing companies and the people who own the cinemas themselves owned by the same people, unless we tackle the anti-competitive practices that may exist in the industry, is there not a real danger that independent producers who make small films will find it difficult to get those films into cinemas? Is it not also difficult for independent cinemas to get access to some of the big blockbuster movies that could make more money for them?

Photo of Gerry Sutcliffe Gerry Sutcliffe Parliamentary Under-Secretary (Trade and Industry) (Employment Relations and Consumer Affairs)

I recognise my hon. Friend's involvement in and commitment to making sure that creative industries, particularly the film industry, are successful. He will know that, since 1997, there have been tremendous tax advantages for small budget films of around £15 million. There has been a greater incentive to support the British film industry. It is difficult to make any comment at this stage until we have an OFT recommendation and the Secretary of State makes a decision.