Creative Industries Debate

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Creative Industries

Pete Wishart Excerpts
Thursday 7th July 2016

(7 years, 10 months ago)

Commons Chamber
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Deidre Brock Portrait Deidre Brock (Edinburgh North and Leith) (SNP)
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I congratulate the Members involved on bringing this very important debate to the House. I want to highlight the creative industries for which the city of Edinburgh, the world’s first UNESCO City of Literature, is renowned: writing and publishing.

Books might be changing as the electronic world takes over, but one thing will remain constant: the creation of new works will always need writers. However, writing is a less viable occupation now, with average incomes down to about £11,000 in 2014. We can romanticise the image of the artist in the garret reheating gruel—or porridge—for sustenance, but that is no way for someone to live in the 21st century, and we should be concerned.

The Authors’ Licensing and Collecting Society highlights the economic contribution of writers. In 2014, it was £84 billion of gross value added, which is a year-on-year increase of 8.9%. The Publishers Association tells me that published material earned £4.4 billion last year, three quarters of that in books, and boosted the balance of payments, with 43% of publishers’ sales being exports. Those are serious economic benefits. Last year, 254 million books were exported; a stack 13,000 miles high. If laid down with their spines up, those books would go more than halfway round the world. There are also online journals, e-books and other digital content. Where would the games industry be without talented storytellers? We must support our writers and publishers; together they make a massive economic contribution.

There is another, even more important reason to support them: we need writers. We need artists of all trades, because art is what makes life, but writers are special. Without them there would be no new books, plays, short stories or poetry. There would be no great speeches for party leaders, no new films at the cinema and no new dramas on television. “Coronation Street”, “Eastenders” and “River City” would judder to a halt, and time would be up for “Dr Who” and “Outlander”—

Deidre Brock Portrait Deidre Brock
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Indeed. Both those shows make welcome contributions to the local economy and tourism, which would be lost.

Writers fill the space around us with art. They create our environment and enhance our lives. They should at least get the chance of earning a living. Some make it big, such as Irvine Welsh, who hails from my constituency and who has had substantial success. He did it the hard way, learning his trade while working other jobs. He was helped by Kevin Williamson, who still lives in Leith and who was a one-man dynamo in the early 1990s. Williamson’s publishing efforts changed the face of Scottish literature. Without him, we might not have had Welsh, Laura Hird, Alan Warner or Toni Davidson. Rebel Inc. altered the direction of Scottish writing, and Kevin Williamson’s contribution should be marked.

Irvine Welsh is an exception, however. Most writers make only a very modest income from their trade. Writers are vital, but we do not support them enough. As the hon. Member for Bristol East (Kerry McCarthy) has helpfully mentioned, we have created a less helpful environment for the creative industries by voting to leave the EU. This was not discussed during the campaigns, but as is the case for other industries, cutting the creative industries off from a potential workforce and potential clients must be damaging, and, as has been mentioned, those are not the only things that will be lost. For example, Creative Edinburgh, in my constituency, is engaged in a two-year project funded by the European Commission partnering creative hubs around Europe with the European Business Network to promote and support the creative economy. That two-year project may be safe from the storms of Brexit, but what will replace such projects in the little Britain of the future?

My constituency is full of extraordinarily talented people, such as novelist Val McDermid, artists Ruth Nicol and Joyce Gunn Cairns, the creatives behind LeithLate and Citizen Curator, people in successful software, digital and advertising companies and more than 11,000 people employed in design. The computer gaming industry, which was mentioned by my hon. Friend the Member for Dundee West (Chris Law) and which is already a major part of the Dundee economy, is becoming a serious and growing part of Edinburgh’s economy. These creative hubs attract people from all over these islands and from abroad.

Creative businesses flourish in my constituency: independent art galleries, shops such as Flux that sell handmade and unique products, and Kalypso Collective working in the fields of conceptual art, scenography and visual art. Will their viability survive Brexit? When the melting pot, which so many Members have referred to, cools and the exchange of ideas slows, creativity is stunted and output shrinks. Artistic viability becomes strained and economic benefits are reduced and perhaps extinguished. We need to stimulate the creative industries, and I look forward to hearing the Minister’s comments about how exactly the Government propose to do that in the current situation.

The Chancellor could start, for example, with greater and better-targeted tax breaks for the creative industry. As my hon. Friend the Member for Dundee West mentioned, devolving control of those to Scotland would be extremely helpful. Then the Chancellor could loosen the austerity noose that is strangling public services, to see whether the support that central and local government offered the arts could be restored.

Since we are heading down the EU exit ramp, we must secure the flow of people who make our creative industries viable. We need immigration policies that will bring people here and let them study, work and make their homes here. We need easier immigration, and more of it. The creative industries need more Government support for exports and help to open markets and guarantee payments. If the arms exporters can get it, why not creatives? We need creatives to be high up the agenda on overseas missions, with Government selling the ideas and products. These creatives are making a damn fine fist of it, and it is about time they got much more recognition and assistance.

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Pete Wishart Portrait Pete Wishart (Perth and North Perthshire) (SNP)
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It is a great pleasure to be summing up for the Scottish National party in what has been a very fine debate. It feels like we have been on some sort of geographic cultural tour de force, as we have learned about the delights of the many bidding cities for European city of culture, as well as the other cultural delights of many other cities. We are all enriched by learning about some of the great cultural facets of all these different and differing parts of the UK. I, of course, declare my interest as a former recording artist and refer to my entries in the Register of Members’ Financial Interests.

I have spoken in practically every single debate on the creative industries in my 15 years in this House. It is always fantastic to come to these debates and just learn and see how many more Members are taking an interest in their creative industries and the things that underpin them, such as intellectual property and some of the fiscal levers we have at our disposal.

I congratulate those who opened the debate; I forgot to mention the hon. Member for Sunderland Central (Julie Elliott). It is worth reminding ourselves how fantastically we do in this country. The UK is the largest cultural economy in the world relative to GDP. We are the largest producer of TV and radio content in Europe. We are the largest producer of recorded music in Europe and the second largest in the world. We have the third largest filmed entertainment market globally. As chair of the all-party group on writers, it was also fantastic for me to hear from my hon. Friend the Member for Edinburgh North and Leith (Deidre Brock) about her wonderful authors and writers, and it is great to know that we are the largest publishing market in Europe.

The creative industries are growing almost twice as fast as the wider economy. I think it was the Minister who first mentioned, in a tweet, that we are now worth £10 million an hour to the UK economy. Many have subsequently picked up that figure. The creative industries are also a huge employer, and the number of jobs in them increased by 5.5% between 2013 and 2014.

There is incredible growth in our creative sector and its industries, therefore. When so many of our sectors are flatlining, we are practically reindustrialising this nation on the imagination, creativity and talent of the people of this country. What a wonderful way to grow our economy, based on those virtues.

Alison Thewliss Portrait Alison Thewliss
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I do not know whether my hon. Friend is aware that the artists studios in Glasgow are so successful that they are having to expand and expand. I visited the Briggait in my constituency. They are planning their expansion because they have filled the space they have, as have Wasp Studios. Does my hon. Friend agree that we need further support from Government for the artists studios in the city?

Pete Wishart Portrait Pete Wishart
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Absolutely. We are all seeing and experiencing—as we have heard in most of the contributions and interventions today—that every constituency and community now has some form of creative hub, providing highly skilled jobs, giving opportunities to young people, employing people and encouraging them, and culturally enriching their communities. I pay tribute to the wonderful work done in my hon. Friend’s constituency and in those of so many other Members.

This is about much more than the hard economics, important though they are in assessing the contribution the creative industries make. The creative industries provide a conduit which allows for the cultural enrichment of our nation and communities. We are successful in this country primarily because we are fantastically good at producing this stuff. We are also successful because we have managed to provide the conditions that allow talent to develop and grow. I have always said that one of our major responsibilities as legislators and Members of this House is to try to create the conditions that allow the optimum environment for our artists and those who invest in our talent and build our creative industries, so that they can continue to develop, thrive and grow. We have been successful in that, because up to this point we have managed to provide the frameworks that allow our creative industries to grow.

There are certain things that need to be in place in order to have a successful creative industries sector. Some of them are fiscal, and some are at the disposal of this Government. We have already heard about the difference some of the tax reliefs have made to various sectors, particularly computer games, about which my hon. Friend the Member for Dundee West (Chris Law) made such a good point and recognised. When we deploy these things, we get a massive return and a massive hit. Some of the support is resourcing, therefore, such as ensuring that funds are available for what are mainly small and medium-sized enterprises to develop and grow. There is so much more we can do to incentivise our SMEs, to ensure we continue to create that optimal environment for development in these sectors.

Other things are probably a bit more difficult to achieve, and they are what I want to address. I want us to ensure that the artists who are prepared to use their talent are properly rewarded for the work they produce and those who invest in it are properly rewarded for the investment they make. We must strive to make that always the case and to ensure that those who produce this wonderful work, which we see and experience and love so much, are rewarded properly. This is why we need to ensure that the intellectual property rights of those involved in our creative sector are always respected and progressed.

Our creative industries inhabit a part of the economy that is fast changing, developing all the time and always open to technological innovation, and more than anything we are seeing the migration to digitisation in the online environment. That presents probably a bigger challenge to our creative industries than to any other sector of the economy, which is why we must be ever vigilant around the demands and needs of the creative economy and sector. Even though the creative industries are a huge success story—we can see the contribution they make to our economy—many people in music, film and television production, publishing and design still struggle to be rewarded properly for their efforts. We have to design a properly functioning digital market that enables creators and rights holders to secure the full value of their work online.

It has to be said again that the market is being distorted by the tech giants. The likes of Google and YouTube—the gateways to online content—distort the market and make it difficult for artists and those who invest in their talent to be rewarded for their work. Google is a fantastic facility—I am sure we all use it—but it makes such a big impression on the market and makes life so difficult for those in the creative sector. We have to get on top of that. So often, searches on Google and through other big tech companies still direct people towards sites that are either illegal or do not properly reward artists and musicians. That must now stop.

That facilitates the worries about the growing “value gap” between rising creative consumption and decreasing revenues, which undermine the incomes of people in the sector. I think mainly of the streaming sites, on which we had a helpful debate yesterday—several people in this debate spoke then about the remuneration of artists online. We have to look at these issues, and I am sure the Minister took away some valuable points that helped to shape that debate. Someone is growing rich from the creative endeavours of our wonderful artists, but it is not the artists. Parasite companies—little more than hosts with algorithms that store content—are growing rich on the back of the creativity of the people of this country. Somehow we have to re-tilt the balance much more in favour of the artists, creators and inventors—the talent—and those prepared to invest in them.

I have to turn finally to the EU debate. We really enjoyed the remarks from the hon. Member for Bristol East (Kerry McCarthy). She was spot on. This is a potential catastrophe for our creative industries. We cannot mince our words: being taken out of the EU would be really serious for our creative sector. We have heard the issues about the single market, about how these wonderful products will be placed properly without further tariffs within the EU, and about the impact on our creative sector and its product placement, but there is also the movement of people. One reason our creative industries are so successful and why London is probably the creative hub not just of Europe but of the whole globe is the fact that it has been able to draw talent from the EU uninhibited by any concerns about visa arrangements. There is a real concern, therefore, about what will happen to the people employed in our creative sector, particularly in cities such as London, and also Edinburgh, which is dependent on talent from overseas.

The biggest innovation at the moment—the one that will make the biggest difference to how we use and access online content—is perhaps the digital single market, but we will not be part of it. The Minister said yesterday that we could somehow—I do not know how—have proxy conversations with France and Germany about it. If we leave the European Union we will be excluded from that and have no say in it whatsoever.

Thankfully, most copyright laws that were designed in Europe have been incorporated into UK law, so we need not concern ourselves too much with the protection of artists, writers and creators as those laws have now been subsumed. However, a massive debate is going on in Europe about innovation and new copyright laws, and we will be excluded from that, which will be of massive detriment to our creative industries.

The hon. Member for Bristol East touched on the issue of what leaving the European Union will do to us psychologically, and where it leaves us culturally. If anything, music, cultural works, and things that we enjoy are about sharing and working communally. We have lost something quite profound in how we talk about ourselves as a nation and how we share all the wonderful culture that we produce. It is as if we have stepped aside and walked away from our partners, and that will have a profound impact and psychological effect on artists up and down the country. I do not know how we recover from that or start to address it, but we can almost sense the depression in our artistic and creative community.

On Tuesday night I hosted a meeting of the all-party group on intellectual property, and all that people were talking about was leaving the EU and the impact and depression that that has introduced into the sector. We must work hard to address that and think about how we can excite the sector. That is down to the Minister, because it will be his job and responsibility. Unlike the Secretary of State, who went against almost 99% of the people he is notionally supposed to represent in the creative industries and who desperately wanted to remain in the European Union, the Minister was on the remain side and he must try to design a way forward for the country. There are a couple of opportunities and ways in which he may be able to do that. For example, with the Digital Economy Bill he must reassure everybody in the sector that he will try to offset some of the difficulties and harm that will be done when we leave the European Union. He cannot do much about immigration, but he can speak to his colleagues about what we can do to secure and retain talent.

The Digital Economy Bill is great, and it honours the commitment made by the Conservatives to ensure universal access to broadband. I am grateful for that, as I am for the inclusion of intellectual property rights that state that online crime will be of the same nature and stature as offline crime. However, we need a big job to ensure that we start to rebuild some of the confidence that has taken such a heavy knock over the past few weeks.

I am sure the Minister saw the fine report on the creative industries in Scotland—my colleagues have referred to it a few times. I am delighted that so much time was spent on the city of Dundee, and to learn what happened there and what underpinned the success of the creative economy. However, I was disappointed by the response—I thought that we might have secured membership of the UK-wide Creative Industries Council, but that has been turned down. I was also disappointed that there was no recognition of how tax reliefs in the creative sector apply across the United Kingdom, and I urge the Minister to consider those issues again.

This has been a fantastic debate, and it is great to see so much interest. I wish everybody well in any competitions that their various cities many be in—such as that for city of culture. It has been fantastic to learn about the wonderful cultural activities taking place. We should keep an interest in this sector as it is important for our economy. We have troubles now, but it is up to us to try to design a way forward. Let us hear what we can do; I look forward to hearing from the Minister.