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The Minister for Digital (Matt Hancock)
It is a pleasure to serve under your chairmanship, Mr Bone. I am so sorry to have kept you away from the debate on the withdrawal from the European Union—a subject that I know is very close to your heart.
I would like to thank the hon. Member for East Londonderry (Mr Campbell) for securing this important and over-subscribed debate about transparency in and of the BBC. He gave a number of examples of concerns with the BBC, many of which relate to specific accusations within BBC Northern Ireland. I am sure that the BBC has heard his concerns loud and clear; he was certainly transparent about his frustration. I understand that the BBC has offered to meet him, and I encourage him to take up that offer, but I also encourage the BBC to respond in substance to his concerns.
As many Members have said, the BBC is one of our most treasured institutions. I declare no financial interest, but I do declare that I love the BBC and think it is a very important British institution. It is an engine for creativity and growth, and I am proud of its role here and around the world.
The BBC receives £4 billion of public funding every year through the TV licence fee, which is a tax. As my hon. Friend the Member for Taunton Deane (Rebecca Pow) said, the BBC, as a public service broadcaster funded by the public, must be as open and transparent as possible. The public rightly expect the BBC to be scrutinised effectively and to know how it spends our money—and I say “our” not as a Minister, but as a licence fee payer.
I strongly support the transparency that has been brought to the BBC through the charter settlement. It will improve the BBC and bring it into line with other public services, other parts of Government and, indeed, our politics, which has got radically more transparent in recent years. Improving efficiency and transparency was central to the charter review, and we have insisted on a whole series of changes in the charter to address these issues.
I agree with those who said we were right to introduce that transparency. Alongside it was effective, modern governance. It will be the responsibility of the new BBC board to deliver further transparency and greater efficiencies across overheads, including what needs to be done to lower the pay bill, where appropriate. The National Audit Office has become the BBC’s financial auditor for the very first time, as it is for the rest of the public sector. It will be able to do value-for-money studies on the BBC’s commercial subsidiaries, which return profits to the BBC, thereby generating public money. Of course, Ofcom is now independently regulating the BBC. A point that was brought up and has strong cross-party agreement is that it is important that an independent regulator regulates the BBC.
I was surprised at the comments of the hon. Member for Keighley (John Grogan), and by the Labour Front Bench’s opposition to seeing more diversity and distinctiveness at the BBC: we have had complaints by the Labour party about our calls for more diversity in the BBC. Of course I have a view on the level of diversity in the BBC, and I just wish the Labour party would join in. Where I do agree is that the BBC needs to look at pay across the piece, at all levels. I had much more sympathy with the point made powerfully by the hon. Member for Ellesmere Port and Neston (Justin Madders) about the powers to insist on transparency for the BBC in other areas of diversity.
Kevin Brennan
On a point of order, Mr Bone. I think the Minister might have inadvertently misled the House by saying that the Labour Front Bench, during the course of the debate, had opposed levels of diversity within the BBC.
Matt Hancock
I did not say that it did so during the debate. It did when the deputy leader of the Labour party, the hon. Member for West Bromwich, wrote to us attacking our insistence on more diversity at the BBC. Maybe the hon. Member for Cardiff West (Kevin Brennan) needs to have a word with his colleague and try to bring him into line. We are in favour of more diversity. At the moment, the Labour party is not, and I suggest it does something about that.
Mr Peter Bone (in the Chair)
That was a point of order. Is the hon. Member for Cardiff West (Kevin Brennan) satisfied?
Matt Hancock
I think the hon. Gentleman needs to go and sort that out with his colleague. The hon. Member for Ellesmere Port and Neston made—
Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)
On a point of order, Mr Bone.
Matt Hancock
I said West Bromwich because when I got to the end of saying it, I could not remember which I was referring to, but I was indeed referring to West Bromwich East.
Anyway, Ofcom has powers to insist that the BBC be transparent, and the charter gives Ofcom specific powers to consider the distinctiveness of music output on Radio 1 and Radio 2—not just the number of plays, but the size of the playlist and whether it is a peak or off-peak time. I suggest that the hon. Member for Ellesmere Port and Neston takes his point, which has a lot of merit, up with Ofcom, because it has those powers; the Government do not, for the reasons discussed during the debate.
The Government also require the BBC to disclose details on staff and talent where salaries are over £150,000. That was the meat of the debate today. The latest pay disclosure really shines a light on some practices that have been going on for a long time in the BBC, and not least on the gender pay gap, as discussed. I am very proud that we have introduced mandatory gender pay gap reporting for organisations with more than 250 employees, because that will help the organisations. I have an awful lot of sympathy with the statement put out by BBC women yesterday, which said:
“The Director General must be in no doubt about how serious an issue equal and fair pay is for women across the organisation. The BBC should be the standard-bearer for this.”
That is incredibly important. In fact, I think that on issues of diversity and gender equality, we should hold the BBC to a higher standard, if anything, than other organisations, because it literally reflects the nation and broadcasts to the nation.
All of us who cherish and support the BBC must strive to make it more transparent and hold it to account. That does not weaken the organisation; it improves an organisation, because where there is a problem, sunlight is the best disinfectant. My hon. Friend the Member for Eastleigh (Mims Davies) asked powerfully what further will happen on transparency. Mandatory gender pay gap reporting for the BBC, as well as for other organisations, is due by April next year, and we expect the BBC to take action to close that gap, which it says is 10%.
Of course, it is not just about the gender pay gap. As my hon. Friends the Members for Taunton Deane and for Clacton (Giles Watling) said, it is about the level of pay. It is also about equal opportunities—people from black, Asian and minority ethnic backgrounds are under-represented among the BBC’s top earners—and transparency on social mobility, as the hon. Member for Ellesmere Port and Neston set out.
The BBC should be leading the way. I welcome the director-general’s commitment to closing the gender pay gap by 2020. I was pleased to hear yesterday about his plans for an independent equal pay audit of all BBC staff in the UK and a separate report on the gender pay gap. I look forward to seeing those reports in the coming months and expect to see an improvement on the gender pay gap and diversity in the next set of BBC accounts.
Transparency is the order of the day in this debate, so I am delighted that we heard of the music talent on the Labour Front Bench. I am sure that the hon. Member for Cardiff West is regarded by viewers of the Dave channel as top talent, and maybe one day we will see his name in the transparency returns. I agree with him on the importance of impartiality at the BBC and with his robust defence of the BBC against the accusations from some Scottish National party Members. I conclude today’s debate by thanking all Members for their lively contributions. I am sure that the BBC will be listening, and I am sure also that we will return to these important topics many times.