Contribution
My Lords, I beg to move the amendment in my name and those of the noble Lord, Lord Freyberg, and the noble Earl, Lord Clancarty. When this Bill was introduced, I rightly praised the vision of the Minister, the noble Baroness, Lady Jones, and the noble Lord, Lord Vallance, who has since taken it forward, in setting it in the context of driving economic growth, supporting modern digital government and improving citizens’ lives. Technological adoption has had a profound impact on creators and performers’ remuneration. This amendment seeks to ensure that tech and creative sectors can flourish together. While 81% of people consider accessing culture through digital devices important, UK creators face unprecedented challenges in making a living.
Research shows that median earnings for visual artists have decreased by some 47% to just £12,000 per annum since 2010, with over half forced to find second and other jobs. The last Labour Government left a legacy when they introduced the Artist’s Resale Right Regulations in 2006, which has, thankfully, stood the test of time in protecting over 130 million royalty payments for UK artists since its introduction.
It is my contention that we must help creators and artists flourish in this new digital environment without curtailing the use of digital technology. We would not expect other professions to work without payment. My amendment seeks to create what is described as the “smart fund” solution, inspired by private copying levies in 45 other jurisdictions. It requires manufacturers of electronic devices to make a one-off contribution when a new device is sold. This contribution is typically a small fraction of the device price. In Spain, the 2022 levy on a €909 smartphone was just over £1, or 0.12% of the sale price.
In France, €285.5 million was collected in 2022, with €212.3 million redistributed to artists and creators and over €70 million allocated to cultural projects. The Commons Culture, Media and Sport Select Committee has endorsed such proposals, estimating that this could generate between £250 million and £300 million a year in the UK, at no cost to the Government, taxpayer or consumers. If we release 25% of the total funds for arts and culture initiatives, as they do in France, that would generate an extra £75 million a year, which would more than double the £60 million that the Government announced in just the last week as a boost for creative industries.
It is my belief that we can learn from established smart funds in France, Germany and Spain on how to put in place the necessary governance to administer the smart fund, bringing together stakeholders and collecting societies to distribute to artists and use the funds to support arts and cultural purposes in high-need areas. This was particularly important post pandemic, when European countries made income from private copy levy available as part of their cultural recovery funds. Making funding available to our national arts and culture sector, as well as individuals, could help them get off their feet and turbocharge growth.
Evidence from similar smart funds shows no impact on retail device prices. Introducing a smart fund here would help align us with other European countries, addressing the challenge of artists accessing royalties from abroad. It is my contention that we must seize this opportunity to protect and reward creators in an increasingly digital environment. Creative industries contributed some £124 billion to the UK economy in the 12 months to June 2024; it is one of the fastest-growing sectors in the UK economy.
The Government agree with this; they have identified the creative industries as a growth-driving sector and want to encourage it. The smart fund can be a catalyst for further growth, due to both the potential of higher personal earnings and the multiplier effect of new arts and culture funding. We must avoid too many creators being locked out of this new potential prosperity.
In bringing forward this Bill, the Minister plays an integral role in bringing together different government departments, including DCMS, the Treasury and DSIT, to help and ensure that the digital and creative sectors flourish together. I commend the Minister for meeting me and other colleagues recently to discuss this. I realise that the amendment is not perfection in itself but if we want to do more for the creative and cultural sector, this is one way of doing it.