Channel 4: Privatisation (Communications Committee Report)

Lord Storey Excerpts

Tuesday 17th October 2017 Lords Chamber

[Lord Storey (LD)]

My Lords, I, too, thank the noble Lord, Lord Best, and his committee for an excellent report. Like other noble Lords, I am delighted that the Government seem to have pushed to one side their plans for the privatisation of Channel 4. I hope they have been shelved indefinitely. It is comforting to see Channel 4 recognised for what it is: a public broadcaster and national asset that deserves to remain as such and not in the hands of some overseas media tycoon.

The obligations of Channel 4, given to it by Parliament and then defined by itself, are:

“Be innovative and distinctive … Stimulate public debate on contemporary issues … Reflect cultural diversity of the UK … Champion alternative points of view … Inspire change in people’s lives … Nurture new and existing talent”.


It has certainly achieved that, with a plethora of ground-breaking programmes, from the early days when Jeremy Isaacs was the first chief executive, setting the channel’s original cultural approach, with opera and foreign language films and programmes as diverse as “The Tube” and “Brookside”—the latter, of course, made in Liverpool—and the establishment of the “Film on Four” strand, which, it is not an exaggeration to say, led to the revival of the British film industry in the 1980s. Of course, Jeremy Isaacs was the chair of the European Capital of Culture panel which awarded it to Liverpool—a good man. Many noble Lords have mentioned its fantastic coverage in recent times of the Paralympics. One should note that we have in our own midst probably Britain’s greatest Paralympian, one who won more gold medals in swimming than any other. It is of course the noble Lord, Lord Holmes of Richmond.

While I do not promise that my speech today will meet any of the criteria that I listed, I aim to illustrate how a move away from London would not force Channel 4 to compromise on any of its obligations and would even allow it to flourish. The opening at midnight last Friday of the largest infrastructure project in the whole of the UK, the second crossing of the River Mersey, was covered on regional news but not mentioned on any national news broadcast. Imagine if similar treatment had been given to an infrastructure project of such size if it happened in London or the south-east. One reason to suggest that Channel 4 might be better relocating—although it is considerably disingenuous—is that the Government could lead by example. Rather than suggesting that Channel 4 should move, perhaps the Government could move, let us say, the Department for Transport to the north-east. Then we would not see 24 times as much spent on infrastructure per resident in London as compared to the north-east.

Channel 4 has loudly protested that it commissions over 40% of its programmes from outside London, but the actual process of commissioning still takes place in London. Only 30 of its 800-strong workforce are based outside central London—less than 4%. An up and coming regional director or writer, or a media company, must still regularly trek to London if they wish to see any chance of their programme being made. It seems that Channel 4 is not perhaps as nurturing of new talent as it could be, for many are unable and unwilling to relocate to London or even to visit regularly in pursuit of a media career.

Despite this, only 3% of our gross TV industry spending goes to Yorkshire—3%. Only 1% goes to the Midlands and even less to the north-east. Do Channel 4 and the TV industry in general believe that these areas have no new talent to nurture, or simply that those born in the regions with a talent for media must move to London? We currently have the opportunity to ensure that Channel 4 is more open to this new, young, regional talent that it seeks to nurture, and it would be foolish of us not to grasp it. That does not mean that we would leave 400 or so members of staff, or however many, to deal with advertising. I was very much taken—we had not cleared this beforehand—with my noble friend Lord Razzall’s suggestion of how we might move certain parts of Channel 4 to different parts of the country. I hope the Government might take that up.

We are constantly reminded exactly how little government, big business and the media understand the attitudes and issues of those living beyond the bounds of the M25, especially in the north and in Scotland, Wales and Northern Ireland. I hope that a greater understanding born of proximity could be created by the relocation of Channel 4, which surely is sorely needed. Perhaps the idea of the referendum result being to leave the European Union would not have been so unthinkable if the news media had been aware of the mood in Bangor, Berwick or Bury St Edmunds, rather than simply the dominant opinions of people in, for example, Battersea. If Channel 4 truly intends to champion alternate points of view, let us allow it to put its money where its mouth is and support it in moving to somewhere it can easily find the alternative viewpoints it seeks to champion.

Huge figures of money are quoted as necessary to the relocation but I urge us to consider the wider financial effects of the move. The West Midlands Combined Authority predicts that Channel 4 relocating within its bounds would improve the local economy by £5 billion over 10 years—a figure which is not to be sniffed at, even when taken with a pinch of salt. This, coupled with the fact that Channel 4’s relocation budget works out at less than half the money agreed to purchase “The Great British Bake Off” in the deal finalised last year, puts the so-called astronomical costs of relocation into perspective.

We have heard Channel 4’s fears that if it relocates it will lose 62% of its managerial staff, as happened with the BBC’s move to Salford. So what? We must examine whether we can accept Channel 4, a publicly owned British institution, being held hostage by its middle managers. We cannot allow Channel 4 to be held back from new opportunities due to the concerns of staff who have the option to move with it or not, as the case may be. Channel 4 has said that it aims to inspire change in people’s lives. It must then accept and embrace such changes itself.

Finally, as I am out of time, I hope that noble Lords will consider that there are other viewpoints about relocating outside London and the south-east. I wish Channel 4 to continue its ground-breaking media presence over the next several decades.