Baroness Neville-Rolfe
Main Page: Baroness Neville-Rolfe (Conservative - Life peer)
The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills and Department for Culture, Media and Sport (Baroness Neville-Rolfe) (Con)
My Lords, this has been a wide-ranging debate and I congratulate the noble Baroness, Lady Bonham-Carter, on her timeliness. As ever, she has spoken eloquently about the positive role the BBC plays in the creative industries and in UK society as a whole. That has been echoed by my noble friend Lord Inglewood and others. I have to say that I share the concern that has been expressed about the limits of the House of Lords equivalent of speed dating—but in my comments I shall try to address the key areas.
The Government are making good progress on our consideration of the BBC’s next royal charter. Last week, as has been said, the Government published a summary of the 192,000 responses we received to our public consultation—they are all important—along with the Clementi review and a consultants’ report into the market impact of the BBC. We have also benefited a great deal from the carefully considered and well-received report from the noble Lord, Lord Best, and his noble colleagues on the Communications Committee.
To respond to a number of comments made by the noble Lord, Lord Stevenson, and others, the Government believe that the BBC is a great institution. However, as I think people understand, charter review is a once-in-10-year opportunity to look at the scale and scope of the BBC, and it is right to look at how to help the BBC and the wider media sector to thrive in future.
Sir David Clementi’s review into BBC governance is a well-rounded and thorough report that makes a clear case for a move to a unitary board. I know that many colleagues believe that appointments to the new board should be made independently. The Government, via an OCPA process, currently appoints all the members of the BBC Trust board. We need to examine what the right approach is for the future. What is clear, however, is that the appointment of the director-general, as now, ought not to be made by the Government. Given that Sir David has only just reported, the Secretary of State will be considering the arguments carefully over the next few months.
As important as governance is what the BBC does. As the noble Baroness, Lady Jay, emphasised, 81% of responses suggested that it served its audience well, and 74% suggested that the BBC’s content was of high quality. But it is important to note that not everyone responded to all 19 questions set out in the consultation. For example, only 5% of respondents commented on the BBC’s mission, purpose and values. Of those, 3% indicated that no change was needed. A comprehensive summary of all the responses received is set out in the report that the Government published last week, which noble Lords may well want to take a look at.
The noble Baroness, Lady Benjamin, argued, as she has so eloquently on many occasions, for a better deal for children’s TV. I know that she will pleased to hear that the Secretary of State had a round table last week with children’s TV producers. Obviously, we are conscious of the need to retain the BBC quality and to encourage variety and creativity in this whole area.
The right reverend Prelate the Bishop of Leeds rightly asked about the fourth issue, diversity, which has been raised by a number of people in our various consultations. The Secretary of State recently met Lenny Henry and is considering carefully how we can encourage greater diversity in what the BBC does. I also ought to respond, because I had not planned to cover it in any detail, to the comments made about regional diversity, which has also been an important part of the process and the consultation and which we will look at when we come to make decisions on the White Paper.
The report of the noble Lord, Lord Best, argued for reform of the way the licence fee settlement should be conducted and recommended that this should be set by the independent regulator. This is an interesting proposal that will be given careful consideration. But, ultimately, the licence fee is a tax, and taxation decisions are ones for Ministers. We will reflect carefully on this issue but it is unlikely that the Government will move decision-making powers for setting the licence fee away from Ministers, now or in the future.
Another proposal in the report is the removal of charter review from the electoral cycle by allowing the charter to run for 11 years and reverting to 10 years thereafter. The noble Lord, Lord Young, picked this up, as did my noble friend Lord Fowler. This view is shared by many, including the noble Lord, Lord Lester, who was kind enough to give me notice of his comments—I will write on a couple of them, as I do not think I have time to cover every single one of them—as it is seen as a way of enhancing the BBC’s independence. My noble friend Lord Fowler and the noble Lord, Lord Birt, proposed going a step further—scrapping the charter completely and setting up the BBC as a statutory body.
Lord Lester of Herne Hill
I have to say to the Minister that that is not good enough. I gave notice last Friday, asking her to reply to my questions. Will she please do so, not in writing but now?
Baroness Neville-Rolfe
I will certainly try to do so. I am answering three of them as I go along, but I was conscious that noble Lords raised several points.
This view goes against those of many of the stakeholders—including the BBC—who responded to our consultation. Again, we will reflect carefully on this issue. Our current view is that at present a royal charter remains the most effective way of providing for the BBC.
Lord Birt
The Minister may like to comment on this. A clause in the last charter says that the licence fee may not be used to fund the World Service. George Osborne then made his night raid, the BBC was required to fund the World Service through the licence fee and the charter was amended in the Privy Council. Would the Minister like to explain the constitutional rationale for that?
Baroness Neville-Rolfe
Obviously, there has been a good deal of comment on the agreement that was reached last year on funding. The rationale for it is clear: that economically, the BBC could not be exempted from the pressures on funding that have been imposed on every other public entity. In addition, the director-general agreed the funding package—
Baroness Neville-Rolfe
I will certainly consider the question further, but we are acting constitutionally—there is a BBC charter and a charter process, we are undertaking the review and consulting in an appropriate way, and we will come on to debate the proposals in due course. The Government behaved in an appropriate manner in trying to sort out the funding of the BBC, as they did last year. In many ways, as I have said on previous occasions, that has been helpful.
As I was saying, we will of course reflect carefully on these issues, and a proposal for the term of the next charter will also be set out in the upcoming White Paper.
Lord Fowler
I take it from what my noble friend is saying that in effect, the Government have rejected the idea that the royal charter should be scrapped. If they have, how does she think the royal charter establishes and safeguards the independence of the BBC?
Baroness Neville-Rolfe
As I have said, we are looking at the whole process at the moment. Independence is an important issue, and when we set out our plans we will come back with our ideas on how we can best ensure an independent and good future for the BBC. I wanted to respond to the points that were made in the report, because it is as well that people understand that the report’s key proposal on this point will not necessarily be accepted. However, having said that, obviously we remain in listening mode at this stage of the process and we will come back with a White Paper.
Although there has not been much comment on it, it is worth mentioning that last week the Government announced a deal with the BBC to close the iPlayer loophole, which, under current regulation, allows viewers to watch catch-up services on iPlayer without paying for a TV licence. Obviously, this will stop those who are essentially freeloading from not paying the licence fee, and the Government will bring forward secondary legislation on this point as soon as is practicable. This responds to the digital change that we have discussed in many of our different debates.
Lord Young of Norwood Green
Of course we welcome the decision on BBC iPlayer, but just as important would be a guarantee that there will be no more top-slicing of the licence fee.
Baroness Neville-Rolfe
We set out our plans for funding and made it clear that there was a way forward, but we said that, in looking at the review of scope and scale, we would make sure that the plans that had been set out and agreed with the BBC made sense. I do not think I can give any commitments in particular on top-slicing, but I understand the concern. We all want a well-funded, well-run BBC—that is agreed territory.
I turn to timing, which I think will be of interest to noble Lords. Our intention is still to publish the White Paper in the first half of this year. As I said in an earlier debate, we can extend the current charter if we have to, although that is not the intention. In response, I hope, to the point made by my noble friend Lord Fowler, we will allow for debates in this House, the other place and the devolved Parliaments before the White Paper goes before the Privy Council for approval.
The most important thing is to get the charter review right, given that it is likely to set the framework for the BBC for years to come. The Government are committed to an open and transparent charter review process—a process which I believe is progressing well. I confirm again that the Government are fully aware of the importance of the BBC and of how much the public and this House value its contribution to society, to the creative industries and to the UK’s standing in the world.
The Clementi review has, I believe, provided a case for reform of the BBC’s governance and regulation, which was certainly a concern in earlier debates. The market impact report has shown that the BBC becoming more distinctive would help both commercial broadcasters and the viewing public by offering more choice. I look forward to a thriving, dynamic BBC which is respected around the world but also provides better value for money in the light of this important review.
Finally, I should say to the noble Lord, Lord Lester, that I have tried to answer his questions, although I do not think I have entirely succeeded. I will write him a letter and ensure that it is copied to other noble Lords.
Lord Lester of Herne Hill
I am grateful to the Minister for what she has just said. Having listened very carefully, I think that the answer to each of my five questions is no.
Baroness Neville-Rolfe
My Lords, I will pass that good suggestion on to the usual channels.
Lord Fowler
Will there be an opportunity to debate the excellent report of the noble Lord, Lord Best? The important thing is to have that debate before the White Paper is published. Although I am interested in having the debate on the White Paper afterwards, it is much more important to have it when—theoretically, at any rate—it can have some influence.
Baroness Jay of Paddington
As my noble friend Lord Macdonald predicted, we are well ahead on the timing, which is slightly unfortunate given that there were many points which people would have raised had they had two and a half minutes or more to speak. However, I emphasise the point that the noble Lord, Lord Fowler, has just made. The report of the Select Committee, of which, as I said, I am a member, would provide a very opportune moment for a better and longer discussion, and perhaps that could be arranged as soon as possible.
Baroness Neville-Rolfe
I note noble Lords’ comments and will pass them on to the usual channels.