Digital Switchover: Communications Committee Report

Baroness Rawlings Excerpts

Tuesday 12th October 2010 Lords Chamber

[Baroness Rawlings]

My Lords, I thank and pay tribute to all members of the Communications Select Committee for their time and work in producing this report on the digital switchover of radio and television. In particular, I acknowledge the contribution of my noble friend Lord Fowler, who during his time as chairman expertly steered the committee through a period of significant change in the communications industry and has kept the subject in debate. He was obviously an inspired chairman, as we have heard from the eight members of his committee. I am pleased to say that the Government, building on the detailed work of the noble Lord, Lord Carter, and the previous Government, have already sought to address many of the recommendations made in the committee’s report through the digital radio action plan.

Digital TV switchover has made huge progress so far. By the end of August this year more than 25 per cent—around 6.7 million—of UK homes had completed the digital TV switchover. A further 10.5 million homes will switch in 2011. We recognise that it is too early to be complacent as we are only a quarter of the way through the programme. There are many challenges to come. Next year there will be 21 regional switchovers and in 2012 the major conurbations of London and the north-east of England will switch. The TV switchover programme is, however, on track for near completion in 2012, is well under budget and will be in time for Her Majesty the Queen’s Jubilee and the Olympics.

So far, relatively few problems have been identified. They are mainly to do with difficulties over retuning and issues of regional overlap. However, the numbers reported are small. So far more than 360,000 people have been helped by the digital help scheme, while local community engagement through regional Digital UK teams, Digital Outreach Ltd and the voluntary sector has helped to provide information to an estimated 350,000 people.

On digital TV underspend, Ministers have made it clear that the ring-fenced money not needed for digital switchover should be made a priority to support broadband in the UK. In answer to my noble friend Lord Fowler, the help scheme underspend will be used for purposes consistent with the BBC’s public purposes. This money has not been diverted from programme-making. It was additional funding which was ring-fenced for this purpose.

There are lessons to be learnt from the TV switchover when considering the case for radio. However, as the Communications Committee noted, it is essential to communicate clearly the differences between the two issues. Let me clarify the Government’s position on digital radio switchover. They have not yet set a date for radio switchover. They are, however, fully committed to securing a digital future for radio and believe that a switchover is the right way to deliver a co-ordinated transition. The Government have agreed 2015 as a target date which all parts of the industry can work towards. To be clear, 2015 is only a target date, albeit one which we and the industry are supporting.

My noble friend Lord Fowler commented at the publication of the digital radio action plan and has reiterated today that,

“the public have got to be taken with the process”.

As the Minister for Communications has pointed out:

“Consumers, not government, through their listening habits and purchasing decisions will ultimately determine whether a switchover to digital can happen”,

and, in the same vein, when a switchover to digital could begin. I hope that this answers my noble friend Lady Bonham-Carter’s concern.

Radio listeners are often passionate about the radio and the stations they listen to. The radio is a lifeline for many, especially the elderly and the blind. I personally feel that it would be a grave error if those who rely most heavily on the radio are left behind in any future switchover. We and the radio industry do not underestimate the scale of the task ahead of us. However, the complexity of the issue should not in itself be a barrier to change, nor does it undermine the necessity for it. I can assure the noble Lord, Lord Evans, that the Government have set out their commitment to the listening and coverage criteria to be met before a date is set for radio switchover.

Digital radio offers a greater choice of programmes for listeners as well as business opportunities for broadcasters. It is already well established and over 11 million DAB sets have been sold. It offers listeners a wide range of content and possibilities, and has proved itself to have found a passionate although at times vocal audience. On the comments of the noble Lord, Lord Donoughue, I doubt whether anything I say is going to address his concerns. However, if he is right, which I do not believe he is, then the listening criteria will never be met. All listeners, not the vocal few, will drive the market’s direction.

I turn now to the specific recommendations made in the committee’s report. One is on energy and waste. In July, we published independent research into the energy efficiency of digital radio which disproves the argument that digital radios consume vastly more energy than their analogue equivalents. The research shows that the difference in energy consumption between digital and analogue sets is now minimal and continues to improve. We are all aware of the need to reduce energy consumption, and I can reassure the noble Lord, Lord St John, that we are also considering the environmental factors, specifically on the sensitive issue of the disposal and recycling of analogue radios through the waste electrical and electronic equipment directive. In answer to the question of the noble Lord, Lord Evans, on the scrappage scheme, we have no such plans but will look closely at the recent scheme run by the BBC and Digital Radio UK.

Turning specifically to the committee report, I welcome the recommendation that a full impact assessment, including a cost-benefit analysis, should be commissioned as a matter of urgency, and I understand that work has already begun. In response to the question of the noble Lord, Lord Evans, I can say that the first report will be completed by the end of 2011. Of course, the cost-benefit analysis will also be essential in identifying which, if any, listeners would be disproportionately disadvantaged by the switchover, and consequently if a help scheme is necessary and what its scope might be. If there is a case, we will take steps to introduce a scheme to support the most disadvantaged listeners. In response to the question of my noble friend Lord Fowler on funding the help scheme through general taxation, I can tell him that no decisions have been taken on how a scheme, if it is required, would be funded. I also agree with my noble friend Lady Bonham-Carter on the importance of a help scheme for the disabled.

In respect of in-car conversion, we welcome the agreement of car manufacturers to fit DAB radios as standard in new cars by 2013 and note that in many cases this has already begun. But that is only half the story. Many people to whom I have spoken are worried rightly about their older cars with analogue radios. Devices already exist on the market which can convert these radios. We expect there will be a growing market for affordable and easy to fit converters.

I welcome, too, the importance that the committee has given to DAB coverage; it is a linchpin in this process. The Government have been clear in their view that broadcasters—particularly the BBC—need to do more to improve coverage over the next two years. To this end, we welcome the BBC’s recent commitment to increased coverage of its digital services. In answer to the question of the noble Lord, Lord Evans, we believe Ofcom expects to produce its report on coverage and planning early next year. In answer to the noble Baroness, Lady Howe, negotiations with the BBC and commercial radio sectors on DAB coverage funding are ongoing. Unfortunately, it is too early to predict when an agreement will be reached, although we understand the urgency of the issue. As to who will pay, it will be a mixed ecology of commercial and BBC funding.

I agree with the right reverend Prelate the Bishop of Manchester that it is important that FM should continue until a decision on switchover is made. Even after switchover, FM will continue for small local services, community, hospital and student radio.

One theme that came through strongly in the committee’s report was the need for a public information campaign. We agree. The digital radio action plan sets out the process for this. In answer to the noble Lords, Lord Evans and Lord Gordon, the action plan sets out plans for minimum receiver specifications. We expect the multi-standard chip to be part of this.

I agree with the noble Lord, Lord Maxton, about the importance of internet radio. He has demonstrated, yet again, that he is truly one of the true technological pioneers in the House. However, internet radio will not meet the needs of all listeners. Online network coverage is not universal, nor can it easily support large volumes of simultaneous radio. In addition, it is not free at the point of access and it is a very costly delivery platform for broadcasters.

In drawing the debate to a conclusion, I repeat my thanks to the committee and to those noble Lords who have spoken today, and especially to the driving force of my noble friend Lord Fowler. The debate has been built on the importance of the report and I hope that I have answered the majority of the questions raised. At this late hour, I apologise that I have not been able to answer all noble Lords’ questions; I shall write to them. Finally, we will of course give due consideration to all the points raised today as we continue with both the digital TV and digital radio switchover programmes.