Media Bill

Baroness Humphreys Excerpts

Committee stage
Monday 20th May 2024 Lords Chamber

[The Lord Bishop of Newcastle]

My Lords, I rise to speak to Amendments 16 and 17, tabled by the noble Baroness, Lady Fraser of Craigmaddie, to which I am pleased to have added my name in support.

Our country is one of diversity. The four nations that make up the UK include many regions, each with its own culture, sense of humour, accent, concerns and interests. As public service broadcasters are owned by the whole of the UK public, it is important that they truly reflect the public they serve in all their regional diversity.

I regrettably could not be present for the first day in Committee to support the amendments from the noble Lord, Lord Dunlop, seeking to ensure that our PSBs reflect the diversity of this nation through the protection of Gaelic broadcasting, which is part of the wider landscape that these amendments speak to. I hope that I will be present to express my support on Report.

With Channel 4’s current quotas, 91% of its production is reserved for England and 65% for London. Its London-centric attitude to production is confirmed through its claim that

“the UK production sector continues to be significantly smaller outside London … there are fewer production companies, often smaller in scale, and therefore with less capacity to develop creative ideas and produce them”.

Along with independent production companies across the country, I dispute this. The BBC has not faced difficulties adhering to its higher regional quotas, and indeed demonstrates that significantly expanding production networks outside London is possible and yields positive results that attract interest and further investment.

Ensuring support for the creative sector outside London requires intentionality. New and smaller production companies cannot grow without regular and sustained employment. Implementing quotas would ensure that these businesses receive regular income in the longer term, allowing them to grow while nurturing local talent and skills.

As the noble Baroness, Lady Fraser, outlined in her excellent speech, quotas work. The BBC now aims for 60% of its TV production to take place outside London by 2027-28, and its production bases in cities throughout the country demonstrate how the industry is capable of diversifying its production locations, employing staff from local economies. These amendments would simply place the same quotas on other public service broadcasters.

In March the Government confirmed funding towards the development of Crown Works Studios in Sunderland—a very welcome investment. The potential for the north-east in this sector is at last gaining recognition. It should be partnered with legislation to ensure that studios outside London, such as Crown Works, are fully utilised by public service broadcasters. With Northumbria University ranking second in the Guardian’s latest university league table for film production, our region is not lacking in talented, skilled and creative minds in this sector; what is lacking is opportunity. Those who want to pursue a career in broadcasting are being pulled away from the region to London, taking their skills with them. Those who remain in the region face a lack of opportunity. For many, their talent and potential are left unfulfilled. These amendments seek to change this narrative.

By placing a requirement on Ofcom to ensure that PSBs produce 50% of their programmes outside London and 16% outside England, in proportion to each UK nation’s relative population and measured by both hours broadcast and expenditure, these amendments would equitably spread opportunity across the country’s regions. The different regions and nations throughout the UK are rich in creative skills, and we are all left poorer if we continue to neglect them.

[Baroness Humphreys (LD)]

My Lords, this group of amendments is of great importance to the independent television production sector in Wales. Amendments 16 and 17 relate to how much commissioning is done outside of London by channels 3, 4 and 5. Amendment 54 relates to the issue of brass plating. I thank the noble Baroness, Lady Fraser of Craigmaddie, and the noble Lord, Lord Wigley, for tabling these amendments. I have added my name to Amendment 54 and support all three amendments, as do my colleagues on these Benches.

Teledwyr Annibynnol Cymru represents the independent sector of Wales and is made up of some 50 companies of varying sizes. They produce content for BBC, ITV, Channel 4, Channel 5 and Sky. They also produce almost all the original television and online media content for S4C. Their continued success helps the Welsh and UK economies. They do, however, rely on the continued support of our UK public service broadcasters, including Channel 4, which has brought greater resource to working with TV production companies throughout the UK in recent years. Over the last five years, the resource from Channel 4 has never fallen below 54% in the commissioning of out of London hours, and never below 45% in spend. Channel 4 has committed to a future level of 50% of spend and hours outside of London against the 35% requirement in its licence, and has created hubs throughout the UK to enable this. There is nothing to indicate that it will deviate from this commitment.

I can understand the disappointment felt by many in the sector who have learned that Ofcom has not opted to raise the out-of-London quota from its present level of 35% in its proposed new licence for Channel 4. It appears that Ofcom perhaps does not recognise that Channel 4 has changed its commissioning structure and approach. This failure to recognise the reality of Channel 4’s current out-of-London commissioning commitments leaves the independent television production sector in Wales in a quandary. It believes that the 35% quota level set by Ofcom is not fit for purpose.

The reality is that Channel 4 has, over the last five years, achieved a level of out-of-London hours commissioned of between 54% and 66%. To retain the 35% level within the new licence is very much in direct contrast to the current reality. Amendments 16 and 17 would put a commitment in the Bill to the 50% figure for hours and spend by Channel 4.

Amendment 54, in the name of the noble Lord, Lord Wigley, deals with brass plating and calls for a new clause to be inserted after Clause 36. This new clause would protect Wales’s production companies. These companies are set up by local production and business talent, have their headquarters in Wales, employ locally and spend in their communities. However, the present situation allows a TV company from outside Wales, or any of the devolved nations, to establish a small satellite presence in the nation in order to win a network PSB commission and qualify for the out-of-London commissioning quota. This, of course, is what is referred to as brass plating.

Welsh independent production companies acknowledge that the aim of the present system is to grow production services around the UK and that, in so doing, it seeks to ensure that a wide range of voices, stories, talent and perspective is delivered to UK audiences. But there are concerns within the sector in Wales that brass-plating has a number of downsides, which have already been referred to by the noble Lord, Lord Wigley. First, the profits from the production flow back out of Wales, leading to less investment in the sector in Wales. Secondly, talent ends up being recruited from outside Wales, limiting the opportunities for Welsh production talent to work on UK-wide and international shows. Thirdly, in some cases, the programme will have less of a Welsh identity or even make factual errors.

Amendment 54 ensures that there are clearer guidelines as to what constitutes a substantive base in a devolved nation, that there is a commitment by a production company to remain in the nation for a specified amount of time and whether a production company has had a presence in the nation for at least 36 months. The independent television production sector in Wales is clear that these amendments are not a deterrent to inward investment. That inward investment is welcome, but on its present basis it encourages a hit-and-run approach by companies from outside Wales and puts Welsh independent production at a disadvantage.

Taken together, these amendments seek to regularise how much commissioning is done outside London and seek to create a more level playing field for those independent production companies operating in the devolved nations.

S4C

Baroness Humphreys Excerpts

Thursday 8th February 2024 Lords Chamber

[Lord Parkinson of Whitley Bay (Con)]

Serious concerns have been raised, including in the report from Capital Law, which the noble Lord mentions. It is clear that a significant amount of work is now required to rebuild trust in and at the channel. All members of the board of S4C are required to comply with the code of conduct for board members of public bodies, as well as the seven Nolan principles of public life. We are very clear about that expectation, and on the need for the channel to act under its new leadership on the concerns which have been raised.

[Baroness Humphreys (LD)]

My Lords, the Secretary of State for Wales has explained that he has to take an arms-length approach to HR issues at S4C, as we appointed the board. If the relationship between the chair, CEO and senior management becomes toxic again in the future, who would actually have the power to intervene?

[Lord Parkinson of Whitley Bay (Con)]

Like all public service broadcasters, S4C is independent of the Government, but as its sponsor department, DCMS regularly engages with the channel on a range of issues, including governance, as it has done since these allegations were first made. It is right that the board has said that it intends to address the concerns which have been raised, and we expect it to do so as a matter of priority.