S4C

Alun Cairns Excerpts

Wednesday 20th October 2010 Westminster Hall

[Guto Bebb]

As I was saying, Mrs Brooke, S4C’s initial period was successful, but it is important to note that it was more than just a television channel. The establishment of S4C unleashed creativity across Wales that led to the creation of a Welsh independent television sector, which prospered not only in Cardiff but in west Wales and Caernarfon in north Wales. That was undoubtedly a successful period for the channel, and that sustained period of success resulted in changes to S4C’s funding arrangements in 1991 that established a link with the retail prices index. That link has been questioned recently, and has been in the news.

[Alun Cairns (Vale of Glamorgan) (Con)]

Is my hon. Friend aware that the document that S4C presented to the Department for Culture, Media and Sport on the request for budget savings said that the link with RPI went back to 1982? Is he not surprised that the document contained such a factual inaccuracy? Is it not indicative of the quality of the document submitted to the Department?

[Guto Bebb]

That might be surprising. The point that I want to make is that I believe that the RPI link has been a double-edged sword for the channel in many ways. In my view, the RPI link was crucial to giving S4C operational independence, because it created a feeling that the broadcaster would be independent of Government intervention. Anybody who believes that a public broadcaster should be free to broadcast whatever it desires would obviously welcome that link and the freedom that it gave S4C to pursue its own requirements. In many ways, therefore, the RPI link was a positive thing.

However, S4C had to pay a price for that link. The problem with a funding arrangement allowing for year-on-year increases was that it created a growing feeling that the channel and its management were becoming divorced from the people whom they served. When S4C’s viewing figures fell, the channel felt that there was no need for S4C to respond, because regardless of whether it was successful and getting the required audience figures—although in many cases it was—it was almost immune to the realities of falling audience share, because year on year its budget would increase.

Although I believe that the RPI link gave S4C a degree of independence from Government, which is crucial, it also created a comfort zone for the channel, so I do not mourn the loss of the RPI link in determining how the channel is funded. However, little did I know when I was putting together my notes that the RPI link would be the least of the issues that we would discuss today.

--- Later in debate ---

[Mr Vaizey]

We can spend the debate looking backwards or forwards. I want to look forward, as I believe that S4C has a bright future under the Government’s proposals. As so much of our discussions come down to funding, I will make it clear that in the financial year 2011-12, S4C will receive £90 million, which is a substantial sum of money. By 2014-15, the channel will receive a total of £83 million, which is still a substantial sum of money. My hon. Friend the Member for Aberconwy referred to S4C’s £3 million of commercial income, which he felt was a low sum of money. Nevertheless, it is £3 million, and S4C has £27 million in reserve, which is available to spend on its statutory duty. To my mind, that is a substantial sum of money for securing the future of Welsh programming.

[Alun Cairns]

I congratulate the Minister on the figures that he just announced, because they are a significant pledge of support to S4C. How do they compare with the cuts that the Department and the Government have had to make as a result of the financial position that we inherited? Will all of that money be output-focused and spent on independent production companies? Will the BBC in any way be able to siphon it away under the suggested arrangement?

[Mr Vaizey]

My hon. Friend makes very important points. Overall, the Department agreed with the Treasury a 24% to 25% cut, so S4C is not being singled out. In fact, in mentioning the BBC, he reminded me that if we take the £90 million, the £3 million of commercial income and the £27 million of reserves, we still have not counted the equivalent of £20 million of free programming that is already available from the BBC for S4C. That is a substantial sum.

Given the important representations made by my hon. Friends over the past few weeks on the future of S4C, and the interest that the people of Wales take in the future of S4C, I know that parts of this debate will play on the news tonight in Wales. People in Wales will be watching this debate, perhaps on BBC Parliament, and I want them to know about the £90 million next year, the equivalent of £20 million in programming from the BBC, £3 million in commercial income and £27 million in reserves. I have enough faith in the people of Wales to believe that they will look at the funding figures for S4C and think that they are generous, so for the Opposition to depict this move as an attempt to undermine S4C is an outrageous travesty of the truth. [Interruption.]