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Economy, Energy and Tourism Committee 09 March 2016

09 Mar 2016 · S4 · Economy, Energy and Tourism Committee

Item of business

Creative Industries (Economic Impact)

Hyslop, Fiona SNP Linlithgow Watch on SPTV

I have announced today that we will have additional studio space—subject, of course, to planning permission by North Lanarkshire Council—and the six-studio sound stage is a major development for Scotland. The application itself will be for a 30,000 square foot studio. According to film industry interests, it would be helpful if it could have two sections for smaller productions, if that is required, and it will also be 50 foot high, which is important for capability and access. That will be supported by funding from Scottish Enterprise. It is a major development that ensures that we have that capability and capacity, which is what the industry wants to hear. Moreover, as I have said in my letter, four productions are already filming, albeit in temporary—though effective—space. We want a permanent solution, but it does not have to be one permanent solution; indeed, we think that there is an opportunity for further solutions. You should remember, though, that when you are reliant on a private sector-led proposal, you can go only at the speed of the private sector interest. In my letter, I have explained that the film studio delivery group has considered other areas, but in making the project state aid compliant, we have to strike a balance between public spend and commercial risk. I have also pointed out that the studios in the other parts of the UK are private sector-led and private sector-funded and that any public money is provided on a commercial basis—as it must be for them to be state aid compliant. Even the recently announced Belfast proposal is entirely private sector-led. I share the frustrations that have been expressed, and I have talked to the committee about them. The issue is ensuring that we have spend; we should remember that, over the past year, there has been £45 million of production spend, which makes it a record year. The activity that has taken place has been strong, but people want to see that there is an opportunity to do so much more. That is the frustration. We can deliver and we are delivering on the screen sector—indeed, we are investing record amounts—but the potential created by the tax credit facility, in particular, means that there is a great opportunity to do far more. That is why the demand for studio space in Scotland is very strong, and we will meet that with the opportunity in the development that is being announced today. This is the first time that we have been able to give you concrete information about an opportunity to have a studio with six sound stages in Scotland. It is good news, although I realise that it does not overcome all the frustrations that people—and I am one of them—have had.

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Economy, Energy and Tourism Committee 09 March 2016

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