Kids's dreams turn to nightmares

Producers of a unique new Shakespeare film, starring 350 children from one of London's most deprived areas, made a desperate appeal for financial backing today after being refused Lottery funding. The Children's Midsummer Night's Dream, which is being made on a shoestring budget at studios in Rotherhithe, has appealed unsuccessfully to the new British Film Council for £250,000 towards the £1.2 million total cost.

The council, launched this week by Chris Smith, the Culture Secretary, has taken over responsibility from the Arts Council for aiding British film-makers.

Led by film director Alan Parker, the film council will have £150 million of Lottery funding to distribute over the next three years and one of its founding aims is to improve education about the moving image. But it has decided to uphold the decision of its predecessor that The Children's Midsummer Night's Dream, which is cast entirely with pupils from Southwark primary schools, is not sufficiently creative. The film council also complained that the project would benefit the participants more than the potential audience.

The producers, who have ploughed £700,000 of their own savings into the production, fear that without extra funding it will never reach the screen, a huge disappointment for the schools and pupils involved. Olivier Stockman, of Sands Films, said: "Right now it is a juggling act between people who are prepared to advance us cash and the bailiffs.

"Kenneth Branagh can get £1million to do Shakespeare but kids from Southwark cannot get anything.

"This high-quality, unconventional and alternative feature film is aimed at a wide audience and answers to the demand for more and better films for children. As the film council speaks of its aims for the industry and plans for the Lottery millions, we are still looking for commercial partners or art supporters to put their money where their mouth is."

Directed by Christine Edzard, whose previous film credits include acclaimed productions of Little Dorrit and As You Like It, The Dream has the backing of parents, teachers and the local education authority.

Children from the south London borough's many ethnic communities are well-represented, as are pupils with special needs.

Ms Edzard said: "So much emphasis is being placed by the public, the Government and the media on education generally, literacy and Shakespeare in particular, as well as film education for children, that this project must be seen as worthy of financial help and other encouragement."

Stuart Hayter, head of Alfred Salter Primary, one of eight local schools taking part in the project, said: "I think it is unique to involve children from local schools rather than going to agencies and picking children who have been preened from an early age. It will be a big disappointment to them if the film is not finished." The project originally won the backing of an assessor appointed by the Arts Council to examine the grant application, but his recommendation was ignored by the panel which first reviewed the request.

The film council has now rejected the producers' appeal against the original decision. A spokesman for the British Film Council said it stands by its decision.