Public Service Broadcasting (Communications and Digital Committee Report)

Lord McNally Excerpts

Thursday 27th May 2021 Lords Chamber

[Lord McNally (LD)]

My Lords, I first welcome the noble Baroness, Lady Merron, to the Front Bench; I hope that she has a very long stay. I am just passing through, but it was a great pleasure to hear what she had to say. I take this opportunity to pay tribute to Jimmy Gordon, Lord Gordon of Strathblane, who sadly died during the Covid crisis.

However, my first duty is to congratulate the noble Lord, Lord Gilbert, and the members of his Select Committee, including the noble Viscount, Lord Colville, my noble friend Lady Grender and the noble Baroness, Lady Kidron, who spoke today. Although delayed in coming before the House, as the noble Lord, Lord Liddle, pointed out, the report has proved to be most timely.

Our debate takes place in the shadow of, and the fallout from, Lord Dyson’s report into the methods used by Martin Bashir to obtain his interview with Princess Diana in 1995 and the failure of the BBC to investigate promptly and properly concerns about those methods. To borrow from Shakespeare, what has been revealed were grievous faults, and grievously has the BBC’s reputation suffered as a consequence.

We now of course have a feeding frenzy, calling for radical reform of the BBC. It is often led by financial and political vested interests that have long wanted to see the BBC underfunded and marginalised. Perhaps the only genuine link between today’s debate and Lord Dyson’s report on the errors and misdeeds of 25 years ago is Prince William’s observation that:

“In an era of fake news, public service broadcasting and a free press have never been more important.”


As the noble Lord, Lord Davies of Brixton, pointed out, before rushing to yet another round of governance reform in response to events of 25 years ago, let us remember that the BBC’s new chairman, Richard Sharp, and new director-general, Tim Davie, were both appointed by this Government quite recently. They will work to a governance structure again created only recently by this Conservative Government. This recently introduced governance provides for the BBC a unitary board to run the institution, but with Ofcom as a wholly external regulator, ensuring that the BBC is held to its charter and agreement obligations.

As recently as 18 March, the noble Baroness, Lady Barran, in response to a question of mine, said:

“The Government have been very clear about the value of the BBC, particularly in the pandemic, during which it has served to educate, inspire, inform and act as a crucial and reliable source of news.”—[Official Report, 18/3/21; col. 437.]


Lord Reith could not have put it better.

The pandemic has conclusively demonstrated the importance of having well-funded sources of education, information and entertainment freely available to every household in the UK. Of course, there has been an explosion of choice from the subscription streaming services, which has been a welcome distraction for many of us. However, these are all US-based, cost money, do not offer news and analysis and do not reflect British culture or the nations and regions of the UK.

The PSBs are key to the framework that sustains British culture, exports it abroad and helps to ensure that the soft power the UK has exerted around the world for decades is still potent today. Despite the overwhelming financial muscle of the subscription video on demand services, thanks to the multibillion-dollar corporations and American hedge funds behind them, the UK still punches well above its weight in the audio-visual export market. The vast majority of that comes from PSB investment. It is the interactive nature of the ecology delivered by the PSBs that brings the cultural and economic benefits to the UK.

Just before Christmas, Ofcom published its consultation on the future of PSBs. The Ofcom headline was that the UK media sector is a success story, with public service broadcasting at its core. Lest it be thought that I am concerned only with the BBC, let me point out that ITV plays an important part in that success.

It was a stroke of genius by the Conservative Government to create ITV as a regional confederation in 1955. I was born in the north-west and I still think of myself as coming from “Granada land”. The late Lord Bernstein brought to Granada an ethos and a regional identity which is still reflected in ITV today, and ITN remains a worthy competitor to the BBC, Sky News and Channel 4 News. While talking of Channel 4, I entirely endorse the very powerful speech given by the noble Lord, Lord Holmes. To even consider the privatisation of Channel 4 would be an act of ideological vandalism.

The report we are debating reminds us of the value of PSBs, and we should embrace it in its entirety. However, there are two particular recommendations I commend to the House. First, the recommendation for an independent and transparent process for setting the licence fee is urgent. Even as we speak, the BBC is negotiating behind closed doors with the Government for a licence fee settlement from April next year. There is no transparency, and the Government have not been slow to show their teeth over the last few days. The committee recommended that the Government

“should establish an independent body … the BBC Funding Commission, to oversee the process for setting the licence fee”.

It also stated explicitly:

“In the current competitive and fast-moving environment the BBC needs to be properly funded.”


That funding commission would consult and make recommendations to the Secretary of State. The Government should demonstrate their commitment to transparency by setting up such a commission immediately.

Secondly, there have been increasingly urgent calls, including from Ofcom, to update the prominence regime so that PSB can be found easily across all platforms by consumers. As the report states,

“the current regime is centred on linear TV, which will increasingly devalue over time”

and the prominence regime must be

“updated for the digital age to reflect new ways of accessing content.”

This legislation cannot wait, and there is no reason why this could not be put into the online safety Bill to ensure its safe passage.

I hope that the Government will use this report and the recommendations it contains as a road map in plotting the way ahead on PSB. My noble friend Lord Wallace and others talked about the dangers of deregulation. In a debate in this House on 25 March 2003, speaking from these Benches on the Second Reading of the then Communications Bill, I quoted the distinguished American broadcaster, Ted Koppel, speaking about the Reagan Administration’s deregulation of American broadcasting in 1987. He said:

“We are ripping down those institutions, large and small, within which democratic culture was intended to be undertaken. Institutions that once destroyed, amidst the whimsical destructiveness of the market, will be extraordinarily difficult to reconstitute”.—[Official Report, 25/3/03; col. 669.]


That is a warning from the past, but it is a warning about the future. That is the crossroads at which we now stand. The members of this committee will be able to look back with pride on the work they have done. Let us hope that the Prime Minister and his Government will be able to look back with similar pride on the decisions they are about to make on the future of a media ecology which has been essential in determining how we speak to each other and how we speak to the world.