Creative Industries

Lord Shipley Excerpts

Thursday 3rd November 2011 Lords Chamber

[Lord Shipley]

My Lords, I, too, thank my noble friend Lady Bonham-Carter for initiating this debate, in part because it gives me an opportunity to speak about the impact of creative industries on north-east England; and here I declare my board membership of One North East, which pump-primed quite a bit of it.

Last Friday, Radio 4’s “Any Questions?” was broadcast from Hoults Yard in the Ouseburn Valley, on a tributary of the River Tyne in the centre of Newcastle. It used to be the home of Maling pottery, it then housed the Hoults family removal business, and now it is the heart of a major renaissance in the creative industries, with 50 businesses generating some 400 jobs. The Ouseburn Valley and Hoults Yard are living testament to the potential of creative industries to regenerate old industrial areas. Hoults Yard, of course, is part of a more buoyant general growth in the north-east’s creative industries which recorded a 37 per cent increase in gross value-added in the five years from 2005 to 2010 and now contribute £90 million to the north-east’s economy. The core creative sector’s growing importance is reflected in the fact that there are 25 per cent more companies and 15 per cent more people employed in the sector than there were in 2005. Overall, there are some 6,000 companies in the creative sector in the region, with 1,000 now in the core creative sector.

How can this be built on? A good example is based in the Ouseburn Valley: Northern Film & Media, a creative industry development agency with the vision to create a strong commercial creative economy in the north-east by commercialising talent and ideas. To date, it has generated £4 for every £1 of public money invested, and aims to provide the link between talent, experts and the market using seed investment, leverage, industry expertise and partnership working to make an impact in film, television, games, web, mobile and music. I hope that experience and expertise, and that of similar organisations elsewhere in the country, can be built on, given the establishment of the Creative Industries Council and the Creative Industries Network and their aim to boost growth.

The creative sector in the north-east is part of a much wider cultural renaissance. I pay tribute to the vision of Gateshead, the Sage Gateshead and the Baltic art gallery, where recently many thousands of people queued on the first five days to see the Turner Prize exhibition. On the Newcastle side of the river, there has been major capital investment in theatres, dance, film, the centre for children’s books, and museums, all of which have contributed enormously to changing the image of Tyneside and its industrial heritage and generate wealth both directly and indirectly.

What do we need to do now to increase the potential of our creative industries? First, to grow, some firms need more help and advice to overcome barriers to growth—how to win contracts, how to secure skilled workers and how to access finance, particularly bank loans and venture capital.

Secondly, there is the role of the BBC from Manchester as it moves increasingly north. There is clear research evidence that the growth of creative and cultural industries in Bristol and Manchester has been supported by the extent of commissioning by the BBC. I hope we can ensure that the move to Salford Quays is genuinely accompanied by an increase in commissioning across the whole of the north of England, because it could make a very significant difference indeed.

Finally, I turn to the importance of the universities because they create a strong pool of potential talent. Joining the needs of companies, particularly those requiring high-level skills, with the courses that are being followed at those universities is extremely important, because working together they help to drive commercialisation and expansion. Of course, many northern cities have large numbers of incoming students. Indeed, one of the causes of successful regeneration of cities across the north of England has been the large number of students who come to undertake courses and then stay on. Getting them to stay in those cities on graduation, to set up businesses or to join other businesses makes an enormous difference to the speed and extent of growth in those cities.

Creative industries account for some 5 per cent of the UK’s economy. The figure is broadly similar in parts of the north. It is a bit lower than 5 per cent across the north-east as a whole, but it is rising. However, it is clear to me that, with proper nurturing, our creative industries sector, both across the UK and in my region, can grow so much further.