Oral Answers to Questions

John Nicolson Excerpts

Thursday 1st July 2021 Commons Chamber

[Mr Whittingdale]

I am grateful to my hon. Friend, and I commend him and his Select Committee for the excellent report on public service broadcasting that they produced recently, which drew attention to the fact that the way in which we consume television is changing fast and that the switch from linear to digital is taking place even more quickly than some people anticipated. We have reached no conclusion as to the appropriate future ownership model for Channel 4—we maintain a completely open mind—but he raises a number of interesting possibilities and we look forward to seeing what submissions we receive as part of the consultation.

[John Nicolson (Ochil and South Perthshire) (SNP) [V]]

The case for the privatisation of Channel 4 was, of course, debunked by the then Secretary of State last time the issue reared its head. I think her assessment was that it would be too much grief for too little money. Privatisation would see profit put first, a slash in the £500 million that goes annually to independent production companies, a centralisation of headquarters—the antithesis of levelling up—and likely cuts to Channel 4’s brilliant news and current affairs programming. Channel 4 recorded record profits last year and it does not cost the taxpayer a penny. Given that this much-loved institution is profitable and free, why do Ministers want to do down Britain and sell it off to avaricious American investors?

[Mr Whittingdale]

The hon. Gentleman is wrong on several counts. It is the case that Channel 4 recorded a profit last year, and I commend the management for taking the action that made that possible, but the reason they did so was because they cut the amount of money that they spent on content by £140 million in anticipation of a big fall in advertising revenue, which indeed took place. It is to sustain Channel 4 going forward that we are looking at the possibility of alternative ownership models, and it would certainly be our intention that Channel 4 would do more outside London and across the United Kingdom, not less.