BBC Funding (CSR)

Ian Murray Excerpts

Wednesday 10th November 2010 Commons Chamber

[Ian Murray (Edinburgh South) (Lab)]

Mr Deputy Speaker, all day long colleagues have been tempting me to say, “Nice to see you, to see you—”

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

Nice!

[Ian Murray]

I thank the hon. Lady for that sedentary intervention.

Ever since the BBC’s inception in 1922, it has played a major role in this country. The public not only admire the BBC; they trust the corporation to deliver real value and quality while they watch and listen to its channels or, more recently, surf its online content. Indeed, the quality of the BBC output could only be improved by you, Mr Deputy Speaker, appearing as the guest presenter on “Have I Got News For You” or by light-footed former Conservative Members appearing on “Strictly Come Dancing.”

We must, however, protect what the BBC provides and how it is paid for. The licence fee enables our national public-sector broadcaster to provide 10 TV channels, 10 UK-wide network radio stations, 46 national and local radio services, regional options, interactive services on BBC iPlayer, and high definition television, as well as the ever-popular BBC websites which attract 22 million unique users in the UK every week. On top of all that output, the BBC is the engine room of the country’s hugely important creative industries.

Let us consider the value of the licence fee. It costs about 40p per day, which is less than half the cost of many daily newspapers and about the same as the price of a pint of milk or a first-class stamp. It costs less than the price of half a loaf of bread, 20 times less than the average cinema ticket, and a 25th of the cost of joining the Liberal Democrats. The licence fee also enables the BBC to invest in the UK as a whole, with a commitment to 50% of network production coming from outside London by 2016 as well as a commitment to the BBC regions in Scotland, Wales and Northern Ireland.

Most importantly, the BBC delivers a significant contribution to the creative industries and the UK economy. Britain’s creative sector, which accounts for about 6% of the UK’s GDP, can make a significant contribution to economic growth and employment. Having grown at a faster rate than the general economy in recent years, the creative industries are now expected to grow by 4% on average in the next five years. The beneficial impact of the BBC to that is some £7.6 billion a year, including more than £150 million through BBC Worldwide.

[Robert Halfon (Harlow) (Con)]

I congratulate the hon. Gentleman on securing this important debate. He has made the case for the licence fee, and there is obviously a case for it, but does he not agree that the big problem with it is that no licence fee payer has a say in how the BBC is run? We need to democratise the licence fee and give licence fee payers the vote, at least in respect of the board and trust and the BBC’s direction.

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[Ian Murray]

I think the BBC has a lot to learn on those principles. However, I will talk shortly about what the Government have done by not including licence fee payers in the comprehensive spending review and the future of the BBC.

The BBC is a globally respected brand, which is why the House should be concerned for its future, and it has been described as a national treasure, which is why Labour Members will always stand up for it as a friend, although a critical friend. I must state clearly at the outset that the BBC should not be immune from reform or cuts at a time when we are all supposed to be in this together, but that reform process has to be done through negotiation and with respect for what the BBC delivers and the people—its staff—who deliver the service on behalf of us all.

The outcome for the BBC from the CSR has shown contempt for the corporation, and the opportunity has been lost truly to change the organisation in the context of a new digital age, changing and fast-moving markets and, significantly, shrinking budgets across the sector in programme making.

The BBC also has a responsibility to consolidate its own activities within the continual pursuit of excellence alongside an honest examination of the role of both the BBC and, more importantly, public sector broadcasting. The final settlement for the BBC through the comprehensive spending review is yet another example of the Government’s undue haste. We have seen that with the dangerous too-deep, too-soon, too-quick cuts that will harm jobs, harm growth and threaten the already fragile UK economy.

The CSR deal for the BBC was put together in 72 hours. It was a dubious deal, with Ministers embarking on a strategy to intimidate the BBC into accepting whatever came its way. Why? Because the outrageous proposal that the BBC take responsibility for free TV licences for the over-75s hung over it like a guillotine. What would be next? The licence fee paying for the winter fuel allowance, child benefit or perhaps even the Prime Minister’s new personal photographer?

That threat ensured that the BBC would grab the deal given to it through the CSR quickly and with both hands. Let us look at the settlement it was given. It includes a freeze in the licence fee for the remainder of the charter period and the BBC taking on funding for the BBC World Service, BBC Monitoring and the Welsh language channel S4C. In addition, the BBC will be supporting the Secretary of State’s pet project, the new City TV, through a £25 million ring-fenced partnership fund. It will also be given responsibility for delivering broadband services. All in all, there is a £340 million bill alongside a 16% real-terms reduction in licence fee income over the period.

This “delicious” deal, as the Prime Minister described it, was so hastily contrived that it prevented proper consultation and debate with licence payers, stakeholders and, most importantly, BBC staff themselves to the extent that we are left with no real way of knowing the true impact on the BBC. Will it affect the quality of programming? Will it mean the BBC stopping services? Will it mean significant job cuts? Will it damage the independence of the BBC and the BBC World Service? Will the board of S4C take the Government to court, due to it not being consulted about its funding being transferred to the BBC?

Conversely, this rushed deal has also restricted the opportunity to keep the pressure on the BBC to continue on its programme of reform in terms of bureaucracy and excessive executive pay.

[Graeme Morrice (Livingston) (Lab)]

I am grateful to my hon. Friend for giving way. Has he, like me, received many representations from constituents arguing against any freezing of, or indeed cuts in, the licence fee and supporting its retention so that a quality service can continue to be provided by the BBC?

[Ian Murray]

I welcome the intervention from my hon. Friend, who raises an important point. Many Members, I am sure, will have received dozens, if not hundreds, of e-mails, letters and telephone calls from people who are concerned about the BBC, cuts to it and what it delivers. Constituents have raised that point with me on numerous occasions.

To go back to the missed opportunity, the BBC was entering into a new culture of transparency and accountability—a programme that was, on its own measurement, to save £2 billion by 2014. I want to ask the Minister some questions about the future of the BBC. Is this deal on top of the BBC’s current strategy to save £2 billion by 2014? What criteria will be applied to where the cuts will fall? Will there be job losses and a reduction in quality? What impact will the cuts have on the move to the media city in Salford and the programming being transferred to the regions—50% by 2016, I think? Who is now responsible for the roll-out of broadband—the Department for Culture, Media and Sport, the Department for Business, Innovation and Skills or indeed the BBC? What will the future hold for the BBC World Service? What budget protection will the World Service have? Will that critical service have to compete with other parts of the BBC budget in due course?

[Anna Soubry (Broxtowe) (Con)]

Is not the real problem with the BBC the fact that it has expanded into areas that it should not have expanded into, and that it has lost sight of the fact that it is a maker and broadcaster of programmes? In moving into websites, it is taking away from other websites. Most importantly, it is taking away the ability of people to work in print journalism. It is really threatening newspapers and other websites.

[Ian Murray]

I appreciate that intervention, but the BBC has been involved in a programme of reform of what it supplies on the website. The list of duties that has been placed on the BBC by the comprehensive spending review has given it more responsibility, not less. It is the opposite idea to that which has been given by the—

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Motion made, and Question proposed, That this House do now adjourn.—(Mr Dunne.)

[Ian Murray]

I will get used to the procedures in this Chamber, I am sure, Mr Deputy Speaker.

On the World Service, will the BBC have budget protection or will the World Service have to compete with other parts of the BBC budget in due course? What role will the Foreign Secretary have in that process? The Secretary of State mentioned that the BBC would have to seek the Foreign Secretary’s approval for World Service closures. The fact that the word “closure” is used must concern staff and lovers of the service. Furthermore, the BBC World Service is well regarded as the best international diplomacy and peacekeeping device that the UK has—more effective, indeed, than the UN or any military might.

Indeed, if you will indulge me, Mr Deputy Speaker, the BBC World Service won several awards just last night, demonstrating the distinctive programming that it can provide. At the Association for International Broadcasting awards, the BBC World Service won the best current affairs documentary on radio award and the best single news event radio award for its “Connexion Haiti” team and a drama award for the best creative feature on radio for “The Day that Lehman Died”. That shows that listeners the world over appreciate the role of the World Service.

Will the Minister tell the House what the future is for S4C, given that the Secretary of State recently wrote to the chair of the BBC Trust stating that

“if the new partnership model between S4C and the BBC proves unviable…the BBC contribution required for S4C will be taken from the licence fee”?

I read that to mean that S4C could potentially be closed if it becomes unviable. Crucially, how will licence payers, BBC staff and stakeholders be consulted in that process?

If the economic situation changes, will the Government assure the House that the Government do not reserve the right to go back to the BBC licence fee issue in the course of this licence charter period? If the Secretary of State cannot answer those questions this evening, will he be willing to provide me with a written answer to those points?

The comprehensive spending review reduced the BBC to the status of just another arm of government where the veil of deficit was used to disguise rash decisions free of proper scrutiny or credible analysis, leaving the question of where the axe will fall. We have seen the response of the public to decisions on axing BBC services—we need merely look back to earlier this year, with the campaigns to save the Asian Network and 6 Music. Those services were seen by many as benchmarks of diversity, equality and innovation in public sector broadcasting.

There has been no statement in the House on the issues to do with the comprehensive spending review and the BBC. I respectfully ask the Government to provide space in their time for proper debate on and analysis of the consequences of the CSR, the future of the BBC and the future of public sector broadcasting in the UK. This situation shows the Government’s attitude towards the BBC. The “delicious” cuts comment by the Prime Minister was, as he later admitted, “ill conceived” and disrespectful to the BBC and showed a callous disregard for the potential job losses at the corporation akin to the Government’s ideologically driven 1 million cuts through the CSR in general.

The future of the BBC is a matter of significant public interest. Opposition Members will stand up for the BBC, for what it provides for the cultural make-up of this country and for the contribution it makes to the UK economy. It projects the best of the UK abroad and is undoubtedly a national treasure that is well loved, respected and should be protected for the future at all costs.

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[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

I, too, congratulate the hon. Member for Edinburgh South (Ian Murray) on securing the debate. Let me declare an interest: I worked for the BBC before coming to Parliament and I am still engaged in a financial transaction with it. That aside, I want to pay tribute to the Secretary of State for Culture, Media and Sport for the role he has played in working with the BBC, as well as to the Minister answering the debate, the Under-Secretary of State for Culture, Olympics, Media and Sport, my hon. Friend the for Wantage (Mr Vaizey).

I am a passionate defender of the BBC and I value what it brings to our country and our worldwide reputation. I have heard the points in favour of the World Service and similar services, and I want to give some assurances. I appreciate that a little knowledge is a dangerous thing, but I believe that the BBC can perfectly well survive on the comprehensive spending review settlement of a frozen licence fee for the next few years. It has made a good start with the executive board deciding to slim down. That is good news and will help the BBC to continue to be a dynamic organisation. It has tackled the difficult pension dispute, although I must admit that if I still worked there, I would have bridled at the original pension deal. It has now come up with a sensible solution and I hope that the NUJ will eventually recognise that.

The BBC still has a lot to offer our country, not only through programmes such as “Strictly Come Dancing”, with a former Member of the House doing rather well, but by continuing to provide excellent programmes of which we can be genuinely proud and that are sold around the world through BBC Worldwide. The BBC now recognises that its role is not to go off and buy things like the “Lonely Planet” guide—it will not do anything like that again—but to make use of the licence fee to subsidise programmes going forward.

[Ian Murray]

The hon. Lady has mentioned examples of the BBC slimming down, to use her words. The BBC was already undertaking such a programme, and the comprehensive spending review settlement may have taken its eye off the ball. Will she comment on that?

[Dr Coffey]

I do not work there any more, so I cannot give a personal comment on that, but the settlement concentrates the mind. I know that when I was there and we were talking in staff meetings, scenario planning was going on—for example, if there was a 20% cut, or a freeze—and there was genuine debate about what that would mean for the BBC in future. The settlement will force the board to think through what it is trying to achieve, what makes the BBC special, what it has to do and what it is nice to do. I welcome that journey because we also have to do in government—let us be honest about it—when we are trying to ensure that we live within our means.