Channel 4 Privatisation

John Nicolson Excerpts
Wednesday 27th April 2022

(2 years, 7 months ago)

Commons Chamber
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Baroness Winterton of Doncaster Portrait Madam Deputy Speaker
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I call the SNP spokesperson, John Nicolson.

John Nicolson Portrait John Nicolson (Ochil and South Perthshire) (SNP)
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Well, here we go again: a Secretary of State, oblivious to the unanimous opposition of the sector, is ploughing on with a politically motivated privatisation. She knew so little about Channel 4 that she thought it was publicly funded and had to be corrected by a Tory colleague on camera. Channel 4 costs the taxpayer nothing. The cynical motivation for the policy is simple: it is payback time; it is revenge. The Government hate “Channel 4 News” and its rigorous journalism holding Ministers to account.

The Minister mentioned a Netflix-style model, ignoring the fact that Netflix, unlike Channel 4, loses money—it is currently $15 billion in debt—and does not send war correspondents to Ukraine. Will she therefore listen to the experts, or must we wait for the Sue Gray report, the Prime Minister’s defenestration and the Secretary of State’s replacement?

Julia Lopez Portrait Julia Lopez
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I thank the hon. Member for his question. I did not suggest that Channel 4 would pursue a Netflix subscription model; I simply made the point that Netflix and others—this is not a Netflix issue alone—are changing the dynamics of the marketplace very rapidly. People now view content in very different ways and I do not think it would be a wise, sensible or responsible approach to leave PSBs untouched and unable to have the flexibility that they need to address some of those fundamental challenges.

The hon. Member made a number of unpleasant comments about the Secretary of State. She is not the first Secretary of State to have considered this question. This is not a Secretary of State-specific point of view but a question that has been live for a number of years. It was looked at previously, and the fundamental changes in the market have only deepened since that time with the move away from linear advertising and the rapid change in viewing habits. She took the responsible decision to look not just at Channel 4 but at how we ensure that public service broadcasters have the flexibility they need to be able to provide the content that we all love. She has done a sensible thing in looking at the decision afresh and dealing with it head on, and she has courage in doing so.