S4C

Alun Cairns Excerpts

Thursday 31st January 2013 Westminster Hall

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

Thank you for chairing this debate, Sir Alan; it is pleasure to serve under your chairmanship. I extend my appreciation to the Backbench Business Committee for responding positively to my request for this debate. Its members, like all Members here, recognise the importance of S4C.

The purpose of this debate is to recognise and underline the important role that S4C has played in Wales over the past 30 years, but I also want to look forward to how the channel can develop and respond to changing needs in the new media age. This is also an opportunity to seek assurances from the Minister about his Department’s continued role in supporting and funding the channel.

It is hard to recall how broadcasting in Wales looked before S4C started transmitting in 1982. I can just about remember when Welsh language programmes used to appear on the BBC and ITV. They irritated non-Welsh speakers and could hardly meet the demand of those who wanted to watch Welsh language programmes. “Pobol y Cwm”, “Heddiw” and “Fo a Fe” are just three of the programmes I remember best. Although “Pobol y Cwm” remains with us, it has changed significantly and holds the record for being the BBC’s longest-running soap opera. It is interesting to note that the first Welsh-language broadcast was in 1923, when Mostyn Thomas sang “Dafydd y Garreg Wen” on the radio.

S4C was born of the Broadcasting Act 1980, which established Channel 4 across England, Scotland and Northern Ireland and S4C in Wales. Before that time, there was some controversy. We should pay tribute to two people who played key roles in securing the Welsh channel. The first was the former Plaid Cymru MP Gwynfor Evans, who campaigned tirelessly; the other was Wyn Roberts, then MP for Conwy and now known as Lord Roberts. His influence as a Welsh Office Minister was key in encouraging Margaret Thatcher and Willie Whitelaw to agree to the channel.

Over the past 30 years, S4C has boasted a host of nominations and awards, including numerous BAFTAs. “Hedd Wyn” and “Solomon a Gaenor” were nominated for Oscars in the best foreign-language film category, along with several Emmys and New York film festival awards. S4C has an excellent reputation for animation; “Superted”, one of its first programmes, broadcast in 1982, became the first ever British animation series to be broadcast by Disney. I could go on and on.

Those awards not only demonstrate the channel’s cultural and artistic influence but underline its economic role. Films and programmes of such calibre have naturally created demand from international broadcasters. I could highlight several examples, but one of the most notable is “Jesus: The Miracle Maker”, seen in the cinema and on television by some 40 million people, including two peak-time viewings on the ABC network in the US.

The fallout from such success and Government spend has been the creation and development of a broadcast industry. Wales has 40 independent television companies, some of which have become significant UK players and are expanding internationally. Two obvious examples are Boom Pictures, which developed from Boomerang and is in the news today because of its deal with MainStreet Pictures, and Tinopolis, which bought Mentorn Media and Sunset and Vine.

Other notable companies winning commissions from UK networks are Rondo, Green Bay, Cwmni Da and many others. Their main activities are in Wales, where they create employment and wealth for the UK economy.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

What does the hon. Gentleman think the state of the creative industries in Wales would be if there had not been an S4C?

[Alun Cairns]

The hon. Gentleman might be familiar with the Hargreaves report, which said that it is unlikely that there would be an independent television industry in Wales if not for S4C. The economic impact now adds between £80 million and £90 million to the economy. Although that is positive, it needs to develop further with a multiplier effect; I will return to that a little later. I note that every one of S4C’s chairmen and chief executives have contributed significantly to that success and provided excellent leadership over the years.

Digitisation created new opportunities, but also caused the channel some difficulties. S4C established its digital channel in 1998, changing the landscape significantly. Rather than broadcasting a limited number of hours of Welsh programming and taking the remaining feed from Channel 4, S4C Digital started broadcasting Welsh-language programmes all day long. Although there was a change in the funding formula, budgets naturally became tighter with increased demand for output. Increased viewer choice also had a fallout on viewer numbers. Depending on how we measure the channel’s success, audience numbers would naturally have been squeezed. Recent changes in viewing patterns to online, on-demand, satellite, mobile and other innovative formats have made Broadcasters’ Audience Research Board data less reliable.

Some politicians and leading individuals have sought to exploit the need for changes in the running of S4C for their own ends. Just over two years ago, my hon. Friend the Member for Aberconwy (Guto Bebb) held a debate on the channel here in Westminster Hall, after the Minister first proposed to change the predominant funding source from the Department for Culture, Media and Sport to the BBC. That debate was exploited to the full, despite assurances and guarantees offered by the Minister and the Secretary of State at the time. Questions were asked about operational independence and commissioning guarantees to independent companies. Despite the commitments offered by Ministers to my hon. Friend the Member for Aberconwy and me, the critics continued to be negative and to use the channel as a political stick, creating uncertainty and undermining confidence.

[Hywel Williams (Arfon) (PC)]

The hon. Gentleman uses the interesting word “exploit”. Some might characterise what we said at the time as proper concern for the national channel and the only channel broadcasting in Welsh. He and I differ in our views. Clearly he has his own beliefs.

[Alun Cairns]

I remind the hon. Gentleman how packed Westminster Hall was on that occasion. People who had never shown any interest in the channel came merely to use it as a political stick, rather than listening to the reassurances given by the Secretary of State and the Minister, which have now been realised in the agreement signed earlier this week. Until then, the channel had avoided being used for political purposes. I hope that it can return to that state of consensus on how it is supported. That is the best way to secure its long-term future. This week, those guarantees from the Government have become reality. I was pleased that the BBC Trust and the chairman of S4C approved their operating agreement. It is excellent news and exactly meets the Minister’s commitments. It satisfies the demands of the Welsh public, the industry, S4C and the BBC.

Some points in the agreement are still open to interpretation. They relate to powers to intervene, which lie with the trust rather than the corporation, and extreme circumstances in which the BBC could withdraw funding. It is important to emphasise that interpretation of “the BBC” in that document should refer to the BBC Trust, and that there is an expectation that the BBC Trust would consult Ministers and others well before getting into a position to withhold funding.

[Jonathan Edwards]

The hon. Gentleman is being very generous in giving way. The agreement is testament to the hard work of the chair of the S4C authority and the commissioner for Wales of the BBC. They seem to have managed to square a circle. Does he share my concern, however, that the agreement might be problematic if we had a commissioner for Wales on the BBC Trust who was hostile to Welsh-language broadcasting?

[Alun Cairns]

I refer to the point I have already made. I pay tribute to the people the hon. Gentleman has mentioned, but the agreement follows the commitment and guarantees that were given by the Secretary of State and the Minister at the time of the previous debate. It brings those commitments into reality, and I absolutely take confidence in the document and in the comments made by the chairman of S4C, its chief executive and the chairman of the BBC Trust. I absolutely accept those comments. That is why I wanted to clarify today the small points that are down to interpretation. It comes down to the matter of the BBC Trust, and there is a long process before the BBC would ever get to a position of withholding funding.

With those doubts resolved, we are left with the challenges and opportunities for the future. We are already seeing the benefits of closer working with the BBC. There is on-demand provision through iPlayer and Clic, where common platforms provide opportunities for savings, and some central services can be reorganised to save more money. Such joint working, however, should not be at the cost of commissioning from the independent sector. In fact, money saved through joint working should be able to increase resources available for commissioning.

Commissioning programmes to be made in both English and Welsh makes good sense, and it opens the door to international markets.

--- Later in debate ---

[Sir Alan Meale (in the Chair)]

For the information of the Minister and those who might not have heard what I said during the Divisions, I will push on so that we can get everyone in, in particular those who have to leave early. If Members who are called to speak could keep their contributions down to five or six minutes, in the early stages at least, that would be really helpful.

[Alun Cairns]

Before the interruption, I was talking about the joint working with the BBC and how that should release funding to enable more money to be spent on commissioning from independent companies, although, as one of my hon. Friends commented during the interval, the Divisions make it seem as though S4C is being subject to some interference. Commissioning programmes to be made in both English and Welsh makes good business sense and opens international markets. “Mathias”, or “Hinterland”, is one such example —the programme has already been sold to a Danish broadcaster.

Viewing figures alone are not necessarily the best measure of the success of a channel. The limited number of BARB boxes in Wales leads to significant fluctuations in the audience numbers recorded, and a recent saving of £250,000 was made by removing the additional BARB boxes commissioned by the channel. That was sensible, and the right thing to do, but we need to bear those fluctuations in mind. If measuring audience numbers alone is too simplistic, we need to recognise the limited audience and compare S4C with other channels that operate in specialised areas, such as BBC 4. I do not have a solution to the problem of how we measure success, but it needs to be considered.

New media technology also provides new opportunities to reach new audiences, and means that language need not be a limitation. Two-language commentary on sport is an excellent innovation that should be developed further. Although the Department for Culture, Media and Sport has been supportive of S4C’s expansion into new media, legislative changes are needed, because of the limitations of the existing Communications Act 2003. Such changes would enable the channel to become more effective and to operate in further areas of new media. That has a direct link with the economic impact of the channel, but the multiplier has to improve further. The digital development and co-production funds offer opportunities to attract additional finance, support creativity across platforms and develop new companies and innovations. It would be good to see S4C expand yet further in that way.

It is important for S4C to be at the centre of the media industry developing in Cardiff. I hope that comments about setting up offices elsewhere do not detract from the cluster effect that can give critical mass, allow the transfer of skills and creativity and, ultimately, generate wealth for the UK economy.

[Nia Griffith (Llanelli) (Lab)]

Has not S4C, in commissioning companies throughout Wales, been extremely important in offering opportunities in cultural jobs in the whole of Wales and not only in Cardiff?

[Alun Cairns]

I absolutely agree, and it is important for the channel to reflect the culture of the whole of Wales, so commissioning from companies outside Cardiff is important. S4C, however, has to be at the centre of the dynamic media innovations in Cardiff, to create that cluster effect, generate wealth and provide opportunities for greater export of programmes. I do not detract from the channel’s activities elsewhere, but I hope that those activities elsewhere do not detract from its focus at the centre of that media development.

Finally, I want to talk about the importance of the funding from the Department for Culture, Media and Sport.

--- Later in debate ---

On resuming—

[Alun Cairns]

I hope that that was our last Division this afternoon, and that this important debate can continue. I was about to make my final point, which is about the importance of funding from the Department for Culture, Media and Sport. Not only is the £7 million important financially, but it prevents the BBC from holding a near-monopoly on the funding and commissioning of programmes in Wales, although ITV plays a part, and that is important to the plurality of media in Wales. I appreciate that the Minister’s hands are tied and that he cannot provide a copper-bottomed guarantee because of Treasury rules, but I would like some words that show his and his Department’s commitment to the channel, and a reassurance within the constraints and limitations on him.

Having spoken to the Minister and the Secretary of State previously, I have been encouraged by their response and commitment to S4C. They have lived up to every commitment they made when, two years ago, the channel had difficulties with its longer term future. I am confident that the coalition Government and, I hope, a future Conservative Government will retain that commitment to the channel in the longer term.

--- Later in debate ---

[Alun Cairns]

Thank you, Sir Alan, for calling me to speak again. I am grateful for the opportunity to close this debate, and I am also grateful to the Members who have contributed to it: the hon. Members for Clwyd South (Susan Elan Jones) and for Aberavon (Dr Francis), and my hon. Friend the Member for Aberconwy (Guto Bebb), who focused on the importance that S4C has attached to the Welsh language; the hon. Member for Ceredigion (Mr Williams), who focused on the agreement between the BBC and S4C, which was signed just yesterday; my hon. Friend the Member for Montgomeryshire (Glyn Davies) and the hon. Member for Llanelli (Nia Griffith), who, along with my hon. Friend the Member for Aberconwy, highlighted the funding issues; and the hon. Member for Newport West (Paul Flynn), who talked about the history of S4C, but I think that he almost forgot to mention that it was a Conservative Government who ultimately set it up. The hon. Member for Arfon (Hywel Williams) called for devolution of S4C, which is an issue I will return to in a moment, and the hon. Member for Llanelli (Nia Griffith) covered many of the points that I have already mentioned, and more, in this interesting and constructive debate.

The Minister responded by reassuring the House that there are no plans to devolve S4C and broadcasting. I am grateful for that reassurance, and I think that that feeling is also reflected among the Opposition Members who have spoken. Those who call for the devolution of S4C need to remember that there have certainly been squeezes in budgets in Cardiff Bay. I certainly take more comfort from the security of funding from the UK Government than I do from the funding from the Welsh Government. I just point to the Arts Council of Wales, and the questions and controversy about it in Wales over time, and some of the advocates for devolution might need to look back at recent history.

The funding challenges will always remain; I think that that is a healthy tension. Perhaps in the past, there has not been the debate and discussion about the funding challenges, when there was an automatic RPI increase. It is important that we maintain the dialogue, but the Department for Culture, Media and Sport and the Wales Office Minister—it is a great delight to see the Under-Secretary of State for Wales, my hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb) here supporting the debate—will recognise the feeling among all parties represented in Westminster Hall today that the future funding of S4C is important, needs to remain in focus and will not be forgotten.

Thank you, Sir Alan, for chairing the debate.

[Sir Alan Meale (in the Chair)]

Thank you very much, Mr Cairns. That concludes the debate. Congratulations to S4C on its anniversary, and to all Members who have participated in this debate, especially Mr Cairns, who secured it.