Future Funding for S4C

Gerald Jones Excerpts

Tuesday 5th January 2016 Commons Chamber

[The Minister for Culture and the Digital Economy (Mr Edward Vaizey)]

I am grateful for the opportunity to respond to this important debate. Nobody could overestimate its importance, considering that at least 20 hon. Members are in the Chamber at this early hour of the morning—and quite right too, because we are debating an important issue: the future of S4C. As my hon. Friend the Member for Carmarthen West and South Pembrokeshire (Simon Hart) reminded the House, S4C was a creation of a Conservative Government and has continued to thrive over the past 30-odd years. It is abundantly clear that the House cares deeply about S4C, that hon. Members tonight consider it an integral part of the national fabric of Wales, that its independence is one of its biggest strengths and that the House wishes to safeguard its future. I firmly share that conviction, having looked after it for the last five years, and so do the Government.

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

Will the Minister give way?

[Mr Vaizey]

Of course. I am surprised it has taken the hon. Gentleman so long to intervene.

[Gerald Jones]

S4C had already had a 36% cut since 2010, even before the most recent cuts were announced. Will the Minister assure us that it will not face further cuts as part of the charter review process, and will he confirm that if the Government fail to keep their promise, they will be clearly breaking a Conservative party manifesto pledge?

[Mr Vaizey]

It is worth considering the funding issue facing S4C. When we made the change after entering government, the overall funding for S4C did not fall significantly, but a lot of the funding was transferred to the BBC. I remember having extensive discussions then with Welsh Members, obviously with the S4C management and with Members of the other House who had held senior positions in previous Governments.

Unless my maths is askew—it might well be; I claim no great credit for it—the overall funding was at around £100 million for S4C then, and it is in the region of £80 million now. It is worth reminding the House of how that funding works. S4C gets roughly £6.8 million directly from DCMS, but gets something like £74 million from the BBC. It is important to stress that that funding is still independent: the BBC has no say in how the money is spent by S4C. It is also worth remembering that the BBC has an obligation to provide S4C with some 10 hours of free programming every week, which in equivalent cash terms amounts to something like £20 million. We are talking about an organisation that receives about £100 million in total in annual funding.

The cuts that we are talking about, although headlined as being 25%, amount to just £1.5 million within that overall budget. It is an overall cut of less than 2%. Although I understand the strong feelings about S4C—I share them, as I have worked to preserve its future for the last five years, continuing the good work carried out by previous Conservative Governments—to characterise this as somehow a devastating cut is quite wrong. Having said that, it is certainly the case that we will continue to listen to all hon. Members on this important issue.