I beg to move,
That this House has considered Government-backed insurance for live events.
Everybody here today will be aware that live performance production is an inherently risky economic activity, as the majority of capital is expended on pre-production and rehearsal prior to any income returns retrieved at the performance stage. In other words, as a business, it needs to invest money before it can take money back again. And therein lies the problem: for all the glorious music and theatre that live events offer, behind the scenes it is all about money and the integrity of the business. Organisers simply cannot get the ball rolling—by sourcing locations, paying performers, hiring equipment and so on—if they are not guaranteed that the show will go ahead.
I have heard the Government say many times that it would be too expensive to create an insurance scheme. I beg to disagree with that. I think there needs to be a perspective shift inside Government. Government must stop seeing our calls for an insurance scheme as expenditure and see this instead as an investment opportunity. I say that because ultimately, if they help facilitate the return of live events, the economic and cultural returns will end up paying for the initial investment—it will pay for itself.
We know the economic potential of the industry. The creative industry contributes—can you believe it?—£13 million every hour to the British economy, with the live events industry adding £70 billion to the UK economy every year. However, the significance of live events is not limited to the UK-wide economy. When events take place, local economies benefit, not only in direct revenue but through the increased use of hospitality or transport services. For example, and as I have said many times, the Edinburgh Festival Fringe generates no less than £500 million in direct spending, and a further £560 million goes into the Scottish economy indirectly.
Up in my own patch in the far north of Scotland, my beloved Highland games are worth an estimated £25 million. The House can imagine what that means to rural areas. With 25% of the people attending those games, they provide a much-needed economic boost to my constituency and to other Scottish constituencies. But they also allow us to share Scottish culture with people all around the world.
At a time when this nation needs to recover, and aligned to employment opportunities, increasing the consumption of hospitality and bringing tourism to every nook and cranny of the country will help us not only build back better, but build back together. As the House can imagine, I do not want to see my constituency being left behind in this regard, but that is exactly what is happening. I am hearing now that Highland games are being cancelled all over the highlands and Scotland because of uncertainty as to what the Government advice is.
I am asking for a scheme to be arranged whereby the Government would back insurance and underwrite it. I am asking our Government to underwrite their own policy. If the Government are confident enough about their handling of the pandemic to ease restrictions, and if they have promised an irreversible road map, meaning the industry should not have to worry about further lockdowns, why are they so reluctant to put their money where their promises are?
If all the things that insurers are worried about never come to be, the Treasury will never have to make a payment. What this really demonstrates is the Government’s lack of confidence in their own policies; either that or they have a different definition of what their responsibilities are.
I think every hon. Member here today must have expertise in the industry. I am no expert, but I listen to experts such as Tim Thornhill from Tysers Insurance Brokers when they tell me that insurance is the key to unlock the festival and live events door. On discussions with industry experts, the Minister promised my hon. Friend the Member for Richmond Park (Sarah Olney) last week that she would release documents relating to her discussion with industry experts and insurers. I am grateful that she has agreed to come and respond to our debate.
There is a precedent, with the Government underwriting insurance in the face of terrorism, and they make a lot of money on that—over £200 million in each of the two previous years. There is a precedent. I beg the Minister to listen to my plea.
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