Channel 4: Privatisation

Lord Gordon of Strathblane Excerpts

Wednesday 3rd February 2016 Lords Chamber

[Lord Gordon of Strathblane (Lab)]

Does the Minister agree that, operationally, Channel 4 is already in the private sector in that it raises money through advertising, and it cannot do that unless it is successful in attracting an audience for its programmes? Privatisation would simply face it with the obligation of funding that privatisation through either bank interest or dividends to shareholders, all of which is money that could have been spent on programming. That is therefore undesirable.

[Baroness Neville-Rolfe]

We are looking at all the options. Of course, government is a sole shareholder, and the channel gets 90% of its revenue from advertising, as has been suggested. Its revenues are £930 million and last year it made a profit of less than £5 million.