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17 January 2012

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Martin Smith

I agree with much of this. As others too have said, this is a remarkably comprehensive and thoughtful document. Government would do well to catch the moment by responding to it positively and with enthusiasm.

Against this background and some richly deserved praise, if I were to make one general criticism of the report it would be that it neglects the issue of film industry business capacity, which is negligible in the UK, and considerably understates the future investment challenge.

Sadly, there are too few entrepreneurs and financiers who really understand film business across the entirety of the value chain. Those who do understand generally have poor access to risk capital, of which there is less about now than for a very long time.

I recognise, however, that these points apply to all the content sectors to some degree, and to the wider creative economy as a whole. For that reason perhaps they were better left alone by Lord Smith's team and reserved for another occasion.

MS

PS I am pleased that the report has picked up the issues of producer equity, recoupment and re-investment. These are crucial to the wider debate about industry "sustainability".

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