On January 9, 2003, I submitted written evidence relating to your committee's scheduled hearings on the Film Council and the British film industry.

  On page 1 of my evidence, referring to the Arts Council's Lottery funding of films 1995-2000, and moneys recouped therefrom up to 2000, I wrote: "The Arts Council spokespeople have not so far been forthcoming . . ."

  I have since received a reply (dated 6 January, 2003) from Mr Peter Hewitt, chief executive of the Arts Council of England, giving me the figure.

  I quote below the relevant paragraphs from Mr Hewitt's letter -he is aware of my intention to include this information in my evidence to the select committee—and I would ask you to interpolate this letter of mine in my evidence, perhaps as an addendum.

  "In the period between April 1995 and May 1999, the Arts Council played a key role in supporting the film industry, awarding over £67 million to 79 features and £l.4 million to 49 short films. We also allocated £95 million to three commercial film production franchises, to strengthen the production sector by helping companies to finance a slate of films and sustain links with distributors.

  "With regards to income, between 1997 and 2000 the Arts Council recouped £6,225,000 from lottery film investments. Film royalty income from 2000-01 onwards went to the Film Council."

  If Mr Hewitt's recoupment figure is compared with my own estimate on page 1, I think it supports my contention that investment on such a scale in an industry well known for the problematical nature of its returns is inherently flawed.

19 January 2003