(6 years, 11 months ago)
Lords ChamberWe are determined to deal with the difficult issue of fake news, as it is sometimes termed, and to maintain broadcasting standards, particularly in news. I would not suggest that those standards are maintained only in public broadcasting; those standards are generally maintained. I accept we must be vigilant because of the dangers that have emanated from the development of false news, not only in immediate broadcasting, but online as well.
I welcome this Statement. I ask the noble and learned Lord, Lord Keen, to convey the thanks of many people in this House for what I consider to be one of the most principled Statements I have ever heard in the 20 years I have been here. This is a very difficult issue. It could not have been easy for the Secretary of State and, irrespective of the outcome of the CMA inquiry, I think she has done herself and the prospect of a proper democracy in this country a great favour.
(7 years, 5 months ago)
Lords ChamberMy Lords, I welcome the clarity and emphasis in the Secretary of State’s Statement. I fear some may argue, “Never mind the quality, feel the width”: that there are, as the noble Lord, Lord Stevenson, mentioned, many new centres of news on social media and in other places, but it is important to remember that news in the UK, whether print news or broadcast, is facing financial adversity. We see cuts on all sides and a diminution in the quality of our journalism. Does the Minister accept that these criteria need to be applied when considering this matter?
My Lords, first, I thank the noble and learned Lord for repeating the Statement, which is for the most part very welcome. Not frivolously at all, the two criteria the Secretary of State has chosen are precisely those for which all-party amendments have been put down for the Digital Economy Bill. I have a question relating to each of them.
The first is on media plurality. As the noble Lord, Lord McNally, has just said, it has been 14 years since we first raised this important issue. Everyone wants plurality and agrees that it is a very good idea, but at that time, we needed a framework. I apologise if the frustration is showing in my voice, but I and many others have sought agreement on that framework on repeated occasions. Ofcom was eventually asked to create a report on that, which was published as the Measurement Framework for Media Plurality on 5 November 2015, but there has been no response from the Government. Interestingly enough, the Secretary of State, in her long letter on Friday, said that one of her issues was that, before a decision could be made, there was a,
“need for qualitative assessment and perhaps further factual inquiries”.
The whole purpose of our current amendments is to help this Secretary of State and any future Secretary of State in making these judgments, based on evidence and on an agreed framework. Therefore, surely it is incumbent on the Government to make it clear that they will seek such a framework and, if necessary, wait until after these amendments have hopefully been approved by this House, and then accept them. That is what we are seeking.
The other issue, as the noble Lord, Lord Stevenson, said, is the fit and proper person test. I have looked carefully at this, because I believe we are making this unnecessarily difficult. Media companies are not football clubs, and in fact there is a very good definition set out by the Financial Conduct Authority, which covers,
“honesty (including openness with self-disclosures, integrity and reputation) … competence and capability … financial soundness”.
Can the noble Lord tell me whether there is any reason whatever why we should not adopt the Financial Conduct Authority’s definition in the Bill?
I am obliged to noble Lords, and perhaps I may first respond to the noble Lord, Lord Birt, which I did not do before the noble Lord, Lord Puttnam, spoke.
At the end of the day, clearly, issues of demand and financial adversity will play a part in consideration of what is required, but that will ultimately be a matter for Ofcom in its report rather than for any decision of the Secretary of State.
With respect to the points made by the noble Lord, Lord Puttnam, again, media plurality changes not only over 14 years but year by year—indeed, more swiftly than that in the present environment. It will be for Ofcom to address matters in the present context, rather than trying to establish a framework which might limit the way in which it responds to these issues.
That is exactly the answer that has been given for 14 years. Is it possible that for another 14 years we will use the changing environment of the media not to have a framework which can be applied by a Secretary of State when making these judgments?
It respectfully appears to me that the reason that we may have had the same issue for the past 14 years is that it reflects the appropriate approach to take to these matters, rather than the straitjacket of some framework, as the noble Lord proposes. It may be that we differ on that point.
I come to the second matter of a fit and proper person. Of course, the fit and proper person test is applied by Ofcom in the context of a broadcasting licence, but we recognise that in looking to behaviour, which is relevant to this question, it would be appropriate to take into account fitness and past behaviour. Whether it is appropriate to adopt a test developed for the Financial Conduct Authority is another matter entirely, but it is clearly open to Ofcom, when approaching this matter, to have regard to how other regulatory bodies consider the questions of fitness and behaviour.
In a sense, the Financial Conduct Authority test is not peculiar to financial services: it reflects what most reasonable people would regard as the relevant litmus test to determine whether somebody is fit and proper for any post, let alone to control a broadcasting medium.
(7 years, 6 months ago)
Lords ChamberMy Lords, I intervened briefly on these points at Second Reading and I support at least the principle of Amendment 224, although I would like to query some aspects of the detail. However, it was moved very well by the noble Lord, Lord Wood of Anfield, and I welcome the fact that it brings forward an issue related to the listed events regime that most certainly needs our attention at this point; namely, when the situation is changing so rapidly. If we do not adopt a system that is flexible enough, there is no knowing what difficulties we could get into over the coming years. The amendment offers a straightforward solution to a simple problem, which as I understand it is that by the end of this Parliament there is a real possibility that no PSB will meet the qualifying criteria set out in the listed events regime. The solution lies in this amendment which will update those criteria to ensure that the PSBs are still eligible.
It is no secret, notwithstanding our success in the European soccer cup, that the Welsh are still very big rugby fans. Some 1 million of us enjoyed the Wales-England match in 2015 and indeed 1 million of us watched the Welsh beat the Scots last year. No doubt another million people will be watching on Saturday when Wales plays England. The listed events regime, also known as the sporting “crown jewels”, ensures that some of the most high-profile sporting events can be watched by all for free—from rugby finals and highlights of other rugby matches through to football finals and Wimbledon. I have one slight reservation with regard to using 90% of citizens as a criterion. The public broadcasting channel S4C transmits by agreement a number of listed events, but it certainly does not reach 90% of the population. I wish it did, and no doubt we will get there at some point, but not quite yet.
The point is this: should a PSB suddenly become ineligible to bid for the rights to these great sporting events? It is inevitable that millions of people, particularly those on low incomes such as pensioners, will not be able to afford the pay channels. They will be shut out of the shared experiences that mean so much to everyone in all the four nations of these islands. It is an important issue and an amendment along these lines is needed, if not at this stage, then perhaps one could be drafted for the Report stage. Something ought to be forthcoming so that we can safeguard the position of this regime.
My Lords, I rise to make two observations, one of which makes me feel very old. I worked with the then Prime Minister, Sir Harold Wilson, on looking at the whole issue of free-to-air sporting events in terms of where they penetrated and where they had to be retained. It is interesting to note that last week it was announced that the Six Nations competition is broadcast free to air not only to all the countries involved, but also has the largest live audience for any sport anywhere in the world. So there is no, as it were, collision between the appeal of a sport, the size of the arenas and the number of people attending the events, and the fact that these events are also available on free-to-air television. I sense that sometimes it feels like it might be a trade-off: you have to get the money in or you will not get a sufficient audience. The Six Nations competition is a classic example of something that succeeds at every level.
My Lords, I thank the noble Lord, Lord Wood of Anfield, for moving this amendment and I hope that I can provide some reassurance to noble Lords. Indeed, I fear we may all be in danger of violently agreeing with each other. Listed sporting events is an issue we have discussed before. As the Minister for Culture made very clear in the other place, the current listed events regime is not under threat at this time and I confirm that we will not let it be under threat. I hope that that directly answers the question put to me by the noble Lord, Lord Wood, and I therefore do not believe that these amendments are needed at this time.
I submit that it would be particularly undesirable to act in the way that Amendment 224 suggests, because it would lock in the incumbents’ position, since the requirement to be watched by 90% of the population would narrow considerably the number of channels that could ever qualify. It would narrow it to channels which had already achieved mass appeal to audiences—and that is not a step we should take rashly. The requirement in Amendment 224A that channels qualify if they are capable of reaching the vast majority of the population and likely to achieve a significant audience is, I respectfully suggest—I would certainly never use the word “sloppy” of the noble Lord, Lord Gordon—perhaps too vague to provide a workable system. Ofcom would be forever subject to challenge by channels arguing over its assessment. It would create enormous flux in the regime, meaning that sports federations could not be sure whether the channels they were negotiating with met the qualifying conditions.
However, I assure the Committee that we are keeping this area under review and we will consider how we can best ensure that any risks can be managed successfully in future. To that effect, we will consider carefully before Report the issues raised and the contributions made by noble Lords today. With that commitment, I hope that both noble Lords will withdraw their amendments.
My Lords, I appeal for some leeway from the Committee in that I am popping in to support this amendment and then leaving your Lordships to it. I support the spirit of the prominence regime and the amendment in particular, which I hope the Government will accept.
As we have heard, the prominence regime was originally intended to ensure that the high-quality programming of our public service broadcasters was easily accessible to everyone, especially in the case of the BBC, which of course is funded by the licence fee paid by the vast majority of households. Unfortunately, the legislation as it stands is more suited to an analogue age than the digital world in which we now live. Understandably, when the original television legislation was enacted in 2003 we did not imagine how our viewing habits would change over the following decade or how quickly the legislation would fall behind technological progress. Smart and connected televisions, with their instant access to on-demand content, were only a dream in 2003, while the iPlayer would not be launched for another four years.
I am concerned by how increasingly difficult it is, as has been said, to find some content on smart and connected television menus. The iPlayer in particular is watched by millions of people who pay their licence fee and it should be much more easily accessible. As we heard from my noble friend Lord Wigley, S4C produces some outstanding Welsh dramas, watched by people right across Wales, where I still live in the constituency that I once represented. Many viewers watch those Welsh programmes on the iPlayer. I am worried that, as smart and connected television menus increasingly promote their own and other commercial content, people are struggling to access the iPlayer and, therefore, these excellent Welsh programmes, which I find it very difficult to believe will be replicated by any other broadcaster or company. “Hinterland”, which my noble friend mentioned, among others, should be on network BBC. It really is an excellent and gripping drama, equivalent to “Silent Witness” or any of the other excellent network programmes. So I make that appeal to the BBC, if I may.
Even electronic programme guides are becoming harder to find and much harder to navigate. I believe that on one new connected television, getting to S4C takes 10 clicks on the remote control, while finding the BBC’s children’s channels, as the noble Baroness, Lady Benjamin, said, takes more than 20 clicks, forcing parents—and in my case, grandparents—to scroll through roughly a dozen commercial channels; most of them are rubbish, by the way. It is a problem for me to find CBeebies or CBBC when my six grandchildren are over. This surely does not fit within the spirit of the original legislation. Amendment 226A is simply technical in nature. It updates existing legislation for the digital world in which we now live, and I hope the Government will support it.
My Lords, I support the amendment but come at it from a slightly different angle. The noble Baroness, Lady Buscombe, will remember that she and I discussed ad nauseam the issues of the EPG and we were very much on the same side. There is blame on both sides here. We failed at the time to persuade the then Government that common sense should make an organised EPG easy to use and that the public service broadcasters should be high on it. Today, if you go across the top bar, find sport and click on it, you will not find any sport on the BBC. You have to go back to the “all channels” menu. It is an absurdity.
We are here to discuss what will become the Digital Economy Act 2017. The notion that in 2017 we are not able to have a personalised programme guide in the same way as we would have on our iPhones, is daft. I am afraid that the blames lies with the then Government, who were persuaded by Sky that it had invested significantly in the EPG and had the right to amortise its investment. Honeyed words were given from the Front Bench that of course this would be reviewed quite quickly. It never has been reviewed and the absurdity of this so-called amortised investment has gone on now for 14 years. I suggest, and hope the Minister will sympathise, that this is the time to get real with this. It is 2017. An EPG should be able to be personalised very easily by the individual consumer and that is the way it should work.
My Lords, clearly there is a lot of agreement about your Lordships’ Communications Committee’s recommendation that we have a new, up-to-date, fit-for-purpose EPG regime, which may also take on board the suggestions of the noble Lord, Lord Puttnam. We desperately need it.
Many examples have already been given: the difficulty of finding CBeebies and CBBC under a large number of cartoons; the difficulty of finding the iPlayer or the ITV Player on the first page of an on-demand screen on a smart TV; the difficulty of finding indigenous language channels such as S4C or BBC Alba; and even not being able to find the EPG itself on a smart TV.
There is very clear evidence that EPG positioning really matters. I will give just one example to illustrate it. If you look at the percentage of viewership of CBeebies on Virgin, where it is high up on the EPG, the share is much higher than the viewership of exactly the same programmes on Sky, where it is much lower on the EPG.
However, the real reason for my intervention is simply, as the Minister is about to respond to the debate, to draw his attention to what one of his right honourable friends—the former Secretary of State for Culture, Media and Sport—said just in 2011:
“Position on the EPG will probably be the Government’s single most important lever in protecting our tradition of public service broadcasting”.—[Official Report, Commons, 8/9/11; col. 543.]
When the Minister responds, I hope he will bear in mind what his right honourable friend said.
My Lords, I thank all noble Lords who contributed to the debate. I have to warn the noble Lord, Lord Wigley, that despite his very kind remarks I may not be so amenable. My speech may contain some upsetting content—we broadcasters have to issue warnings.
Amendment 226A would extend the prominence provisions that currently exist for linear channels to on-demand electronic programme services, which are the lists of on-demand services available for selection on television interfaces. This issue was debated at length in the other place, although I note that this amendment goes further in integrating new provisions into the existing statutory framework for both EPGs and the PSB prominence regime. But I believe that the key issue remains as it was.
The Minister reassured Members in the other place then—and I reassure the Committee today—that the Government gave this issue considerable thought during last year’s balance of payments consultation, the response to which was published in August last year. Our conclusion was—and we remain of the view—that we have not seen compelling evidence of harm to PSBs to date. Creating a new regulatory regime that defines the user interfaces or submenus that should be caught, particularly in a fast-moving technological landscape, is likely to be complex. At the time of consultation, Ministers were not convinced of the benefit of regulation that might extend to, for instance, smart TV manufacturers’ user interfaces, which are developed with a global market in mind. We therefore decided not to extend the EPG prominence regime for PSBs to on-demand.
When PSBs make excellent content, generally audiences will find that content. This is true of both catch-up and live content. For example, the BBC’s award-winning children’s services are much viewed by children throughout the UK. We do not believe that further protections are necessary to ensure that children find these services. A recurring theme in the debates on the Bill has been how much more competent children are than many adults in the digital world.
Furthermore, acting in this area is extremely complicated and the fact that the amendment spans more than a page demonstrates some of the difficulties inherent in legislating in this area. The technological landscape is shifting quickly and, with it, the business models of those who seek to cater to changing audience tastes. Detailed regulations about how exactly audiences need to be guided through menus cannot be the answer here. Regulations would be outdated as soon as they came into force.
Moreover, this amendment would give prominence to the PSBs’ on-demand programme services, which include not only the PSB content of the commercial PSBs, but also content originating from their non- PSB channels. If the intention was to put on-demand EPG prominence on the same footing as linear EPG prominence, this amendment goes far beyond what we have in place for linear TV. It is therefore, in our view, not justifiable.
With that explanation—and I appreciate that the noble Lord may not be happy—I hope that tonight he will withdraw his amendment.
I am looking at the general duties of Ofcom and I am failing to understand in whose interests the Government are taking this position. It is very clear to me that the general duties of Ofcom are to further the interests of citizens and to further the interests of consumers. They do not include furthering the interests of manufacturers. Is the Minister saying that in fact the interests of manufacturers and suppliers are trumping the interests of the consumer and the citizen?
No, what I am saying is that we do not see that there is compelling evidence of harm to PSBs.
(7 years, 6 months ago)
Lords ChamberMy Lords, in speaking to the two amendments that stand in my name, I should first declare my interest both as a content owner and as president of the Film Distributors’ Association. A number of factors encourage me to take up what is in effect the unfinished business of 15 years ago, when I was closely involved in the 2003 Communications Bill. The most recent was something that the noble Baroness, Lady Warsi, said on the “Today” programme 10 days ago. In response to a question regarding the ramifications of the immigration controversy raging across the Atlantic, she said:
“It all comes down to the type of country we want to live in”.
Of course, the noble Baroness was right. Pretty well every decision we make in this House sooner or later comes down to the type of country we want to live in. What we have just heard from the noble Baroness, Lady Benjamin, is about precisely that. What kind of country do we want to live in, and how far are we prepared to push ourselves to get there?
As I am sure the noble Baroness, Lady Buscombe, will confirm, this was repeatedly discussed during the passage of what became the Communications Act 2003. At that time we were by turns both amused and concerned by the antics of the then Italian Prime Minister Silvio Berlusconi and his attempts to muzzle, or better still own, the Italian media. This House was at one in agreeing that the provision of a free, fair and plural media ecology, in all its many and varied forms, was fundamental to the health of any democracy worthy of the name.
As a result, and after a great deal of debate, the general duties of Ofcom in carrying out its functions were finally legislated in this way:
“It shall be the principal duty of OFCOM, in carrying out their functions—
(a) to further the interests of citizens in relation to communications matters; and
(b) to further the interests of consumers in relevant markets, where appropriate by promoting competition.
The wording of those two general duties, and the order in which they fall, along with the public interest test that accompanied them, were hard fought for, and they were won by an overwhelming vote on the Floor of this House—two-thirds to one-third—against the wishes of both Front Benches.
Fifteen years later, we find ourselves looking anxiously across the Atlantic at a new and democratically elected kind of Berlusconi on stilts—and we are jolted into reminding ourselves how very much ownership of both the media and the message matters. The true architect of the public interest test was the noble Lord, Lord Crickhowell, and the engineer who created the double lock that gave it teeth was the now noble Lord, Lord Lansley.
As the House may know, a public interest intervention notice is issued by the Secretary of State, and specifies a media interest. The grounds for referral are listed in Section 58 of the Enterprise Act 2002: the media interest grounds for referral are listed in Section 58 (2A) to (2C). The Secretary of State may specify further grounds for referral by laying an order before Parliament. Ofcom then carries out a report based on the grounds specified by the Secretary of State.
That is what is supposed to happen—but, as we discovered during the misadventures of the then Secretary of State, Jeremy Hunt, there is far too much wriggle room, and a lack of clarity as to the precise grounds on which a referral is based. In this respect, I supplied the Minister with a copy of the five-page letter I sent to Jeremy Hunt on 11 March 2011, setting out the reasons why I believe that the UILs he proposed to set in place prior to waving through the then News Corp—now 21st Century Fox—bid for what was then called BskyB were hopelessly inadequate. Milly Dowler’s death made any response to that letter wholly unnecessary.
Following a meeting that the present Secretary of State kindly agreed to, I recently sent her a copy of that letter, for the consideration of her officials. In my note to her I included a few additional reasons why I felt reference to Ofcom was the only sensible way in which any new bid for Sky could be transparently dealt with. Given that the Government have the world’s most highly regarded media regulator at their service, it is extremely hard to see why they would not be eager to distance themselves from the well-documented suspicions of favours given and favours returned that now, sadly, dog their predecessors.
The purpose of my amendments is to buttress the referral process by adding further and easily understood grounds directly to the Bill. Specifically, they would add a fit and proper persons test, which, somewhat bizarrely, exists only as an ongoing test for licence holders, not bidders, and is thus to be conducted only after the fact of any merger. I say “bizarrely” because I ask: how sensible does it seem to judge the ongoing fitness and propriety of a licence to a higher standard than the one sought at entry? Possibly when she comes to answer the Minister might help me understand what I see as an extraordinary anomaly.
The Government do not accept that there is a difficulty in this. The important issue is that the powers remain broad in their application. To the best of my understanding, though, there is no difficulty regarding when they are triggered.
What I believe the noble Lord, Lord Stevenson, is saying, and it is very important, is that there is an accidental anomaly in the Bill. As someone who, like the Minister, pored over every word of it, I take some responsibility for this, but it is extraordinary— I even referred to it as bizarre—that the bar that is set for an ongoing licensee is higher than the bar for a bidder. Surely common sense requires that someone bidding has to reach the same standards of honesty and probity that are required of an ongoing licensee. There is an anomaly, and I am trying to help the Government to get rid of it because it should not be there. Obviously there should be a bar, but it should apply to anyone applying for a licence just as it does to anyone who has an ongoing licence that is being looked at.
I am going to wait for a reply on that. I would like to be able to respond tonight, rather than saying that I will write to noble Lords; if the Committee will bear with me, let us just wait and see. I understand what the noble Lord is saying about bidders meeting the same standards as those who already have a licence.
It is a long-established condition of broadcast licences in the UK that news be reported with due accuracy and impartiality, as set out in Ofcom’s broadcasting code. Ofcom, as the regulator, governs compliance with this requirement of the code. The matters set out in the amendment at proposed new subsection 58(2F) would be dealt with by licence conditions and Ofcom’s broadcasting code, including provisions on fair and effective competition and the cross-promotion code, as well as matters that would be considered as part of the fit and proper person test. I have been informed that the fit and proper test can be looked at by Ofcom only once they hold a licence, but we believe that the provisions on genuine commitment to broadcasting standards give the Secretary of State the powers she needs in this regard.
I think that we all deserve to be very clear about this: can we be sure that the Secretary of State will apply exactly the same standards to a bidder as she would require of an ongoing licensee?
I thank the noble Baroness for an extremely full response. Perhaps I may say several things. First—I probably should have made it clearer—the noble Baroness was extraordinarily helpful and generous to me during the very painful passage of that Bill. On every occasion when I sought some form of compromise, she always came up with a constructive solution. She knows I feel this, because we have discussed it, but I am very happy to pay public tribute to her.
I think that some mistakes were made in 2003. We could not look into the future, and there were things that we were not even allowed to do under our terms of reference. However, it is worth recalling that, yes, it was a government amendment that was passed at Third Reading, but it was passed, as the noble Baroness will remember, because of a crushing defeat on Report.
I have no desire whatever to go through that process again, I promise you. On the other hand, I think I have a sufficient understanding of this House to know that when it comes to the issue of media ownership and any suspicion of undue pressure, this House will again vote overwhelmingly in favour should I press these amendments. I do not think that my amendments as they stand are good enough. The noble Lord, Lord Stevenson, has already hinted at that. I would infinitely prefer the Government to come back and offer the sense of security that I seek. I very much liked the Secretary of State on the one occasion I met her. She is clearly an honourable, decent woman. It would be very helpful for her to be able to say that the standards that she would require of a licensee are exactly the same, and as exacting, as those of a bidder. I think it would be good for the Government.
I was not being silly when I discussed Theresa May’s speech. I found it a very remarkable speech from an incoming Prime Minister. I think she did lay out her stall. I think we have every reason to have expectations that are higher than we had of recent predecessor Governments. I am quite ashamed of some of the things that my own Government did in respect of cosying up to and colluding with media owners. That has got to stop.
There is a wonderful line of Mark Twain’s: “A lie can run around the world while the truth is still trying to put its boots on”. We are living in that world. We are living in a post-truth society. We can no longer afford an over-cosy relationship between the Government of the day and media owners whose job is simply to tell the truth as they see it. That is all I am seeking.
I am very grateful to the Committee. I will happily withdraw this amendment, but I am certain that we will be returning to this subject in the hope that the amendments put forward by the Government will be acceptable to the entire House. I beg leave to withdraw.