Music Sector: Working in Europe

Lord Vaizey of Didcot Excerpts

Wednesday 3rd February 2021 Lords Chamber

[Baroness Barran (Con)]

Given the sensitivities around arrangements with Northern Ireland at the moment, if I may, I will double-check and confirm to the noble Baroness. My understanding is that artists and organisations based in Northern Ireland will not be required to obtain ATA carnets or musical instrument certificates when touring in the EU, because the protocol means that Northern Ireland is part of that regulatory environment.

[Lord Vaizey of Didcot (Con)]

My Lords, half our musicians earn half their income in the European Union. Echoing the noble Earl, Lord Clancarty, I add that Tonga and St Lucia also have visa waiver agreements with the European Union. Is the Government’s position that Tonga and St Lucia do not have control over their borders and therefore should now turn their backs on their visa waiver schemes, or will the Government see sense and pursue a bilateral agreement for a visa waiver scheme for our musicians?

[Baroness Barran (Con)]

This Government are not responsible for any of the visa arrangements for the countries to which my noble friend referred. We recognise that additional requirements will need to be met for our cultural professionals to tour and work in the EU. Some member states allow touring without a permit and others require a pre-approved visa and/or work permit. We are undertaking an extensive programme of engagement with our sectors to find the best way through.

Telecommunications Infrastructure (Leasehold Property) Bill

Lord Vaizey of Didcot Excerpts

3rd reading & 3rd reading (Hansard) & 3rd reading (Hansard): House of Lords
Thursday 28th January 2021 Lords Chamber

[Lord Fox (LD)]

My Lords, the amendment, which we welcome, brings us into the territory of the Bill. The noble Baroness, Lady Morgan of Cotes, if she is still in her virtual seat, will be sitting more easily in this part of the discussion.

When speaking previously to an amendment brought by the noble Lord, Lord Stevenson, supported by myself and others, the Minister agreed that we should aim to simplify the lives of consumers. To that end, she said that the Government would be willing to table an amendment at Third Reading. My understanding is that this amendment honours that statement. The Minister said that Her Majesty’s Government consider it fair to amend the Bill in this way and that the aim is to include measures to ensure that an operator must not install their equipment in any such anti-competitive way. Therefore, the test of the amendment is whether it reaches that objective.

I shall discuss two aspects of the amendment’s wording. First, the words,

“nothing done by the operator”,

seem to imply more than just technology, because there are other things that an operator could do. Perhaps the Minister can explain “nothing”. It could refer to a contractual matter or all sorts of other areas, including service as well as the purely technological. Secondly, there is the phrase, “unnecessarily prevents”. What is a necessary prevention? In other words, how will the regulations deal with those two areas—“nothing” and “unnecessary”?

I had the opportunity to virtually bump into the Minister this morning—obviously with at least two metres between us—and give her some warning of my concerns. Regarding the practical way this matter will work, let us imagine that I am a tenant in a new property. I move in, wish to switch my operator and start to encounter technological problems with the process. What do I do next? How does the amendment help me to deliver on that?

Quickly in conclusion, none of this means anything if we do not have great connectivity. I could not, therefore, pass this opportunity by without asking the Minister where we are on that. The delivery of ultrafast broadband was a subject for discussion in Committee and on Report, as was the creation of an open source network. It is safe to say that some time has passed since we last discussed that issue. As the Minister stated, some technological developments have included, not least, the gradual removal of Huawei from the supply chain. Meanwhile, the Prime Minister has made several statements about the bandwidth that will be provided and its extent—statements at odds with what network providers have said is possible. Where are we on the Prime Minister’s gigabit connectivity being available to everyone? Where are we on the development of open source networks? If the Minister can answer those questions, I am sure that we will support the amendment.

[Lord Vaizey of Didcot (Con) [V]]

My Lords, I refer to my entry in the register of Members’ interests. I was not a Member of this House when the Bill was debated at Second Reading or on Report. Therefore, I begin by saying how much I welcome it. In my experience as the Minister responsible for rural broadband rollout between 2010 and 2016, I soon came to realise that planning is the biggest obstacle that prevents the rapid deployment of the broadband that this country desperately needs. The planning system is hopelessly complex and time-consuming, and imposes enormous costs on operators. Anything that can make their lives easier has to be welcomed. Multi-dwelling units contain dozens of potential recipients of ultrafast broadband. If we can make it easier and simpler for operators to deploy their technology, that is to be welcomed.

I was also delighted that the Government yesterday published a consultation on reforming the Electronic Communications Code. Again, I was the Minister who had a first stab at that, which was obviously not good enough, and that is why we need a second bite at the cherry. I should point out to the noble Lord, Lord Fox, that the foreword to that consultation document contains some heartening statistics on the deployment of gigabit broadband. From memory—I read it only this morning, but I am getting older—some 30% of homes can now potentially receive gigabit broadband. It is good to see the Government pressing ahead on another front.

I should say on operators entering multi-dwelling units that one of the Government’s commitments during the passage of the Bill was to publish a consultation on the code of practice and then a code following Royal Assent. Given that the Bill imposes obligations on landlords and effectively interferes with their property rights, it is vital that landlords are reassured that the operators will adhere to the highest possible standards. The code of practice is also important for some of the smaller operators. There is some nervousness among them. If landlords are worried about operators’ standards when deploying the technology, they will simply take refuge by dealing only with the biggest operators and not allow insurgents, as it were, or start-ups to fibre-up their buildings. I hope that when she responds the Minister can give some reassurance that the code of practice consultation will be issued imminently.

I should also point out that the Bill does not yet cover the issue of shared freeholds, and I hope that the consultation on the Electronic Communications Code, which I am not covers this issue, could be used as a vehicle for looking at how operators can enter buildings where there is a shared freehold—the typical building being a Victorian house that has been split into flats. Some 5 million premises fall within that category and there needs to be some way forward to allow operators to access shared freehold premises.

I am not sure whether the amendment is necessary in practice, but I understand the Government’s motivation to reassure Members of both Houses that the Bill will not inadvertently create monopolies in multi-dwelling units. I should also ask the Minister to respond, either now or in writing, to the concern of some operators about the Government and Ofcom’s ongoing intentions to impose wholesale access on operators. It is one thing to say that an operator should not do anything, intentionally or inadvertently, to prevent a competitor supplying technology to multi-dwelling units, but it is quite another to impose on a company the obligation to allow others to use the infrastructure it has invested in and paid for. What is the direction of travel of the Government and Ofcom, because I know that they have previously thought about imposing wholesale obligations on operators in multi-dwelling units?

However, as I say, I welcome the amendment. My understanding is that any attempt to physically impede competitors from entering a multi-dwelling unit would fall foul of the ATI regulations and, indeed, the EU’s Electronic Communications Code, so I am not entirely certain that the amendment is necessary. However, in the sense of providing statutory reassurance that a much- needed piece of legislation will open up access to ultrafast broadband to many millions of people living in multi-dwelling units the amendment has to be welcomed.

[Lord Clement-Jones (LD) [V]]

My Lords, it is a pleasure to follow the noble Lord, Lord Vaizey, and to welcome him to the select band of broadband and telecoms legislation aficionados in this House. As my noble friend Lord Fox said, on Report we welcomed the principle of the previous amendment in the name of the noble Lord, Lord Stevenson, in respect of Part 4A code rights. Likewise, we welcome the Government’s Amendment 2 today.

Strangely enough, however, I do not think that the Government’s amendment is as good as the original, in terms of what the noble Lord, Lord Stevenson, was trying to achieve. It substitutes an arguably unclear negative injunction for a positive duty, where it is clear what is intended. On these Benches, however, as my noble friend Lord Fox indicated, we understand the intention behind the amendment, but how it is interpreted when put into practice will be the test. As he also said, we have throughout been encouraged to hear of the development of open radio access networks and strongly support them.

As the noble Baroness mentioned in her letter to us, in the period between Report and today, we have seen the publication of the Government’s 5G diversification strategy. I see that now NEC acting as the systems integrator will be building a testbed for O-RAN funded by the DDCMS, the new O-RAN project. Will the Minister say when this will be up and running and is this the promised Smart RAN interoperability centre—SONIC—or a precursor to it?

What is the current status of the telecoms diversification task force and the National Telecoms Lab, and what is the status of international collaborations? When developed, these open RAN standards will provide operators with the flexibility to use different vendors and obviate the need to take out existing networks on a change of operator. By the same token, for the consumer it would mean likewise that they are not captive to any particular operator with their equipment. That is a development that we wholly welcome.

UK Musicians: EU Visa Arrangements

Lord Vaizey of Didcot Excerpts

Wednesday 20th January 2021 Lords Chamber

[Baroness Barran (Con)]

I understand the noble Baroness’s concerns in this area, and we definitely continue to explore routes through it. However, I reassure her that direct funding has gone from Arts Council England to freelancers and, furthermore, to some of the benevolent societies that support them.

[Lord Vaizey of Didcot (Con)]

My Lords, it is very depressing that the careers of thousands of British-based musicians have been affected by the Government’s devotion to ending free movement. I have no doubt at all that there is blame on both sides, but we are where we are. I am sure that Ministers will attempt, as best they can, to renegotiate this lamentable situation. Perhaps I may make a practical suggestion. Given that when our musicians travel to Europe, they are now in the same position as when they travel to the United States, will the Minister have a conversation with her ministerial colleagues about committing resources in terms of both officials and money to create an online one-stop shop to help musicians who still, amazingly, might wish to tour in Europe to navigate the new bureaucracy?

[Baroness Barran (Con)]

I thank my noble friend for his suggestion. We are exploring all ways of making this as simple and straightforward as possible, but he will be aware that each member state has its own regulations in this regard. However, our ambition is clear.

Online Harms Consultation

Lord Vaizey of Didcot Excerpts

Wednesday 16th December 2020 Lords Chamber

[Lord Parkinson of Whitley Bay (Con)]

My Lords, the noble Lord needs to unmute himself. I am afraid that we still cannot hear him, so perhaps we should move on to my noble friend Lord Vaizey and see whether we can return to the noble Lord, Lord McNally, later.

[Lord Vaizey of Didcot (Con)]

My Lords, those are big shoes to fill. I begin by congratulating not only the Minister but her incredibly hard-working officials who have produced this exemplary template for online regulation. I make these points only for emphasis, as so many brilliant questions have already been asked. As we seize long-overdue control of our fish, can we at least reach out to our former European partners, who have just published the Digital Services Act, to ensure that we do some joined-up thinking on online regulation in the UK, Brussels, Ireland and, I gather, Canada? Can we also, as the noble Lord, Lord Clement-Jones, pointed out, do joined-up thinking domestically between Ofcom, the ICO, the CMA, the age appropriate design code and any other acronym that I can quickly think of?

Data Protection, Privacy and Electronic Communications (Amendments etc) (EU Exit) Regulations 2020

Lord Vaizey of Didcot Excerpts

Monday 16th November 2020 Grand Committee

[Lord Vaizey of Didcot (Con)]

It is a thrill to be speaking here this evening. This is my first speech in Grand Committee; I feel as if the set has been designed by Stanley Kubrick, but I will try to give my comments as reasonably as I can. I feel as if I am giving my second maiden speech, so I hope that all subsequent speakers will lavish me and my speech with extraordinary praise.

I begin by saying how enjoyable it is to follow the noble Lord, Lord McNally, who may or may not still be watching the proceedings. He and I indeed worked closely together in the coalition Government on data protection, and in fact it was he who first turned me on to the subject. One of my last acts as a Minister was to grab it and take it over to DCMS to try to realise my vision of DCMS becoming the leading department on digital.

As may have been gathered, data is an extraordinarily dull subject, particularly when it comes to regulations and legislation, but it is true, as the noble Lord, Lord McNally, said, that it is often called the new oil. The reason is that data flows ever more generously around our world; in fact, I am told that the size of the digital universe is now 44 zettabytes, which is 44 times bigger than our physical universe. There are 500 million tweets a day—mostly from President Trump; 294 billion emails a day; 5 billion searches; and 65 billion WhatsApp messages—mostly, no doubt, from Dominic Cummings. It is therefore quite clear that data dominates everything, and there need to be clear rules on how it is used and how it is harmonised across jurisdictions. Data is the new trade route. In fact, the UK, as in so many areas in technology, leads the EU; about 4% of our gross domestic product is now dependent on data companies and industries.

The noble Lord, Lord McNally, rightly spent some time talking about the GDPR. The GDPR is of course a bureaucratic and onerous regulation, but the new version of it came into being just at the time when the “techlash” was gathering momentum, when concern about one’s data, the way that it was used and the privacy surrounding it was very much at the forefront, and the GDPR is now seen as a bit of a gold standard. In any event, one of its unassailable merits is that it is now valid across 27 different jurisdictions in the EU, which means that any company using data within the EU knows that it can transfer across different countries. It has been copied in other states, even in countries such as South Korea, which is seen as a technology leader, while California’s recent passing of its own privacy law is very much dependent on the GDPR. Bureaucratic it may be, but it has become a model.

One of my concerns, though, about the GDPR is that it is not being used effectively by privacy regulators. I gather that only 3% of the 680 staff at our own Information Commissioner’s Office are tech specialists, and there is so far a failure to use the powers of the GDPR, for example, to take on big tech in the way it transfers the data of citizens between its applications. Think about the way that Facebook and Instagram share data. If the Minister wishes to comment on the ICO and its use of the GDPR, that would be welcome.

Of course, what the noble Lord, Lord McNally, also referred to is probably the most important thing and relevant to these regulations: equivalence across different countries and trade blocs. I notice that Japan recently agreed equivalence with the EU, thus surrendering, perhaps, some of its sovereignty to the EU without throwing a temper tantrum. We have not yet agreed equivalence with the EU, and I am told that if we do not reach a deal then the EU will start to consider data adequacy with us only when we become a third country. That will lead to chaos—chaos, I have to say, compounded by the decision of the European Court to reject the Privacy Shield between the United States and the EU. You have a three-way pile-up, with the UK caught somewhere in the middle.

However, there is some cause for optimism in the very dull subject of data. I unequivocally welcome the Government’s recently published National Data Strategy. Launched in September, it addresses some of the real opportunities that the data economy presents. The idea of standardising data across the public sector is extremely welcome, and being able to share data across silos to realise real gains is also very welcome indeed. The focus on data skills and training people in data and in the responsible use of data is a good thing. Some think perhaps that the national data strategy is not ambitious enough. I do not share that view. I think it is a welcome first step and, if implemented properly, will maintain our leadership in this very important area.

However, horizon-scanning ideas are beginning to emerge—for example, the need for companies to value their data. It is astonishing if you look at the accounts of big tech that nowhere will they put a price on the enormous amount of data they harvest from their users. If you put a value on data, you might see companies work harder to make it more secure and—dare I say it or whisper it—it might even be possible for national Governments to tax that data. The wealthiest people in the world really are data billionaires, rather than anything else.

The other emerging idea is that of data trusts. They are a bit like a pension trust where you can put data into, as it were, a separate part of a company and have it governed separately. This could help small companies manage their data more effectively and create whole new industries. For me, all this is very exciting and brings me back to the point to thank the noble Lord, Lord McNally, for first turning me on to data.

Covid-19: Support for Entertainment and Music Industry Freelancers

Lord Vaizey of Didcot Excerpts

Monday 9th November 2020 Lords Chamber

[Baroness Barran (Con)]

The noble Baroness raises an important point. However, I stress that the Self-employment Income Support Scheme has been made more generous as a result of the Chancellor’s announcements last week, and we expect to pay around £4.5 billion to self-employed people between November and January. We work very closely with, and are very grateful to, all our sector stakeholders and will keep all these aspects under review.

[Lord Vaizey of Didcot (Con)]

My Lords, the Government are to be congratulated on the support they have been giving to the cultural sector, led by the Secretary of State Oliver Dowden and, indeed, a Member of this House, the noble Lord, Lord Mendoza. Freelancers are the lifeblood of our creative economy; I think there are even a few present in the Chamber today. Has my noble friend seen the report from the Creative Industries Federation, commissioned by Oxford Economics, which suggests that almost 300,000 freelancers may lose their livelihoods during this terrible pandemic? Despite the reforms and changes made on the way to some of the excellent support schemes, I hope that the Government will look again at how to further support freelancers.

[Baroness Barran (Con)]

Our freelancers are indeed the lifeblood of our creative industries; that is why we are working so hard to get funding to organisations that, in turn, will be employing freelancers. For example, the majority of successful applicants to the Culture Recovery Fund are planning activity to start before March. Our research suggests, however, that not all freelancers who are eligible for support are actually accessing it; we would really encourage them to do so.

Covid-19: Regional Theatres

Lord Vaizey of Didcot Excerpts

Monday 28th September 2020 Lords Chamber

[Baroness Barran (Con)]

I am not clear where the Chancellor said he did not see these as viable jobs. We have used every effort to make sure that the unprecedented level of support for these sectors is as wide and comprehensive as possible.

[Lord Vaizey of Didcot (Con)]

I draw attention to my entry in the register of Members’ interests, in particular my work with the National Youth Theatre and Digital Theatre+. May I ask my noble friend about further measures to support regional theatre? I absolutely congratulate her, her colleagues and the Treasury for the astonishing level of financial support that has already been provided. However, two practical measures may make a difference. One would be to consider increasing the threshold for the excellent theatre tax relief, brought in by a Conservative Government, perhaps as theatre begins to recover. The second, partly to echo the noble Lord, Lord Stevenson, would be to have a government insurance scheme to cover theatrical productions as they begin, we hope, to come back to life.

[Baroness Barran (Con)]

I welcome my noble friend to his place in the Chamber. He makes two helpful suggestions. He is quite right that the theatre productions tax relief generated £71 million in the last year, which supported almost 3,600 productions; the Treasury keeps that under review at all times. We are working with the sector, looking at options around insurance, and my honourable friend the Minister for Culture is meeting with groups on this on a weekly basis.

Shared Rural Network

Lord Vaizey of Didcot Excerpts

Monday 28th October 2019 Commons Chamber

[Nicky Morgan]

I thank the right hon. Gentleman—I think—for the response to the statement. The paltry support he got from those on his Benches when he sat down showed that they did not think much of it either. It was a typical grudging response from the Labour party, rather than a recognition that this is a significant step forward for consumers and for our constituents. Just to answer some of the questions he put on behalf of the Labour luddites in this House, let me say that the 95% target for 2025 is achieved by getting to just over 92% by 2026. This is a clear commitment given by the four mobile network operators, and it is actually much better than achieving it either through the spectrum auction or through any other roaming proposals. It is right that we should see that this is delivered properly and comprehensively across the UK, rather than rushing, although we are clear about the 2025 target.

On interim targets, we are obviously going to wait for industry to say how quickly it is able to do the roll-out, but I was clear in my statement to say that many areas will see this coverage much more quickly.

On the letter from Ofcom, it is obviously a decision for Ofcom as to whether to carry on with the auction coverage. However, I suggest that the right hon. Gentleman read Sharon White’s letter, because she is very clear that by following this proposal and sharing infrastructure,

“the four operators can deliver much greater improvements in coverage at less cost than they could do individually”,

and:

“We believe this is an efficient way of improving coverage which should provide a better experience for consumers than other alternatives like rural roaming.”

The right hon. Gentleman asked whether all four were included in the 95%, and that is absolutely the case.

This is a significant moment for improving mobile connectivity, which is absolutely essential to making sure that the UK plays its part in being able to develop, use and innovate the technologies of the future. I would hope that all those who hope for coverage in areas such as the west midlands, which is leading the charge in terms of the 5G test beds, under the brilliant mayoralty of Andy Street, could celebrate rather than offer this grudging response today.

[Mr Edward Vaizey (Wantage) (Ind)]

When the previous Prime Minister rang to fire me from my position as telecoms Minister, she could not get through because I did not have a signal on my mobile phone, so this announcement today is close to my heart. May I ask the Secretary of State to update the House on any changes to planning regulations, which are often the barrier to erecting much-needed mobile phone masts in rural areas?

BBC

Lord Vaizey of Didcot Excerpts

Monday 15th July 2019 Westminster Hall

[John Howell]

I thank my hon. Friend for that comment. The idea of keeping out commercial advertising was fine 50 years ago, and even 20 years ago, but in today’s world it needs to be looked at again in the context of how the BBC will function.

I was going to say a few things about free TV licences, but the hon. Member for Warrington North has said many of them already, so I will not comment.

[Mr Edward Vaizey (Wantage) (Con)]

Do you agree with her? That is what we want to know.

[John Howell]

I think this is a fault of both the Government and the BBC. I have told the director-general that—he happens to be a constituent of mine—and that is the position I will take. Just before my right hon. Friend the Member for Wantage (Mr Vaizey) comes in with a witty comment, that is not sitting on the fence; it is a position that I fully hold. The BBC has done itself no good at all in how it is has gone about dealing with the TV licence.

--- Later in debate ---

[Mr Edward Vaizey (Wantage) (Con)]

It is a pleasure to serve under your chairmanship, Mr Wilson, not least because my hon. Friend the Member for Stone (Sir William Cash) is speaking in the main Chamber, so this is a safe haven for the next 45 minutes, I estimate.

I am an unashamed fan of the BBC. We keep talking about the TV licence fee, but it is worth rehearsing the fact that the BBC provides a huge range of services in at least five or six distinct areas. What I would loosely call the social aspect of the BBC is hard to define, but people forget that it funds five classical music orchestras. We could debate whether that is a good use of licence fee payers’ money, but there it is.

I refer hon. Members to my entry in the Register of Members’ Financial Interests. Last week I hosted an event for the BBC at which it launched a new app called Own It, which is designed to help children to navigate social media. This week, I am hosting an event with the BBC for a scheme it is doing with the Arts and Humanities Research Council to fund doctoral students. Of course, we all celebrate the Proms. The BBC does a lot that no commercial organisation would do, much of which strays into the area of social good or the work of the Arts Council England. Frankly, I do not think it spends enough time telling people like us what it does in that field.

We refer to the TV licence fee, and we have heard a lot of citations from pensioners talking about how much they love television, but let us not forget radio. The BBC accounts for about 70% of radio listening. There are not just the national channels that we all listen to—Radio 4 and 5 Live for this demographic, I suspect, and also Radio 1, Radio 2, Radio 3 and 6 Music—but local radio, which is absolutely vital. In my constituency we have BBC Radio Oxford and, nationally, 39 local radio stations provide vital local coverage, in particular local news.

It is often BBC News that gets the BBC into trouble—there is always something for Brexiteers, remainers or Corbynistas to get their teeth into and object to. I thoroughly enjoyed the speech of hon. Friend the Member for Henley (John Howell)—I had no idea about his life as top-flight media executive; he was a star of the BBC World Service. There is also the Parliament channel, local radio news and the BBC’s website. However often we disagree at times with how the BBC covers particular aspects of news, we can all agree that in an era of fake and very biased news being disseminated on social media—we see the effect that that has had on politics in the United States—we are lucky to have, broadly speaking, an unbiased and objective news service at the heart of the BBC, which is widely respected in the UK and abroad.

Then there is BBC drama and entertainment, including “Strictly Come Dancing”, “Poldark”, which we all watched last night, and “8 Days”, which I watched this morning with my Cavapoo at home. Quality drama pervades the whole of the drama output of British television. One reason why British television is so respected around the world is because the BBC sets a quality anchor—a quality level—that everyone else aspires to, which would not be there without it.

Then there is the BBC’s foray into the world of commerce. It generates its own revenue to keep the licence fee within reason and sells its programmes all over the world. BBC Studios, which makes programmes, is now in profit. The BBC has made a foray into commercial television with UKTV, to which I shall return.

The BBC does much work to make itself as accessible as possible. The iPlayer is probably the most user-friendly TV platform—I include Netflix in that. The BBC has also supported the roll-out of digital radio, and it has constantly innovated in relation to apps, as more and more people are obviously accessing content on smartphones. As my hon. Friend the Member for Henley said, BritBox, which it launched in the US with other commercial players, is now potentially being launched in the UK.

It is important to remember that there is a lot going on in the BBC. When people criticise it, they should ask themselves what we would do without it. I have to admit that it is a bit like the royal family—it is a bit of an anomaly. I am not sure whether we would invent it if we were starting from scratch, but it permeates our culture and I could not imagine a life without it, even though, as my hon. Friend said, it is not perfect and gets things wrong.

The issues facing the BBC include the licence fee itself, which we looked at when we undertook the charter review. We concluded that, rather like democracy, it is the least-worst option of funding the BBC. It maintains a level of independence from the Government and gives the BBC a secure income. By and large, it still works. It is not destined to last forever. It may be that the BBC eventually moves to a subscription model—we will have to wait and see. Let us not forget that the licence fee has evolved. There used to be a radio licence fee that people took out separately from the TV licence. There may be debates about whether there is a licence fee aspect of funding the BBC and a subscription aspect.

The BBC will continue to look at savings. It has taken about £1 billion in costs out of the organisation over the past 10 years, and it is right that it has done so. It has an existential challenge, in terms of competing with the commercial sector. It is a big elephant in the room, in so far as the UK media scene is concerned. Ten years ago, we could not move without every media organisation, including, funnily enough, The Guardian, complaining about its reach and scope. That has been dwarfed by the advent of Netflix, the resources that Sky will have following its takeover by Comcast, and Disney. The competition to fund content, and for eyeballs—not least given the changing ways that people are consuming content—will present real challenges to the BBC to remain relevant, particularly to a younger demographic. I do not envy it that.

The BBC faces challenges on which it can lead the way. It focuses far too much—this slightly contradicts what I just said—on saying, “How do I compete against ITV or Netflix?” and not enough on saying, “What does the privilege of a secure income from the licence fee allow me to do for the UK as a whole?”

[Anna Turley (Redcar) (Lab/Co-op)]

The right hon. Gentleman is giving very compelling testimony about the value that the BBC adds to this country. I wholeheartedly endorse everything he has said. He is getting into the wider issue of the social value that the BBC adds. Elderly people frequently suffer from isolation and are unable to get out of the house. One of my constituents has said:

“I am disabled. I cannot go outside without my carer or my wheelchair. The television is my friend and companion.”

Does that not back up what the right hon. Gentleman has said? The BBC is about more than just entertainment; it adds social value over and above that.

[Mr Vaizey]

It certainly is. If I knew about the services that the BBC provides in greater depth, I could probably rattle off five or six others, beyond simply the television, that it provides for the hon. Lady’s constituent.

Perhaps this sounds like navel-gazing—I am coming to my conclusion—but I think the BBC could take a massive lead in supporting much greater diversity, including with disabled people and black and minority ethnic people, not just in front of the camera but behind it. It really could invest in that. That is not to say that, over the past 30 or 40 years, it has not been at the centre of training legions of people who now work across the media.

The issue that concerns MPs at the moment, however, is the BBC’s struggle with having the free TV licence foisted upon it. As I have said already in the main Chamber, that policy was forced on the BBC by the Government, by the Treasury. There was no negotiation—the BBC was going to take the free TV licence, whether it liked it or not, as far as the Treasury was concerned. The only room for negotiation was what the BBC might be able to claw back in order to mitigate the financial impact.

The decision was wrong, and it was made because the then Government had to meet their manifesto commitment—ironically—of making £12 billion in welfare cuts. It was the wrong decision to impose on the BBC, and this Government compounded it. Having forced it on the BBC, they are disgracefully trying to have their cake and eat it, saying, “It’s the BBC’s decision but we disagree with it.” If they are going to force the policy on the BBC, they should support its decision. If we could roll it back, an honest Government would take the policy back from the BBC, engage with the public and decide whether free TV licences are affordable.

My personal view—this is where I will lose the support of Opposition MPs—is that the free TV licences were a gift given by a previous Government without thinking whether it was financially sustainable. Reform of free TV licences is a perfectly sensible position to look at, and it seems to me that the BBC, after careful analysis, has come up with a sensible reform policy. However, the question is whether that should be the BBC’s role, and the answer to that is no.

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[The Minister for Digital and the Creative Industries (Margot James)]

It is a pleasure to serve under your chairmanship, Dame Cheryl, and I congratulate the hon. Member for Warrington North (Helen Jones) on securing this important debate on these three petitions. I agree with the shadow Minister, the hon. Member for Cardiff West (Kevin Brennan), that the hon. Lady’s opening speech was an excellent account of so many of the issues that drove those petitions, and her own response to them.

Before I address some of the issues that have been raised, I will echo the huge positivity from across the Chamber about the role, importance and value of the BBC. We in this country are extremely fortunate to have the BBC, for all the reasons that right hon. and hon. Members have mentioned; it delivers an enormous public service, with hugely successful productions such as “Bodyguard”, “Strictly Come Dancing” and the “Today” programme. I would add a recent one, “Gentleman Jack”, which is absolutely fantastic.

[Mr Vaizey]

Oh, I loved that.

[Margot James]

I am glad my right hon. Friend loved it. It was a series that illustrated the importance of diversity in the BBC: a regional series set in Halifax, written by a BAFTA-winning director and playwright, Sally Wainwright—also from Yorkshire—and co-produced by BBC Studios and Lookout Point. I wish that such a series had been aired when I was growing up in the 1970s.

Of course, it is the licence fee that delivers that public value and allows the BBC to reach UK audiences everywhere, from the TVs in our homes to all the gadgets and devices that we carry around with us. The BBC is also required to represent and cater for all sorts of niche interests that may well not attract the attention of a channel that depends on advertising, or even broad-based subscription revenues, for its identity and position. The BBC received close to £3.7 billion in licence fee income last year, and its unique position of providing distinctive content in under-served genres to under-served audiences is vital.

Right hon. and hon. Members will know that we carefully considered the question of the licence fee as part of the BBC charter review process in 2015 and 2016. We found that independent research demonstrated a great deal of public interest in the licence fee. Some 60% of people surveyed backed it as the least worst option, as my right hon. Friend the Member for Wantage (Mr Vaizey) mentioned. For 60%, the licence fee was the mode of payment that they most supported, with fewer than 3% backing either an advertising model or a subscription-based model. Those figures are quite powerful, which is why we have committed to maintaining the licence fee funding model for at least the duration of this new 11-year charter period, which will bring us to the end of 2027. That provides the BBC with the funding certainty that it needs to thrive and deliver its mission and public purposes.

The media landscape is changing all the time, and citizens and consumers have more choice than ever before, particularly in the form of subscription-based services. However, the BBC’s content remains hugely popular. Some 91% of adults in the UK use its services each week, spending an average of 18 hours watching, listening to or using those services. Such figures demonstrate the continuing importance of the BBC in the fast-changing and increasingly competitive media landscape. In addition, the BBC directly invests over £2 billion in the UK’s creative industries each year, and invests billions of pounds in the digital and high-tech industries that support content creation and distribution. It is therefore a very important contributor not only to our shared experiences and public life but to the economy.

I now turn to the over-75s’ licence fee concession. Of course, the Government recognise the importance of television to people of all ages, particularly older people. We have heard a lot today from Members who, having talked to their constituents, have recounted what we all know: that the television can provide a lifeline to older people, particularly those who are recently bereaved or live alone, as a way of staying connected with the world. Right hon. and hon. Members have made that point clear, and I wholeheartedly agree with those sentiments.

However, if we cast our minds back four or five years to the time of the 2015 funding settlement, the Government had an expectation that all public services and public institutions had to find some economies and play their part in reducing the budget deficit overall and bringing some stability and sense to the public finances. Older people, like everybody else, mostly agreed with the need to do so, although they did not necessarily agree with all the means that were identified as routes towards restoring that stability and sense. However, it was agreed with the BBC that the responsibility for that concession would transfer to the BBC by June 2020.

In return, the Government closed the iPlayer loophole so that more people paid the licence fee. Many more people now pay the licence fee, leading to an uptick in the BBC’s revenues. The Government also committed to increase the licence fee in line with inflation during the charter period, which for the first time gave the BBC a more sustainable income for the future. At the time, the Government and the BBC agreed it was a fair deal. Indeed, the director-general said:

“The Government’s decision here to put the cost of the over-75s on us has been more than matched by the deal coming back for the BBC.”

Parliament debated the issue extensively in passing the Digital Economy Act 2017 and approving the transfer of the legal responsibility for the concession to the BBC. I was a Whip in that Government, and I can tell Members—I am sure you will remember this too, Dame Cheryl—that we had to compromise greatly on a number of very contentious issues, but this was not one of them.

Free TV Licences: Over-75s

Lord Vaizey of Didcot Excerpts

Tuesday 11th June 2019 Commons Chamber

[Jeremy Wright]

Well, Mr Speaker, it is not quite as simple as that. The hon. Gentleman knows I have a good deal of respect for his passion and his consistency. I accept that he has always argued that it was wrong to transfer the responsibility to the BBC, but the arguments he makes today were better suited to our debate on the Digital Economy Act 2017. Indeed, he made those arguments then—I accept that. However, the argument was had, a vote was conducted and a result was recorded. Consequently, the BBC has the responsibility for deciding what to do about the licence fee concession. That is a fact.

The hon. Gentleman raised several concerns and I will try to deal with them. First, he is rightly concerned about those who are elderly and lonely. I know that he will recognise that the Government have not relied on the BBC to do something about those who are lonely. We are the first Government to appoint a Minister for loneliness, to have a loneliness strategy and to commit £11.5 million to pay for several programmes under the Building Connections fund. The Government take loneliness seriously and have put our money where our mouth is.

The hon. Gentleman also raised concerns about the poorest pensioners. Let me say two things on that. First, as he knows, the Government have put considerable effort into raising pensioners’ living standards. We have increased the basic state pension by significant amounts. It is today £675 higher than if it had simply been uprated by earnings since 2010. In cash terms, that is £1,600 more for every pensioner. We take seriously the responsibility to look after those who do not have means and are pensioners. Again, we have put our money where our mouth is.

The hon. Gentleman made a good point about eligibility for pension credit. It is important that all those who are eligible claim it. That is exactly what we, too, believe should happen. My colleagues in the Department for Work and Pensions have been working hard on that. I and they expect the BBC to help us in that task by ensuring that, as the opportunity presents itself, people who do not yet claim pension credit but are entitled to it do so. I hope that we will have the hon. Gentleman’s support in that process.

It is important to stick to the facts and not to scare people unnecessarily. It is important to understand that the change will not happen immediately, but next year, and that those who are entitled to pension credit can still have a free TV licence. It is also important to understand that evasion of the licence fee is not an imprisonable offence. It is helpful if we do not mislead people on those points.

I have said that the Government have put their money where their mouth is in looking after the individuals about whom the hon. Gentleman is rightly concerned. The House and pensioners over the age of 75 have a right to expect the same of the Labour party. If the hon. Gentleman wishes to come here and express his outrage about the transfer of responsibility to the BBC and away from the taxpayer, does he accept that it should be transferred back? If so, where will the money come from? He is offering to commit to £500 million of extra public spending. We are all interested to know where it will come from.

[Mr Edward Vaizey (Wantage) (Con)]

My right hon. and learned Friend knows that there is no job in the world I would like more than his. He will therefore be delighted by what I am about to say because it will preclude any future Conservative Prime Minister from giving me the job.

I was in the Department for Digital, Culture, Media and Sport when the Treasury imposed the policy on the BBC to meet its £12 billion welfare target, which I doubt we have met and has long been forgotten. The Government should either take back the policy or support the BBC changes. They should not use weasel words to undermine the changes that the BBC has made. It is interesting that 40% of those over 75 subscribe to paid-for television services as well. We should support the BBC in making the changes.

[Jeremy Wright]

I respect my right hon. Friend’s experience in this matter. I am tempted to say that if he really wants my job, today would be a very good day for him to have it, but I do not think I will make that offer.

My right hon. Friend is right that the BBC’s decision must be respected, but we all have a right to express our view on the decision. It is a BBC decision—I have clearly accepted that; it is what the statute says—but we all have a right to express our view and I have been frank with the House in saying that I am disappointed that the BBC has not been able to do better. I think it still can do better and I intend to use the forthcoming period to persuade it to do so.