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Creative Industries in the Political Limelight
17 May 2006

May was an eventful month for the creative industries politically. Tony Blair replaced outgoing creative industries minister with the high profile former BBC producer Shaun Woodward, and the Conservative Shadow Chancellor pledged increased support for the creative industries in the event of a Conservative government.

Former BBC producer Shaun Woodward has replaced James Purnell as the minister for creative industries and tourism. Mr Woodward's responsibilities will include broadcasting, film, music, press and censorship. He will help the culture secretary, Tessa Jowell, oversee the analogue switch-off process between 2008 and 2012, and complete the current review into the renewal of the BBC's royal charter, including a new licence fee deal.

Mr Woodward, who moves from a junior ministerial role at the Northern Ireland office, said his broadcasting experience made him ideally suited to the role.

"Ten years of working in the broadcasting industry will undoubtedly help me both understand and promote the creative industries within Britain and across the world," Mr Woodward said.

Mr Woodward, who caused a furore in 1999 when he defected from the Conservative party to Labour, worked in BBC TV news and current affairs between 1982 and 1991. He was a researcher and editor of Esther Rantzen's That's Life!, a producer on Newsnight and a senior producer at Panorama.

The news about Mr. Woodward's appointment was met by a declaration by the Conservative Party that an incoming Conservative government would boost Britain's creative industries by reducing business regulation, curbing tax levies, and reforming education to expand the pool of available skilled workers.

Addressing an international communications conference in Oxford, Shadow Chancellor George Osbourne warned that the UK's creative industries are struggling to penetrate deeper into global markets because of record tax levies, low business investment, ever growing bureaucracy and regulation, and a poor education system.

"We cannot assume that we in Britain will continue to punch above our weight in terms of ideas. So it is more important than ever before that we get the government framework right. We need real education reform, not just tinkering around the edges. We need lower and simpler taxes. And we need to ease the biting burden of business regulation," Mr Osbourne said.

Mr Osborne also aired concerns that the BBC was sheltered from market pressures by its massive income from the compulsory licence fee.

He added, "I am concerned that in too many of its non-core activities, particularly on the internet, it is stifling the growth of innovative new companies that simply can't compete with BBC budgets. For example, the BBC's license-fee funded ability to hand out quality content free online makes it very difficult for other providers to move into the new video download market."

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