Public Service Broadcasting (Communications and Digital Committee Report)
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The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Baroness Barran) (Con)
My Lords, it has been an absolute pleasure to listen to this debate this afternoon. I echo the thanks of other noble Lords to my noble friend Lord Gilbert for securing the debate and for all his work with his colleagues on the committee. Although 18 months have elapsed since the publication of his committee’s report, the issues which it raises are, as we have heard, no less topical now than they were then. I acknowledge the delay in holding this debate, but I know that my noble friend understands that we experienced exceptional circumstances. I also join other noble Lords in welcoming the noble Baroness, Lady Merron, to her place. I feel I shall have constructive but positive challenge across the Dispatch Box, and I look forward to that very much indeed.
As set out in our written submission to the committee, the Government are clear that public service broadcasting provides significant cultural, economic and democratic value to the UK. It is free at the point of use, universally available and works for the public benefit to foster shared experiences, stimulate learning and reflect communities from across the country. As the noble Lord, Lord Hastings, mentioned, it has also celebrated major charitable events during the past year. As the noble Baroness, Lady Grender, noted, evidence from Ofcom shows that PSB programming remains popular and valued by UK audiences.
However, as many noble Lords noted, in a changing media landscape, there is growing consensus that public service broadcasters need to adapt—in the words of my noble friend Lord Hannan, getting on our surfboards, although I am not sure that the noble Lord, Lord Liddle, will be joining him on a surfboard. Therefore, the legislation and regulation in this area need to evolve to ensure that we have a regulatory framework that is fit for purpose.
With that in mind, the Government are working closely with Ofcom and the sector to consider those issues as part of their strategic review of the future of public service broadcasting. As set out in our response to the committee’s report, the Government want to ensure the continued health of a strong, successful and sustainable PSB system, one that is capable of bringing the nation together through shared experiences, as the noble Baroness, Lady Kidron, put it so eloquently; that represents and serves audiences in all parts of the UK; and that remains at the heart of our world-class broadcasting sector, which is among our greatest soft power assets, as the noble Viscount, Lord Colville, and the noble Lords, Lord Liddle and Lord Bhatia, all noted. I very much hope that we will be able to set out our next steps on that later this year and, within that, a strong, independent and trusted BBC is vital.
I start with a brief reflection on recent events at the BBC and try to set the record straight again on this Government’s attitude towards it. I agree with the spirit of the comments of the noble Lord, Lord Inglewood, that the ferocity of emotion—those are my words, not his—about recent events is because all of us personally and individually care deeply about the BBC as a national institution. On Lord Dyson’s report on the Martin Bashir interview, noted by many noble Lords in the debate, as my right honourable friend the Secretary of State said—and the noble Lord, Lord Davies, quoted, it reveals
“damning failings at the heart of the BBC”.
We are now reflecting on that thorough report and considering what further governance reforms might be needed as part of the mid-term charter review.
I will comment on the mid-term review, but so many noble Lords have questioned the Government’s attitude to the BBC, including the noble Baroness, Lady Merron, that I shall just quote from a reply by my right honourable friend the Minister for Media and Data in a debate in the other place last week. He described the BBC as
“a priceless national asset, and one of the most serious consequences of the revelations of the past week is that its reputation and trust in it have been badly damaged. It is essential that it retains its position as the most trusted and reliable broadcaster in the world, and there is work to be done to restore that reputation.”—[Official Report, Commons, 24/5/21; col.52.]
We need to use all our energies to focus on the wider challenges that public service broadcasters, including the BBC, face and resolve them, rather than constantly questioning the Government’s attitude towards them.
On the mid-charter review, I cannot accept the suggestion by the noble Lord, Lord Davies of Brixton, that the Government’s behaviour is impacting on the editorial independence of the BBC, which, we are crystal clear, is important. I very much welcome the comments of the noble Lord, Lord Berkeley of Knighton, accepting the need for constructive criticism. Sometimes a need for transparency and accountability are seen as criticism, but they are obviously essential.
In response to my noble friend Lord Gilbert’s question about what we mean when we say that we will consider further governance reform, as the Secretary of State has said, the mid-term review provides an opportunity to look at issues such as the performance of the BBC board and the effectiveness of the regulation of BBC by Ofcom. We will start preparations for that now, ahead of the review starting formally next year. Many people in the other place and in your Lordships’ House have used the phrase “never again”. This is an opportunity to check whether the new governance system that we introduced, to which the noble Lord, Lord McNally, referred, would have worked had the events of 25 years ago occurred under this regime.
The noble Viscount, Lord Colville of Culross, asked about the wider scope of the review. I have set out the scope—addressing governance and regulation issues only—but we have been clear that we will look at the future of the licence fee model ahead of the next full charter review, which is by 2027.
A number of noble Lords raise the issue of the licence fee settlement for the BBC, including the noble Lord, Lord Stevenson, the noble Baroness, Lady Kidron, my noble friend Lord Gilbert, the noble Viscount, Lord Colville, and the noble Baroness, Lady Merron. We are already in discussion with the BBC and S4C on the next licence fee settlement, which is due to take effect from April 2022 for at least five years. As the Secretary of State has said publicly, this is an opportunity for the BBC to consider how it can offer best value for money for everyone across the UK. I note the call to improve the transparency of the settlement process. The Secretary of State has undertaken to publish formal correspondence between the Government and the BBC and S4C on the Government’s website, and he will lay his final determination before Parliament to allow time for debate before the settlement takes effect.
A number of noble Lords raised the issue of the concession for the over-75s. Your Lordships will have heard me say on too many occasions in this House that it is clearly the responsibility of the BBC to deal with that issue, and we encourage it to do so urgently.
Turning more broadly to issues affecting public service broadcasting, a number of noble Lords talked about the importance of wider diversity in our broadcasting. My noble friend Lord Holmes spoke very eloquently about the value of regional broadcasting and the noble Lord, Lord Wallace of Saltaire, had particular local reservations. But when we talk about diversity, as the noble Baroness, Lady Fox, put very clearly, we are not talking about just location of production but about commissioning, subject matter, workforce and diversity of thought. Recent commitments in this area have been warmly welcomed by the Government.
As noble Lords will be aware, Ofcom is undertaking a review of PSBs at the moment. I hope I can reassure the noble Baroness, Lady Kidron, that the Government have encouraged Ofcom to be very ambitious and innovative in its approach to the review and to explore all issues that it sees as relevant. We look forward to receiving its recommendations this summer.
The noble Lord, Lord Smith of Finsbury, raised the issue of the Public Service Broadcasting Advisory Panel. As I hope I have made clear, the Government are absolutely supportive of a modern system of public service broadcasting that remains relevant and meets the needs of UK audiences in future. Your Lordships set out very clearly some significant strategic challenges facing public service broadcasters, and that is why the Government have brought in an advisory panel to provide independent expertise on these critical issues.
My noble friend Lord Gilbert, the noble Baroness, Lady Grender, and other noble Lords raised the issue of prominence. We recognise the need to ensure that high-quality public service content is easily accessible to UK audiences. We have committed to act on Ofcom’s prominence proposals and we will take forward legislation on this as soon as the timetable allows.
My noble friend Lord Gilbert asked about the terms of trade. I am pleased to say that Ofcom heeded the advice of the committee and issued a call for evidence late last year to see whether any changes were required. The Government look forward to receiving its recommendations.
The noble Lord, Lord Berkeley, talked about the importance of radio. On behalf of the Government, I echo his recognition of the incredible role that radio, particularly local radio, has played during the pandemic.
My noble friend Lord Gilbert and the noble Lord, Lord Bassam, talked about the apprenticeship scheme in the creative industries. DCMS has been working closely with industry and the Department for Education on introducing additional flexibilities to the apprenticeship levy. We hope this will start increasing the number of quality starts in the creative sector from next year. I will pass on your Lordships’ observations to the Minister for Digital and Culture.
The noble Lord, Lord Stevenson of Balmacara, asked about archiving and, in particular, the national film archive. As set in the government response, we strongly encourage non-PSBs and SVODs—I am not sure that is in the Companion, but anyway—to entrust guardianship of their screen content to the BFI National Archive, making it a reasonable contribution to the BFI. I reassure him that we are monitoring progress in this regard and remain open to considering the full range of options to deliver on this, including statutory support for collecting, as currently exists for the PSBs.
We are involved in an ambitious set of plans in a rapidly changing and important sector. I feel that much of what I have said is about the future, so I will reflect briefly on some of the actions we have taken since the publication of the committee’s report to protect UK public service broadcasting. These include: adding the Paralympic Games to the listed events regime, to which the noble Baroness, Lady Grender, referred, in recognition of their special national significance; setting out a clear and transparent process for the present licence fee settlement; as I mentioned earlier, introducing additional flexibilities to the apprenticeship levy, which we hope will really start to translate into an increasing number of quality starts in our world-class creative sector; launching a £500 million film and TV production restart scheme to ensure productions could restart after Covid restrictions were eased—many commissioned by PSBs; and supporting the wider screen industry through the launch of the UK global screen fund, which will help independent film and screen content made in every corner of the UK to export to markets around the world.
Looking forward, this will be a busy year for public service broadcasting. We have already had the conclusion of Ofcom’s Small Screen: Big Debate Consultation and the publication of a report by the DCMS Select Committee in the other place. In the summer, we are likely to receive a report from Ofcom, and in the autumn the PSB advisory panel will meet for a sixth and final time. The Government have already committed to updating the UK’s system of prominence when the legislative timetable allows. We will consider outputs from all these different processes carefully and set out our steps later this year.
I close by thanking my noble friend Lord Gilbert and his colleagues on the committee once again for their important work, and for their ideas, analysis and recommendations. To be clear, the Government continue to consider them and use them to inform our strategy as we go forward. I have greatly enjoyed the debate this afternoon and look forward to carrying some of these issues forward with your Lordships in future.