Deidre Brock
Main Page: Deidre Brock (Scottish National Party - Edinburgh North and Leith)
Mr Whittingdale
There will be a non-executive member of the BBC board to represent England, but not specifically each region. The requirement on the BBC, as part of its purpose, is to serve the nations and regions. The BBC is fully aware of the dissatisfaction that is felt in some parts of England. My hon. Friend identified the west midlands. The level of investment by the BBC in the west midlands has already been debated in the House in the past. It is important for the BBC to invest in production in every part of the United Kingdom and to reflect the requirements of every part of the country.
Deidre Brock (Edinburgh North and Leith) (SNP)
Mention is made in the White Paper of sub-committees for the four nations. Can the Secretary of State elaborate a little more on what might be the make-up of those sub-committees and how they will be chosen?
Mr Whittingdale
I am afraid that I cannot do that at this stage. That will primarily be a matter for the BBC. While the charter will set out the over-arching governance structure—in other words the creation of a unitary board and an external regulator—organisation within the corporation itself is largely a matter for the BBC. Obviously, I encourage the hon. Lady to discuss that matter with the BBC and perhaps the new chairman of the board, who is currently the chairman of the BBC Trust.
I was tempted by the hon. Member for Perth and North Perthshire to talk about some of the evidence that I gave yesterday to the Select Committee. Obviously, the House of Lords Committee has also taken a close interest in these matters, and I have no doubt that the Committees in both Houses will continue to do so as we move towards producing a draft charter, which I hope to do before the summer. Members will then have plenty of time to study it in detail before debates in both Houses as well as in the devolved Administrations, as we committed to in the memorandum of understanding with the devolved Administrations. Once approved by the Privy Council, the new charter will formally come into effect on 1 January 2017 and the BBC will then transition to its new model of governance and regulation over the ensuing months.
I will not repeat all the details of the White Paper, because we had a lengthy discussion when it was published, but let me address the two specific concerns, which were raised by the shadow Secretary of State, of editorial and financial independence. On the former, the new governance structure is exactly as recommended by Sir David Clementi in his widely welcomed report. Whereas previously all of the appointments of the governors of the BBC and, following changes, the BBC Trust were made by the Government, at least half of the new BBC board will be appointed by the BBC. The six positions that are Government appointees will be made through the public appointments process, which was not previously in place. Peter Riddell, the new commissioner for public appointments, said:
“I welcome the broad principles outlined in today’s BBC White Paper about how appointments will be made to the new Unitary Board. To put these into practice, there will need to be a robust, independent process which attracts a broad range of candidates for these posts.”
That is exactly what the Government want to see. The BBC accepts that the Government should appoint both the chairman and the deputy chairman through the public appointments process. It has questioned whether the Government should make the appointment of four non-executive directors, but those four NEDs are there specifically to represent each of the nations of the UK, and their appointment is made not just by the Government in Westminster, but in consultation with the devolved Administrations. If that was taken away, we would lose the ability of the devolved Administrations to have a say in the appointment of the governor to represent each of the nations of the UK.
However, as well as putting in place a more independent board, we will also strengthen the independence of the director-general as editor-in-chief. Editorial decisions will be a matter for him and the BBC executives— not for non-executive board members. Those non-executive members will be able to hold the director-general to account for his decisions, but only after programmes are transmitted. It is clear that the board’s involvement is to oversee and to deal with possible complaints about editorial decisions, but only after transmission of programmes.
The shadow Secretary of State mentioned that we have decided to extend the term of the charter to 11 years specifically to meet the concern that it should not coincide with the electoral cycle. It is correct that we are intending to have a mid-term health check, and, as I have repeatedly said, it is precisely that—a health check. It is not an opening up of the charter. However, it does seem sensible that, if we are setting a charter for 11 years, we should not have no opportunity whatever to look at how it is working for the whole of that 11-year period, particularly at a time when changes are taking place so rapidly. We have said explicitly in the White Paper that it is a review to provide a health check focusing on the governance and regulatory reforms in the mid-term. We have gone on to say that the review will not consider changes to the fundamental mission, purposes and licence fee model as these have been determined by the current charter review process. I make it clear again that this is a health check to examine how the changes we are putting in place are working, but we do not anticipate any need to reopen questions about the charter.
John Nicolson
The answer to that is we do not know yet. That is precisely why I am addressing these concerns in Parliament today. If the non-executive board members are truly independent, of course that is a great thing. However, the evidence the Secretary of State gave yesterday was worrying for the reasons I have given.
Trust in the BBC is crucial. It is no secret, as my hon. Friends have mentioned, that many in Scotland have been suspicious of BBC objectivity in recent years. The Secretary of State said a short while ago that a majority in Scotland—although he acknowledged a lesser number—were pleased with the BBC, but let me give the House the figure from the BBC Trust itself. The BBC enjoys only a 48% satisfaction rating in Scotland—less than half, for those who are numerically challenged. Sometimes criticisms of the BBC in Scotland have been fair and sometimes not, but the BBC itself—the Secretary of State acknowledged this—has a problem in Scotland.
We welcome other proposals in the White Paper. Licensed services issued by the new regulator Ofcom will include specific regulatory provision for all the nations. Out-of-London quotas will be maintained, which should enable a healthy, independent production sector in the nations and regions. The BBC’s network television supply target will be 17% for content spending in the nations, with spending proportionate to the population of each nation. That suggests some progress in adapting the BBC to the changing needs of these islands in 2016 and beyond.
Of course, many of the changes required must come from within the BBC itself. There are proposals for the creation of a BBC Scotland board to oversee dedicated, nation-specific services. This would help to devolve decision-making, increasing the likelihood of relevant and reflective content suited for distinct audiences. We welcome the idea of a separate Scottish board, as proposed. We want to see a BBC that is editorially independent and well-resourced; a BBC that is bold and creative, and one that is crucially representative of, and delivers for, both Scottish and UK audiences as a whole. With a more responsive governance structure, we believe the BBC would be more nimble and better able to address the concerns of audiences.
Deidre Brock
My hon. Friend will be aware that the Chancellor very recently, without warning, cut £1 million from the budget of BBC Alba, the excellent Scottish Gaelic media service. That rather flies in the face of the stated support for BBC Alba in the White Paper. Does he agree that this throws the Government’s motives towards the BBC into question more generally?
Julian Knight
What has actually happened is that we have created a bipolar organisation. There has been a move out of other regions, such as Birmingham and other parts of the United Kingdom, to these two centres. That was the natural consequence of the huge sums that were invested. I am not jealous of Salford in that it is obviously fantastic for that community. However, I think the BBC thought, when it came up with this process, that its work was done. I would like genuine diversity, including for the nations, as is discussed in the White Paper, but really for the English regions, with the BBC drilling down into local communities to deliver news and content that makes a difference, but also supporting the private sector.
Current proposals for the BBC to use local newspaper content, such as court circulars and documents—court reporting—are better than nothing, but it is a sad indictment that some local newspapers will now be used, frankly, as wire services for the BBC News website. Previous Governments were rather flat-footed in updating the BBC charter for the online age, and slow to recognise the dangers this unimpeded growth posed to independent journalism and regional diversity.
Another anachronism holding the BBC back over the long term is the licence fee. This might seem strange, given the ferocity with which the BBC’s supporters have fought to defend it, but I believe nothing is doing more to prevent the corporation’s adaptation to the modern world of multi-platform working. My wife and I grew up in a world of mass broadcasts and TV specials watched by tens of millions, yet the number of times a month we watch live TV together these days can be counted on one hand. That is not just due to working in this place, but is genuinely encountered by many people around the country. To younger people raised in the days of on-demand services, Netflix and YouTube, that vanished era is not even a memory, yet the BBC remains committed—addicted—to the regressive tax of the licence fee.
If we came up with a licence fee today, how could we justify it? It is a flat levy—the same for rich and poor alike—which is charged to anybody watching British programming, regardless of whether they consume BBC services or not, and it is backed by the threat of criminal prosecution. It really does not have any place in the broadcasting model for the 21st century.
Deidre Brock
Does the hon. Gentleman not recognise that the BBC is the envy of countries the world over? In Australia, where I come from, we have the Australian Broadcasting Corporation. Public service broadcasting is important in this debate. The ABC, which is funded largely by the Government, has experienced cut on cut in its budgeting over the years, and has suffered as a result.
Julian Knight
Public service broadcasting is apparently not so universally regarded in that way in Scotland, according to the speech of the hon. Member for East Dunbartonshire.
We must not be reckless with the BBC. As I said earlier, it would be an act of vandalism simply to turn off the tap without giving it time to transition to a new way of doing things. However, the message from this renewal of the charter must be loud and clear: it needs to move on, and the days of the licence fee are, I hope, numbered. That must be acknowledged by BBC managers, who are even now demanding a higher fee, the extension of the fee to websites and continued criminal prosecution. The mid-term review is a sensible health check to see whether the BBC is moving in the right direction. I hope that it will encompass the BBC’s move towards independent production, which is ultimately the only way in which it can move away from and wean itself off the licence fee.
The White Paper contains some promising steps in the right direction. For example, opening up more production contracts to independent companies will allow them to compete for public broadcasting funding. However, there must be clear targets for such diversification so that Ministers and MPs can hold BBC managers to account and ensure they are making adequate progress. They must also make sure that the BBC is proactive in finding fairer and more imaginative ways of funding its services. Many of its assets, such as its back catalogue, are not core to its public service function and could easily be made subscription services. Like other Members, I welcome the initiative to bring in the National Audit Office when it comes to the BBC’s activities.
Huw Merriman (Bexhill and Battle) (Con)
It is a pleasure to follow the hon. Member for Hyndburn (Graham Jones) and to speak in this debate about the BBC’s future. With that in mind, although she is not in her place I thank the hon. Member for Garston and Halewood (Maria Eagle) for giving us the opportunity to have this debate. She was right to say that the BBC is a revered and trusted national institution that we should view with great pride. I certainly do so from the Government Benches. We should also be minded that the BBC costs licence fee payers just 40p a day, the same price as The Sun—I will leave the analogy there.
The BBC is particularly important given the Government’s commitment to improve social mobility. Children from the poorest backgrounds have the ability to access the BBC while they are growing up, and we should not forget what it can do for their social mobility. I speak as an example, having failed my 12-plus. I eventually went on to study for my A-levels at a sixth-form college, where I had quite a lot of independence. Had it not been for the BBC filling in some of the years for me, I do not believe I would be here in this place—although for some that may be a reason to speak against the BBC. I was proud, therefore, to be one of the 190,000 members of the public who responded to the consultation document, and I believe that the Government’s charter renewal fits about right with the document I completed. During the process, I engaged with the BBC and wanted to do everything I could to support it. When I was elected 12 months ago, I made this my cause. I wanted to come here and speak highly of an institution that had done so much for me over the years, and I was delighted to obtain reassurances from the Secretary of State that the Government wanted only to strengthen it.
I am aware that the Government have tabled an amendment, but I want to focus on the three key areas in the motion. The first is the view that the charter renewal White Paper
“fails to provide an acceptable basis for Charter renewal”.
That is not true of the White Paper as a whole. The charter will be renewed for an 11-year period, which puts it outside the election cycle. I listened to the hon. Member for East Dunbartonshire (John Nicolson), who is no longer in his seat, and his view that the BBC was biased in the Scottish referendum. Over the years, it has struck me that the party that loses an election or, in this instance, a referendum tends to turn around and bash the BBC for letting it down and not giving it a proper crack. The bulk of our constituents would put that down to being a sore loser. Such attacks do this place no favours.
Deidre Brock
I am interested to hear the hon. Gentleman speak that way. Much mention has been made of “leftie luvvies” within the BBC. I wonder why he makes that point, given his own election result.
Huw Merriman
I won my election so I am delighted with the BBC to that extent, but I am making a serious point. It ill behoves this place to attack the BBC from all sides. I have observed over the years that when both parties attack the BBC, it probably means it is getting it about right.
The day the White Paper was published, I was fortunate to speak at a Media Society event in favour of the BBC and about the White Paper. The head of BBC policy was also at the event, and he was asked how many marks out of 10 he would give the White Paper in terms of support for the BBC. He gave it eight out of 10. If someone was sitting an exam, 80% would give them a first-class mark. This suggests that the BBC is happy with what has been negotiated, and I applaud it for having done a great job.
The second element in the motion is
“the threat the White Paper poses to the editorial and financial independence of the BBC”.
Again, this does not stack up, in the light of the White Paper’s content. For the first time, the BBC will be able to appoint people to the board. If the chairman opts for a board of 14, the BBC will appoint the majority. The BBC’s editorial independence lies with the director-general, which provides for a welcome separation of responsibilities. On financial independence, there is a five-year funding commitment that ensures a real-terms increase, which the BBC has lacked for some years. I welcome that and know that the BBC does as well. The National Audit Office and Ofcom also provide a degree of independence that allows the BBC to spend its money better and to be better regulated. I would have thought that all hon. Members would have welcomed that.
The third element of the motion
“expresses concern about the re-writing of the BBC’s founding mission statement”.
The BBC’s duty is to educate, inform and entertain, with the additional requirement that its output should be distinctive. If something is not distinctive, it should not be shown on the BBC—that might mean an end to repeats of my speeches to the House, as well as the cookery recipes! The BBC has nothing to fear from the addition of the word “distinctive”. Originality is what it does best and constantly. The BBC’s output now contains fewer derivative formats and US imports than it did some years back, so if all this means is the loss of “The Voice”, I would welcome it.
I do, however, seek the Minister’s confirmation on a few points. The first relates to the health check on page 54 of the White Paper.