[cma-l] DCMS Action Plan for Creative Industries

[CMA-L]

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From the margins to the mainstream - Government unveils new action plan
for the creative industries

JOINT PRESS RELEASE: DCMS/BERR/DIUS

* 5,000 apprenticeships to help people from all backgrounds make the
most of their creative skills

* An independent review to investigate the path to next generation
broadband

* The World Creative Business Conference - an annual event bringing
together world leaders in the creative and financial sectors

* Steps to protect intellectual property, including a commitment to
take action on illegal file sharing by 2009, if industry fails to
reach a voluntary solution.

The first ever comprehensive plan for Government support for the
creative industries is published today, marking their shift from the
margins to the mainstream of economic and policy thinking.

The strategy, 'Creative Britain: New Talents for the New Economy'
makes 26 key commitments for Government and industry across every
stage of the creative process. It is designed to turn talent into
jobs and help creative businesses thrive in the international market.
It recognises the growing success story that is Britain's creative
economy and seeks to provide the industries with an unrivalled pool
of talent to draw on, and the same formal, structured support
associated with other industries.

Publishing the action plan today, Culture Secretary Andy Burnham
said:

"Making a career out of your passion and a business from your ideas -
that's what we want to help Britain achieve.

"So now is the time to recognise the growing success story that is
Britain's creative economy and build on it. The creative industries
must move from the margins to the mainstream of economic and policy
thinking, as we look to create the jobs of the future.

"Our vision is of a Britain in 10 years time where the local
economies in our biggest cities are driven by creativity. That's why
we need a clear action plan for both Government and industry to keep
our competitive advantage. We want to take raw talent, nurture it,
and give people the best possible chance of building a successful
business."

The starting point of the comprehensive strategy is unlocking
creative talent, helping it flourish and turning it into jobs. Routes
into the creative industries for people of all backgrounds will be
developed. New commitments announced today include:

* securing 5,000 apprenticeships across the creative industries by
2013. BBC at mediacity:uk, Tate Liverpool, Universal Music Group and
Monkeydevil Design are among the first to sign up to offer high
quality training

* working with the industries' most successful creators, including
Aardman Animations, EMI, and the Royal Opera House to develop five
new 'centres of excellence' in creative skills

* exploring the creation of a 14 - 25 Academic Hub for the creative
industries, which will bring schools and art colleges and
universities together

Minister for Intellectual Property, Baroness Morgan of Drefelin said:

"The Government is committed to doing all it can to equip individuals
from all walks of life with the skills they need to realise their
creative ambitions, and to promote creative collaboration between
employers, community groups and education and training providers.

"In working towards 5,000 creative apprenticeships, we will offer an
invaluable opportunity for people to make a real contribution to the
vitality and continued success of the sector.  These apprenticeships,
designed by employers, will help companies extend and improve the
pool of talent at their disposal.

"The Government is committed to safeguarding the intellectual
property rights of those who make a living from their creativity,
ensuring the long-term economic viability of our creative
enterprises."

A comprehensive package of measures to support business has also been
developed following extensive consultation with the industries. Their
priorities included greater protection for intellectual property, and
help for creative businesses to access finance and grow. Commenting
on the independent review into next generation broadband, Business
and Competitiveness Minister Shriti Vadera said:

"The way we will do business, access many government services, as
well as information and entertainment will change beyond recognition
over our lifetime and these new technologies will push the boundaries
of today's communications infrastructure.

"We must be ready to respond to future technological developments
which will place unprecedented challenges for our communications
networks over the coming decade. "That is why we need to look ahead
into the future now. We need to prepare the way for the UK to adopt
groundbreaking new technologies to ensure that we do not get left
behind - competitively or technologically.

"High speed broadband is also vital for the growth of Britain's
creative industries, which already contribute some £60 billion to the
UK economy. We must continue to encourage expansion of the sector by
providing the right kind of advice and support, such as through the
Business Link network and Enterprise Capital Funds."

Networks of 'regional beacons' will be established across the country
to help creative industries make the most of business support
available. Fund managers will be encouraged to bid for Enterprise
Capital Funds, and Arts Council England will provide venture capital
to small creative enterprises. Their support will be directed at
projects that combine artistic excellence with commercial potential.

The Government supports current discussions between internet service
providers and rights holders for action on illegal file sharing and
our strong preference remains for a voluntary solution. However, to
date no voluntary agreement has been reached, and we will shortly
consult on options for a statutory solution, with a view to
implementing legislation by April 2009. This consultation is in
parallel with the voluntary discussions and we will stop the
statutory "clock" if and when a voluntary solution is reached. At the
same time, we will work to promote a greater understanding of the
value of intellectual property and step up enforcement action
starting with a pilot 'Fake Free London' campaign.

We need to give our creative industries a powerful global presence
and the opportunity to compare themselves with the very best in the
world. The centrepiece of this will be the World Creative Business
Conference, a new annual international event which we hope will
become the equivalent of Davos for the creative industries.

The dynamic strategy contains 26 firm commitments for Government and
industry to help creative professionals and businesses thrive at
every stage of the process. The action plan is designed to evolve and
respond to developments in this fast moving sector. The high level of
consultation with industry that has been central to the creative
economy programme will continue, with joint Government and industry
working groups ensuring that the commitments are implemented. An
interactive website will be set up as a mechanism through which the
programme can evolve, and provide a forum for ongoing engagement.

http://www.culture.gov.uk

Notes to editors:

1. ''Creative Britain: New Talents for the New Economy' is published
today by the Departments for Culture, Media and Sport (DCMS),
Business, Enterprise and Regulatory Reform (BERR) and Innovation,
Universities and Skills (DIUS) and is available from
http://www.culture.gov.uk

2. By 2013 we expect that the creative industries will provide up to
5,000 formal apprenticeships a year. As a major signal of the
Government's intent, we have challenged creative industries to
provide these opportunities across the country and already have
commitments from All Out Productions, Bluecoat, BBC at mediacity:uk,
Birmingham Repertory Theatre, Centini, Everyman and Playhouse
Theatres, FACT, ITV Granada, LOCOG, Monkeydevil Design, Museums,
Libraries and Archives Council, Liverpool Biennial, National Museums
Liverpool, National Trust, NCSoft, Objective North, Royal Liverpool
Philharmonic, Royal Opera House, Royal Shakespeare Company, Sage
Gateshead, Tate Liverpool, UK Unsigned, Unity Theatre and Universal
Music Group.

Comments from the creative industries:

Wayne Hemingway MBE, HemingwayDesign:

"Until recently the creative industries were seen as a bit of a
Cinderella part of the economy, but things have now changed, as they
should.  We're second only to the service sector in our contribution
to the economy and its good news that the Government now recognises
our importance.  British design and creative community is known
throughout the world for its unique approach, so it's really
important that we encourage our young talent to join the industry and
carry it on into the future."

Professor Jimmy Choo OBE:

'Having worked in London for over 20 years, it is good to see that
the Creative Economy Programme will support and develop this vibrant
industry even further to maximise the potential for British fashion
in the international arena.'

Feargal Sharkey, Chief Executive, British Music Rights:

"The Creative Economy Programme is an incredibly important initiative
and it is uplifting to see government take the important role of the
creator so seriously. For many, music sits at the heart of the UK's
identity, cutting through barriers of class and nationality, and this
country's reputation for producing fantastic, cutting-edge
songwriters, composers and performers is second to none. More than
that, our artists are fuelling the new digital economy not only of
today, but of tomorrow - and it is time we all stood up and
recognised the social, cultural and economic impact of their work. "

Moray MacLennan, Chairman Europe, M&C Saatchi and IPA President:

"The new DCMS strategy document is an important event which will mark
the moment when government acknowledged that 'Creative Britain' will
provide our future competitive edge. It's up to us as practitioners
to seize the opportunity to be the creative hub for the world. The
IPA is fully supportive of this programme and keen to play its part
in bringing it to fruition."

Dr Frances Corner, Head of College, London College of Fashion:

"It is very positive to see how the Strategy Paper outlines a number
of clear measures to underpin the work of the Creative Economy
Programme in securing the future for the UK creative and cultural
industries. From the fashion perspective I welcome in particular a
number of initiatives. These include underpinning the showcasing work
of London Fashion Week, which is so critical in bringing British
fashion design talent to the world and meeting the very real  needs
of the UK  fashion industry for high quality sample production
through the establishment of a high fashion production hub. Both of
these will be significant developments in helping to position the
uniquely creative UK fashion sector in what is an increasingly
competitive global industry."

Ivan Dunleavy, Chief Executive, Pinewood Shepperton plc:

"We welcome the Government's increasing focus on the cultural and
economic contribution of the creative industries and Britain's role
as a creative hub."

David Kester, Chief Executive UK Design Council:

"The brilliant thing about publishing a strategy for the creative
economy is that it recognises how hugely important creativity is to
national success.  We can sometimes take for granted that we live in
an open society which allows creativity to flourish in our young
people and across many diverse professions, such as design, film and
music.  The creative industries are the engine room of a modern
economy built on ideas and knowledge.  There couldn't be a better era
to invest in some targeted measures that will protect their
development in the long term"

KEY FACTS ABOUT THE UK CREATIVE INDUSTRIES

ECONOMIC ESTIMATES

* The Creative Industries accounted for £60 billion, or 7.3per cent
of Gross Value Added (GVA) in 2005.

* The Creative Industries grew by an average of 6per cent per annum
between 1997 and 2005, which is twice as fast as the rest of the
economy.

* In 2006, creative employment totalled 1.9 million jobs. This
comprised just over 1.1 million jobs in the Creative Industries and
almost 800,000 further creative jobs within businesses outside these
industries.

* Total creative employment increased from 1.6m in 1997 to 1.9m in
2006, an average growth rate of 2per cent per annum, compared to 1per
cent for the whole of the economy over this period.

* Exports of services by the Creative Industries totalled £14.6
billion in 2005, which equates to 4.5per cent of all goods and
services exported.

INDUSTRY STRUCTURE

* The largest 200 creative industry firms account for 50per cent of
total turnover, though concentration ratios vary considerably by
sector.

* Foreign owned firms account for 20per cent of employment and 28per
cent of turnover.

PRODUCTIVITY DRIVERS

* Creative industry firms are highly innovative, with 78per cent of
firms classed as "innovation active". Creative industry firms are
also more likely than the average firm to use "wider innovation" and
innovative products account for a greater share of their turnover.

* The creative industries workforce is highly qualified with 49per
cent of employees having at least a degree level qualification,
compared to an economy wide average of 31per cent.

GROWTH ANALYSIS

* Between 1995 and 2005 start-up companies accounted for 48per cent
of turnover growth, most of which occurred in their first year.
Creative industry companies appear to grow slowly in the years after
they start-up.

* Software and computer games comprise the biggest sector and
contribute most to growth, accounting for over 50per cent of turnover
growth between 1995 and 2005.

INTERNATIONAL COMPARISONS

International comparisons of the creative industries are very
difficult but most studies put the UK at or near the top. In 2006 the
OECD found that the creative industries accounted for a greater share
of GDP in the UK than in Canada, the USA, Australia or France.

* the creative industries have grown from 5.5per cent in 1997 to
7.3per cent by the latest estimates (which are for 2005 - due to a
time lag for all industry statistics.  It's also worth noting is that
much of this growth occurred in the late 1990s and early 00s - in
more recent years it's been broadly level).

* a good comparator-sector is construction which was 6per cent by
latest estimates

* the importance of the creative industries and their potentially
increasing importance for the future could be illustrated by
reference to their growth rates (6per cent pa on average, twice that
of the whole economy) and the UK being 'at the vanguard of the
world's creative industries'.  For example, most studies rank the UK
at or near the top of the creative industries' share of the economy,
for instance the OECD put the UK's above USA, Canada, France and
Australia in a 2006 study.

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