Thank you, convener. If this is indeed the committee’s last meeting, I should thank the committee for its on-going interest in the creative industries and acknowledge the committee’s interest in public sector support for screen in Scotland.
My letter to the committee in advance of this meeting was intended to provide useful updates and context. However, I want to restate the position on activity that is under way to deliver a new permanent studio facility for Scotland.
Scotland needs—and the Scottish Government and our public sector partners want—a permanent studio facility, and I am committed to doing all that we can to deliver that studio. It is important to note that we are not procuring a studio; instead, as we have stated from the outset, we welcome proposals for private sector-owned and operated studios that meet the needs of the industries concerned and are financially viable to meet state aid rules.
We want to make that happen, and the film studio delivery group is doing all that it can to find a way through what are sometimes complex challenges. We remain open to other bids from private sector investors. The European Union state aid rules mean that we must act commercially under the market economy operator principle and not use public funds either to distort or to create an advantage in the market. That means that, as a public sector investor, we need to secure commercially competitive returns to be state aid compliant. We are trying to achieve that by partnering with a private sector investor who is prepared to take an equal risk on a commercial venture.
As Wardpark Studios Ltd will shortly be applying for an extension to its Cumbernauld facility, I can, with the agreement of the private developer, tell the committee now that Wardpark Studios is the developer that the film studio delivery group has been negotiating with. I am happy to elaborate on that work in this evidence session.
The committee will also be aware that the private developer Pentland Studios Ltd has been looking to build on a site in Straiton, with a studio facility as part of the development. That planning application has been recalled, and it is currently with Scottish ministers for appeal. I will try to answer what questions I can, but while the independent reporter is undertaking the assessment and before the recommendation to ministers is made, we are limited in what we can actually say.
In addition, Creative Scotland actively promotes currently available film locations in Scotland and continually brings to the market new options, including temporary studios. We are continuing to invest in Scotland’s screen sector in other ways. A record £24.1 million of public sector funding was awarded to support the industry in 2014-15. In order to build on that, we introduced in 2015 an additional £4.75 million of new funds to strengthen the sector. The £24.1 million figure for 2014-15 is a record spend for screen, even without the additional funding in 2015-16, and compares favourably with the £16 million for Scottish Screen back in 2009-10.
I am aware that you are interested in the Scottish Government’s work on BBC charter renewal. It is important that we view both the studio work and our ambitions for Scotland as part of a wide-ranging vision for growing and developing Scotland’s screen sector. The studio is a key part of that vision, as is a stronger BBC Scotland.
I hope that the information that I have provided in my letter and in these remarks will be helpful in today’s discussions.