Media Bill

Lord Mendoza Excerpts

2nd reading
Wednesday 28th February 2024 Lords Chamber

[Lord Mendoza (Con)]

My Lords, it is a pleasure to follow the right reverend Prelate the Bishop of Newcastle. I draw attention to my registered interests, in particular having recently stood down as commissioner for culture at DCMS, where I had the great joy of working closely with my noble friend the Minister. I remain there as an expert adviser to the film and TV production restart scheme and chairman of the department’s culture and heritage capital initiative.

I might take a slightly different approach. I welcome the Bill hugely, but I hope that in Committee we achieve a careful balance to avoid overregulation and complexity—we do love regulation. It is quite frightening standing in front of my noble friend, the chairman of Ofcom, while I talk about this, but I hope he will poke me in the back if I say something wrong.

This creative industry is dominated by successful businesses that are international and mobile. The change in technology over the last two decades has been massive, as has been pointed out many times. This is largely down to an immense amount of research and development, and huge capital investment. One of my favourite examples is when I lived in New York in 2000, I used the Netflix postal DVD delivery service. At that point, when it ran out of money, it proposed selling itself for $50 million to Blockbuster, a video-rental store chain. When I looked yesterday, Netflix is capitalised at $250 billion—which, for scale, is three times the value of BP—and Blockbuster is now one nostalgia shop in Bend, Oregon.

Technology will probably continue to move at an even faster pace, as the noble Lord, Lord Russell, mentioned, and keeping up with the regulation from our side will be a non-trivial task. I imagine, in the next year or so, noble Lords will be standing in their drawing rooms and they will say, “Show me some thrillers in German”, or “Bring me some cricket”, and up it will come, totally bypassing any EPG. Even though we can mandate for prominence, it is going to be very hard to achieve any effect with prominence in the future.

Viewer habits are changing. Generation Z, for example, spend 50% of their viewing time on short films on Instagram, X or TikTok. The other day I asked YouTube how many people in the UK can make a living with a YouTube channel. It is an extraordinary number: this may not be completely accurate, but from memory it was 75,000 people—that is a lot of channels.

Of course, there are some fantastic parts of the Bill, and I commend DCMS, the Ministers and the officials who have seen the Bill through multiple iterations over that period. I thank particularly one official, Victoria MacCallum, whom I know very well, who led the team which did this work. The other place had a good debate, and the work of the Culture, Media and Sport Committee has secured great improvement to the Bill. I also, oddly, in the context of the business side, support the Clause 28 amendment, proposed by my right honourable friend the Member for Maldon, to protect smaller businesses by bringing local TV and any future public service channels within the prominence framework, and that is something we might consider in Committee.

I welcome the revision of Channel 4’s remit; it is essential if Channel 4 is to survive, thrive and be sustainable. The idea that it can get involved in its own production and own IP, and begin to build a library of value, is a good thing, but it will not be easy for it, as we are seeing in today’s advertising market.

When considering the regulatory clauses in Committee, I would like us to think about trying to balance regulation with maintaining this thriving economic sector. We should be proud that the Amazons, Netflixes and Apples of this world invest so much in this country. We have all had the notes and, in a way, I have some sympathy with the streamers when they point out tricky features, such as trying to maintain impartiality when you have a giant catalogue of thousands of titles that have been around for a number of years. Something that was impartial 10 years ago may be partial today, and that will be hard for them to maintain. They also make the point, and it is something we should discuss, that the tiering system may not be ideal and we may want to regulate all providers, not just have poor Ofcom decide who is in tier 1 and who is not, at any point.

This is a very significant sector. We are debating broadcast regulation but there is a correlation between local production spend and, for example, the reported Netflix production spend of $1.5 billion a year here. All these companies, including Amazon and Apple, make stuff here. The size of the creative industries in this country is £126 billion of GVA, as we saw in the McKinsey report of late 2023. To give that some context, that is three-quarters of the size of the financial services sector. This is an important and rapidly growing sector, with 2.5 million jobs in it; hence the Treasury saying that this sector is one of the great five economic sectors for growth for this country. We protected it well during Covid, and I should namecheck the outstanding Film and TV Production Restart Scheme, which made sure that production could happen all the way through Covid.

These companies move their investment very quickly; many other countries would also like to host those businesses and their production. In my view, we have to have three conditions in this country for them to stay here. We need a highly skilled and experienced workforce—which we have; that is necessary but not sufficient. We need a good exchange rate; we have very little control over that, but it drives business—particularly this business. We have a very sophisticated tax relief system which has been developed over many years; £1.7 billion of tax relief went to the creative industries in 2021-22, and that is an essential component of this business.

I am trying to get across that we are lucky to host this huge sector. I hope my noble friend the Minister agrees that we have to make sure that this finely balanced environment does not become less attractive through onerous and costly regulation.

BBC Funding

Lord Mendoza Excerpts

Tuesday 12th December 2023 Lords Chamber

[Lord Parkinson of Whitley Bay (Con)]

I do not agree that providing the BBC with more than £3.8 billion is undermining it. That is a large amount of money for the BBC to do its important work. The noble Lord is right to draw attention to the work of your Lordships’ Communications and Digital Committee. I know that my noble friend Lady Stowell of Beeston would have liked to be here for this exchange, but the committee is on an external visit today. We will, of course, engage with her and the ideas and work of the committee. As I say, the future funding review will look at such matters as we weigh all that up and make decisions about the best way to provide the BBC with the sustainable income it needs.

[Lord Mendoza (Con)]

My Lords, the BBC is a thriving part of a much wider creative industries sector. That sector has transformed in recent years and continues to transform. The McKinsey report on the arts sector, which came out last month, described the creative industries as now having reached a £126 billion contribution to GVA, which is exactly equivalent to the entire construction sector, with 2.5 million jobs. This is the universe in which the BBC is now swimming. The expert panel will be looking at a funding model, but is it not slightly strange to have a funding model in search of a strategy? Should not that expert panel also consider what we want the BBC to provide as a public service broadcaster, whether on news—local, regional and international—education, children’s programming and so on? I hope that the expert panel will think more on that as well, so that we do not just have £3.8 billion looking for something to do.

[Lord Parkinson of Whitley Bay (Con)]

My noble friend is right to draw your Lordships’ attention to the excellent report done by McKinsey and published recently, which highlights the successes of our creative industries. They were growing nearly twice as quickly as the rest of the economy before the pandemic. As he knows, the Government are determined, through our Creative Industries Sector Vision, to continue to help the sector grow and thrive. He is also right that the BBC and our other public service broadcasters play an important role in the success of the creative industries. That is why, as I have said, we want to take that into account as we look at the best way to fund the BBC in the decades to come. We want the BBC to continue to succeed as a public service broadcaster long into the future, providing high-quality public service content and supporting our thriving and growing creative industries.

Levelling-up and Regeneration Bill

Lord Mendoza Excerpts

Report stage
Wednesday 6th September 2023 Lords Chamber

We need change. I am not talking—and I do not think anyone is—about stopping buildings that should be knocked down being knocked down, such as farm buildings. What we are asking for, and what the amendment tries to do, is to make sure that, before a building is destroyed, someone has given it some thought and decided whether it should be destroyed. This could be done through the planning process or in any number of different ways, but it should not be up to one person, driven by economic benefit to themselves, to take the decision to destroy something that has a value in a community. That is what we are asking for: a decision should be taken, rather than there being no decision and letting chaos reign.

[Lord Mendoza (Con)]

My Lords, I declare my interests as set out in the register as the new chairman of Historic England and as provost of Oriel College, Oxford, which is in the middle of applying for enormous amounts of planning permission and listed building consent to do a great deal of work. I thank noble Lords for their good wishes, particularly the noble Baroness, Lady Andrews, as a former chair of the commission when it was known as English Heritage.

I did not speak in Committee so I will keep my remarks brief. On Amendment 202A, building preservation notices are used relatively sparingly, as I understand it, but they are a powerful tool to protect against damage and destruction of local heritage, particularly when the building itself could be listed. They are almost like an immediate but temporary listing in order to give the local planning authority some time to sort it out.

I hope that the addition of this clause will allow local planning authorities to continue to consult Historic England so that this tool will not be used vexatiously or overzealously but will be used where it is absolutely necessary. I am grateful to the noble Earl, Lord Lytton, for pointing that out. Dialogue with local planning authorities is something that Historic England does a great deal of.

In terms of the amendment that my noble friends Lord Northbrook and Lord Bellingham spoke about, there is already a great deal of engagement between Historic England and local planning authorities. They already pay a lot of attention to the advice that Historic England publishes. However, my understanding from much of this debate is that there is even more that we can do. I am very happy for Historic England to work with officials at the department to ensure that we can do more to help local planning authorities make the right decisions and be acquainted with all the published advice that they need to be aware of.

On a happier note, the Minister’s amendment to allow the blue plaque scheme to be extended throughout England is a wonderful and very simple amendment. I hope that it goes through. It is a fantastic scheme run excellently, so far, by English Heritage, as the Minister said, for 150 years. As he said, there are plenty of other schemes around the country from place to place, but they are not consistent. So, would it not be wonderful if we had a consistent scheme, judged by the same criteria, allowing members of the public to nominate people they care about in the places that they love to allow deeper involvement in the heritage and history of our country? I think that from 2024 people will be able to nominate in their areas to encourage a greater connection to place, which we know is so important. It has been described here. The “Crooked House” is a fantastic example of a building that was not listed—it was being considered for listing—but meant so much to so many. That is not unusual. People really care about the heritage of their places.

I will briefly pay tribute to Sir Laurie Magnus, who chaired Historic England for a decade, going beyond his allotted two terms because of Covid. He chaired the organisation in an exemplary fashion, with his customary passion, verve, brio, courteousness and deep care and attention to the heritage of England. I know we are all very grateful to Sir Laurie. He has obviously now gone on to much more glamorous things as the Prime Minister’s Independent Adviser on Ministers’ Interests. Of course, we wish him well with that very serious task. I thank noble Lords, and I will now sit down and be quiet.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I will briefly comment on two of the amendments. First, the noble Baroness, Lady Andrews, introduced Amendment 204A so powerfully. I share others’ strong preference for this amendment, rather than the weaker Amendment 204B.

I want to emphasise the point made by the noble Baroness, Lady Andrews, about embodied carbon. These structures that were built in the past are there for us. Knocking them down and building something again has environmental costs, which we have to start to take seriously. Along that line, I want to pick up a phrase used by the noble Earl, Lord Lytton. He spoke about how we might want to knock things down and replace them with tidier looking buildings. I ask your Lordships’ House to think very carefully about the word “tidy” because heritage and history is seldom tidy, just as nature is not tidy. Straight lines and very even frameworks—the idea that tidiness is a virtue—has done enormous amounts of damage. It is something we really need to challenge. With a lack of tidiness, there may well be character, diversity and reality rather than something new and artificial.

My second point is to commend government Amendment 271A on the extension of blue plaques. I take this opportunity to invite the Minister to comment from the Dispatch Box and reflect on the fact that currently in Greater London only 14% of blue plaques commemorate the lives and contributions of women. I looked into this to see whether I could get a plaque for Moll Cutpurse or Bathsua Makin. Unfortunately, the buildings with which they were associated do not survive. However, will the Minister take this opportunity from the Dispatch Box to reflect on the need to ensure the encouragement of women and greater diversity in the lives which are commemorated?

Arts Council England: Regional Distribution of Funding

Lord Mendoza Excerpts

Thursday 15th December 2022 Lords Chamber

[Lord Mendoza (Con)]

My Lords, I declare my interests as in the register but, to give a little more detail, I have been an adviser at DCMS for the last six years. I started as a non-executive director and am now the commissioner for culture. I sit on a whole variety of different boards, panels and committees, and meet regularly with arm’s-length bodies, including the Arts Council. I should also add that I am on the board of the Ashmolean Museum at the University of Oxford, which is an Arts Council NPO.

I am very grateful to the noble Lord, Lord McNally, for securing this debate and to the noble Lord, Lord Storey, for setting out the argument so clearly. We had an excellent debate on this subject last week, which I read in Hansard. An enormous amount was covered, and it was very clear that everybody felt equally about the importance of culture, the enormous amount of talent and skills that we have in this country and how vital it is for the Government to intervene and have policies that take care of it.

In fact, it was only a few years ago, in 2016, that my noble friend Lord Vaizey launched the culture White Paper, which covered this really clearly. It covered all the different areas that government can get involved with, including looking after culture for its intrinsic value, beauty and joy and the excellence that it can bring to people around the country. It also looked at the power that culture has, as the noble Lord, Lord Storey, said, to improve the economy of places and society’s health and well-being, as well as its importance in soft power and so on. I am very pleased that we are having a similar debate today; in fact, I hope that we will continue to have this debate.

One important example of cultural policy—cultural intervention, if you like—is Arts Council England’s national portfolio organisation round, which is the first one we have had for five years because the scheme was interrupted by Covid. I too welcome this policy. Of course, noble Lords will not like every single one of Arts Council England’s 1,700 decisions—there was a record number of applicants this time round—but, in my view, it has succeeded in coming up with an excellent portfolio.

I visit a lot of cultural organisations around the country. Wherever I go, I am normally joined by someone from one of our arm’s-length bodies. In every case, whether they are from Arts Council England, Historic England or the National Lottery Heritage Fund, they have such deep expertise and knowledge of towns, places, politics and cultural structure that I am often amazed. This portfolio was constructed by region and area councils, using a lot of information from applicants with deep local knowledge, and was ultimately approved by Arts Council England’s national council, on which my noble friend Lady Fleet sits. So it is very much a collective decision.

I am pleased with the portfolio, which includes quite a lot of vitality in the sense that it includes 276 new organisations for the very first time. London remains the biggest region funded by Arts Council England, but its funding outside London has increased by 22%, which is the general direction of travel that it has been moving in for some time. People often think that Arts Council England funds only the performing arts, but the range of organisations that it funds is much wider. It includes museums, literature, some heritage and so on; there is a lot of other material in there.

Some of my favourite organisations in this round include Mind the Gap, a wonderful organisation in Bradford—it is probably the leading one in the UK—that helps learning-disabled children in performance and the arts. It is an incredible organisation; its grant was increased by 25%. I am also a big fan of museums. A number of museums were in the portfolio for the first time, including Blackburn Museum and Art Gallery, Bradford Museums and Galleries and Rotherham Museum. Tyne & Wear Archives & Museums is a stalwart and is now the biggest museum NPO in the country. Another one of my favourites, to give noble Lords an idea of the variety here, is the North Yorkshire Moors Railway—also a new entrant in this round. It is an organisation responsible for 1,000 jobs, 1,000 volunteers and 300,000 visitors.

So, in my view, we have a very good portfolio. However, Arts Council NPO status is not a necessary condition for success. Last week, the Minister referred to the Culture Recovery Fund, through which we were able to award grants to more than 5,000 organisations—clearly many more than even applied to Arts Council England. There is a massive arts and culture economy out there and not all of it requires Arts Council NPO backing. Also, the portfolio will change again next time. In many ways, it is good that the portfolio changes and that organisations both come in and leave. It is an indicator of vitality and life, and an indicator that Arts Council England is alive to investing in new places, new areas and new people.

I want to explain to noble Lords that Arts Council England NPO funding is not the only cultural intervention that arm’s-length bodies—or government, for that matter—make. Over the past few years, since I have been at DCMS, there have been many extraordinary initiatives and projects that continue to help the Government invest in the cultural sector, which they see as extremely important, from some smaller interventions to larger ones.

For example, the noble Lord, Lord Storey, referred to the European Capital of Culture. Our City of Culture programme is really successful. We have had Hull in recent years, Coventry has just finished and we are looking forward to Bradford in 2025. It looks as if there has been almost £700 million in investment into Hull over the last few years, partly as a result of that, and £173 million has gone into Coventry directly as a result of City of Culture. We know that, as the noble Lord said, in Liverpool it was the booster, the rocket that went under it. It is no accident that the Liverpool cultural sector represents 50% of the revenues into that city. I regularly meet the cultural director there, Claire McColgan, and organisations such as the Everyman, the Liverpool Phil, National Museums Liverpool and Liverpool Cathedral. It all comes together to make the place an incredibly lively whole.

We have also had the cultural investment fund, a £250 million manifesto commitment. We are halfway through giving out a number of grants, and in a recent round we gave out funds from DCMS for culture-related projects in Barnsley, Berwick-upon-Tweed, Stockport, Torbay, Middlesbrough and the Isle of Wight. I am trying to give noble Lords an impression of the other things going on in this area, levelling up the country and introducing regional fairness to cultural intervention. Historic England has a wonderful programme called high streets heritage action zones, through which it invests in places street by street, with 67 towns and cities receiving almost £100 million of government money.

Partly as a result of the pandemic, over the last few years there have been some very large interventions, such as the Culture Recovery Fund and the film and television restart fund, both approved by the then Chancellor and now Prime Minister. As a result of the film and television restart fund alone, during the pandemic film and television had a record year: £5.6 billion of spend around the country. We are looking forward to the announcement soon of the second round of the levelling-up fund, which I hope will include a large number of culture projects. Please look out for that over the next period.

I hope the Minister will agree with me that these sorts of cultural interventions are more important than ever, and it is more important than ever that distribution is fair to maximise the opportunity for people all over the country to experience culture and to work in these fast-growing sectors.