Media Bill

Baroness Thornton Excerpts

Committee stage
Wednesday 22nd May 2024 Lords Chamber

Moved by

[Baroness Thornton]

77: Clause 48, page 90, leave out lines 30 to 37 and insert—
“(1) In this Part, “radio selection service” means— (a) a service provided by means of the internet which enables, or among other things enables, a user of the service—(i) to make a selection between internet radio services provided by different providers, and(ii) to cause a selected internet radio service to play,by giving spoken commands that are recorded by equipment connected to the internet, or(b) a service provided by an in-car entertainment system which enables, or among other things enables, a user of the system to cause a selected radio service to play, whether by giving spoken commands which are recorded by equipment or otherwise.”Member’s explanatory statement
This would provide that “radio selection service” includes an in-car entertainment system which a person must navigate to access radio while in their car, as well as voice activated speakers.

[Baroness Thornton (Lab)]

The last group was fascinating and, in a way, this debate moves us on to how to future-proof access to radio stations. I will also speak to Amendment 78, to which I have added my name, and Amendment 81 from my noble friend Lord Bassam.

In the course of discussions with stakeholders in preparation for the Bill, it emerged that there is an issue about radio selection services. It was expressed to us as a matter of some concern. Given that the Bill is about future-proofing, the amendments in this group address an issue with regard to radio selection services in car entertainment systems, through which a person navigates access to the radio as well as using voice activation. The Bill seems to address the issue of selection services only with regard to internet radio services, which are of course a new category of designated radio selection services. These services are voice assistance services that enable listeners to select and listen to internet radio services by using voice-activated audio devices.

These amendments address the issue of how people might access radio not through internet or voice-activated mechanisms. Certainly, my car is much too old to do anything quite so sophisticated. They also address what happens to FM, which is very important. What concerns us is the place of public service broadcasters in such a system. Who decides on that prominence? I imagine that car manufacturers might be quite pleased if they also knew who deals with the regulatory regime that would apply under these circumstances. I read the Explanatory Notes to the Bill, since the Bill itself is a bit dense on this matter. I cannot see where the issue of public service broadcasting radio is addressed. My first question is: can the Minister tell us that?

Who will ensure that car manufacturers are—“doing the right thing” is not quite the right expression—making sure that our public service broadcasters are not neglected? As an avid Radio 4 and Classic FM listener, I really want to jump between the two with the sort of ease that I can at present. These amendments seek to address such issues, as well as the mandate to Ofcom, the accountability of the Secretary of State and Parliament, and how that might be best achieved.

My noble friend’s Amendment 81 is also about future-proofing, and would require the Secretary of State, through regulations, to expand the new protection for on-demand and online-only content, such as on-demand listening and podcasts. This is a group of amendments some of which are probing and some of which address quite a serious matter, which I suspect will have to be looked at as time goes on. I look forward to the Minister’s remarks on them.

[Viscount Colville of Culross (CB)]

My Lords, radio is the background to my life; I have it playing at home, in the car and even when I am walking about, whether it is the BBC, Global’s LBC or Bauer’s Greatest Hits stations. I cannot be alone in enjoying this wonderful medium, so I am glad that today it is getting the attention it deserves.

The way we listen is changing, and Clause 48 recognises this with the acceptance that, in the future, most people will be listening to the radio online. It covers the Ofcom-regulated stations—BBC, Bauer, Global and others—which make up 85% of our listening, but the methods by which we listen to this medium are changing fast. I have tabled Amendment 78—I thank the noble Baroness, Lady Thornton, and the noble Lord, Lord Foster, for their support—because I want to ensure that the way we listen is future-proofed, and that in the future online radio can be listened to wherever people are and on whatever device they want to use.

I very much appreciate that this clause is the Government’s response to fears that deals can be done between the manufacturers of listening devices, such as voice-activated speakers, to promote their own radio content, or even the content of stations which have paid them to promote their content over that of the Ofcom-regulated station. The clause’s “must carry” obligations for the top three voice-activated speakers takes its cue from the work that Ofcom has done on prominence in TVs, which has already been debated. However, my concern is that the focus on these three big voice-activated devices will be to the exclusion of other methods of listening to radio.

I also support Amendment 77, in the name of the noble Baroness, Lady Thornton, about the benefits of being able to listen to relevant internet radio services on in-car radio, which is not voice-activated and not covered by Clause 48.

Myriad different devices that might carry these stations in the future are also not covered. We need to be certain that our PlayStations, iPhones and even fridges, to name but a few devices, will carry these popular stations. For example, Sony Interactive Entertainment, which owns PlayStation, is a very competitive and successful company; it could do a deal with a youth station to the exclusion of other stations, stopping gamers accessing and being introduced to the joys of what is described in the new section inserted by the clause as “relevant internet radio services”. I know that the criteria for the “must carry” devices is set out in new Section 362BC(4) and that the Secretary of State can amend this section, but my amendment seeks to anticipate these changes, calling for a review of what devices people are listening on. The Government see this clause as a regulatory burden for the biggest speaker manufacturers, but I see it as protection both for the listening public and the nascent radio selection services.

I want to throw in another important thought here. The Government have been worrying so much about device manufacturers not carrying radio content that they have introduced a “must carry” burden on them. However, new Section 362BA requires an internet radio service to offer to a DRSS. There is no mandatory requirement for a relevant internet radio station to carry its service. I want the Minister and the Bill team to think very carefully about a world in which designated internet radio stations themselves do a deal with the big device manufacturers to carry their radio channels exclusively. I am sure that whenever this idea was raised during the drafting of the Bill, civil servants would have asked why a radio station would not want to be on a device.

Your Lordships have to look only at what has happened in television to see that content providers are just as active in creating monopolies for their channels as device manufacturers. Netflix and Amazon drove their own discreet prominence regime with specific TV manufacturers for vast sums of money, as noble Lords have already heard in the debate on prominence. It was the content suppliers that drove manufacturers to put a Netflix or an Amazon button on the channel controller and to ensure that they dominated the home screen.

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[Lord Parkinson of Whitley Bay (Con)]

As the noble Lord always does.

[Baroness Thornton (Lab)]

This has been an interesting debate because it is about future-proofing and the stage at which you need to undertake things. The Minister may need to think about taking powers that then may or may not be used. I thank him for his explanation and, on that basis, I beg leave to withdraw the amendment.

Amendment 77 withdrawn.

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As Ofcom grows inexorably in size and importance, it is incumbent on us to ensure that it is properly held to account. At present, I do not believe it is. These two amendments would make a difference in that regard. I beg to move.

[Baroness Thornton (Lab)]

My Lords, I rise to speak to my Amendment 91. The noble Lord, Lord Foster, outlined in his usual articulate manner the issues we are looking at in this group. We created Ofcom, and it is a hugely important regulator with a growing portfolio of responsibilities. This is a good time to look at whether it is being properly and adequately resourced, and supported in a way consistent with the enormous responsibilities it carries. In a way, that is what my amendment is about. There is a broader issue here than just Ofcom being accountable under this legislation. It is important that we have a good look at how Ofcom is supported to do its job properly. That might include looking at how the chair is appointed, or it may be a matter of resourcing.

We need to ask whether Ofcom is properly accountable to Parliament, in a way consistent with the important job it does. If we expect Ofcom to deliver robust regulation and protect our PSBs, viewers and listeners, we need to be sure that it is doing that job adequately and moving quickly when it needs to in order to deal with complaints and breaches of the regulatory framework for which it is responsible. So it is a question of confidence and accountability, and I want us to be confident that Ofcom is doing its job properly and has the right accountability to Parliament, given the growth in its work. I want to hear from the Minister that the Government are aware that this is not just business as usual for Ofcom now, because it is not.

[Lord Parkinson of Whitley Bay (Con)]

I thank the noble Lord and the noble Baroness. I will address Amendment 88 first. The noble Lord, Lord Foster of Bath, brought up an important point about Ofcom’s impartiality and the process for appointing its chairman. I join him in commending the noble Lord, Lord Grade of Yarmouth, the current chairman, on his ongoing work to steer Ofcom through a time of great regulatory change—I acknowledge the change that the noble Baroness, Lady Thornton, alluded to in her closing remarks. As the noble Lord, Lord Foster, said, he draws on his extensive expertise in the sector.

Given the trust we place in Ofcom to regulate our media sector, its independence and impartiality are of paramount importance. To that end, the existing processes ensure that the appointment of the Ofcom chairman is designed to give effect to just those objectives. The chairman is appointed by the Secretary of State following a fair and open competition. This appointment is regulated by the office for the Commissioner for Public Appointments. The chairman of Ofcom is designated as a significant appointment by the commissioner. This means that the advisory assessment panel, which advises the Secretary of State, must have a senior independent panel member to ensure its impartiality. This member must be independent of the appointing department and must not be politically active.

The parliamentary scrutiny of this process was enhanced in the update to the Governance Code on Public Appointments in February this year. The updated guidance specifies that, should the responsible Minister not follow the advice of the advisory assessment panel, she or he is required to write to the chairman of the Select Committee when she or he announces the chosen candidate, and must appear before the Select Committee if requested to do so.

Furthermore, the chosen candidate is required to appear before the Select Committee before he or she is appointed. These new processes, which I hope the noble Lord agrees will help to address many of the concerns he raised, will apply to all future appointments to the role. We believe that this process ensures robust scrutiny and promotes Ofcom’s independence. I appreciate the noble Lord’s intention in tabling this amendment and agree with him about the importance of the topic it covers, but, given that this process was updated as recently as February, I consider his amendment unnecessary and hope that he will be happy to withdraw it.

I thank the noble Lord and the noble Baroness for Amendments 90 and 91 relating to Ofcom reporting. Ofcom has been regulating television and radio broadcasters since 2003, and we have confidence in its ability to continue to do so in the face of the changes brought about by the Bill. I appreciate what lies behind their amendments, which would ensure that the scope of the regulator’s functions, powers and duties—as well as its resources and capacity to deliver on its programme of work—is regularly reviewed. I am glad to say that there are already existing legislative requirements for Ofcom to report annually on how it carries out its functions. This information is published and laid before both Houses of Parliament, allowing the public and Parliament alike an opportunity for scrutiny.

In particular, Ofcom is already required to prepare a report on the carrying out of its functions each financial year, under paragraph 12 of the Schedule to the Office for Communications Act 2002. This includes reporting on its work, performance and finances, as well as any other matters requested by the Secretary of State. The last such report was published last July. This existing requirement combines some of the issues featured in the noble Lord’s and the noble Baroness’s amendments. More widely, it allows Ofcom to give a complete overview of its work. I hope that will reassure them.

On the noble Lord’s particular questions, the approach we have taken in the Bill is in line with that of other legislation. We have set out clearly defined principles that we want Ofcom to regulate against, and we have provided it with the tools it needs to do the job. On granular decision-making, it is right that Ofcom make these decisions. It has considerable sectoral expertise and is in the best place to judge the impact of its regulatory decisions. Off the back of the Bill, it will run 11 consultations, which will give a wide range of interested parties in the industry and beyond an opportunity to feed into its operational decision-making. Ultimately, Ofcom is in turn accountable to Parliament in the ways I set out earlier in Committee.

It is crucial that we protect Ofcom’s role as an independent regulator and give it the discretion to do its job. That is the approach we have taken in the Bill. We want to avoid a situation where a huge amount of parliamentary time is taken up making granular decisions about what is on our televisions. Rather, Parliament should set the direction and Ofcom can regulate accordingly, and broadcasters can continue to operate independently in their editorial decisions.