Broadcasting (Public Service Content) Bill
Debate between Christopher Pincher and David Nuttall
Mr Nuttall
There is that point. One might ask why it was not asked to reduce the licence fee, but it did take on additional responsibilities, as I understand it. That was covered in the letter from the Secretary of State to Sir Michael Lyons in which he reaffirmed the Government’s respect for the BBC’s editorial and operational independence, but made it clear that, as part of the new settlement, the BBC would have to provide funding for new broadcasting activities. That includes local media, to which I will return later. However, the thing that has received most publicity is that it will take over funding for the World Service, BBC Monitoring and S4C. So the Government have asked the BBC to take on new responsibilities, so, in effect, there will be a reduction.
There is, however, plenty of scope for cuts to the BBC’s budget. The amounts involved are eye-watering. I realise that £145.50 does not sound like very much. People would think, “That’s pretty good value, isn’t it?” It might well be good value, but the point is that it is multiplied across the whole nation. Let us consider houses split into separate flats and households. Each needs a separate television licence. In large cities, such as Sheffield, Manchester and London, there are houses that have been divided into flats, and there could be six, eight, 10 or even more individual units, each paying a £145.50. It is therefore quite feasible for the BBC to receive more than £1,000 from just one small block.
It is also notable that the licence fee has never gone down. Most technologies are expensive to start with, but as more and more people are drawn into the market, the costs come down.
Christopher Pincher
Does my hon. Friend accept that although the price of the licence fee has not gone down, its cost as a proportion of individuals’ incomes has?
Mr Nuttall
I do not know what the relative cost of a 10 shilling licence was as a proportion of weekly income in—
Mr Nuttall
So yes, on that basis, the licence fee is probably more affordable now. However, that is not to say that my underlying point about the wealth, assets and financial power of the BBC is not entirely valid.
Indeed, it might benefit the House to look at how, in very broad terms, the licence fee was spent in 2009-10 and how that equates to a monthly cost for each household. For example, the cost of the television service—which covers the main BBC channels, CBBC, CBeebies, BBC News, BBC Parliament, the HD service and the red button service—was £2.351 billion. That means that two thirds of the licence fee went on television. The radio service—Radios 1, 2, 3, 4, 5, 6 and 7—took up 17% of the licence fee, at a cost of £604 million. Online services—BBC online, iPlayer and BBC Mobile—cost £199 million, at 6% of the fee. One might think, “Well, what’s left?”, but under the final heading, “Other”, £406 million was spent on, for instance, “digital”, investing in new technology—one might ask what that has to do with public service broadcasting—running costs and collecting the licence fee. To break that down into monthly costs for each household, the television service costs £7.85, radio costs £2.01, online services cost 67p, and “Other”, including collection, costs £1.35. Those are important figures to bear in mind for what I will say later about what I see as the future of broadcasting in this country.
Since its early days, the BBC has developed because it has benefited from a constant, annual, fixed flow of income. It has not had to worry about marketing its services—although it has, of course, through BBC Worldwide and its commercial arms. Indeed, in many ways, part of the problem is that the BBC has been encouraged to become more than just a public service broadcaster, and is now a quasi-commercial animal. It sells its programmes around the world and takes on new roles all the time. Incidentally, I have never been convinced that it was necessary—and no one has been able to explain to me why it was necessary—for the BBC, a broadcaster, to purchase the Lonely Planet travel guides. But we do not want to turn this into a debate about what is right and wrong with the BBC. It performs an excellent role, but the future is surely going to be more about the local TV network, which this Government are doing so much to develop. That is why I support the Bill. Under the terms of the settlement, only a small amount of money will go from the licence fee into local television. I think that it is about £200 million, which is small beer when we consider that the BBC’s total income is £3.5 billion. I honestly think that it could afford to do much more than that.
It has been pointed out that the licence fee is the equivalent of a poll tax, in that anyone who has a television has no choice about paying it. In return for paying it, they are guaranteed a certain level of programming from the BBC, based on the Communications Act 2003, which contains the crucial requirement that the broadcast programmes of the BBC must comply with section 264 of the Act. This is central to our debate today, because the definition of public service broadcasting lies at the root of the problem, as I said in an earlier intervention.
The problem is that section 264 is drafted so widely that it covers virtually everything. I cannot think of anything that would not be covered by it. Subsection (4) of the provision states:
“(4) The purposes of public service television broadcasting in the United Kingdom are—
(a) the provision of relevant television services which secure that programmes dealing with a wide range of subject-matters are made available for viewing;
(b) the provision of relevant television services in a manner which (having regard to the days on which they are shown and the times of day at which they are shown) is likely to meet the needs and satisfy the interests of as many different audiences as practicable;
(c) the provision of relevant television services which (taken together and having regard to the same matters) are properly balanced, so far as their nature and subject-matters are concerned, for meeting the needs and satisfying the interests of the available audiences; and
(d) the provision of relevant television services which (taken together) maintain high general standards with respect to the programmes included in them, and, in particular with respect to—
(i) the contents of the programmes;
(ii) the quality of the programme making; and
(iii) the professional skill and editorial integrity applied in the making of the programmes.”
Subsection (6) states:
“(6) A manner of fulfilling the purposes of public service television broadcasting in the United Kingdom is compatible with this subsection if it ensures—
(a) that the relevant television services (taken together) comprise a public service for the dissemination of information and for the provision of education and entertainment;
(b) that cultural activity in the United Kingdom, and its diversity, are reflected, supported and stimulated by the representation in those services (taken together) of drama, comedy and music”.
Given that statutory definition, it is not surprising that the BBC is able to broadcast anything it can think of.
It was said earlier that it is not for politicians to define public service broadcasting, but with great respect to those who said that, I contend that that is exactly what politicians have tried to do. If someone has to do the defining, who else could it be other than politicians who are elected to this place to make those sorts of judgments? What matters is that, having provided the definition, we then give broadcasters the independence and freedom to make programmes that comply with the terms that we have set down.
The definition in clause 1(2) is much narrower. It mentions the importance of “impartial, factual and objective” as well as
“local, national, international news and current affairs”
programmes. It also refers to the purpose of informing, educating and entertaining of children and programmes whose
“primary content is charitable or religious”.
That is perfectly adequate to cover those areas that might not properly be provided for in the competitive marketplace.
We are where we are with broadcasting. Although the BBC strides the stage like a colossus in broadcasting in this country, fortunately it has not completely shut out other broadcasters. These other broadcasters are, however, shut out from having any share of the licence fee. That is why I support the Bill. It cannot be right that a small, independent broadcaster that wanted to put on, for example, a religious programme on a Sunday afternoon which might attract only a few thousand people should be excluded from access to the vast funds that the BBC has simply because of how our broadcasting system is established.
I support the Government’s actions in trying to introduce more diversity into our television network. I suspect that, in years to come, this whole debate will become completely out of date and irrelevant. We are already seeing the morphing of television and the internet into one seamless product. Already, high-end, top-level specification televisions are being introduced with the ability to take in content down the line from the internet. I have a television that can be plugged into the internet to download extra things, but I am not proficient enough to be quite there yet. We all will be, however, in years to come. Perhaps if I did not spend as much time on my feet in this place and went home to fiddle with my telly for a few hours, I would be able to do that. I see the Minister nodding.
All that brings enormous challenges to the BBC. If I were looking at it from the BBC’s point of view, I would say, “Look, in future, how are we going to be able to raise our revenue when nobody will really want to bother with a licence fee?” It will be considered more and more anachronistic as time goes on. It will become out of date and out of place in modern, 21st-century Britain.
Television will eventually have a series of online channels that will be accessed through broadband and provided by a range of organisations. People may well access them by means of a code or a special encrypted key for which they will pay a small subscription fee, and which may be connected with an individual provider or even an individual programme. Someone might, for example, be interested in “Test Match Special”, as I am. There would be nothing to prevent “Test Match Special” from being made available, perhaps not by the BBC but by A. N. Other organisation, which would charge a small subscription fee to those who wanted to access it through their digital radios—which are becoming far more common, and are installed in most modern vehicles almost as a matter of course—through their televisions, though long wave, or online through their computers.
That strikes me as an entirely feasible funding model. If people were not paying £145 a year for a licence, they would be able to choose which programmes to watch and to subscribe to on a much more interest and subject-specific basis. At present there is a “one size fits all” arrangement whereby people must pay for everything, whether they are interested in it or not and whether they watch it or not.
Let us be honest about this. The figures that I read out earlier show that a vast proportion of the billions that go into the BBC each year is spent on programmes that are not, by any stretch of the imagination, what most people outside the House would regard as public service broadcasting. I have already mentioned soap operas such as “EastEnders” and “Coronation Street”, and I will not pursue that line again, but I will say that, by definition, the very fact that soap operas are so popular and attract millions of viewers means that they are capable of standing on their own two feet.