Deregulation Bill

Helen Goodman Excerpts

Monday 23rd June 2014 Commons Chamber

TV licensing: duty to review sanctions

[Helen Goodman (Bishop Auckland) (Lab)]

I beg to move amendment 62, page 40, line 13, at end insert—

‘(3) The Secretary of State must lay the terms of reference of a review under subsection (1) before each House of Parliament.”

[Madam Deputy Speaker (Dame Dawn Primarolo)]

With this it will be convenient to discuss the following:

Government amendments 14 and 15.

Amendment 63, in clause 55, page 41, line 26, at end insert—

‘(14) The power conferred by subsection (1) may not be exercised until after the BBC’s Royal Charter has next been reviewed.”

Government amendments 20 and 22.

[Helen Goodman]

I want to speak to the amendments in my name and that of my hon. Friend the Member for Newcastle upon Tyne Central (Chi Onwurah), as well as to the Government amendments.

Clause 54 puts a duty on the Secretary of State to review the sanctions on those who own a television but fail to pay the licence fee. Our amendment would require the Secretary of State to lay the review’s terms of reference before both Houses. Clause 55 gives the Secretary of State a power to decriminalise sanctions on those who fail to pay the licence fee. Our amendment would prevent this power from being used before the completion of the next review of the BBC’s royal charter.

The BBC is a universal service, and the licence fee is a universal payment for anyone with a television. The licence fee is not a tax; it is a guarantee of the BBC’s independence. The BBC is the most trusted source of news in the United Kingdom, with 58% of people rating it as their most trusted news source.

[Kelvin Hopkins]

Does my hon. Friend agree that the BBC is trusted not just in Britain but across the world, and when other broadcasting services are compared to it, they take it as flattery or a compliment?

[Helen Goodman]

My hon. Friend is absolutely right. The BBC is now one of the great British brands and it exports across the world.

In the evolution of British broadcasting, the licence fee has gained broad support. Nearly everyone in the UK uses the BBC each week—it has 97% reach—which helps to explain why support for the licence fee is at 53%, up from only 31% in 2004, and is ahead of the 17% support for subscriptions and the 26% support for advertising. It is the top choice for funding the BBC across all ages and all socio-economic groups, whether people are in Freeview, Sky or Virgin households.

Not just the public but other broadcasters appreciate the licence fee, since they have built their business models using finance from advertising, sponsorship and subscription on the assumption that the BBC will not enter those markets and that, as a result, the size of those markets will be fairly stable. Labour believes that the licence fee is the best funding model.

[Kelvin Hopkins]

I apologise for intervening again so quickly, but I want to reinforce my hon. Friend’s point. The fact is that we have quality television across the piece in Britain because of the BBC. If it were not for the BBC, standards might drop severely.

[Helen Goodman]

My hon. Friend is absolutely right. No one wants people to go to prison for non-payment of the licence fee. Last year, 165,000 people failed to pay, and 51 were jailed for non-payment of the associated fines, even though people can pay by instalment. Clearly, we need some sanctions to ensure payment. The question is whether the current sanctions are the right ones. That is why we have agreed to a review of the sanctions.

Our amendment 62 would require the Secretary of State to lay the review’s terms of reference before Parliament, because we want a proper, analytical and unbiased review. I wrote to the Solicitor-General’s colleague, the Under-Secretary of State for Culture, Media and Sport, the hon. Member for Wantage (Mr Vaizey), who has responsibility for communications, about this matter on 7 April.

Such a review should cover the impact of a change on the level of licence fee evasion. It would be helpful to have historical data on evasion rates. According to the TV licensing database, the statistics on the socio-economic background of unlicensed properties show that 38% are ABs, 29% are C1s, 13% are C2s, 8% are Ds and 11.5% are Es. Those figures are broadly in line with the socio-economic background of UK properties as a whole. That does not translate to the socio-economic status of those prosecuted or imprisoned for non-payment of the licence fee, but it indicates that there is higher evasion among better-off households.

The review should cover the impact on the BBC’s finances. Without that information, we will not know the full impact of evasion. Estimates suggest that a 1% increase in non-payment might lead to a £35 million loss to the BBC. It has said:

“If Licence Fee evasion were to double to around 10%, the BBC would have an estimated…£200 million less per annum for content and services—equivalent to the combined budget of BBC4 and our two children’s channels, CBeebies and CBBC, for example. Due to low rates of evasion at present, an additional £6.7m was available to spend on BBC content in 2012/13.”

Obviously, if evasion went up, such investment would no longer be possible.

The review needs to look at the impact of new technology and the possibility of ending the BBC’s universal offer. Currently, the BBC cannot switch off the signal, so what would happen if it could?

--- Later in debate ---

[The Solicitor-General]

We have had a short but lively debate, and I would like to put it on record that no Government Member said that the BBC was not a fantastic institution, or anything of that sort. Our debate was not about the licence fee, although the charter review is coming up, and that will have a process of its own; it was about enforcement.

My hon. Friend the Member for North West Leicestershire (Andrew Bridgen)—I pay tribute to the way he put his case—made the point that there are many poor and vulnerable people who struggle with the licence fee, and they can be criminalised and even sent to prison for failure to pay it. He clearly felt concerned about them, and made his case in that way. It was not developed as some kind of veiled attack on the BBC. I think it right to look at decriminalisation. Even the hon. Member for Rhondda (Chris Bryant) seemed to accept that at one point, and he even seemed to accept that it would be right to have a review of the sort proposed by the Government. Again, I do not see much cross-party disagreement there.

Clearly, the Government will not take up the invitation of the hon. Member for Bishop Auckland (Helen Goodman) and say what the outcome of the review and the penalties will be—something I thought she said. She asks why the Government are unwilling to set the penalties now; the answer is that we have not yet had the review. Whether one particular body will have the duty of setting the variable fees is another issue for the review; we want a proper review that will look into all aspects of the issue. As to what analysis has been done of the potential impacts—positive and negative—of switching to a civil rather than a criminal enforcement, or of having the option of both, we are having a review precisely to determine that. The whole point is that we do not want to prejudge the review.

[Helen Goodman]

My question was not why the Government will not decide the penalties at this juncture—I completely accept what the Solicitor-General said about that—but why the Government were offloading the task of setting the penalties on to another body.

[The Solicitor-General]

There will clearly need to be a mechanism to effect the change; someone will have to decide what the variable penalties should be, and I shall come on to that in a moment. I do not think it right, however, to prejudge who or which body should do the setting. The hon. Lady suggested one particular body, but we are happy to let the review look into these issues and come up with its thoughts on what sort of regime should or should not be approved.

The amendments are designed to achieve two objectives. Under amendment 62,

“The Secretary of State must lay the terms of reference of a review”

of the TV licensing enforcement regime

“before each House of Parliament.”

Those would be key papers for the review, and there would be others. What normally happens, and what we propose, is that those papers are deposited in the Libraries of both Houses. It would be unusual to lay them before the House. That would be the normal and best way forward, and it would achieve the same effect as the amendment—that is, it would ensure that the House of Commons was fully aware of the details.

Amendment 63 looks to ensure that the power to decriminalise the failure to have a TV licence via secondary legislation, either by replacing the criminal regime with a civil regime, or by enabling the imposition of civil penalties for such offences, would not be exercised until after the conclusion of the charter process. As previously mentioned, this power would need to be exercised in the light of the review’s findings, and considering the full impacts, costs and benefits to licence payers, to the court system—where, as the hon. Lady said, changes are being made—and to businesses of any changes to the enforcement regime. That would be considered in the context of the charter review.

At this stage, it would be premature to put restrictions on the timing of when the power may be exercised, given that the charter review has not yet started, and the Government have not set out the detail of the process and the timing. The Government therefore resist the amendments on the following grounds. First, the key papers will be deposited in the Library in the normal way and, secondly, we do not want to restrict what should or could happen, in terms of decriminalisation, by aligning the legislation with the timing of the charter review, although the legislation would be in the context of the review.

My hon. Friend the Member for Cities of London and Westminster (Mark Field) made the point that we are living in a changing world. That is true, both as regards the courts and how they go about enforcing, and about the media and broadcasting world. It is also true in respect of how we look at enforcement. Given that so many public services have civil enforcement and that it can be effective, it is certainly right, I think, at this point to have a review, and to try to move away from the aggressive approach that my hon. Friend mentioned. The point was made by my hon. Friend the Member for Macclesfield (David Rutley), and I have encountered the issue in my constituency postbag and at surgeries. Elderly people who feel that they have paid their licence fee—they often have—can be threatened with bills, letters about going to court and so forth, yet it is often the TV licensing authorities that have made the mistakes. A civil approach, where at least the threat of court is not frightening elderly, vulnerable and poor people, might be a better way forward. It is certainly something worth reviewing. On the issue of excellence and free markets, it is right that both can deliver.

--- Later in debate ---

[The Solicitor-General]

It is certainly not the intention to do anything that does not take into account the full context—[Interruption.] The hon. Gentleman laughs, but there is a full context to the charter review. It is difficult when the process has not been set out and nobody is aware of the full details, so one needs to be wary of tying one’s hands too much. All I am saying is that some commitments have been made about the time scale for the review; that is in the legislation. We know when the charter review will take place, and we know that nothing will happen until the review has been completed, taking into account all the various points I have made. That should satisfy the hon. Gentleman.

The hon. Member for Bishop Auckland mentioned variable fees; they are provided for in the Government amendments, which also deal with the question of extent and the Crown dependencies. I commend Government amendments 14 and 15 and 20 and 22, and urge the hon. Lady to withdraw the amendment.

[Helen Goodman]

I did not find the Solicitor-General’s arguments very convincing. He seems to want to retain the freedom to fiddle around with the way in which the licence fee operates before we have seen the results of the royal charter review. None the less, I do not wish to press either amendment 62 or amendment 63 to a vote, although I suspect that amendment 62 may be re-examined in another place. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 55

TV licensing: alternatives to criminal sanctions

Amendments made: 14, page 40, line 24, after “be” insert “—

(a) ”

This amendment is a drafting amendment related to amendment 15.

Amendment 15, page 40, line 25, at end insert

“, or

(b) such amount, not exceeding a maximum amount specified in the regulations, as may be determined by a body so specified.”—(The Solicitor-General)

In the event of the Secretary of State deciding to make regulations replacing the TV licensing offences with a civil penalty regime, this amendment would allow the regulations to provide for the amount of the penalty to be determined by a body specified in the regulations, subject to a maximum amount specified in the regulations.

New Clause 3

Limit on indemnity required under Outer Space Act 1986

‘(1) The Outer Space Act 1986 is amended as follows.

(2) In section 3 (prohibition of unlicensed activities), after subsection (3) insert—

“(3A) An order under subsection (3) may—

(a) provide that section 10(1) does not apply to a person to the extent that the person is carrying on activities that do not require a licence by virtue of the order;

(b) specify the maximum amount of a person’s liability under section 10(1) so far as the liability relates to the carrying on of activities that do not require a licence by virtue of the order.”

(3) In section 5 (terms of licence), after subsection (2) insert—

“(3) A licence must specify the maximum amount of the licensee’s liability to indemnify Her Majesty’s government in the United Kingdom under section 10 in respect of activities authorised by the licence.”

(4) In section 10 (obligation to indemnify government against claims), after subsection (1) insert—

“(1A) Subsection (1) is subject to—

(a) any limit on the amount of a person’s liability that is specified in a licence, and

(b) any order made under section 3(3).”

(5) The Secretary of State may vary any licence under section 4 of the 1986 Act that is held at the time when this section comes into force so as to specify the maximum amount of the licencee’s liability under section 10 of that Act.

(6) A variation under subsection (5) is to be made by giving notice in writing to the licensee.

(7) The power under section 15(6) of the 1986 Act may be exercised so as to extend to any of the Channel Islands, the Isle of Man or any British overseas territory any provision made by this section (subject to any specified exceptions or modifications).” —(Oliver Heald.)

Section 10 of the Outer Space Act 1986 requires people carrying out certain space activities to indemnify the UK government against claims arising out of the activities. The new clause makes provision for limiting the amount of the liability under the indemnity.

Brought up, and read the First time.

[The Solicitor-General]

I beg to move, That the clause be read a Second time.