BBC: Licence Fee

Baroness Rawlings Excerpts

Monday 7th November 2011 Lords Chamber

[Lord Fowler]

To ask Her Majesty’s Government whether they have plans to review the BBC licence fee.

[Baroness Rawlings]

My Lords, the Government have no immediate plans to review the cost of the BBC licence fee. Under the terms of the October 2010 current licence fee settlement, the Government are committed to providing a full financial settlement to the end of the year 2016-17. No new financial requirements or fresh obligations of any kind will be placed on the BBC and/or licence fee revenues in this period except by mutual agreement.

[Lord Fowler]

My Lords, does my noble friend agree that there is significant public concern today that a single media company should not have disproportionate influence? That is normally said about News International, but is it not the case that in national radio news and accompanying radio programmes such as the “World at One”, “Today” and “PM”, the BBC has an overwhelmingly strong position? Will the Government therefore give consideration for future policy on how outside competitors may be introduced, possibly by earmarking a small part of the licence fee for that purpose?

[Baroness Rawlings]

My Lords, my noble friend makes a very valid point, which I would expect from him with all his knowledge and consistent interest in broadcasting. The Question clearly addresses the next stage from his previous Question in your Lordships' House on the licence fee in October 2010. Following the phone hacking issue, he is right that plurality continues to be on the agenda. That needs to include all media and I understand his wish for more independent radio providers. Indeed, local commercial radio stations provide a wide range of national and local news—around 8 million minutes of news every year. We believe, too, that there are a number of ways of supporting such news provision and we will consider these in the forthcoming communications review.

[Lord Soley]

While diversity is important, does the Minister accept that the news broadcasting services of the BBC are truly remarkable and we have to protect them, not least because of the importance of the World Service? I worry when we talk about watering down the BBC's news service, which frankly is the oxygen of publicity that we need in a democracy.

--- Later in debate ---

[Baroness Rawlings]

The noble Lord, Lord Soley, is absolutely right. The BBC World Service is of paramount importance. The October 2010 licence fee settlement transferred funding of the BBC World Service from the Foreign Office to the BBC from 2014-15. The BBC Trust sets out the overall strategic direction of the BBC, including the World Service. The World Service will be funded from the licence fee from 2014. The transfer will increase the BBC's ability to make further economies to avoid duplication across the whole of the BBC.

[Lord Roberts of Llandudno]

My Lords, I first thank the Minister for the agreement in the funding of S4C to use licence fee revenue. That is a sensible and sensitive response to a battle that we have been fighting for a long time. But what revenue from the licence fee comes from the various nations of the UK? How much comes from Scotland, Northern Ireland, Wales and England? Secondly, could we have an assurance that no use of the revenue from the licence fee will in any way prevent the granting of concessionary television licences to those over a certain age?

[Baroness Rawlings]

My noble friend Lord Roberts asks an important question regarding fees, which obviously come from throughout the United Kingdom. The proposed S4C/BBC partnership arrangements are a success for Welsh language broadcasting. The arrangements make certain that S4C’s editorial and managerial independence will offer a reassuring level of financial security for the next five years. The partnership offers the stability and certainty that S4C needs so that it can go from strength to strength under the management of its new chairman and new chief executive.

[The Earl of Clancarty]

My Lords, given that sound quality is an important part of the BBC’s service, could the Minister say whether there is a future for FM radio, in view of Ed Vaizey’s recent admission that there is “truth” in the criticism of the UK’s DAB system, which many listeners—and, indeed, other countries—now regard as inferior and outmoded?

[Baroness Rawlings]

The noble Earl, Lord Clancarty, asks a very valid question. We are worried about the transfer. It worked with television but we are not sure yet what is going to happen with radio. However, the licence fee settlement stated that the BBC will commit to funding the rollout of the national DAB multiplexes. We trust and hope that this will work out properly.

[Baroness Jones of Whitchurch]

My Lords, notwithstanding the BBC’s settlement, can the Minister clarify whether it is the Government’s intention to revisit the licence fee to take account of developing technologies in the forthcoming communications Bill?

[Baroness Rawlings]

The noble Baroness, Lady Jones, brings up a good point. The current BBC charter expires on 31 December 2016. The timing and scope of the next charter review are a matter for Ministers, but no decision has yet been taken. The last charter review began three years before the expiry of the previous charter, and the subject will no doubt be brought up during the meetings on the draft communications Bill.

[Lord Pearson of Rannoch]

My Lords, given that the BBC’s charter and fee require it to cover matters of public interest fairly, how do the Government react to the statistic that, over the past six years, the BBC has dedicated less than 0.04 per cent of its news and news-related coverage to the case for our withdrawal from the European Union, which case is supported by at least 50 per cent—and growing—of the British people?

[Baroness Rawlings]

It would surprise me if the noble Lord, Lord Pearson, did not ask a European Union-related question. I do not have the statistics on the BBC’s coverage of our possible withdrawal from the EU, but no doubt the department will find them for me and I will send them to him.

[Lord Brooke of Alverthorpe]

My Lords, as the BBC is anxious to achieve economies, and as the BBC now knows what fees it will be charging licence fee payers over the coming years through to 2017, why does it send out reminders in February and March every year asking individuals to pay their licence fee when it could now say, “Please pay for five years at X amount”, which is probably less than the amount that people pay in one year to Sky? Why do we have annual chasing for fees when they could now be paid over several years?

[Baroness Rawlings]

The noble Lord makes a very good point, and I will take it back to the department to find out for him.