First, may I, on a co-operative note, say that one reason we have a very strong film and high-end television sector in the UK is the joint policy, adopted across several years by both Conservative and Labour Administrations, to ensure we have very competitive tax credits. I pay tribute to the work done by the previous Government, which we were able to enhance when we brought in two new tariffs—I mean two new tax credits—in the Budget just before Christmas. No, we are not in favour of bringing in tariffs. I think I am right in saying that in 1947 the Labour Government did bring in tariffs on US films, because we thought too many US films were being shown in British cinemas. That strategy did not go very well: the Americans simply banned the export of US films and we ended up watching “Ben Hur” repeatedly in every cinema, as well as a film called “Hellzapoppin’” which I do not think anybody has watched since. However, the successful bit of what we did in 1947 and 1948 was that we invested in the British film production system, which led to films such as “Hamlet” and “Kind Hearts and Coronets”. That is the pattern we still want to adopt.
Let me be absolutely clear: we believe that there are mutual benefits to both of us if we continue on the path we have selected. I am not sure precisely what is intended: I do not know what a tariff on a service would look like and I do not know whether the intention is for it to be on movie theatres. The danger is that the US already has two major problems with its film industry: one is distribution costs, so if the US went down that route, it could lead to heavy problems for the industry; and the other is the very high cost of making movies in the US.
Most films these days are an international collaboration of some kind, and we want to maintain that. Even the British production of “Paddington”—I am looking at the hon. Member for Cheltenham (Max Wilkinson) only because I suspect he is about to mention it; and he has just given me a Paddington hard stare—was made by StudioCanal, which is, of course, part of Canal+. It had Spanish actors as well as British actors. This is just a fact of modern films: they are multinational and that is one of their strengths. Incidentally, I do not think that Paddington ever went to Peru—I do not think they filmed any of it in Peru. I am also told by my Peruvian friends that there aren’t any bears in Peru.