2. Will the Cabinet Secretary provide assurances that Pinewood remains fully committed to continue operating its current studio in Wales in light of the lack of information provided by the Welsh Government in response to a series of written questions on this matter? 84

Diolch Suzy. I'm replying on behalf of the Cabinet Secretary. Pinewood remains committed to operating the studio in Wentloog and continuing to promote Wales internationally as a destination for high-end tv and film production.

That's an encouraging response, Minister. I just want to make it plain that this question is not raised as an attack on the growing film industry in Wales, despite comments from Welsh Government to that effect. I'm raising it in an attempt to break through the lack of transparency surrounding how some decisions were made and whether representations made by Welsh Government about the positive outcomes we should expect from Pinewood in particular are proving justified.

So, first of all, last month, Welsh Government's decision log confirmed that Welsh Government had signed off a new management agreement for the Pinewood Studio facility in Wentloog. Considering that the Government spent £5 million to buy that facility in 2014, but, due to rent structure, it didn't see any rent return on that for the first two years, you can understand, perhaps, why I would like to know why that agreement needs restructuring. How much rent, and other income, are you expecting to be paid, and by when, from that restructured arrangement?

Secondly, the productions of the studios—Journey's End, for example, has recouped just £80,000 of the £850,000 received from Welsh Government. And Take Down, or Billionaire Ransom, as it's rather ironically known in the US, has recovered less than a third of its £3.1 million investment. Now, I understand that the income-generation end of film production is at the end of its cycle, and I know that supply chains have benefited from these investments. But if Welsh Government is going to take risks—and we do approve of that—then the processes for managing those risks need to be open to scrutiny, partly so that we can find out when you're expecting returns, and how much, by a particular date, and also on potential conflicts of interest. Because the gatekeeper of the media investment budget is another branch of Pinewood—one of these films is a Pinewood production—and it, of course, has been filmed at Pinewood Studios. In keeping Pinewood committed to Wales, can you also commit that your department will answer my questions, which go to the heart of this lack of transparency, including the one that I've asked today?

And then, finally, you announced very recently that Pinewood will no longer be the gatekeeper of the media investment board, which suggests that maybe their bonds with Wales aren't quite as strong as we might have hoped. Can you tell me whether that was at Welsh Government's request, or their request, and whether the decision was influenced in any way by questions raised in the House of Keys, in the Isle of Man, where there's a similar arrangement?

You can see where my concerns are coming from. We've got three issues there, which kind of raise questions about Pinewood's commitment, and I'm really looking forward to some meat on the bone to the reassurance that you gave me a little earlier. Thank you.

Well, I don't know about meat on the bone, because I'm not a very good butcher. However, I would like to emphasise that the commitment to Pinewood remains, and that that commitment will mean the operation of the studio under a new agreement. Aspects of that agreement remain commercial in confidence, but I am very happy to offer you a meeting, where I would be able to discuss in greater detail how these arrangements have been arrived at. I can say that, whereas this does indicate that Pinewood is no longer concentrating on film investment, and the assessment of film investment, in the previous way of agreement, I can tell her that the work that Pinewood has helped to undertake to elevate Wales as a premier production location has given us already global advantages. The situation in the Isle of Man, I have to tell her, is also changing, as far as how Pinewood is operating.

I will apologise to her for any delay in replying to the questions that she has asked. I welcome her detailed scrutiny. She did ask questions going back to 2011, but I can assure her that the amount of time that has been used to respond to those questions has been to ensure the quality of the information.

I can also say to her that there is a very important element of supply chain in that studio, including essential supply chain companies, such as Andy Dixon Facilities, Real SFX, and Lubas Medical, and you must be aware of that. And that is an indication of the way in which the creative industry sector has shown significant growth in the last few years.

Would the Minister accept that part of the broader context to some of the questions that Suzy Davies has been asking, over a period of some years now, and part of the challenge for the Government, is to be clear as to the policy intention in terms of the investment in the film industry? Is it to attract international companies to produce more here in Wales, or is it, from an economic development perspective, to invest in Welsh companies, or is there a cultural objective, that is to have content—stories from Wales, if you wish—on the silver screen? I think, from his background in the days of Sgrîn, perhaps he would be aware of that tension that can exist. And can we have, from the new Minister, a little more clarity on the policy intentions of Government, so that we then, in scrutinising this, can assess to what extent the Government is reaching its aims and objectives?

Thank you very much for that series of questions. I would expect no less from the Member. But my answer, very clearly, is that the three objectives that he has set out are interlinked and all relevant to the film industry, of any kind. And what has happened here, of course, is that commercial changes have taken place in the ownership of Pinewood and that that has led to new priorities for the company in the way that it works, and the Welsh Government has been working very closely with Pinewood on that situation.

In addition to the international investments and the attempt to attract international companies to produce in Wales, and bring jobs to Wales, we as a Government have also, through the arts council, invested in Ffilm Cymru Wales—and I look forward to working with them—which has a greater cultural emphasis, in the usual meaning of the word there, although I personally consider all film production, certainly, as part of our culture—it has more of an artistic value in that regard, and that work will continue. And as I have extended an invitation to Suzy, I’ll also extend it to you to have an intelligent conversation as to the Government’s aims to this end. 

Thank you, Minister. The next question, David Melding.