Pinewood Studios The Need to Grow Consultation with Buckinghamshire Business First Members and Board

Pinewood StudiosThe Need to GrowConsultation with Buckinghamshire Business First Members and Board September 2012

1. Introduction BBF is an important part of Buckinghamshire’s economic infrastructure and provides a strong business voice for Buckinghamshire and the Buckinghamshire Thames Valley LEP Pinewood Studios is a jewel in Buckinghamshire’s economic crown – but its expansion faces some challenges because of greenbelt policy Pinewood needs to understand whether BBF supports its growth plans – but first some background..........

1. Introduction (cont’d) Pinewood: Past, Present & Future Established in 1936 Organic growth achieved since then Has an unique place in world film history Over 100,000 sq. metres of accommodation Over 300 independent media and production support companies are based across the three studio lots, in a thriving studio village environment An iconic global brand A need to grow to accommodate growing world demand

1. Introduction (cont’d) Film Industry Endorsement “The great thing about Pinewood is that it’s a one stop shop and that’s very comforting for producers. You can come into a studio environment where everything’s in one place; water, filming specialists, SFX companies, computer graphics companies, lighting and camera companies. It’s fantastic”. Callum McDougall Exec. Producer, Casino Royale; Quantum of Solace. “When you have all the filmmaking facilities under one roof the convenience and the control you have is invaluable. Beyond that, to work with the best craftsmen, best sculptors, painters and model makers in the world – amazingly that’s all under one roof too”. Lloyd Levin Producer, United 93; Lara Croft Tomb Raider; Cradle of Life “There really aren’t any stages in Hollywood that can accommodate a movie the size of a Bond picture”. Barbara Broccoli Film Producer, James Bond Films

1. Introduction (cont’d) Pinewood – a British film and TV asset Britain has a worldwide reputation as a fiscally attractive environment for film‐making and with the government consulting on extending tax incentives for the creative industries, the demand for world-class studio facilities in the UK is set to increase significantly.

1. Introduction (cont’d)Illustrative recent productions Recent film and TV productions that have used the Studios’ facilities include the 23rd James Bond film Skyfall(Eon Productions/MGM/Sony Pictures); Snow White and the Huntsman (Universal); Anna Karenina (Working Title Films/Universal); Prometheus (Fox); Dark Shadows (Warner Bros); The Magicians, Got To Dance and Sing If You Can.

1. Introduction (cont’d)Illustrative recent productions Home to some of the most successful features films and TV shows ever made...

1. Introduction (cont’d)Pinewood’s facilities The best quality sound stages and TV studios

1. Introduction (cont’d)Pinewood’s facilities A globally unique underwater filming stage

1. Introduction (cont’d)Pinewood’s facilities Catering for all types of shoots and all budgets, its UK Studios accommodate major national and international film production, filmed television, studio television recording, commercials, video games, pop promos and band rehearsals on its 34 stages, 10 TV studios and over 100 acres of backlot.

1. Introduction (cont’d) The Need to Grow The significant economic contribution of Pinewood is acknowledged....but: There is increasing global competition – so.... Government supports the Film Industry with tax credits. Oxford Economics reports that every £1 of tax credits invested generates £12 of GDP. Therefore, the sector is highly valued as an economic contributor

1. Introduction (cont’d) The Need to Grow – the site today

1. Introduction (cont’d) How we Need to Grow Pinewood is determined to build on its rich heritage and invest in its exciting future to ensure that it remains at the heart of the global creative industries. Pinewood has developed a 15-20 Year Growth Strategy Industry experts, local businesses (including BBF) and the community are being consulted Consultations will inform future property requirements Options are being considered No housing to be included – all growth to be targeted at production capacity

2. Developing the case for expansion and the application – current position The scheme in summary: • Broadly doubling in production floorspace • Expansion offers the ability to handle four major productions at one time • Additional media park and HQ accommodation for the sector

2. Developing the case for expansion and the application – current position The Pinewood landholding

2. Developing the case for expansion and the application – illustrative expansion plan

2. Developing the case for expansion and the application – current position The Planning case central proposition is that: There is a compelling case to demonstrate that very special circumstances exist for the much-needed growth and investment in Pinewood Studios to secure the future of the UK film and screen industry, which cannot be successfully achieved by any other alternative, and which are sufficient to clearly outweigh the harm caused to the green belt by reason of inappropriateness and all other harm. A number of substantial economic, cultural and other benefits will result from the development and material harm will arise from not facilitating its delivery.

2. Developing the case for expansion and the application – current position (cont’d) Critical to the very special circumstances are: • the economic case – including the market need and expected impacts; and • the business case – including what would happen without expansion.

2. Developing the case for expansion and the application – current position (cont’d) The economic case – is being informed by: • surveys of Media Park tenants; production companies and employee/on-site workers; • consultations - including with industry associations (19 – including BAFTA; British Film Commission and British Film Institute and PACT); • consultations with Heads of Physical Production in USA – these are critical in that they represent the film core customers – they decide where and how a film should be produced;

2. Developing the case for expansion and the application – current position (cont’d) The economic case – is being informed by: • an opinion from PWC on current trends in the film and TV industry including what the critical factors are for locating production and Pinewood’s position and potential; and • opinions on and “sign off” of overviews of the UK film and TV sectors by key national industry leaders: • TV - Tony Cohen – CX of Freemantle TV; • Film - Lord David Puttnam and Eric Fellner – two leading producers.

2. Developing the case for expansion and the application – current position (cont’d) The economic case – very special circumstances already identified from research and surveys: • Tax incentives and exchange rates are crucial; but the UK and Pinewood have other special advantages – particularly: • availability and depth of skills; • established facilities and technologies; • reputation and know how; • industry collaboration; and • proximity to London

2. Developing the case for expansion and the application – current position (cont’d) • The economic case –very special circumstances already identified from research and surveys: • UK capacity is already limited – emerging demand for ever larger sound stages and ancillary facilities and is already exceeding supply; • the emerging incentive for high end TV will boost demand to a level that will challenge UK capacity and Pinewood as to which customers to turn away;

2. Developing the case for expansion and the application – current position (cont’d) • The economic case –very special circumstances already identified from research and surveys: • in the film sector, for example, inward investment in the UK has increased very significantly to c. £1.1bn in 2011 and employment risen to over 60,000 – in recessionary conditions!!

2. Developing the case for expansion and the application – current position (cont’d) In addition to the above,: Pinewood contributes significantly to gross value added, exchequer contributions, exports and training opportunities. It purchases from local suppliers – e.g. Buckinghamshire-based LIFE Build Solutions constructed The Richard Attenborough Sound Stage - one of the largest stages ever built. * Subject to revision as scheme plans are refined The economic case – current UK estimates of employment impacts:*

2. Developing the case for expansion and the application – current position (cont’d) • The business plan and case is in progress • Detailed financial modelling for a 20 year period is nearing completion and shows that Pinewood can increase its turnover and profitability from a sensitive expansion on adjacent greenbelt land.

3. BBF consultation question • To meet the demands of growing film and TV markets, and in the face of global competition, Pinewood has to expand its operation. It faces significant planning policy challenges in achieving this because the only adjacent land available is in the Green Belt. • While located in Buckinghamshire, Pinewood is a national facility of major significance to the UK economy. Securing its long term future through expansion in the Green Belt has to prove “very special circumstances” which outweigh the potential harm to Green Belt through inappropriate development. • Assuming that Pinewood can provide compelling evidence for these very special circumstances, do you support the planned expansion of Pinewood?

Pinewood Studios The Need to Grow Consultation with Buckinghamshire Business First Members and Board