To ask Her Majesty’s Government what assessment they have made of the contribution the cultural and creative arts make to gross domestic product; and what proposals they have to promote their further growth and development.

My Lords, the creative industries contributed 6.4 per cent of the UK’s gross value added in 2006. There are 1.9 million people in creative jobs, both in the creative sector itself and in creative roles in other sectors. They are identified as a key industry sector in several government initiatives such as BIS’s New Industry, New Jobs and the DWP’s Future Jobs Fund. These are additional to the Creative Britain strategy, launched in February 2008.

I am grateful to the Minister for his positive answer. Is he aware that these industries, even through the recession, have been growing by 5 per cent a year in GDP terms? It is the fastest growing employment sector in the UK and contributes more to the balance of payments than even the banking sector. Nevertheless there are crucial skills shortages in the sector, particularly among technicians, and the companies concerned are having to recruit overseas applicants for these jobs. Are the Government right, therefore, to put so much emphasis on the STEM subjects in their skills and universities policies? Should these sectors not be given somewhat more priority in skills funding?

My Lords, the noble Baroness is right to identify the importance of this sector. She is also right to draw attention to the question of skills. As she will know, since the Leitch report we have addressed ourselves significantly and particularly to the issue of technicians’ skills. That is the basis of our apprenticeship strategy. Of course she will also know that it takes a little while for this process to produce results. However, we are addressing ourselves to the matter. As for higher education, we have a project with the University of Brighton to look at the relationship between higher education and this industry and at whether the courses are fit for purpose from the employers’ as well as the universities’ perspectives. That is a constructive approach.

My Lords, can my noble friend ensure that architecture and design, the nursery of some of our very greatest creative talents, are routinely included in all government assessments of the creative industries?

Of course I accept my noble friend’s point. It may be that the country has not previously given sufficient recognition to our creative talents, but it is now clear that they are a very important part of our national well-being, not just because of the enjoyment that we get from the creative work which is produced but because of this crucial dimension of the economy. The House will recognise that the Digital Economy Bill plays its part in recognising this important fact.

My Lords, I declare an interest as a trustee of National Museums and Galleries in Liverpool. Is the Minister aware of the two reports that have been published following Liverpool’s year as European Capital of Culture: the Capital of Culture outputs final report and the National Museums Liverpool economic impact report for 2009? Both show that for £20 million of government investment, there has been a £120 million impact on the regional economy. Does that encourage the Government to continue to invest in cultural and creative arts?

My Lords, it certainly does. I speak on behalf of the whole of the Government, but I must confess an interest; both museums write to me regularly, as I have a close association with them, so I am all too well aware of their success since the year of culture. It shows just how that concept can bring advantages to a city such as Liverpool. I am enormously gratified to see the extent to which the city is building on those foundations.

My Lords—

My Lords, I thank my noble friend for his gracious withdrawal.

Does the Minister agree with me that a lot of the energy, diversity and, indeed, success of the cultural and creative industries over the past decade has been due, at least in part, to a consistent and growing level of investment from government in the core elements of those industries? Does he also agree, going back to the point about technical skills, that the creative industries need those skills just as much as many other industries do, and that one of the helpful things that government could do in encouraging people to think about investing their time and energy in developing technical skills is to point out that they can be deployed very effectively in the area of culture and creativity?

My Lords, I am grateful to my noble friend. The latter point is valid, which is why I emphasised it in one of my earlier answers with regard to apprenticeships. There is no doubt that the creative industries need that skill level to support the more creative aspects that artists, film directors and so on recognise a great deal more. We all recognise that these are straitened times as far as government investment is concerned, but the record over the past decade is quite unparalleled. The Government are committed to this sector for its value in enhancing the life of the nation and its significant contribution to the economy.

My Lords, given the point about the need for technical skills, how much extra effort are the Government putting into ensuring that schoolchildren are properly informed about the opportunities which are available if they begin their education in these areas now?

My Lords, the noble Baroness has identified an important point regarding the effectiveness of communication in schools about such opportunities. We are developing a project in which schoolchildren are introduced to such opportunities. We are looking at that as a pilot study to see how we can spread it across the nation. There is no doubt that there are opportunities in this area which we need to see young children exploit and develop. I have not the slightest doubt that they would gain fulfilment from careers in this area.