Minutes of evidence taken before the Departmental Committee on Cinematograph Films (1936)

COMMITTEE ON CINEMATOGRAPH FILMS 5 May, 1936.] Mr. R. I>. Fennel j,y. [Continued. had booked to certain specified theatres a film which, at the date of the circular had not been registered. Since then the Board have found it impossible to obtain evidence on which they could found a prosecution, the difficulty being mainly that the only persons who could furnish such evidence are the parties to the illegal agreement. Moreover it has been alleged to the Board by exhibitors who have complained of these practices that if they facilitated proceedings the renter concerned, and possibly other renters, might interrupt his supply of films and thus prejudice his livelihood. 19. Furthermore, the producer-renter-exhibitor combines exhibit the majority of their films at their own theatres. The reservation of dates for those films may involve, in some cases, the equivalent of excessive advance and even " blind " booking, but it would obviously be impracticable to institute proceedings in such cases. 20. While it must be admitted that in this matter the Act has proved to be largely ineffective and unenforceable, the existence of the statutory restrictions prevents renters from compelling exhibitors to enter into legally enforceable contracts of the kind which Parliament intended to prevent, and to that extent affords exhibitors opportunities of reconsidering and repudiating unduly burdensome agreements if they wish to do so. 21. Certain proposals to improve the position were made by the Advisory Committee in the Report which is before the Departmental Committee. IV. — The " Quota " Provisions of the Act. 22. As pointed out above, the Act sought to assist the production of films by imposing an obligation on renters to acquire and on exhibitors to show an increasing proportion of British films. These provisions are shortly summarised in the following paragraphs. 23. Under Section 27 (3) of the Act a British film is defined as one which has been made by a Biitish subject, or subjects, or by a British company (which is, for this purpose, one constituted in any part of the British Empire, the majority of the directors of which are British subjects). The studio scenes must have been shot in the British Empire ; the author of the scenario must have been a British subject and, generally speaking, not less than 75 per cent, of the salaries, wages and payments specifically paid fo"r labour and services in the making of the film (excluding payments in respect of copyright and to one foreign actor, actress or producer) must have been paid to British subjects or persons domiciled in the Empire. The statutory requirements are dealt with at length in Appendix I. 24. The Act provides that no film shall be rented or exhibited unless it has been registered by the Board of Trade either as a British film or as a foreign film, and prohibits the renting or exhibiting of films in the absence of a licence issued to the renter or exhibitor, as the case may be, by the Board of Trade. 25. As regards the actual quota provisions, the Act provides that a renter in each of the quota years shall acquire for the purposes of renting at least a specified percentage of British films, the perceiltage being specified both as regards the long films (3,000 feet or upwards) and also in respect of all films, long or short (the latter being those of less than 3,000 feet). It is thus possible for any deficiency in British short films to be satisfied by a corresponding increase in the length of the British long films acquired. Provision is also made for small renters to combine for quota purposes with the permission of the Board of Trade. Renters are required to keep records of the films acquired by them for renting and to make returns annually to the Hoard of Trade. The return which is made at the end of the renters' quota year shows all the films acquired by them and also the extent to which they have been booked for exhibition. The renter is also required to make a supplementary return 12 months later, giving additional details of the bookings that have been taken. This enables the Board to ensure that films which are acquired late in a quota year have been bona fide acquired for the purposes of renting and not merely for quota purposes. The Board are empowered to inspect the records kept on renters' premises and also to examine the returns made to them in order to satisfy themselves that there has been compliance with the provisions of the Act. 26. In the case of exhibitors, the Act similarly provides that during each quota year a specified percentage of the total length of films exhibited shall be British. As in the case of renters the obligation is in respect of long films and all films separately. It may be noted, however, that whereas in the case of renters the quota is based on the total length of the films acquired for renting, in the case of exhibitors the basis of the quota is the total length of the films exhibited multiplied by the number of times such films are exhibited during the hours when the theatre is open. As in the case of renters, provision is made for exhibitors to keep prescribed records with regard to the films exhibited which are open to inspection, and for annual returns to be made to and examined by the Board of Trade. 27. The quota scales laid down in the Act are as follows: — [The renters' quota year ends on the 31st March and the exhibitors' quota year on the 30th September]. Renters' quota Exhibitors' quota Percentage. Percentage. 1929 n 5 1930 10 n 1931 10 n 1932 m 10 1933 15 12J 1934 17J 15 1935 17 J 15 1936 20 20 1937 20 20 1938 20 20 The difference in the renters' and exhibitors' quota years is due to the fact that there is always a considerable time lag before a film acquired by a renter is available for general distribution to exhibitors. It will be observed that at the present time the maxima quotas laid down in the Act have already been reached and that for most purposes the Act expires, so far as renters are concerned, at the end of March, 1938, and, so far as exhibitors are concerned, in September of the same year. 28. Provision is also made for prosecution, either in a summary manner tin or indictment, of renters or exhibitors who fail to comply with their quota obligations. In the case of a third offence, the renter or exhibitor may be deprived by the Court of his licence to rent or exhibit films, as the case may be. Provision is also made for a certificate to be issued by the Board of Trade where failure to comply with the quota was due to reasons beyond the control of the renter or exhibitor, such as the character of the British films available or their cost. 29. The Act was designed to promote the making in this country of the fictional or dramatic films which form the bulk of the programme in the ordinary cinema and necessitate the use of studios and the employment of artistes, technicians and general labour to a considerable degree. It was accordingly deemed necessary to exclude certain classes of films from the operation of the Act. as otherwise renters of foreign films would have been able to meet their obligations by acquiring cheaplyproduced films with little or no studio work. The excluded classes, which are enumerated in Section