Freeview Channels

Andrew Miller Excerpts

Wednesday 23rd November 2011 Westminster Hall

[Mr Howarth]

The hon. Lady made her point effectively and I will support her argument as my speech develops.

I have recently received helpful representations from the Interactive Media in Retail Group—IMRG—and the Electronic Retailing Association—ERA Europe. Both organisations support the case I am making today. The issue has a direct effect on QVC, but there is also a wider effect. Leaving aside QVC’s 1.1 million active customers, independent commercial broadcasters in the UK form a successful and growing sector that employs 22,000 people. Some of those broadcasters are now commercially vulnerable due to the unfair and unclear regulatory situation in respect of the Freeview platform. The allocation of Freeview channels is important to the whole of the independent commercial broadcasting industry.

According to a communications market report by Ofcom, non-public service broadcasters have a 28% share of the audience in UK multi-channel homes. That is a not insignificant number. Research undertaken by Deloitte shows that members of the Commercial Broadcasters Association—COBA—invested £432 million during 2009 in original UK content. Another survey, from 2008, showed that COBA members contributed more than £2.2 billion to the UK economy.

The Government recognise the importance of the sector and are currently undertaking a major review that is likely to lead to a new communications Bill. I welcome the rationale for that legislation, which I understand is to bring the UK’s regulatory regime into the digital age and to ensure a communications infrastructure that supports growth and innovation while protecting the public interest and consumer choice.

COBA told me that

“one of COBA’s fundamental principles is to support light touch regulation that benefits the whole market not just a few players.”

That is why handling the allocation of Freeview channels is so important. It will signal the Government’s intentions on fostering independent dynamic businesses in the communications industry and beyond.

[Andrew Miller (Ellesmere Port and Neston) (Lab)]

My right hon. Friend is making extremely important points. Although I am not particularly familiar with the channel in question, I certainly believe that all regulation should work on the level playing field principle, and in the circumstances he has described, it clearly does not. That underlines a view that I have stated for many years and that I hope the Minister will think about when preparing his broadcasting legislation: Ofcom should have a much broader umbrella, covering all digitised services, so that at least there is a parent body that can deal with anomalies such as the one that my right hon. Friend describes.

[Mr Howarth]

I am grateful to my hon. Friend for that intervention. He is very knowledgeable on these matters, particularly on regulatory issues, wearing his hat as a Select Committee Chair. I hope that the Minister takes seriously the point that he made.

--- Later in debate ---

[The Minister for Sport and the Olympics (Hugh Robertson)]

First, may I say what a pleasure it is to be here under your chairmanship, Mr Streeter? Secondly, I thank the right hon. Member for Knowsley (Mr Howarth) for securing the debate and for the way he presented his concerns, which I absolutely understand. Thirdly, and in some ways most surprisingly, I apologise for not being the Under-Secretary of State for Culture, Olympics, Media and Sport, my hon. Friend the Member for Wantage (Mr Vaizey). I hope that this is the last time I have to do so. He is, of course, the Minister for the arts and the media, but he is away on ministerial business, and on his behalf, I apologise.

I welcome the opportunity to debate the issues regarding Freeview and the allocation of channels. The debate is particularly timely, because my Department is considering the regulation on electronic programme guides as part of our communications review.

The right hon. Gentleman talked about the importance of slots and the high-level listings on EPGs, and how that might impact on viewing numbers, and therefore indirectly on businesses, such as those in his constituency and the constituency of my hon. Friend the Member for Brentford and Isleworth (Mary Macleod). I absolutely understand QVC’s position and the possible impact that any decision by Digital Multiplex Operators Ltd may have on that established company. QVC is a great British company. In 18 years, it has revolutionised home shopping in the UK and grown to have about 1,500 employees in the right hon. Gentleman’s constituency and at least another 500 elsewhere.

The regulation of EPGs is, as the right hon. Gentleman correctly said, a matter for the independent regulator, Ofcom, and not directly for Ministers. While I have no powers to intervene in this case, I would like to set out the regulatory framework and what we are considering as part of the communications review. At the outset, I will give him a straightforward undertaking that I will take back what he has said today and ensure that my hon. Friend the Minister, who has responsibility for the arts and the media, is aware of his concerns.

[Andrew Miller]

Will the Minister add another aspect to that? While my right hon. Friend the Member for Knowsley (Mr Howarth) teased me about not being a shopper on QVC, my mother, who often gets into such debates, found it to be of invaluable service when she was at home as a disabled person. A lot of older people who are not experts on the internet, although my mother used the internet in her 90s, find television shopping a valuable tool. It would be grossly unfair to put people such as the disabled at a competitive disadvantage because of the competitive advantage of giant broadcasters.

[Hugh Robertson]

I can certainly give the hon. Gentleman the undertaking that I will ensure that his comments are also relayed to my ministerial colleague.

The Communications Act 2003 sets out the fact that it is Ofcom’s duty to draw up, and from time to time review and revise, a code to give guidance to platform operators about the provision of EPGs. Ofcom’s code of practice on EPGs is non-prescriptive about the order in which channels are placed, except for the public service broadcasting channels, which include the BBC’s digital services, channels 3, 4 and 5, and S4C in Wales.