Monday 20th May 2024
(4 weeks ago)
Lords ChamberMedia Act 2024 View all Media Act 2024 Debates Read Hansard Text Watch Debate Amendment Paper: HL Bill 44-II(a) Amendment for Committee (Supplementary to the Second Marshalled List) - (17 May 2024)
The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)
My Lords, I hear often talk about how we need an assembly of the nations and regions, but, as the noble Lord, Lord Bassam, has said, we have had a great display of that today from your Lordships’ Committee, with contributions from across the United Kingdom.
As I set out on our first day in Committee, His Majesty’s Government are committed to stimulating growth in our world-leading production sector throughout the length and breadth of the UK. As the noble Lord, Lord Wigley, pointed out, there is a long and proud tradition of that happening across the UK; he gave many examples from Wales, understandably, and pointed to the north of England as well. We have this month lost Gudrun Ure, who played the eponymous Super Gran—a production I enjoyed in my childhood, made by Tyne Tees Television and filmed along the north-east coast in Whitley Bay, Cullercoats, Tynemouth and many other places. It was a powerful example of the emotional pull of TV production in inspiring tourism and encouraging people to visit but also in bringing production closer and, I hope, awakening sparks in people wherever it is made.
As noble Lords have alluded to, it is important to point out that the picture at the moment is a strong one. In 2022, all of our public service broadcasters exceeded their regional production quotas, and some significantly so. We have seen good and significant growth in production outside England and outside our capital. Production spending in Scotland is now worth over £266 million, supported by developments including Channel 4 opening one of its creative hubs in Glasgow in 2019. Television production in Wales continues to make impressive strides forward, with the proportion of hours of BBC content produced in Wales increasing year on year, in part thanks to major productions such as “Wolf” and the rest of the menagerie of animals that my noble friend Lady Bloomfield of Hinton Waldrist mentioned. Northern Ireland’s production industry is making a significant contribution, as shown by the rise in hours of content produced there and broadcast on public service broadcasters, which has increased consistently over the past five years. The BBC, Channel 4 and Channel 5 all increased their production expenditure in Northern Ireland in 2022. The growth in production outside London in recent years is a great success story, and our public service broadcasters have been one of the significant contributors to that growth.
We are also encouraged by commitments to go further, such as the BBC’s pledge in its BBC Across the UK strategy to increase its production expenditure outside the capital to 60% by 2027, and Channel 4’s pledge to continue to spend 50% of its main channel commissioning budget outside London. However, it is right that we keep this progress under review, and I welcome the opportunity we have had to debate these issues this afternoon, thanks to the amendments that have been tabled in this group.
Let me start by addressing Amendments 16 and 17 in the name of my noble friend Lady Fraser of Craigmaddie and acknowledge the support that she expressed on behalf of the noble Baroness, Lady Foster of Aghadrumsee, with whom I have had the opportunity to discuss some aspects of the Bill outside the Chamber. The regulatory system proposed in the Bill will continue to support the success of the industry in several ways. The Bill is explicit in Clause 1 of its intention to recognise the need for programmes produced outside London through our new public service remit. Underpinning this is the detailed system of quotas on which this amendment focuses. This system already creates the mechanisms to hold public service broadcasters to account, and the success of the UK production sector demonstrates this.
The level of these quotas is set by Ofcom, which has broad powers to amend them as it sees appropriate. Should the success of the UK production sector not continue, Ofcom has the power to take action. It could, for example, increase regional production quotas over time, in much the same way as envisaged by the amendments that my noble friend has proposed, or it could tie the quotas to population shares. I can see why it might be tempting to pre-empt or constrain Ofcom’s consideration of these matters and to legislate directly as these amendments suggest and as the noble Viscount, Lord Colville of Culross, set out in his contribution.
I agree with the noble Viscount that there is an important role for Parliament. We are all grateful that the chairman of Ofcom, the noble Lord, Lord Grade of Yarmouth, is in your Lordships’ House and is in his place to hear these debates. Even if he were not a Member of your Lordships House, Parliament has the opportunity to express its views directly and indirectly through the Select Committees and through my department. I hope the noble Viscount would agree that it is also important that Ofcom can act with agility in this dynamic and often fast-changing sector.
It is essential that Ofcom has the flexibility to calculate regional quotas on broadcasters independently, weighing the evidence and balancing the different equities in the sector. That approach allows Ofcom to alter quotas smoothly over time to react to developments that it sees. As the financial position of both the public service broadcasters and the sector more broadly changes over time, we want Ofcom to be able to take this into account and adjust quotas accordingly, without the need for primary legislation on each occasion.
However, I reassure noble Lords that I, and my colleagues in DCMS, have heard the strength of feeling on this issue from the sector, particularly in relation to Channel 4’s “out of England” quota, which is set at 9% of eligible programmes and expenditure. I note that Ofcom is currently consulting on the terms of Channel 4’s next licence, which will come into force from 1 January next year, and also that Channel 4 has said that it would support a managed and carefully considered increase to its programme-making commitments in the other home nations. His Majesty’s Government look forward to the outcome of the licence renewal process and seeing how the sector’s concerns have been addressed.
For our part, the Government will continue our broad support for the screen industries across the United Kingdom through generous tax reliefs, as we saw in the last Budget and previous ones, through investment in studios such as the Crown Works Studios, which the right Reverend Prelate the Bishop of Newcastle rightly reminded us of, supporting innovation and promoting independent content through the UK Global Screen Fund.
We want to see the production sector continue to thrive. When it comes to our public service broadcasters’ contribution to that goal, we believe that the existing system of regional production quotas, which, as I say, our public service broadcasters can and do exceed—some of them significantly—remains the best way to continue to drive the growth that we have seen in recent years in every part of the UK.
For these reasons, I am not able to accept the amendments that my noble friend Lady Fraser of Craigmaddie has set out, but I accept the invitation that the noble Lord, Lord McNally, reiterated on her behalf and, if I may, I extend it to the noble Lord, Lord Grade, or one of his colleagues at Ofcom, so that we can talk in more detail and, I hope, seek to reassure her further about how the existing system provides for the concerns that she has set out.
Lord Bassam of Brighton (Lab)
The noble Viscount, Lord Colville, made a good point about Parliament being consulted. I wonder if the noble Lord could say something about how both Houses—and Select Committees—could be consulted and considered in the question of quotas and the distribution of regional production. I do think that is an important element of this debate, and I am sure noble Lords around the Committee will want to hear something positive on that.
Lord Parkinson of Whitley Bay (Con)
I hope the meeting I have just indicated I am very happy to hold will be an opportunity to do that, with representatives of both the Government and Ofcom present, and an opportunity for noble Lords to ask questions on the issues of quotas, and not just in relation to the Bill that is before us. As the noble Lord says, Select Committees on an ongoing basis allow for the scrutiny of Ofcom’s work.
Turning to Amendment 54, in the name of the noble Lord, Lord Wigley, I recognise the intention behind his amendment, which seeks to address concerns about the programmes that our public service broadcasters are counting towards their regional programme-making quotas. As he and my noble friend Lady Bloomfield said, this has been referred to as “brass plating”, and I am grateful in particular to the Welsh Affairs Committee in the other place for exploring this issue in its recent report, Broadcasting in Wales. As he noted, the trade association TAC has also raised this issue and has done so with my department directly.
My officials have raised the matter with Ofcom again following the publication of the Select Committee’s report. Ofcom has confirmed that, in order to qualify as a regional production, relevant productions must meet two of three criteria. These include the “substantive base” criterion, which is one of the focuses of the noble Lord’s amendment. However, productions are not able to rely on this criterion alone; they must also meet one of the two other criteria relating to production spending. Ofcom has also confirmed that it strengthened and clarified the requirements associated with the “substantive base” criterion when it updated its guidance on regional productions for public service broadcasters in 2019. This guidance came into effect for productions broadcast from 1 January 2021.
Having reflected on this advice, we remain of the view that Ofcom has the necessary powers to identify, examine and, if necessary, close any loopholes related to the regulatory regime for regional programme making. We do not, therefore, see the need to legislate in the area of the noble Lord’s amendment.
Lord Wigley (PC)
I am grateful to the Minister for the consideration he and his officials have given and the discussions that have taken place. Would he, however, accept that those at the sharp end have perhaps the most detailed knowledge of the problems that arise and the means used by some people using brass plating to get around regulations? Would he be prepared to meet some of these people to understand more directly the exact nature of this problem and some of the ideas they have that might be useful in overcoming them?
Lord Parkinson of Whitley Bay (Con)
Perhaps if the noble Lord has some examples, he might like to bring them to the discussion with Ofcom that I mentioned. It would be helpful for the regulator to hear, as well as for us in government as policymakers to understand and see, whether it is on the enforcement and assessment side or the policy-making side that we need to consider this further. I hope he will be able to join us for that.
Lord Empey (UUP)
On the amendment of the noble Lord, Lord Wigley, assuming there are a few scraps left for the rest of us, could the Minister tell us what infrastructure role is played when the quotas are being assessed? Some infrastructure needs to be on a massive scale, even a national scale. To what extent is that taken into account when the quotas are being assessed?
Lord Parkinson of Whitley Bay (Con)
To qualify as a regional production, at least two of the following three criteria must be met: a production company must have a substantive business and production base in the UK outside the M25; at least 70% of the production budget, excluding some specific costs, must be spent in the UK outside the M25; or at least 50% of the production talent, by cost, must have their usual place of employment in the UK outside the M25. Two of those three criteria have to be met for the assessment to qualify.
The noble Lord, Lord Bassam, rightly used the opportunity to point to the importance of local television providers. The Government recognise the important role that they play, such as Latest TV in his home city of Brighton, in providing excellent local news and content, often to viewers who are digitally excluded. That is why we introduced secondary legislation earlier this month to give Ofcom powers to renew the licences for the local TV multiplex and local TV services. This legislation was informed by the results of a public consultation and will ensure that local TV services continue to receive the valuable regulatory benefits they have received since 2013. That includes not only access to and prominence on Freeview but prominence on regulated electronic programme guides for simulcast satellite, cable and internet protocol television services. I am grateful to him for the opportunity to raise that in the context of the Bill.
Lord Bassam of Brighton (Lab)
Might the noble Lord be prepared to meet them at some point? That might have some value.
Lord Parkinson of Whitley Bay (Con)
Yes, either I or, I am sure, my colleague in another place who has direct responsibility for this, not just in relation to the Bill but more broadly, will be happy to speak to them further.
Member’s explanatory statement
This amendment secures that section 368J(4), (5) and (7) of the Communications Act 2003 applies for determining the qualifying revenue derived from a non-UK on-demand programme service.
“(aa) where it is a service that forms part of a designated internet programme service, it satisfies the conditions in subsection (2AA), and”Member’s explanatory statement
This amendment and my amendment to Clause 20 at page 24, line 5, add to the requirements for a relevant service which is part of a multi-service designated internet programme service (see section 362AA(10)(c), inserted by Clause 28).
Lord Parkinson of Whitley Bay (Con)
My Lords, I rise briefly to address the government amendments which I have tabled in this group: Amendments 19 to 24, 27 and 28, and 36 to 41. These, although numerous, are all minor technical amendments to provide Ofcom with the necessary tools to ensure that the regime delivers for audiences. The amendments will close off any opportunity for non-public service broadcaster services to qualify. They will update the provisions on contract voiding and provide consistency in definitions, in line with changes that were made to the Bill in another place. They will enable Ofcom to specify that audiences should be able to continue to watch events from the beginning or to rewind while an event is in progress—perhaps including debates in your Lordships’ House—in its adequate live coverage regulations; and they will ensure that Ofcom has appropriate flexibility to determine any penalties. I hope, therefore, that noble Lords can support these amendments and I look forward to noble Lords making the case for the other amendments that they have tabled in this group. I beg to move.
Baroness Grey-Thompson (CB)
My Lords, I shall speak to Amendments 25, 26 and 30, which are in my name. I draw attention to my interests in the register: I am also a member of the All-Party Parliamentary Media Group.
Whether it is Wimbledon, the Olympic 100 metre final, the Euros joy and World Cup despair of the Lionesses, or the optimism of the FA Cup, listed events have a special place in people’s hearts and memories—but how and when we watch these big sporting moments that can unite nations and encourage participation, social cohesion and pride is changing. Thanks to the listed events regime, devised in the mid-1990s, major sporting events are freely available to all audiences, especially those who cannot afford to watch sport behind a paywall—great if you can watch in real time on your TV, but currently there is no protection for digital on-demand coverage of these much-loved events. If no action is taken, anyone who wants to watch, say, Team GB on their tablet or smartphone or see the highlights could miss out, especially with events taking place in different time zones.
At Tokyo 2020, the gold medal-winning performance by BMX specialist Charlotte Worthington was watched by just 400,000 people at the time, as it happened overnight, but in the days that followed different forms of short-form coverage of the race generated nearly a tenfold increase in views; and, while the TV reach to the 2022 Commonwealth Games in Birmingham was about 20% lower than for the 2014 Glasgow Commonwealth Games, there were around six times more on-demand views of digital clips. Soon, digital and on-demand viewing will be the norm for watching legends being made. Looking beyond Los Angeles 2028 and Brisbane 2032, could Great Britain’s medal successes be behind a paywall?
Now is the time to not miss the opportunity. The Media Bill offers a once-in-a-generation chance to protect these moments for all of us, however, whenever and wherever we watch, and I am seeking to bring the regime up to date to safeguard the future of listed events for the next generation. The new clause will give enhanced regulatory protection so that these shared national moments are available to us all, making sure the benefits of watching on your TV in real time are afforded to clips and highlights, and will allow for time-shifted viewing, enabling people to watch on tablets and smartphones; and it would secure, where possible, adequate digital on-demand coverage of listed events made available free of charge to us here in the United Kingdom.
Audiences are changing. For Wimbledon in 2023, BBC coverage was streamed 54.3 million times on iPlayer and BBC Sport online—a new record. The men’s singles final peaked at 11.3 million on BBC1, with streams up by 58% on iPlayer, and the women’s singles final peaked at 4.5 million on BBC1, with streams up by 85% on iPlayer. For the 2023 FIFA Women’s World Cup, 12 million watched England’s Lionesses versus Spain on BBC1, with an additional 3.9 million streams on BBC iPlayer and BBC Sport online. There were 25.7 million streams on BBC iPlayer and BBC Sport online across the tournament—a 75% increase on the 2019 World Cup.
It is not just the BBC that wants to see this. The Culture, Media and Sport Committee recently concluded that
“digital rights should be included as part of the listed events”
and an independent report commissioned by Ofcom last year concluded that
“as expectations about the availability of live and secondary coverage of sporting events of national interest changes, we think that the current linear TV-centred regime risks failing to take into account the increasing popularity of secondary coverage”.
We know the Government recognise the issue and consulted industry a year ago, yet nothing has been done. Please do not let this opportunity pass. The time to act is now.
Lord Bassam of Brighton (Lab)
The right reverend Prelate must be an expert with a broom.
Lord Parkinson of Whitley Bay (Con)
The House was stunned into silence by the revelation from the right reverend Prelate.
I thank noble Lords for the contributions they have made and the points raised on the other amendments in this group. We, of course, had a bit of a pre-match friendly during our debate on sport led by the noble Lord, Lord Wood of Anfield, on Thursday. Let me start with Amendments 25 and 26 from the noble Baroness, Lady Grey-Thompson.
The Government recognise the intent behind the noble Baroness’s amendments, and I know that she has had concerns about in particular the necessity of the new multisport provisions, whether “adequate live coverage” will meet the mark, and whether public service broadcasters will have the freedom to choose what they cover in the interests of their audiences. Perhaps I may take the opportunity to seek to offer her and other noble Lords reassurance on these questions.
First, on whether these provisions are necessary, the Bill introduces the concept of adequate live coverage for multisport events to ensure that partnerships between broadcasters which deliver for UK audiences can still go ahead in an age where dozens of sporting events can be taking place concurrently. We do not want inadvertently to create a regime which would prevent deals like the one currently in place between Warner Bros. Discovery and the BBC. Expansion of the scope of services covered by the regime to resolve the streaming loophole poses risks to these mutually beneficial partnerships between public service broadcasters and commercial broadcasters for multisport events. That is because the existing requirement for both parties to have the same coverage does not reflect the way that coverage is actually shared between them across different types of services.
There is no intention to weaken the public service broadcasters’ hand in negotiations, simply to ensure that partnerships between them and commercial broadcasters can function effectively to deliver the best outcomes for audiences and rights holders.
On whether “adequate live coverage” will hit the mark for audiences, it will be for Ofcom to make new regulations setting out what will be considered adequate. Following scrutiny and debate in another place, the Government amended to the Bill to set out the matters that Ofcom must take into account when defining adequate live coverage in its regulations. This is an example of Parliament giving direction to the regulator through legislation. This includes the forms of live coverage that would satisfy the interests of the public, and the desirability of facilitating arrangements which result in live coverage of listed events being shown on both public service and non-public service broadcasters.
To protect audiences’ interests, and in keeping with deals we have seen before, any partnership of this nature will require at least two live broadcasts on public service broadcasters. Ofcom is given the power to require more than two streams if it deems it necessary or appropriate, and it could also set requirements regarding the percentage of coverage or other considerations.
Finally, I think the noble Baroness, like me and others who have spoken, believes that it is vital that public service broadcasters continue to have the flexibility and editorial freedom to show the most incredible moments of these multisport events to public audiences. I reassure her and other noble Lords that the Bill enables Ofcom to require that “adequate live coverage” must allow the broadcaster involved to select what parts of the proceedings it wishes to show. It is vital that public service broadcasters maintain complete editorial control of live broadcasts when they enter partnerships so that they have the freedom to make decisions about what events to screen for the British public, and the Bill makes provisions for this.
For those reasons, I do not think that we need the amendments the noble Baroness has brought before us. However, I hope my words have provided reassurance about the checks and balances in place to deliver for audiences in the way she seeks.
Lord Addington (LD)
Is the Minister, in effect, saying that he is convinced that, under the current regime, catch up and clips will continue to be available, certainly when multiple sports are happening at different times? Will we get slightly better guidance on that? Will it be available for us to look it up and check on it—certainly before the next stage of this Bill?
Lord Parkinson of Whitley Bay (Con)
Yes, the Bill caters for the concerns that have been set out, but I will happily discuss that further with the noble Lord if on reflection he disagrees with the reasons I have set out.
I turn now to the noble Lord’s Amendment 31. The Government are keen to ensure that sporting events are made available to the public as widely as possible. That is why we have the listed events regime. We acknowledge the interest that fans have in watching the sports teams of our home nations compete. As noble Lords will appreciate, however, sports rights holders use income from the sale of broadcast rights for the benefit of the sporting sector more generally, so it is important that the regime continues to strike the right balance between accessibility and the ability of sporting organisations to generate revenues which they can invest in their sports at all levels.
The Government believe that the current list of events works to deliver the best outcome and strikes an appropriate balance. We therefore have no plans to review the list at this time. I know that will disappoint the noble Lord, Lord Addington, but it is why I cannot accept his Amendment 31.
The noble Lord, Lord Bassam, asked me to say a bit more about Amendment 19. We have taken the opportunity, as recommended during the pre-legislative scrutiny process for the Bill, to take steps to ensure that the streamer loophole is closed. This was a major flaw in the current regime which allowed for unregulated online services to acquire listed sports rights, while leaving Ofcom powerless to do anything. The current drafting therefore ensures that all TV-like services providing live content to UK audiences are in scope of the regime. Amendment 19, and Amendments 20 to 22, are technical amendments to future-proof the regime by closing off an opportunity for non-public service broadcaster services to qualify through the back door. The amendments tie qualification for the listed events regime to the way in which qualification for prominence is decided.
Lord Bassam of Brighton (Lab)
I get the sense that the Minister is sympathetic to the point we have made here and that it is more a question of timescale. If the Government are looking at this, what sort of timescale do they think would be right for them to ponder the question more widely?
Lord Parkinson of Whitley Bay (Con)
I am loath to set out a precise timescale, but the noble Lord is right: it is a matter of looking at this more fully, as well as considering the complexities of how it could be borne out if it were concluded that that were necessary.
I hope noble Lords will see, through the government amendments in this group, that we have worked with parliamentary counsel to respond to the points that were raised by the Select Committee and Members in another place about the scope of services to be captured by the regime. We have now closed the streaming loophole, which could otherwise have seen live coverage intended for UK audiences disappearing behind a paywall without the protections that the regime offers. However, as I have set out, it is a complex matter that needs a bit more thought. I am happy to set out some of that thinking and to allow officials to do so with the noble Lord if he would find that useful. For those reasons, I hope the noble Baroness, Lady Grey-Thompson, will understand that we cannot support her Amendment 30.
The noble Lord, Lord Bassam, has tabled Amendment 31A. I agree with him that it is crucial that audiences are able to view their favourite sports live in whatever way works for them, whether that is on a traditional TV platform or over the internet. However, as new technologies such as internet protocol television—IPTV—become more prevalent, we need to ensure that they continue to serve audiences. This amendment would ask Ofcom to review the delivery of listed events and other audiovisual content online, with a focus on how internet service providers can work with broadcasters to deliver IPTV. As I have said in previous debates, my department has an ongoing programme of work on the future of TV distribution. As part of this, we are working closely with the Department for Science, Innovation and Technology to consider many of the issues that the noble Lord, Lord Bassam, has raised today, including the reliability and quality of content provision on IPTV. That work is also ongoing.
Ultimately, while I agree that the issues that noble Lords have raised are important ones, this is not a Bill which is focused on the UK’s digital infrastructure. By considering the issue with regard to only one internet service—namely, television—we risk taking a piecemeal approach to what is an important and broader policy issue. For that reason, I am afraid I cannot accept the noble Lord’s Amendment 31A either. I commend Amendment 19 to the Committee.
“(2AA) The conditions are—(a) that the relevant service is provided by—(i) the BBC or a person associated with the BBC otherwise than with a view to generating a profit,(ii) the provider of a Channel 3 service, Channel 4 or Channel 5,(iii) S4C, or(iv) a person associated with a broadcaster mentioned in sub-paragraph (ii) or (iii);(b) that, where it is provided by the BBC or a person associated with the BBC, the service contributes to the promotion of one or more of the BBC’s public purposes;(c) that, where it is provided by a broadcaster referred to in paragraph (a)(ii) or (iii) or a person associated with such a broadcaster, the broadcaster’s latest statement of programme policy under— (i) section 266 or 267 of the Communications Act 2003, or(ii) paragraph 4 of Schedule 12 to that Act,states that the service will be used to fulfil the public service remit for the Channel 3 service, Channel 4 or Channel 5 or (as the case may be) S4C’s public service remit.”Member's explanatory statement
See the explanatory statement for my amendment to Clause 20 at page 24, line 3.
Member's explanatory statement
This amendment and my amendment to Clause 21 at page 25, line 21, alter the definition of exclusively granting rights to include live coverage of a Group A event.
“(d) at least two of the second and further services are television programme services,”Member's explanatory statement
This amendment allows relevant services which are not television programme services to be part of the adequate live coverage of a listed event.
Member's explanatory statement
This amendment is consequential on my amendment to Clause 22 at page 27, line 13.
Member's explanatory statement
This amendment corrects a drafting error.
Lord Parkinson of Whitley Bay (Con)
I was not sure whether the noble Baroness, Lady Thornton, wanted to say anything further on the other amendments, but I am happy to come in now.
As noble Lords know, following extensive public consultation on the topic, the Government set out their intention to legislate to give Ofcom powers to draft and enforce a new video on demand code similar to the Broadcasting Code, to ensure that TV-like content, no matter how audiences choose to watch it, will be subject to similar standards. Many of the amendments in this group touch on that. In particular, all tier 1 services will have to comply with the new code. The Bill has been drafted to ensure that the mainstream on-demand services will be under similar obligations as traditional broadcasters, while simultaneously ensuring proportionality in these requirements.
I will address Amendment 70, tabled by the noble Lord, Lord Foster of Bath, which would bring all UK on-demand programme services under Ofcom’s current Broadcasting Code, including special impartiality requirements for
“matters of political or industrial controversy; and … matters relating to current public policy”.
The Government have been clear about the importance of ensuring that new regulations for video on demand services are proportionate and fit for purpose, and that they take into account the unique characteristics of an on-demand environment, which the Broadcasting Code does not. There are some key differences between linear and on-demand television, and there are some specific elements of the Broadcasting Code that would be less practical to apply to video on demand services. For example, the watershed, which limits material that is more appropriate for adults to be broadcast after 9 pm, would not be effective for regulating streaming services, because its content can be chosen on demand by audiences, rather than being broadcast live at a particular time.
That is why we are giving Ofcom powers to design a new video on demand code rather than simply bringing these services under the existing Broadcasting Code. Importantly, the Bill also sets out a proportionate and practical approach to bringing on-demand services under the new code, capturing mainstream streaming services which target and profit from UK audiences. There are already over 270 video on demand services notified to Ofcom, and many of these simply do not provide TV-like content or are not widely accessible. It is essential that we balance audience protection with freedom of expression.
Extensive public and industry consultation shows us that the smallest and niche services, such as an on-demand service for a particular football team, could be unfairly and unnecessarily penalised by a blanket approach, with little or no benefit to audience protection and at a risk to the service’s sustainability. The Bill has been designed to ensure that regulation can be updated to add further, or even all, video on demand services into tier 1, if that is considered appropriate.
I hope that this explanation reassures the noble Lord, Lord Foster, that the video on demand code will have similar objectives to the existing Broadcasting Code but will be tailored to take into account the particular circumstances of audiences accessing content in an on-demand context.
I turn next to Amendment 58 from my noble friend Lord Lansley, regarding protecting audiences from being exploited by subliminal messaging—I wonder if he was trying to tell us something.
Lord Parkinson of Whitley Bay (Con)
I thank your Lordships.
I thank my noble friend for raising this issue, as it gives me the opportunity to clarify on the record that the legislation as drafted will already enable Ofcom to draft the video on demand code to protect audiences from this type of harm. Ofcom is given an overarching duty to protect audiences from harm. The legislation does not need to list each and every potential type, although we are grateful to my noble friend for raising this issue for our consideration today. In addition, to further reassure him, on-demand programme service rules already specifically prohibit advertising which uses techniques which exploit the possibility of conveying a message subliminally or surreptitiously. These rules will continue to apply following Royal Assent to the Bill.
The noble Baroness, Lady Thornton, began our debate on this group with her Amendment 35A regarding children’s literacy. The Government are committed to continuing to raise literacy standards, ensuring that all children, including those from disadvantaged backgrounds, can read fluently and with understanding. We are very proud of the leaps and bounds that we have made on this over the last decade and a half in government. By ensuring high-quality phonics teaching, the Government want to improve literacy levels to give all children a solid base on which to build as they progress through school, and help children develop the habit of reading widely and often, both for pleasure and for information.
My portfolio covers libraries, and I had the pleasure of asking my noble friend Lady Sanderson of Welton to conduct an independent review of public libraries, which of course begins with the importance of reading and literacy. We know that one of the most powerful engines of social mobility is reading for pleasure; I echo many of the points that the noble Baroness, Lady Thornton, set out in her speech. We are currently refreshing the Government’s strategy for libraries, drawing on some of the recommendations that my noble friend Lady Sanderson made in her independent review, based on the consultation, round tables and discussion that she had with people across the country, from the sector and beyond.
The Department for Education recently made an assessment of the evidence behind the Turn on the Subtitles campaign, which the noble Baroness and the noble Lord, Lord Foster, mentioned. That assessment by the Department for Education concluded that the current evidence is inconclusive as to whether turning on the subtitles improves children’s reading. As the noble Baroness is aware, the Bill will look to improve subtitles provision on mainstream video on demand services. However, in the absence of clear evidence to the contrary, we believe it should be the choice of parents and guardians whether their child watches television programming with the subtitles on.
We have discussed this with providers, which have been clear that the technology simply is not there in many cases to turn the subtitles on by default for specific programming, even for certain ages, as the noble Baroness suggests. Short of embedding the content with subtitles—in which case viewers would not be able to turn it off—and without the absence of conclusive evidence about the benefits, we do not think that would be appropriate. However, I am grateful to the noble Baroness for the opportunity to talk about the campaign and the analysis which we have made so far.
On my noble friend Lord Lansley’s Amendments 43 and 59, on prohibiting political advertising on tier 1 video on demand services, political advertising is a fundamental part of any democratic system and is an established way for political parties and campaigners to connect with the public and have their message heard in a cost-effective manner, thus contributing to a level playing field among campaigners of different sizes and financial means. Paid political advertising on digital platforms such as YouTube and Instagram has been used by campaigners and political parties of all colours for some time, and is not objected to by the majority of those who campaign in that way.
In contrast, the legal ban on paid political advertising on television and radio, currently regulated by the Communications Act 2003, stems from a long-standing tradition which continues to be supported across the political spectrum. In considering any changes to the rules governing political advertising, the Government think it essential to consult political parties and to achieve cross-party consensus on an issue which directly affects campaigners from all parties and other campaigning groups. Regulation must be balanced with the rights of freedom of expression and public debate, which are both crucial to a thriving democracy, and no such consultation has yet been undertaken.
Lord Lansley (Con)
Can I ask my noble friend two quick questions? First, have the Government engaged in any such consultation with the political parties in anticipation of this Bill, with a view to inquiring whether the ban on political advertising for broadcasters should be included for tier 1 services? Secondly, did he not tell us that the tier 1 standards code is for mainstream on-demand programme services, which are in that sense comparable with what we see in the broadcasting environment, not the more peripheral and digital access providers such as YouTube and so on?
Lord Parkinson of Whitley Bay (Con)
It is similar but different. We have not consulted the other parties on this issue, not least because my department does not have direct responsibility for the regulation of political advertising—that falls to others. Of course, we work across government on these issues, but the simple answer to my noble friend’s question is that we have not had that that consultation. On a matter such as this, it is important to do that on a cross-party basis and to try to seek consensus before bringing forward proposals, particularly in an election year.
Baroness Thornton (Lab)
To clarify that, does that mean that the Government intend to have this consultation with the political parties about paid political advertising; in other words, are the Government thinking that they would like to change the rules and regulations?
Lord Parkinson of Whitley Bay (Con)
No, although if the other parties wish to talk about the matter which my noble friend has raised through his amendment, I am sure we would be happy to do so. However, without that consultation and cross-party conversation on it taking place, I would be wary of proceeding with it in the Bill.
Lord Lansley (Con)
I am sorry to interrupt my noble friend again but as we are in Committee, perhaps I might be allowed just to press the point. Time is of the essence here. This is the Media Bill, and we anticipate that it should be enacted before the election. It could be brought into force before an election. We know that ITVX is in this position of providing what will be tier 1 services under the Bill, and that it has not excluded that it might take paid political advertising. That is quite a significant place for a public service broadcaster operating an on-demand programme service to place itself in. Is my noble friend saying that the Government are happy for this to happen, they are content for this to happen, or that they are simply not willing to do anything to stop it happening?
Lord Parkinson of Whitley Bay (Con)
My noble friend’s second interjection allows me to clarify an important point on timing. If he intends for this amendment to be in effect before the next general election, I must say to him that that is highly unlikely. Even if cross-party consensus were reached swiftly and changes were made to the Bill, the provisions in Schedule 5 would come into force only following the drafting and implementation of the video-on-demand code, which is unlikely to happen before the next general election. He has raised an important issue, on which there needs to be cross-party consultation and consideration before anything is brought forward but, even if that happened very swiftly, it would be unlikely to be in place before the next general election. It is important to remember also that, during regulated election periods, campaigners are subject to campaign expenditure limits when promoting paid political adverts, which further protects the level playing field between campaigners, both online and offline.
Finally, Amendment 44, also in the name of my noble friend, would allow the Secretary of State to consider the purchaser’s commitment to the video-on-demand standards code in a media merger case involving a broadcaster. While I agree with his intentions of ensuring sufficient protections for audiences, I hope that I can reassure him that this is already sufficiently covered in the Bill, in particular and elsewhere. The Secretary of State already has powers under the Enterprise Act 2002 to intervene in media mergers on the basis of a need for high-quality broadcasting and a commitment to broadcasting standards more widely. In addition, the Bill gives Ofcom the necessary tools to regulate video-on-demand services, including information-gathering and enforcement powers. Similar statutory sanctions such as financial penalties that can be applied to linear broadcasters by Ofcom will also be available to apply to on-demand services. So, for these reasons, I do not think his Amendment 44 is needed.
Baroness Thornton (Lab)
My Lords, I thank the Minister for his answer. I am quite glad that I waited to make my comments until I had heard what the Minister and other noble Lords had to say when speaking to their amendments, particularly the noble Lord, Lord Foster.
Let us first dispose of the probing amendment that leads this group. We have here a moving scenario about subtitles and we are just going to have to keep watch on that, because clearly the generations to come like subtitles on their television sets or whatever devices they are using. That is interesting, and I look forward to further research into how that might support educational purposes. I think we would all want that to happen. Some of the stakeholders have explained to me that the technology does not exist to do it easily.
Regarding the other amendments in this group, the noble Lord, Lord Lansley, has surfaced several very important questions. In terms of political advertising, on this side we are not looking to have any consultation on this, but we were seeking some clarity about whether there was a loophole in this Bill—the noble Lord, Lord Lansley, used those words—for the future. That question is still not answered, so we will need to watch that.
The main issue that these amendments, particularly Amendment 70, tabled by the noble Lord, Lord Foster, brought forward concerns robust regulators and scrutiny. What I am taking away from this debate is that there are questions about how Ofcom has conducted itself in recent times. Questions have been raised about how robust it is being, and about impartiality and those sorts of issues, and therefore the confidence that we need to have in Ofcom as we move forward with this piece of legislation. However, we will be coming on to that in later groups. The noble Lord, Lord Foster, put the case extremely well. We thought that his amendment, on the face of it, seemed a rather sensible move, so I suspect that we will return to discuss this issue in due course. I beg leave to withdraw my amendment.
(i) in relation to a financial penalty imposed under subsection (A1) or (B1), an amount determined by OFCOM to be the value of the rights to include coverage of the event in question in the relevant service at the time when the rights are acquired, and(ii) in relation to a financial penalty imposed under subsection (1) or (2),””Member’s explanatory statement
This amendment specifies the method for determining the maximum financial penalty that OFCOM may impose under section 102(A1) or (B1) of the Broadcasting Act 1996.
Baroness Thornton (Lab)
The right reverend Prelate is nothing if not consistent. He has been raising what “appropriate” means in the Bill from the word go.
This group of amendments, and the debate which we have just had, is in many ways at the heart of the Bill. At its heart is the issue of our public service broadcasters as the cornerstone of our broadcasting sector in the UK, investing, as they do, billions of pounds in original productions and creating content that is trusted, valuable and entertaining for UK audiences. In return for the high standard of programming and investment that public service broadcasters provide, their channels have been made easy to find on linear television sets—to the benefit of audiences across the country. However, amid rapid changes in how viewers access television and content more generally, the prominence regime, which has not been updated for decades, is at increasing risk of becoming diluted and outdated.
It seems there are two major issues. First, public service broadcasters are in danger of being cut out of view, as noble Lords have said in this short debate, as global content players and platforms strike international deals with online platforms for prominence. Secondly, as a result, our public service broadcasters are at risk of being forced to concede increasingly material percentages of their revenue to those platforms simply to appear on them.
In this situation, it seems that almost everybody loses out—from audiences to the wider UK production economy, even the platforms themselves, which might find themselves in a position where they cannot promote the content that UK viewers most want to see. A new prominence framework for the digital era, therefore, was always going to be crucial. These amendments address how prescriptive such a new regime should be in legislation.
We on these Benches welcome that the Government have avoided explicitly spelling out what prominence looks like in the Bill or making primary legislation restrictive or resistant to future changes in technology and behaviour. Instead, we endorse a principles-based approach based on finding mutually beneficial carriage deals between what are branded “designated internet programme services” and “regulated television selection services”, with Ofcom able to provide a framework in which those negotiations can operate. Ofcom must show that it can and will undertake this important duty as a regulator. There must be strong dispute resolution and enforcement powers for Ofcom, including the ability to impose significant penalties as a result of non-compliance. That allows for maximum flexibility in both legislation and negotiations, as well as proper protections where agreements cannot be reached. It also allows for the regime to be expanded where necessary to capture new technology via which people might be watching television content. Platforms and PSBs have a history of successful negotiations, creating mutually beneficial deals and partnerships that it would be counterintuitive for the prominence regime to undermine.
We support the drafting, but we seek some clarity on the requirement to secure “appropriate” prominence. This was a major topic of discussion during the pre-legislative scrutiny process, with the majority of PSBs calling for this to be upgraded to “significant” prominence. The arguments were based mostly on the differences between linear and digital streaming landscapes.
I invite the Minister to provide a full response to the legitimate argument for “significant” prominence, and to outline the reasons why the prominence requirement has not been upgraded. What conversations have been had with Ofcom on how the detail of the regime will be set out in the code of practice to ensure that it meets its aims? We will need a strongly empowered Ofcom if the Bill is to succeed.
The BBC has consistently called for the possibility of including remote controls and multi-use devices in the prominence regime. I know that its latest thinking is that electronic programme guides could be given prominent buttons on remotes, rather than one PSB in particular. Though we are all keen to see this legislation on the statute book, our aim is that we fully seize this once-in-a-generation opportunity to ensure that public service content is easily findable in the digital age. The Minister must assure us that that can be achieved and tell us how.
Lord Parkinson of Whitley Bay (Con)
My Lords, the introduction of the new online prominence framework is arguably the most important change that the Bill brings about in terms of ensuring that high-quality public service content remains available and easy to find online, and in helping to secure the future sustainability of the public service broadcasting system in the UK, of which we are so proud.
I will speak briefly about government Amendments 48 and 49 together. These amendments are to ensure consistency with Part 3A of the Communications Act 2003 in how the Bill describes the content and channels contained within the internet programme services that may be designated by Ofcom. These are technical amendments and I hope noble Lords will support them.
I now turn to the other amendments in this group that noble Lords have spoken to. The duty on regulated television selection services to give prominence to designated services goes to the very heart of the regime, so I understand why many noble Lords have strong views on this—as we heard today and at Second Reading—and why they are keen to ensure that the drafting delivers sufficient prominence for our public service broadcasters.
Amendments 46 and 47 seek to amend the duty on platforms to give designated services “appropriate” prominence to “significant” prominence. I can reassure noble Lords that a lot of careful consideration has gone into the exact wording used in relation to this duty on discoverability. We have consciously designed the new online prominence framework to ensure that it strikes the right balance between ensuring that important public service content is easy to find online and ensuring that regulation is operable and proportionate.
As I made clear on Second Reading, there is a reason why we chose to use “appropriate”—it is a well understood term that has been delivering effective prominence for our public service broadcasters in relation to linear broadcasting for two decades now. It is the term used in the Communications Act so is understood in this context, even if etymologically—lexicographically—we may continue the debate. We remain of the view that “appropriate” is the right descriptor for prominence and that any amendments to the drafting—including removing “appropriate” or changing it to “significant”—could have unintended consequences for the overall user experience. It is not the intention of the new framework to restrict innovation or undermine customer choice or personalisation, for instance.
Baroness Thornton (Lab)
I agree with what the noble Lord, Lord Lansley, said about the group being “miscellaneous”. It suggests it is a bit of a hotchpotch when, in fact, the noble Lord has already asked some very pertinent questions, which my noble friend’s Amendment 54A asks as well. It intends to probe the Government’s intentions to address digital exclusion relating to access to television. Quite a few of the stakeholders raised this issue with us as we prepared for this Bill; I think they will have done with other noble Lords as well.
The amendment asks the Secretary of State to
“prepare and lay before Parliament a report on the impact on the UK economy of addressing digital exclusion”,
including,
“an assessment of the impact of current and future levels of digital exclusion”
and
“an assessment of the likely costs of delivering a programme to … drive uptake of internet connectivity”—
an issue we have discussed in the House on many occasions—
“and digital devices to support access to television and … provide suitable support for skills development for those who need it in order to access television services”.
If the Bill is about the future and what might happen, we also have to address the fact that there will be millions of our fellow citizens who will not have access in different ways. We need to take account of that and work out how best we can approach it. That is what the amendment is about.
With his Amendment 45, the noble Lord, Lord Lansley, raises issues about how we look to the future to ensure that the Bill is comprehensive and covers the issues that need to be covered when preparing the standards code.
Lord Parkinson of Whitley Bay (Con)
My Lords, “miscellaneous” is certainly one of those words that we use in your Lordships’ House and mean all manner of things by it.
I am grateful to my noble friend Lord Lansley for his Amendment 45, which probes the Bill by seeking to amend the Communications Act 2003 to require Ofcom to consult those interested in news content provided by broadcasters in any format before setting broadcasting standards. As he set out, this aims to reflect the shifts we have seen in recent years towards digital news consumption. However, the Government do not believe it is necessary to make changes such as these to the requirements on Ofcom, which would blur the lines between the regulation of television on the one hand and the regulation of the press on the other. That is because we do not intend to amend the regulation of the press or of broadcast news content.
We are committed to protecting media freedom and the invaluable role of a free press in our society and democracy. As part of this, we are committed to upholding independence of the press and taking steps to preserve the existing system of self-regulation. That is why we are repealing Section 40 of the Crime and Courts Act, and why we acted, through the Online Safety Act, to preserve the ability of readers to access recognised news publishers’ content online. The world of television is naturally different. For almost a century, what we have seen on the small screen has been underpinned by a clear set of broadcasting standards. This is something that UK audiences have come to know and value.
In a sense, this amendment addresses one potential boundary issue: the treatment of news websites, and in particular those run by broadcasters themselves—into which category are they to fall? Our considered view is that, in general, such websites are the digital extension not of television but of newspapers. A number of factors point towards this, not least that they are text-based and, in sharp contrast to teletext, rarely accessed from a television set. Viewed in this way, it is clearly inappropriate to apply the Broadcasting Code to them. I thank my noble friend for his probing amendment, but I hope I have reassured him why we do not need to add it to the Bill.
I thank the noble Lord, Lord Bassam of Brighton, and the noble Baroness, Lady Thornton, for Amendment 54A, and for starting an important debate on digital inclusion as it relates to television. I agree with them that it is essential that access to high-quality television is universal and should not be dependent on having a high level of digital skills. In previous debates on this Bill, we have already discussed the importance of ensuring that nobody is left behind. I hope I was able to reassure noble Lords that the Government have guaranteed the provision of digital terrestrial television until 2034 at least, and that to turn off this technology would require primary legislation. We know that a key benefit of this technology is how easy it is to use, and we will continue to protect the millions of households that rely on it.
Member's explanatory statement
This amendment and my amendment to Clause 28 at page 44, line 13, are minor drafting changes.
“1A In section 393 (general restrictions on disclosure of information), in subsection (6), in paragraph (a), after “137A” insert “, 362AG(7), 362AW”.”Member's explanatory statement
This amendment adds a consequential amendment relating to Clause 28.
Lord Parkinson of Whitley Bay (Con)
My Lords, Clause 31 forms an essential component of our plans to support Channel 4’s long-term sustainability so that the channel remains an important and distinctive part of our broadcasting system for many years to come. It is always a pleasure to hear praise from the Benches opposite for the legacies of the Thatcher Governments.
The publisher-broadcaster restriction, as set out in Section 295 of the Communications Act, is unique to Channel 4 and prevents it from being involved in the making of programmes for the Channel 4 service, except to such an extent as Ofcom may allow. As a result, Channel 4 is significantly more dependent on advertising revenue than other commercial broadcasters—a point that we have touched on, as the noble Lord, Lord Bassam, rightly reminds us, in the debates that we have had on alternative means for securing money for the channel’s long-term sustainability. In particular, two-thirds of Channel 4’s revenue comes from linear television advertising, the market for which is both highly cyclical and in long-term structural decline because of the declining number of people watching linear television.
In response to these challenges, last year the Government announced a package of reforms that would help to support Channel 4’s long-term sustainability while retaining it in public ownership. The removal of the publisher-broadcaster restriction is a key element of that package that will open up opportunities for Channel 4 to further diversify its revenues away from advertising by making its own programmes, should it choose to do so. The Government undertook an assessment of the impact of that and published it on GOV.UK. We will happily direct the noble Lord and others to that so that they can see the assessment that we set out when bringing the package of mitigations forward.
I understand the concerns set out by the two noble Baronesses about how the change might affect Channel 4’s support for the independent production sector across the UK, which were also raised when this issue was discussed in the other place, and we touched on it in our first group of amendments today. That is why, when we announced our intention to remove the restriction, we were clear that we would work closely with the production sector to ensure that Channel 4’s important role of driving investment into the sector would be safeguarded. The outcome of that work was a substantial package of mitigations that we announced in November, some of which, such as the introduction of new Channel 4 commissioning duties and an Ofcom-led review, are included in the Bill. Those mitigations, which also include increasing the level of Channel 4’s independent production quota, will be implemented in the event that Channel 4 incorporates a production company.
Channel 4 itself has welcomed the removal of the restriction and has said that in-house production could offer good long-term support for financial sustainability, while reaffirming its commitment to continue to invest in and champion independent producers, as it has done for the last 40 years. Ultimately, a stronger and more resilient Channel 4 will be best placed to continue playing its integral role in our broadcasting ecosystem for many years to come. By contrast, failing to remove Channel 4’s publisher-broadcaster restriction would mean passing up an opportunity to help it to deliver on that important ambition. That is why Clause 31 is an important clause and should stand part of the Bill.
Lord Bassam of Brighton (Lab)
What sort of costs does the Minister anticipate the channel will face in setting up its own production company? Has any estimate been made of that? What discussions have the Government had with the company to ensure that it can secure that in the most cost-efficient way?
Lord Parkinson of Whitley Bay (Con)
I have no estimate of my own, but I will happily find out and provide the noble Lord with any estimates that have been made.
“21A In section 39 (interpretation of Part 1), in subsection (1), in the definition of “S4C” and “S4C Digital”—(a) omit ““S4C” and”; and(b) omit “each”.”Member's explanatory statement
This amendment and my amendment to Schedule 4 at page 134, line 18, add consequential amendments relating to Chapter 2 of Part 3.
Baroness Thornton (Lab)
My Lords, Amendments 67 and 69 are in my name on the Marshalled List. Amendment 67 would add signposting measures to the audience protection measures which Ofcom must review under new Section 368OB of the Communications Act 2003. Amendment 69, in common with the amendments that have already been spoken to, would require Ofcom to consider whether age-rating systems used by a tier 1 service meet a set of minimum standards.
My amendments are very similar to those tabled by the noble Lord, Lord Storey, and the noble Baroness, Lady Benjamin. The key to our amendments and those of the noble Lord, Lord Bethell, is the need for us to be consistent in the way that we deal with children and age rating, so that systems are easily understood by parents and fulfil the standards that we have in this country about child protection, wherever it is. The Minister will be aware of all this, since he lived through the Bill that is now on the statute book as the Online Safety Act.
I was slightly surprised when I received a briefing which was signed by many of the stakeholders in this area—a number of companies, but it also included the PSBs. It made an argument against the three sets of amendments that have been put down. I was rather struck by this—I think they were a bit naughty in this briefing, in my view. For example, they included the public service broadcasters, which are not affected by this; this is absolutely not relevant to them. I would like the Minister to confirm that that is absolutely the case: this is not about their content at all.
The briefing also makes various statements about the commitment that many of the companies have to collaborating with Ofcom during the passage of the Bill, but that they want to take into consideration “audience research Ofcom conducts”. If it is the case that these companies are all committed to this then I can think of no reason why they would object to the minimum standards that we have put in our amendments being in the Bill. We are not saying that they should necessarily adopt the BBFC standards; what we are saying is that they need to show that their age ratings are comprehensive, understandable and sensible.
Some of these big beasts, if I might call them that, which have objected to this are doing it because they are big beasts. Frankly, I am unimpressed by that. We know, for example, that the same thing happened when New Zealand was dealing with this issue. But guess what? They are all complying with minimum standards there and it does not seem to have been a problem. If they can do it in New Zealand, I cannot see any reason why we would not be able to do it in this country.
Lord Parkinson of Whitley Bay (Con)
My Lords, I am in complete agreement with the noble Lords who have spoken about the need to protect children and vulnerable audiences from the harmful and inappropriate video on demand content to which they might be exposed. We are aware of the strength of feeling in your Lordships’ House and elsewhere on the need to ensure that the protection measures used by on-demand services are robust, and that providers are rightly held to a high standard when delivering them.
This is a key issue that the Bill will address by bringing mainstream, TV-like on-demand services in scope of a new video on demand code. The code will be drafted and enforced by Ofcom, which has a long track record of regulating broadcast television to ensure that it is age-appropriate and protects the most vulnerable. Ofcom will also be required to conduct reviews of the audience protection measures being taken by all on-demand services, whether or not they are subject to the new code. I can reassure noble Lords that the concerns raised today are already well covered by the Bill as drafted. Ofcom will be given extensive powers to set standards, assess video on demand services’ audience protection measures, and take action that it considers appropriate. If audiences are concerned, they can complain to Ofcom and the regulator can, in the most serious cases, apply sanctions, such as financial penalties, or even restrict access to that service in the UK.
Amendment 67 would add
“information about where viewers can seek help and further resources if they have been affected by content”
to the non-exhaustive list set out in new Section 368OB(4), a subsection which provides examples of audience protection measures. I agree that signposting audiences in this way is an important measure that all services should consider using where appropriate. I am pleased to say that many already do. However, the Bill already fully enables Ofcom to review or provide guidance on any such measures. The Bill, as drafted, purposely provides only a non-exhaustive list of measures that Ofcom can consider. As a result, it enables Ofcom to take into account anything it considers appropriate, which can of course include signposting.
Amendments 57 and 69 look to set specific standards for services that use age ratings—namely, that age ratings are consistent, recognised by UK audiences, based on transparent standards and
“informed by regular consultation with the … public”.
Let me be clear: the Bill already gives Ofcom the power to set these standards, and others, through its new video on demand code. It will rightly do that through consultation with audiences, providers and interested organisations such as the British Board of Film Classification. Ofcom must keep those rules under constant review, so that they can be adapted to take into account changes in audience expectation and technological change. In our view, the important thing is to ensure that effective protection is in place, rather than necessarily specifying as a matter of statute that systems have to be provided in a certain way or by any single or specific organisation.
Amendments 61 to 66 take this quite a few steps further by proposing an Ofcom certification scheme for those services which want to use age ratings but choose not to use the BBFC’s system. My concern is not only that this puts another responsibility on Ofcom but that it could actively discourage providers from using age ratings at all to avoid the need to get such measures certified.
I appreciate, as my noble friend Lord Bethell set out, that he has updated his amendment following dialogue with a number of companies to provide a new option for existing linear broadcasters: reliance on the Broadcasting Code when age-rating their content. This creates challenges of its own, given that the Broadcasting Code contains very little information on age ratings as they are rarely used on linear television. It is also unclear why, if the aim is for a consistent set of standards, some tier 1 providers should be treated differently from others in this way.
Finally, Amendment 60 places an obligation on Ofcom to consult the BBFC every time Ofcom considers a revision of the video on demand code. Such an obligation would be unnecessary and potentially inappropriate. While the BBFC has some interest in the issue of age classification, the scope of this amendment would include areas where it has little or no expertise—to give a topical example, it would include due impartiality in news. I reassure noble Lords that Ofcom is already obliged to consult widely with appropriate organisations. We are satisfied that Ofcom and the BBFC already have regular conversations on a number of issues.
“(2) In section 393 of that Act (general restrictions on disclosure of information), in subsection (6), after paragraph (aa) insert—“(ab) limits the information that may be published by OFCOM under section 368OB;”Member’s explanatory statement
This amendment adds a consequential amendment relating to Clause 38.