Helen Goodman
Main Page: Helen Goodman (Labour - Bishop Auckland)(7 years, 10 months ago)
Commons ChamberNo, I will make some progress, if the hon. Gentleman will forgive me. I will come back to funding shortly, but I want to put on record the fact that the draft charter contains a few small, technical omissions and errors. We will publish shortly a revised charter that includes all those points, on which I know some hon. and right hon. Members have picked up.
The BBC royal charter and agreement will support a BBC that makes and broadcasts world-class content; that provides impartial, high-quality news; that is independent, transparent, and accountable; and that works with, rather than against, the rest of the United Kingdom creative sector. The BBC director-general, Lord Hall, hailed the draft charter as
“the right outcome for the BBC and its role as a creative power for Britain”.
The new royal charter will make the BBC stronger in a number of ways. It will increase the BBC’s independence, improve its regulation, make it more transparent and accountable to licence fee payers, and make it better reflect the whole United Kingdom. First of all, the BBC will become more independent.
The Secretary of State has just said that the new royal charter will maintain the BBC’s independence, but I draw her attention to paragraph 4 of the draft agreement that she laid before the House last month, which states:
“By entering into this Agreement, the BBC has…assumed obligations which restrict, to some extent, its future freedom of action.”
How can that possibly be consistent with what she has just said about its independence?
When the hon. Lady looks at the charter as a whole, she will see that the BBC will become more independent. It is very easy to take one line from an agreement and try to demonstrate the opposite. As a whole, the charter will make the BBC more independent.
Ministers are nodding in support of that, so I hope that they can reassure me that the new and explicit commitment to diversity will also cover social class. I grew up in an era when working class actors such as Michael Caine, Glenda Jackson and Julie Walters were giants of popular culture.
I am; I am feeling it, anyway.
I have nothing against Benedict Cumberbatch and Eddie Redmayne—I admire their talent hugely and they are great ambassadors for our country—but we need more people like Julie Walters, Christopher Ecclestone and Paul McGann. And it should not fall to Lenny Henry and Idris Elba to be the face of the BBC’s diversity programme.
I am most grateful to my right hon. Friend. It is gratifying, and it is a positive sign, that the charter and the agreement essentially reflect the contents of the White Paper, which was the result of a great deal of work. At the time, it was very much welcomed by the BBC as putting it on a sound footing for the future. I believe that that is the case and that the charter and the agreement are, if anything, a bit tougher on the BBC than the White Paper was. The changes made to the charter and agreement go further—in ways that I welcome. Indeed, I might have recommended myself the changes to the salaries publication regime, whereby the Government have decided that it is right to publish the salaries of not only those earning over £450,000, but over £150,000.
The issues that attracted perhaps most comment when the White Paper came out—they have featured in the debate we have had thus far—are the independence and the governance structure of the BBC. The governance structure was widely recognised by Members of all parties as having failed. The BBC Trust had virtually no defenders. When I chaired the Select Committee, we produced a robust report, saying that the trust model did not work. The Lords Communications Committee also produced a report making precisely the same point. The idea that the BBC should have a management executive and then this arm’s length body, which was part of the BBC but not in the BBC, was simply a recipe for confusion, leading to a succession of problems, including severance payments, the appointment and then departure of the director-general within a space of 54 days and huge wastes of money such as the digital media initiative, which cost the licence fee payer over £100 million.
We asked David Clementi to come up with a recommendation for a new governance structure, and he came back with the one that most people had always felt was the right solution—a strong unitary board with external governance from Ofcom. Then the debate was about the appointments made to that management board—the unitary board—and whether the Government should have a role in it.
The hon. Member for Bishop Auckland (Helen Goodman) reads some sinister meaning into paragraph 4 of the agreement, where it says that the independence of the BBC’s appointments is important, but nevertheless has to take account of external factors. Let me explain that that particular paragraph is word-for-word identical to the paragraph in the agreement published in 2006, when the Labour Government were in office. It simply translates the same provision from 2006 into the new agreement. So if there was a sinister purpose, it was the creation of the hon. Lady’s party, not that of the present Government.
There was then a debate about the fact that, obviously, the unitary board was a more powerful and directly responsible body than the trust. It was recognised, I think, that it was right for the appointment of the chairman to remain a Government appointment, although my own view was that because the board was such a new creation there should be an open competition, and that was the view that the new Secretary of State and the new Prime Minister subsequently reached following the publication of a report by the Select Committee. I think that that was probably the right decision.
The Government appoint the four independent directors, each of whom will represent or speak for one of the nations of the United Kingdom, and, as has been pointed out, the BBC will appoint five non-executive directors. Even the Government’s appointments will, however, be made through the public appointments process. As I have said, they will not be in the majority. Perhaps most crucially of all, the unitary board will not have a role in editorial decision-making, although it will have a role in reaching judgments about complaints post-transmission. That crucial safeguard will ensure that those people cannot be accused of political interference.
I find it extraordinary, I must say, that all the people who suggested that the creation of the board somehow constituted a threat to the independence of the BBC—although, as was pointed out, it would have no involvement in editorial decision-making—have been strangely silent about what strikes me as a more dangerous precedent: the appointment of James Purnell as director of radio and education. When the BBC appointed James Purnell as director of strategy in 2013, just three years after he ceased to be a Labour Member of Parliament and about five years after he ceased to be Secretary of State, I questioned the director-general about the appointment in the Select Committee. I asked him whether he could think of any precedent for the assuming of a management role in the BBC by someone who was not just politically affiliated, but had been a very active party politician. He could not do so, but he did say this to the Select Committee:
“I think the key thing is—James’s job of course is not editorial”.
James Purnell has now become director of radio and education. As director of radio, he has overall responsibility for the output of a large amount of BBC content, and it is impossible to say that he has no involvement in editorial decisions. Indeed, we are told that he has been groomed as a potential candidate for the job of director-general, a position which, of course, is also that of chief editor of the BBC.
I like James Purnell. We get on well, we have robust discussions, and we agree about quite a lot. I have absolutely no doubt that James Purnell is absolutely committed to the impartiality of the BBC, just as I am; I merely suggest that if I, as a former Secretary of State, were to be invited, in a few years’ time, to take on a management role in the BBC—[Hon. Members: “I’d back you!”] I suspect that, despite the support that I might enjoy from some on my own side, it would give rise to howls of outrage, and I do not think it would be appropriate. This is not to criticise James Purnell, but his appointment does establish a very dangerous precedent, which is far more of a direct threat to independence than the appointment of the non-executive, independent directors.
The right hon. Gentleman is making a fair point. What it all goes to show is that more appointments of this kind should be made through independent processes, and that is precisely our criticism of the new board structure. The right hon. Gentleman has just given another example in which the independence comes into doubt.
The hon. Lady has made an interesting point. The Government have no involvement in the appointment of management executives in the BBC, and—this is another issue—we understand that, just as there was no competition when James Purnell was appointed director of strategy, there was no advertisement or external competition for this particular post. However, that is a matter for the BBC. It is something that the Select Committee has previously questioned quite vigorously, and although I am no longer a member of the Select Committee, my successors may well wish to take it up with the director-general in the future. I hope that they will.
Much of today’s debate will doubtless focus on issues such as governance, compliance, regulation, independence, distinctiveness and financial stability, but I wish to use my time to raise again an issue that is far too often pushed to the margins: diversity and equal opportunities.
Last week, I attended the launch of the BBC’s “Black and British” season. It was at a hotel in Soho and it was well attended. The event gave us a glimpse of some bold, vibrant stories, intended to overturn various misconceptions and to challenge the orthodox. The aim was also to show what it really means to be black and British today. I must admit that when I arrived I was a little sceptical, but when I left I was a little emotional, because I had been taken on a journey back to the ’40s, ’50s, ’60s and ’70s, and then forward into the future, with a documentary speculating on whether we will ever have a black Prime Minister, by some brilliant, diverse writers, presenters, broadcasters, directors and producers. I think I witnessed the BBC operating at its very best, and I felt very proud of the institution and proud to be British. I felt excited about the future.
This desire and commitment to have even greater diversity at the BBC seems very genuine, and pretty well reflected in the draft charter and agreement, but there are three areas where clarification from the Secretary of State or the Minister for Digital and Culture, either in the wind-up or later in writing, would be helpful. I also wish to make one or two remarks about Ofcom.
First, although the Department for Culture, Media and Sport has published helpful information sheets on a large number of policy areas, no information sheet appears to have been produced on diversity and equal opportunities. I therefore ask the Secretary of State or her Minister to look into providing a comparable document as soon as possible.
Secondly, the draft charter states:
“The BBC must ensure it reflects the diverse communities of the whole of the United Kingdom in the content of its output, the means by which its output and services are delivered (including where its activities are carried out and by whom) and in the organisation and management of the BBC.”
Will the Secretary of State or her Minister please confirm that that diversity requirement applies to on-screen and off-screen employment from all suppliers, both internal and independent?
Thirdly, the agreement requires the BBC to promote equal opportunities in relation to disability, race and sex; to make people aware of its arrangements to achieve that; to review the arrangements; and to publish a report at least once a year on the “effectiveness of the arrangements”. On that latter requirement, I respectfully ask the Secretary of State and her Minister to pay special attention to the word “effectiveness”, because we need to know what works and what does not work. Too often in my life—in my experience both as a lawyer and a politician in this place—I have heard institutions boast good practice or best practice, but then found that good practice or best practice do not mean effective action, and we really do need effective action here.
Finally, Ofcom as a regulator is responsible for ensuring that the BBC’s diversity requirements are realised. I confess that in the past I have not been overly impressed by Ofcom’s response to statutory equality duties, but it now has a new chief executive officer who has promised a harder-edged approach to diversity. She has also mentioned quotas and, if necessary, ring-fenced funding. I hope that Sharon White’s words are reflected in action, and I shall watch very carefully.
The hon. Lady is making a characteristically powerful speech. Given the diversity of the population under the age of 18, does she agree that it is particularly important that we have a home-grown capacity for making children’s programmes so that the programmes that children watch reflect the communities in which they live?
The hon. Lady makes a very good point. I would be extremely interested to look into that sort of idea.
On the basis that transparency drives diversity, I also hope that Sharon White will require full publication of the BBC’s diversity data, with Ofcom providing commentary and the essential evaluation.
Many people listening to this debate today have worked so, so hard for years to advance diversity in the arts and creative industries. There is still much to do and still a way to go, but I do feel that we are on the brink of some real progress. I therefore take this opportunity to pay tribute to the former Culture Minister, my right hon. Friend the Member for Wantage (Mr Vaizey), and to all those committed individuals both inside and outside Parliament such as Simon Albury of the Campaign for Broadcasting Equality who never seemed to give up.
I begin by saying that I chair the National Union of Journalists’ parliamentary group, the secretariat of which is included in my entry in the Register of Members’ Financial Interests. It is a great pleasure to follow the right hon. Member for Wantage (Mr Vaizey), who was an extremely able and successful Minister at the Department for Culture, Media and Sport, holding the post of arts Minister for a record six years. He demonstrated again this afternoon that with wit and charm he is able to defend some really poor policies.
The BBC is a first-class institution, but it is now at risk. As everybody knows, Lord Reith’s vision was to educate, inform and entertain free from political interference and commercial pressure. We now have a much weaker commitment to reflect the UK and its culture and values to the world. A large part of the draft agreement, which I thought was a strange document when I read it, between the Secretary of State and the BBC relates to the limitations that will be placed on the BBC’s independence and how it will fulfil its role in a competitive environment. We seem to be moving rapidly away from Lord Reith’s vision.
An early section of the draft agreement deals with the role of the BBC as a UK public service and the public interest test. The agreement states that the BBC must consider public value relative to
“any adverse impact on fair and effective competition”.
In other words, when the BBC makes changes to its delivery of the public services set out in the document, its first thought is the impact not on listeners, viewers or citizens, but on its competitors. That undermines the distinctive role of the BBC. When the Secretary of State was appointed, I thought that that was really positive and that we would have somebody in this role who had not spent years in the media milieu and would therefore bring a fresh approach. I was therefore extremely disappointed to discover that she had appointed as her special adviser the former chief political correspondent of The Sun. The obsession with the BBC’s impact on other broadcasters seems to suggest that the hand of Murdoch is evident in the document.
Let us look at some of the specifics in the agreement. Paragraph 67 is headed “Defence and Emergency Arrangements”, but it covers far more than just those things. Its provisions set out no limit to the Government’s power of censorship, and it is possible that the Government could interfere with editorial judgments and broadcasting content. Now let us look at the section on competition. Obviously, the BBC, supported by public money in the form of the licence fee, is in a special position and there are risks of it abusing that position. There was a long-standing argument about whether The Listener was competing unfairly with the New Statesman, The Economist and other weekly and monthly magazines, and now the argument is about whether the BBC’s web content is competing unfairly. What is strange about this charter, and this is where it goes wrong, is that there has been a move from the margins—from a small problem that was acknowledged and needed to be dealt with—to place the position of the competitor right at the centre of BBC decision making about what public services it needs to provide. The BBC will have to consider the positive and negative market impact of its activities, and Ofcom must keep that in mind when reviewing new and changed services. There must be concern that commercial broadcasters will be able to launch anti-competitive challenges against the BBC, including to existing programmes and scheduling.
The right hon. Member for Wantage talked about radio, and there is a particular concern about what is proposed for BBC radio. At the moment, the BBC contracts out to the private sector the production of 20% of radio programmes, but it is proposed that by 2022, at least 60% of BBC radio programmes will be contracted out. That is a massive change in how radio programmes are made, and I am concerned about it from two points of view. First, and most importantly, in what sense will we have BBC radio, with its characteristic and distinctive quality, if more than half of it is produced by the private sector? Secondly, there is the question of the practical feasibility of doing this. When more than half the radio programmes are made by external producers, the BBC’s in-house capacity will be limited. Members who are concerned about that matter might like to sign early-day motion 551.
The performance of the last BBC Trust seems to have been absolutely abysmal. I am sorry to say that that was due not to structures, but to the people who were in positions on the trust. It was completely irresponsible of them to take on responsibility for free licences for people over 75. I am pleased that the Prime Minister has insisted on an open appointment for the head of the new structure, but I do not think that the new unitary board, which includes five Government appointees, can truly be said to be independent.
The right hon. Member for Wantage pointed out that there had been a lot of top slicing. Since 2010, if we take account of the freeze on the licence fee and of the constant slicing away of money for different purposes, the BBC has experienced a real-terms cut of 25%, which is extremely significant.
I am pleased that the National Audit Office will be involved in looking at whether the BBC is properly managed, as it seems that its major problems are related to management, not editorial matters. I very much hope that that the growth in contracting out will not simply be a mechanism for people to evade scrutiny regarding high pay.
The Secretary of State began her speech by saying that the BBC is a trusted, valued and much-loved institution not just here in Britain, but across the world. I regret to say that those fine words do not seem to be supported with an approach on the charter that would preserve the BBC free from commercial pressure and political interference.