Culture, Tourism, Europe and External Relations Committee

Meeting date: Thursday, March 8, 2018

Official Report 507KB pdf

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Screen Sector

Item 2 is the second evidence session of our inquiry into Scotland’s screen sector. It will focus on the role of partner agencies in the delivery of the screen unit.

Before we move to questions, I would like to make those in the industry and others aware that, although last week’s evidence session on finance, investment and support had to be cancelled because of the adverse weather conditions, we have rescheduled that session for 19 April. We appreciate that that is not ideal as we had hoped to use that evidence to inform today’s session, but, unfortunately, we do not have any control over snow. However, please be assured that any issues that are raised in future evidence sessions will be used to inform the committee’s report, and we intend to hear from Creative Scotland again on 31 May.

We hoped to have Janet Archer, the chief executive of Creative Scotland, with us today but she has been taken ill. Arrangements were made for Iain Munro, the deputy chief executive of Creative Scotland, to attend in her place, but I understand that he has been held up in traffic. He will arrive later in the meeting.

I welcome David Smith, sector director, digital technology and sector delivery at Scottish Enterprise; David Martin, sector manager, creative industries at Skills Development Scotland; David Oxley, director of business and sector development at Highlands and Islands Enterprise; and Michael Cross, interim director, access, skills and outcome agreements, at the Scottish Further and Higher Education Funding Council.

I remind members and witnesses that time is short and we have a lot of ground to cover. Therefore, I would be grateful if you could keep questions and answers as succinct as possible.

I would like to open by addressing the initial questions to David Smith, as Scottish Enterprise is the lead partner along with Creative Scotland. The screen unit proposal states that partners have agreed the right leadership role and remit for success. Can you explain how you came to that decision? I would also like you to address the recommendation in the report of the screen sector leadership group that a close working partnership agreement should be established between the public bodies. Can you provide more information about the partnership agreements? Are they in place yet, and can you share them with the committee?

Thank you for the opportunity to be here this morning. I will try to answer your initial question as succinctly as possible.

The partners have undertaken a great deal of work, first of all to formulate the proposals for the new screen unit, and then to put together the implementation plans for it. In particular, as I am sure you will appreciate, we carefully considered the evidence around the sector. Scottish Enterprise led a work stream that resulted in a report from the Olsberg SPI consultancy, which considered the major opportunities for the sector as well as the barriers and challenges. The report highlighted strong opportunities with regard to the attraction of high-end television and mobile film productions and the opportunity to use the increased public sector broadcaster spend to stimulate further growth opportunities for companies in the sector. As a result of that, we discussed what needed to happen to develop the business support landscape in order to help the screen companies in Scotland to take advantage of and capitalise on those market opportunities.

One of the key things that we have worked towards is the reaching of an agreement, which was covered in the proposal, to have the screen unit lead on a one-door approach to joined-up business development support for the screen sector. That recognises that, as we have been going through a process of learning and continuous improvement, a number of agencies have been involved in the provision of support, particularly to earlier-stage companies in the screen sector, including business gateway; Creative Scotland, through its slate-funding programmes and so on; and Scottish Enterprise and Highlands and Islands Enterprise, through some of the products and services that we provide and are delivered through our business gateway partners.

Recognising the needs of the screen companies, particularly the ones that are at an earlier stage, we felt strongly that it is important to move towards more of a one-door approach, and that the screen unit should take responsibility for the delivery of that approach. That will make it easier for companies to access the support that is on offer. Further, through the provision of some of the extra funding and additional support services that we have been working on, there will now be an opportunity for those companies to benefit from a broader range of services.

The sector has asked for the one-door approach. Can you tell me the timeframe for that? Will it be up and running at the same time as the screen unit? Can you also say when the online single portal will be available? That was promised some time ago and has not yet been delivered.

09:15  

The timings will be a question for Iain Munro when he arrives, because Creative Scotland is leading on the precise nature of the landscape. However, we anticipate that it will be some time in the first quarter of the operation of the new screen unit.

We led on the first stage of the work on the portal, which was to amass and map all the different support services that are on offer from different agencies. The enterprise agencies and Creative Scotland assembled that information and mapping. Creative Scotland is leading on the development and launch of the portal, so Iain Munro will be able to confirm precisely when it is due to launch. Again, I anticipate that it will be some time early in the first quarter of operations.

We have taken written and oral evidence from the industry. It highlighted leadership and the need for autonomy in the unit. One particular concern was the level of seniority of the people from each agency who are on the screen committee. What is the level of seniority of the people on the screen committee likely to be?

I assume that you are referring to the overall senior governance committee.

Yes.

The representative from Scottish Enterprise has been, and will continue to be, Linda Hanna, who is our managing director for strategy and sectors. The other agencies are represented by people at a similar senior-executive level.

The screen unit is a partnership organisation and the level of collaboration is welcome, but that has led to some questions around decision making that follow on from the convener’s question. In his evidence to the committee a few weeks ago, John McCormick said:

“We need to make it clear in the governance set-up—it is not clear from the paper—where decisions will be taken and what level of discretion the screen unit’s leadership team will have to take decisions, make deals and get things moving in the industry.”—[Official Report, Culture, Tourism, Europe and External Relations Committee, 8 February 2018; c 2.]

The committee is concerned that it is not clear where the decision making will lie. We recognise that it is important for the screen unit to be able to make decisions on appropriate timescales that suit the needs of the industry. Can you provide some assurances around those concerns?

Let me address the point first, then others on the panel might wish to come in. The majority of the decisions will rest with the executive leaders of the screen unit within Creative Scotland—that is the short response to your question.

Having said that, we will each have particular roles to play as we contribute to the support that is on offer to screen businesses. For example, Scottish Enterprise and HIE will continue to lead on decisions about utilising our account-management services and on the nature and type of the support that scaling businesses in the screen sector receive from other services. However, in all other respects relating to business support, the primary lead for decisions will largely rest with the screen unit in Creative Scotland. That is appropriate for the scale and nature of the challenges that businesses will face during their growth journey.

It is difficult because no one from Creative Scotland is here. However, the screen unit sits within Creative Scotland, so there are some questions to be answered around whether decision making rests with the screen unit or, ultimately, with Creative Scotland.

I see. You will appreciate that that is a question for Creative Scotland.

I appreciate that it is not a question for you, but I am interested in your understanding of the autonomy of the screen unit.

My understanding is that most of the decisions—I cannot say precisely how many—will rest with the executive in the screen unit. Iain Munro will be able to clarify that point.

That is also my understanding. The role of the screen committee is to act as a scrutiny board to ensure that partnership working is working well and that all agencies are contributing in the right roles. That is why HIE has senior representation—Charlotte Wright, our chief executive, is on the screen committee.

That is my understanding. Our role as partner agencies is to offer the scrutiny that David Oxley describes.

I am currently an interim director at the Scottish funding council, so I report directly to the chief executive. Whoever takes my post in future will attend the group and have a similar level of authority.

Skills Development Scotland is represented by Gordon McGuinness, who is director of industries and enterprise networks and who reports to the chief executive, Damien Yeates. The agencies are represented at a high level in the screen committee.

The screen unit proposal includes 12 action plans that cover a range of things, including the need for a studio. Concerns have been expressed that the 12 action plans are not focused enough and that what we are setting out to achieve might not be clear enough because the proposals are too broad and there are too many aims. Are the partner agencies clear on what the strategic priorities of the screen unit will be and what roles you have to play in it?

We are certainly clear on the overall priorities. We all share and support the vision, the objectives and the stretching targets that have been set to achieve a 100 per cent increase in production spend and to increase the number of scale companies—companies that generate more than £10 million of turnover—from two to six by 2023. That is the overall ambition and those are the objectives that have been set. Obviously, there are caveats relating to the fact that we need some key things to fall into place to enable those outcomes and objectives to be achieved.

In relation to the 12 actions, I am certainly clear on the contribution that we are being asked to make and will make to those actions.

We are starting to develop an action plan for each of the 12 actions. We are setting timescales for various things, so that we know how to monitor and judge our performance against that. Clearly, some of those things will not happen overnight, but the process is being followed.

My question follows on from Claire Baker’s question. We have heard suggestions that the screen unit should be a stand-alone unit rather than part of Creative Scotland. What are your thoughts on that? What would be the most beneficial model?

Screen is just one part of the creative industries landscape. For the Highlands and Islands, we have found that, although getting businesses to work collaboratively within a network for screen, music or whatever is useful, collaboration across those areas is becoming increasingly important. For example, a musician might work with a film producer. It is the networking that is really important. Therefore, it seems right for the unit to be part of Creative Scotland, because it is easy to make those connections when everything is part of one agency.

It is fair to emphasise that the screen sector is relatively small. The Olsberg SPI report shows that there are just under 500 businesses. The interrelationships and the shared collaborative approach that the screen unit will provide to those businesses will, I believe, lead to greater clarity and greater joint endeavour across the four growth opportunities. The purpose and function of the screen unit are much more significant than where it sits. I certainly have not had compelling evidence about the idea of it being outwith Creative Scotland.

Would the partnerships and networking opportunities that you talk about not be possible with a stand-alone agency?

Scottish Screen was a stand-alone agency, and it worked to an extent. However, things have moved on since the emergence of Creative Scotland and that compound coverage in terms of development activity for the creative industries, the performing arts and screen. We are looking at a different beast. The request to examine the establishment of a unit involved considering that within Creative Scotland. That is very clear in the joint statement that is plainly laid out in the collaborative proposal.

I want to put to all of you a question about knowledge and expertise. How will you ensure that the screen unit has the right kind of knowledge and expertise to properly support the sector? In written evidence that we have received, some organisations have been concerned that such expertise might not necessarily be there. How will you ensure that that knowledge and expertise keeps pace as the unit progresses?

Maybe I can initiate the conversation about that.

I have been looking at actions A5 to A7 in the collaborative proposal, which are primarily to do with the organisation’s talent and skills development functions. The clear consensus across the industry on the approach and processes behind them has been significant. Intermediaries such as the Association of Film and Television Practitioners Scotland, the Broadcasting, Entertainment, Cinematograph and Theatre Union, the TV working group and the Producers Alliance for Cinema and Television in Scotland are all key agencies and structures for the sector, and they are working together with me and my colleague at Creative Scotland to action out the detail behind those specific actions.

A very close partnership is emerging involving the industry agencies and organisations, businesses and broadcasters on those actions one by one. Access to intelligence and expertise is built into the entire process and it will continue to be honed as the staffing plan is detailed and begins to be completed.

It is clear that we all bring to the new screen unit expertise in and knowledge of different aspects of economic development and understanding of the cultural and social benefits and aspects of the screen sector. I think we would all agree that the critical mass of that knowledge and expertise has rested and will continue to rest within Creative Scotland and the screen unit. It is clear that there are plans as part of the implementation of the proposals to add to that and increase the number of people, the knowledge, the resources and the expertise in the screen unit.

As I said, we all bring knowledge and expertise from our different organisations. In our case, that relates to economic development and how to support the scaling of businesses. The interaction with the industry helps us to really understand the challenges, opportunities and needs and to stay current. That is a critical point for all of us, and particularly for the screen unit. Going forward with the screen unit, it will be really important to maintain that, and to grow and develop the interaction with the industry.

I have some questions for Scottish Enterprise in particular. At the start of the meeting, the convener mentioned that, unfortunately, we had to cancel an evidence session that we were due to have. We have received written evidence from Caledonia TV and others that was critical of Scottish Enterprise because it was thought that there was a general lack of understanding of the industry in it.

On general support, Caledonia TV said that Scottish Enterprise had a couple of successful funding programmes that were discontinued. There is also a focus on high-growth companies. Caledonia TV said:

“The SSLG called for ‘increased and appropriate business development support for screen businesses’. SE is failing to provide this. Our company has now been told by SE that we cannot even be account managed by them unless our turnover is £4 million upwards.”

I think that only a couple of companies can achieve that. How would you address those criticisms, which have been made by others who have provided evidence?

I am happy to respond to that question. We worked directly with Caledonia TV a number of years ago, but it has been a client of business gateway Glasgow for the past few years. Since Caledonia TV gave evidence, I have been in touch with the business gateway Glasgow team and asked it to reach out again to the company. It has done as I asked and is waiting to hear back from Caledonia TV about its plans and aspirations. Once we have feedback from business gateway Glasgow about those discussions, we will be happy to look at the position with the company and what more we can offer or provide, alongside business gateway, to support it.

09:30  

On your broader question about what support we offer to the screen sector, we account manage 15 companies, support 21 companies that are being supported through different business gateways around the country, and provide a wider service of support to about 70 companies. You pointed to the role that we are being asked to take on, which is the one that the screen sector leadership group endorsed and said we should take on, and it is targeted at supporting the scaling of companies and businesses in the screen sector.

I note that Blazing Griffin was due to attend last Thursday’s committee meeting, which had to be cancelled due to the adverse weather. Its post-production studios and operations are terrific and they compare very favourably with anything that is on offer in London and the US. We have been working closely with the company for a couple of years. We provided it with a regional selective assistance award of about £200,000, which will help it to put in place and support 15 new jobs. The company’s post-production facilities and studios work on a number of leading productions with which I am sure you are familiar, including “Outlander” and “Shetland”.

We are helping such companies to scale up. Another good example is Axis Animation, which Richard Scott leads. It is based at Skypark in Glasgow. Last year, it took over a whole new floor of one of the buildings at Skypark to develop and expand its operations, and we provided the company with a £250,000 RSA grant to support the creation of 20 new jobs. The company has terrific animation capabilities and facilities. It supports programmes such as “Doctor Who”, “Call the Midwife” and “Shetland”, and it is moving into the development of full-length animated feature films.

We are doing a lot more to try to provide a wider range of support through the programmes that we majority fund with TRC Media to help the development of business and leadership skills across a much wider range of companies in the screen sector. That is all done with a view to increasing the amount of capacity and capability in companies to help them to scale up.

Do the companies that you are working with meet the high-growth criteria? The screen sector leadership group raised concerns about the support that is provided to companies that do not meet those criteria. It said:

“uptake of this support is low and there is a perception from the sector that, as well as being difficult to understand what is available, many of the products are not specific enough to businesses in the screen sector to be useful.”

How do you respond to that?

I will make a couple of brief points. I mentioned that we account manage 15 companies, and I talked about a couple of them. They are the companies that most appropriately meet the criteria in that regard. However, a further 21 companies that are clients of business gateway benefit from a wider range of services that business gateway offers. They also get some of the grants and products that are delivered through business gateway but provided by us.

On the issue of wider support, we support a broader range of companies through our funding programmes, which include our focused programme and the TRC Media digital economy expansion programme. We offer such support to help them to grow the business development skills and capabilities that will, over time, help them to go through the growth journey and, we hope in a relatively short time, get to the point where account management support is the most appropriate intervention for them.

I welcome Iain Munro to the meeting—I am glad that he has been able to make it. So far, the discussion has been focused on how the screen unit will work—including governance, leadership and delivery issues—and how it will tackle the systemic problems that have been identified by the screen sector leadership group in particular.

Tavish Scott has some questions about governance. Rather than repeat my questions on that topic, I will hand over to him.

Thank you, convener. I apologise for being late this morning. If I ask about an issue that has already been dealt with, at least Iain Munro will not know that that is the case.

The report on which we are basing today’s analysis makes recommendations on partnership working and what change should happen. How senior will the people in the unit from the different organisations be?

We have covered that question, but Iain Munro might want to respond.

There are different component parts to the governance arrangements behind the unit to make sure that the partnership works effectively. The starting point, which we should not forget to recognise, is that the unit will be built on the firm foundations of a screen team in Creative Scotland and the partnership that you see before you today.

Arrangements are being put in place to make sure that there is not only senior representation from across the partnership, but industry representation feeding directly into the unit. We recognise the sector’s important point about the industry’s role in ensuring the success of the unit.

The unit will be a combination of partnership structures with industry representation and the skills and expertise of the staff that we currently have. We will scale up the recruitment of new and additional staff to ensure that we deliver the step change, particularly in relation to the funding expectations that are right at the heart of much of the interest that exists.

There will be a unit with staff and a board that provides an overview. Is that correct?

Yes.

How big will the board be?

The screen committee, which is a combination of Creative Scotland and the partners with industry representatives, is being built at the moment. The foundation for that is a combination of the partners, plus three representatives from the Creative Scotland board—

How big will that make it?

It will have between eight and 10 members.

Will all the agencies that are represented here be on it?

On the screen committee?

On the committee.

Yes. The screen committee has accountability to the Creative Scotland board, and the partners on it are accountable to their individual organisations.

How senior will the people be from Scottish Enterprise, Skills Development Scotland and so on? Are we talking about the chief execs?

In Scottish Enterprise’s case, it will be Linda Hanna, our managing director for strategy and sectors, who reports directly to our interim chief executive, Paul Lewis.

For HIE, it will be Charlotte Wright, the chief executive.

Charlotte will be on it?

Yes.

For the SFC, it will be me. I am the director of access, skills and outcome agreements, and I report to John Kemp, the chief executive.

For the SDS, it will be Gordon McGuinness, who is the director of industry and enterprise networks. He reports to the chief executive, Damien Yeates.

All the people who have been mentioned, and Michael Cross, have many different jobs to do. How important will the committee job be among everything else that they do?

I anchor my reply in the strategic guidance that we get from Scottish ministers, because the minister has made plain to the SFC her expectation in supporting the establishment of the screen unit, and we will work to that end. We have other important elements to our jobs, but the committee is important.

How will we judge it? What will happen if you are all back here in a year’s time, having sat on the committee? You all sit on numerous other committees. How can we be assured that the screen committee will matter and that you will bring a lot of focus to it?

First, we have all bought into and signed off on the ambition and the stretch targets that have been set for the screen unit proposal, including the targets to achieve by 2023 a 100 per cent increase in production spend and to grow a number of businesses in Scotland that turn over more than £10 million a year in screen production. Ultimately, we will be judged on those targets, but you will also judge us on the progress towards them and on the implementation of the plan.

That is very true. Mr Munro, do you have confidence that that structure will work?

Yes. We should recognise that it is a relatively new and innovative model, so it will be carefully monitored and kept under review. In relation to what David Smith has just said, it is ultimately about ensuring the delivery of the plan’s objectives and the targets and having governance structures around this to make it work in the best way that we can. If that requires adjustment along the way, we will understand and recognise that, and we will communicate it and move on it as and when necessary.

Thank you. Clare Kerr made, in previous evidence, a very thoughtful suggestion regarding Denmark’s approach, which is to have a revolving-door recruitment policy for the board. I presume that that is about industry people, rather than representatives of the quangos. The policy in Denmark is that people should be in its screen unit only for three years, then go back to the industry. The argument for that sounds pretty compelling. Have you given that some thought?

Yes—it is part of our considerations. We are considering having industry representation directly in the screen unit governance structure. Of course, that will be down to the availability of individuals. Representation would be on an annual basis. We seek to understand future needs, and if industry representation needs to change or adapt, that is what will happen.

Okay. Finally, has it been decided who will chair the committee?

The committee will be chaired by a member of the Creative Scotland board.

It will be someone who, by definition, has an arts background.

That will not necessarily be the case. We appointed Creative Scotland’s new chairman just a few weeks ago, and we are about to move on to recruitment of board members. One of the identified specialist needs and requirements for the board is industry expertise from the screen industry.

Who will decide who will chair the committee that will be in charge of the screen unit?

That is a decision for the Creative Scotland board, but in discussion with partners. The current chair is Barclay Price, who will stand down in June, at the end of his board term. His is one of the places that will be available in the recruitment process that we are about to get under way.

Ultimately, we recognise that there has to be confidence in the screen industry—not just in governance arrangements but in the people who take part. Of course, the aim and ambition is to recruit somebody who has the skills and expertise to chair that committee.

Will the route of accountability for the screen unit committee be the Creative Scotland board?

Yes. Ultimately, accountability will be to the board and the two relevant ministers.

I want clarification. Does the Creative Scotland board not currently have anyone with screen sector experience on it?

There is not someone with experience that is as evident as we think is required.

The Association of Film and Television Practitioners Scotland has made a late submission to us that is based on its recent meeting with the cabinet secretary. It says:

“We understand from Fiona Hyslop’s office that recruitment for the Screen Unit team has begun. As the senior management of CS and current board have no screen industry experience, who is guiding the process to appoint staff of this calibre?”

If you do not have expertise in the industry—if you do not know the industry—how can you appoint staff of the right calibre?

There are two points to make on that. The first is about governance at board level. Those appointments are, of course, made by the Scottish Government. The distinct need for screen expertise on the Creative Scotland board has been identified, so the recruitment process will address that.

On recruitment, I go back to my earlier point, which was that we should not forget that we have a screen team of excellent people who are respected, knowledgeable and have great expertise. They will inform the next steps and will help to deliver them.

The people will be recruiting their own boss, in that case.

No—they will have an interest in ensuring that the future senior incumbents work for them, too.

09:45  

We have been told privately that the recruitment process has started for the leader of the unit. Fiona Hyslop’s office appears to have been told that, too.

Yes. We have been working behind the scenes. I presume that you are referring to the most senior role.

Yes.

An external expert recruitment consultant has been commissioned to work with us on a global search, because that is a position that will attract global interest. Preparations for the role are under way, based on a job description that has been under discussion. Part of the process has been to test the job description with external industry representatives and not just within the Creative Scotland staff team, board and partners. We are ensuring that we have industry oversight of the job description before we go live with it.

The unit is supposed to be up and running on 1 April. Clearly the leadership of the unit, at any level, will not be in place by then.

The most senior post will not have been filled by then, but, given that it was decided to green light the unit only at the end of last year, we have all been very realistic about wanting to get it right. That takes time, and it was never going to be possible for the unit to be 100 per cent in place and operational from 1 April.

At the moment, we are focused on four things to ensure that an evident step change is beginning to happen. The first is funding. As I have said before, funding is central to many people in the industry. The second relates to the resourcing point that the convener made, and the move on recruitment to increase capacity. The third is the identity, brand and portal for the screen unit: it is a partnership project, so people will have a single entry point and be able to see and understand what the unit is offering. The fourth is what goes on behind the scenes—which Tavish Scott asked about—in terms of governance and ensuring that the mechanisms and arrangements are in place to make certain that the partnership works to best effect.

When will that single front door be in place?

It will be in place as soon as possible. We have yet to nail down an exact date, but it will be in the first quarter of next year. As I said, we aim to get this absolutely right, but the partnership has not agreed an exact date.

So, does that mean that the screen committee will be in place by the end of April?

Potentially, it means that, but we are not able confirm it.

The evidence so far has been useful for getting more clarity on the governance arrangements, but I think that we need to drill down further. I still have questions about the relationship between the screen committee and the Creative Scotland board.

This goes back to a question that Mairi Gougeon asked before Iain Munro arrived, about concern in the sector about why the unit has been set up within Creative Scotland rather than as an independent body. A lot of that concern relates to the fact that the screen committee will be accountable ultimately to the Creative Scotland board which, as has been mentioned, does not have a majority with screen sector experience.

Will you outline more clearly the executive ability of the screen committee and where it would need to go for sign-off from Creative Scotland? Will it be a relationship in which the committee simply reports after the fact on its actions? The concern in the sector is that, on the most significant decisions, the screen committee will ultimately have to defer to a board that does not have the relevant industry experience, which the screen committee will have.

The final details of that—not just the simple terms of reference but the financial parameters of decision making and issues of policy and so on—are being worked through at the moment in order to ensure that arrangements can be put in place as soon as possible. There are on-going discussions this month with the operational project board, the screen committee and the Creative Scotland board. We should not forget that understanding the arrangements also involves the Scottish Government.

Do you acknowledge the concerns in the industry that, on the most significant decisions, the screen committee will potentially have to defer to a board that is not of the industry?

When it comes to how our organisation works, custom and practice is that there are levels of delegation. What the delegation to the screen committee and the screen team will look like in practical terms is being worked out at the moment. I do not anticipate that anything other than the very highest level of policy or financial decision making will rest with the Creative Scotland board; the rest will be delegated to the screen committee and the screen team.

Ultimately, who will sign off on the terms of reference once a draft has been agreed? Is that for the Creative Scotland board to do?

Technically, yes it is, but that will not be done unless there is agreement across the partnership.

Thank you.

Good morning, everyone. The committee has heard from previous witnesses on the leadership, the autonomy and the agility of the new unit, which have been touched on this morning. Each of the bodies that will be involved in the new unit has its own funding schemes. How much flexibility will there be with regard to how the money is used? If a proposal is made and Creative Scotland does not have enough resource, could it request that the shortfall be made up by other partners in order to ensure that a project can be delivered?

I will start off, but others might want contribute.

The starting point is the distinct set of funds that is on offer from Creative Scotland, which will be enhanced through provision by the Scottish Government of an additional £10 million annually. The detail of that is being worked through. Many of the funds are already in place and the resources that are available will be scaled up, although the content fund is new.

With all the funds—particularly the content fund—we will want to make sure that we have discussion not just across the partnership but with the industry, about the terms of funding, the form of the process and the criteria. The partnership will discuss the levels of resourcing that are currently available through the funds so that we have a solid foundation to offer to people who wish to pursue opportunities.

The intention is that when ideas and approaches are put forward, we will be fleet of foot in understanding the request, as the committee has said we will need to be. If a request does not fit what is on offer, we will need to find out what might be possible—it will not always be possible to respond to everything. Through the partnership, we will endeavour to ensure that we have a solid offer in the first place that will catch most proposals, and that we can have open conversations about what might be possible if a proposal goes beyond that.

Let us say that another organisation wanted to set up a new studio somewhere in Scotland, but there was not enough funding available through the screen unit to get the project over the line. If Scottish Enterprise and Highlands and Islands Enterprise had additional resources available, would the new unit be able to call on those resources in order to deliver the project?

In principle, the screen unit would be able to do that. We are always open to compelling business ideas in any form; Stuart McMillan gave the example of a new studio. We will look at such proposals with interest and we will explore them seriously. If we were to receive a sufficiently compelling proposition, we would take it to the partnership to establish what the response would be, how possible it might be to support the proposal and what form that support might take.

I agree. I add that, if a substantial proposal was made and, between us, we felt that it was an exciting opportunity that we wanted to support, but we were unable to marshal all the necessary funding, we would, of course, seek dialogue with the Scottish Government about that.

That is already happening in small cases in which HIE and Creative Scotland have worked together on a project within stated limits. If a fantastic project comes forward, of course we will consider it.

My next question is for Scottish Enterprise. Earlier, Mairi Gougeon quoted from the evidence, which suggests that

“Work currently being undertaken to develop an online portal mapping the support available and the provision of specific business support through the proposed Shared Resource Facility may address some of these concerns”

regarding the portal. Surely, it should say that it “will” address such concerns instead of leaving a question mark that it “may” do so.

If I recall correctly—forgive me if I do not—that particular language comes from the screen sector leadership group report, which refers to the portal. I would be more assertive and confident in saying that we expect that the portal will address those concerns and needs.

As I touched on earlier, we have spent a lot of time in working on and mapping out the existing support landscape. Through Creative Scotland, we are getting close to a position in which the portal can be launched and will act as a route map for the one-door approach.

On top of that, we expect that, through the work of the screen unit, we will add to the support that is on offer, especially to earlier-stage businesses. Establishing supplier development programmes through strategic partnerships with broadcasters is very important on that front. That will give a lot of companies in the screen sector more insight into the approach that commissioners, and particularly broadcasters, are taking, which will help them to figure out what actions they need to take to win more business from public sector broadcasters. Crucially, alongside that is additional growth in the marketplace, particularly through the planned increase in spending that the BBC will make for new commissions in the coming year, which will provide a bigger local market for such companies to go after and give them more confidence to invest in their own business growth.

I am not sure whether Iain Munro wants to add anything to that.

No.

Clearly, we all want this to succeed.

So do we—absolutely.

With new money going in and there being a unique way of delivering such service, the portal will be crucial and will need to be a one-stop-shop facility rather than something that “may” be able to provide assistance.

We are committed to the point that you make. I will give a similar response to one that I gave earlier. We will be up and running as soon, as confidently and with as comprehensive an offer as we can. However, that will be kept under review and will grow and build as the unit does over time. We recognise that we must be able confidently to land something that works. Of course, we will seek and receive feedback and will respond to it as best we can, as and when we can, throughout the implementation period.

My final question is for Mr Munro and relates to the festivals part of the submission from Creative Scotland, which speaks about the

“£60,000 which supports Creative Scotland’s presence under the We Are UK Film banner”.

Can you provide examples of how that money has helped to bring productions to Scotland?

I am not as familiar with that as my colleagues will be. I will answer as best I can, but I will be happy to take the question away and give you a fuller answer in due course.

Okay. I appreciate that.

We make sure that we have strong representation from the experts at Creative Scotland, who have a presence in selling Scotland and its screen sectors. We often do so in partnership with industry representatives who go along with us, and we host and take part in industry events.

It should be remembered that, beyond having a physical presence at stands at such festivals and other receptions and events that we host, we also have the Screen Commission, which is a major part of the global offer that we promote.

That is all that I can say for now. I will take the question away and give you a fuller answer, which I can probably illustrate with firm examples of how we translate those early interventions into a business return for Scotland, whether that is for the indigenous sector or for incoming production.

10:00  

I think that Claire Baker has a supplementary question.

Yes—it follows on from Mr McMillan’s question. To go back to basics, the committee’s interest comes from a feeling that Scotland has fallen behind not just in the United Kingdom but in Europe. There is a feeling that we cannot compete in the global market as we should be doing. The whole point of all this work is to raise Scotland’s profile and take advantage of what is out there. When we met industry experts, a few weeks ago, one issue that again came up was the need for a film studio and the fact that we do not have capacity. One of them told us that it is not rocket science and that Scotland needs a proper film studio. Is that the key priority of the screen unit? If so, are you confident that it will deliver that?

I will start on the screen unit per se, and David Smith might want to pick up on the point about the studio.

There is a confident plan that has vision and ambition, and we absolutely want to translate that into reality. It is a step change, although we should not forget the growth that there has been, in recent years, in the screen industry through the work that has been possible so far. The upscaling of financial and human resources is part of the equation. The new very senior post that the convener asked about, which will be advertised shortly, is globally important. It is intended for that person to be out in the marketplace, actively positioning Creative Scotland, the partnership, the screen unit and the screen industries in Scotland internationally in a confident way, to offer Scotland’s opportunities to the world and to bring opportunities back in. A key part of that role will be to be out in the world, selling Scotland and bringing business back in.

I appreciate that you are at an early stage in the recruitment process, but you are trying to recruit internationally for a high-profile senior role when it is still not clear what level of decision-making ability and autonomy that person will have. From the description of how decisions will be made through the Creative Scotland board, it seems that it will be difficult to sell that to people, as they will be expecting a senior role in which they have a level of decision-making ability.

To be absolutely clear, that person is going to lead the screen unit. They will be accountable to the partners, to the Creative Scotland board and, beyond that, to ministers and the industry interest for the delivery of the objectives, targets and business growth that are set out in the plan.

I am not sure how other members feel, but I still have concerns about that. We need a balance between the necessary public accountability and an overly bureaucratic approach. The person who is coming in needs to feel that they have the authority that is required for the leader of the screen unit.

I hear that point, and I am happy to take it away. If the issue would benefit from further conversation, we will be happy to have that conversation. We want to ensure that, when we advertise the role, people understand exactly what it is, why it is necessary, what it is intended to achieve and how it is intended to work across the partnership and the unit and on behalf of the industry. That is the intention but, if we can do more to provide assurance to the committee on that, we will be happy to discuss the matter further beyond this meeting.

I will follow up on some of the conclusions of the screen sector leadership group. One of the findings was that the screen sector in Scotland

“suffers from divisions and fragmentation”

across the agencies. Following the enterprise and skills review of last year, a strategic board has been set up to achieve more alignment between the agencies, and it has been considering how to do that. Given the importance of the strategic board, what discussions have the agencies had with it on the screen unit and what plans are there to involve that board in the implementation of the screen unit?

Forgive me, but I am not clear about the strategic board reference.

The strategic board has been set up to oversee the enterprise agencies.

Forgive me—I understand now.

I guess that the question is more for the agencies. It is about their policy and the implementation of their strategy.

As part of the work on the strategic board and all the different workstreams that we and the other agencies are contributing to, one of the areas of focus—as Dean Lockhart has touched on—is further streamlining and continual improvement of the overall support system for businesses and companies, to make it as joined up and aligned as possible. We have tried to ensure that there is alignment and learning through the development of the screen unit proposals, the work that we have undertaken to ensure a one-door approach for screen companies and the work that has taken place in the workstreams and the enterprise and skills review. We want the streamlining of business support services to be fed into the operation of the one-door approach and the delivery of services to screen companies.

As the committee will know, one of the key requirements of the enterprise and skills review is that there is clear evidence of demands across the sector. That is why Skills Development Scotland, in partnership with Creative Scotland, has funded and commissioned a research programme to look at exactly what is going on within the company base of the screen sector and, much more significantly, what is going on within Scotland’s freelance workforce. There has not been a review of Scotland’s freelance workforce in the screen sector since the early 1990s. Although there is an expectation of and a demand for growth, we do not really know where Scotland’s strengths are across the entire skills base. We will establish those strengths through the review process. One of the key outcomes of that research will be that it will tell us clearly where the priorities and demands for action are. That will then allow us to co-ordinate and cohere, in partnership with the screen unit, our response to that research through our planning and investment processes. Michael Cross might want to add a bit more on that.

I will supplement what David Martin has said. In microcosm, that is part of a wider effort that is under way to better align the services of Skills Development Scotland and the Scottish funding council. The Government’s phase 2 report on the skills and enterprise review includes a section on skills alignment, which, in essence, asks us to adopt a joint model of provision of skills demand assessment. That is what David was talking about. In short, the provision that is suggested by that skills demand assessment is provided by, in our case, Scotland’s colleges and universities. David has set out a good example of work that is under way anyway on a wider front across the economy.

The whole reason for the strategic board is to get collaboration among the agencies. That is pretty much what the screen unit is trying to do in that particular sector. I suspect that the strategic board has not done a deep dive into any individual sector in detail at this stage, because it has met only a couple of times. However, the principle of what we are all trying to do in working with the screen sector very much accords with the board’s views and the views of any other sector that we deal with.

I will very briefly follow up on what Mr Oxley has said. Given the important role of the strategic board, I suggest that the screen unit get on to the board’s agenda quite soon, because it will, as you say, prioritise resources. If the unit is to get the agencies’ full attention, I suggest that the matter be cleared and discussed at the strategic board sooner rather than later.

Before Mr Munro arrived, I asked Mr Smith about the partnership agreements that were recommended in the SSLG report. Can Mr Munro share with the committee some information on where we are with partnership agreements between the various agencies?

Do you mean the agency partnership agreements?

Yes.

I am not as close to that matter. My understanding is that there was discussion of the partnership agreements at a recent meeting, but I do not have any further information at this point.

Was that a recent board meeting?

No, it was a recent screen committee meeting.

Okay. You are not able to answer any questions on the partnership agreements.

Not today, but I will happily take the question away and provide the committee with an answer.

It would be very useful if you were able to share that information with the committee.

I can add to that, as I was present at the recent discussion at the screen committee. Work is under way to develop a memorandum of understanding between all the bodies, and I hope that we will shortly be in a position to finalise that agreement.

There is not yet an MOU between the agencies.

That work is under way at this point.

Many people will be very concerned about that, because 1 April is not far away. The whole basis of the approach is a partnership involving the agencies, but there is no MOU yet. Do you understand why the sector will be concerned to hear that?

Members can be assured that all the partners that have fully signed off the screen unit proposal at the screen committee level are fully committed to supporting the proposals and the implementation plan. That will be very much reflected in the final memorandum of understanding.

I go back to the letter that we received from the Association of Film and Television Practitioners Scotland, which says:

“AFTPS are concerned about the lack of engagement with key industry stakeholders in the development of the Screen Unit proposal.”

Will you respond to that? How will you involve the industry going forward?

That involvement takes a number of forms. We have offered a meeting with the AFTPS, and the door is always open. We could then understand its particular points in a wee bit more detail.

The SSLG, under the chair of John McCormick, was a measure to ensure that there was an industry grouping with a voice that could have representation on the partnership, the development of screen unit proposals and the implementation plan. Further discussion is taking place about what form industry advice should take to have the most effective input into the on-going work of the unit when it is up and running. That is currently being considered.

On a practical level, as we are developing the funds that I mentioned earlier—the content fund, in particular—there is a commitment in the implementation plan that we will share the draft proposals with industry representatives to test them and get their input and advice on how they might be refined further before we go live with them. In that way, we will ensure that industry representatives have that input in advance and, when the funds go live, they will have the most impact when they land and are open for business. We seek to do that as soon as we can.

Can you give us a timescale for that?

The content fund, which is the biggest and newest one, is under development now. We have capacity challenges that we have been honest about, and that fund has not moved as quickly as we might have wanted at this point. Nevertheless, we are seeking to move it forward as fast as we can, with partnership help. I cannot give members an absolute date, but we are clear that, when the portal goes live, funding will be one of the four things that we will focus on, as I have said. The funding offer is in place and is confident, and there is much attention around the content fund. We want to take the time to get that right. We are not in a position to launch the fund quite yet, but we are endeavouring to do that as soon as we can. I hope that that will be done in April.

Under actions A5 to A7—the skills and talent actions—in the collaborative proposal, we have directly consulted most of the associations that are involved in Scottish screen business. We have asked them to comment on and assist with the refinement of the tools that we will use for the survey work. In addition, we will undertake 70 structured interviews across the value chain of screen and television. That means that we will necessarily talk directly again to those associations and others about the interim findings. There is an item on the agenda of the upcoming screen sector leadership group meeting under which the group will discuss the research at its interim stage. At the final stage, we will pull together a wider grouping to consider the recommendations and will start to detail the actions. Therefore, there is deep, live and vital engagement with the sector in that area.

That is very encouraging. How will the screen unit take that work forward? How will it improve on that, given that Creative Scotland does not have a specific sector skills development remit?

That will be directly achieved in two or three ways. For the first time, there will be a unique, Scotland-owned and Scotland-held set of data that is live, real and robust, so that there is on-going engagement with the sector. We are also building in survey panels that will allow on-going review and testing of themes and actions.

Much more strategically and structurally, the evidence from the survey work will lead to the formation of the skills strategy for the screen unit. That, in itself, will ensure that there is a very direct partnership in how we construct the strategy and, more important, how we respond to the survey work. In that sense, we will again bring the industry to the table, in partnership with further and higher education and, indeed, the private sector industry training provision—for example, the national film and television school Scotland. We will follow that work through, and the screen unit will activate that strategy.

Thank you very much. Unfortunately, we are out of time. I thank all our witnesses for coming to the meeting. There will be a brief suspension before we move to our next evidence session.

10:15 Meeting suspended.  

10:22 On resuming—